Royal Numico expects this year a significant growth in sales and cash earnings (net profit before amortisation of goodwill) to approximate Numico’s peak year 2000. Sales and cash earnings were last year respectively at EUR 3,807 million (continued operations) and EUR 376 million.
As announced in the press release of 1 October 2001 sales in the 3rd quarter increase by 1% to EUR 1,061 million. This brings the total sales for the first nine months to EUR 3,263 million, a growth of 19% compared with last year (organic growth almost 6%).
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Sales in the USA in the 3rd quarter were 2% lower than last year. In Numico’s release of the half-year results 2001, expectations were based on a strong growth in the 2nd half year 2001 compared to a weak 2nd half of last year. The recovery of the vitamin and herbs segment in the USA is not expected to take place during the current quarter. Cost reduction measures are taken and these will contribute to the results of next year. The restructuring of the US operations will be finalised before the end of 2001.
In the third quarter EBITA totalled EUR 143 million (9% lower than last year), bringing the total EBITA for the first nine months to EUR 505 million, an increase of 20% compared to last year. Cash earnings for the first nine months amount to EUR 283 million, an increase of 11% compared with last year.
Barring unforeseen events Numico expects the 2001 cash earnings to approximate the 2000 results (cash earnings 2000: EUR 376 million). Numico expects sales in 2001 to grow between 12 and 15%
Numico results 3rd Quarter 2001
| Sales (US sales are down 2%) | EUR 1,061 million | (+ 1%) |
| EBITA | EUR 143 million | (- 9%) |
| Cash earnings | EUR 77 million | (- 10%) |
| Cash earnings per share | EUR 0.47 | (- 13%) |
Numico results first nine months 2001
| Sales (organic sales growth 5.8%) | EUR 3,263 million | (+ 19%) |
| EBITA | EUR 505 million | (+ 20%) |
| Cash earnings | EUR 283 million | (+11%) |
| Cash earnings per share | EUR 1.73 | (+ 4%) |
New appointments
Numico intends to appoint Mr Peter van Wel as Executive Board Member, sharing responsibilities for the US operations. A new CEO will be appointed shortly for Rexall Sundown Inc.
Mr Mike Meyers has been appointed CEO of GNC Inc.
Mr Trevor Wilkinson has been appointed CFO of Unicity Inc.
Consolidated profit and loss account (unaudited)
(EUR millions)
3rd quarter | First 9 months | |||||
2001 | 2000* | 2001 c/w 2000 % | 2001 | 2000* | 2001 c/w 2000 % | |
1,061 | 1,049 | 1 | Net sales, continued operations | 3,263 | 2,744 | 19 |
409 | 401 | 2 | Raw material costs, etc. | 1,255 | 1,047 | 20 |
652 | 648 | 1 | Margin | 2,008 | 1,697 | 18 |
21 | 23 | -4 | Other operating proceeds | 62 | 62 | – |
673 | 671 | – | 2,070 | 1,759 | 18 | |
| Operating expenses: | ||||||
210 | 197 | 7 | Personnel costs | 622 | 543 | 15 |
292 | 288 | 1 | Other costs | 859 | 717 | 20 |
171 | 186 | -8 | Earnings before interest, taxes, amortisation and depreciation (EBITDA) | 589 | 499 | 18 |
28 | 28 | -5 | Depreciation | 84 | 77 | 8 |
143 | 158 | -9 | Operating result before amortisation of goodwill (EBITA) | 505 | 422 | 20 |
36 | 35 | 3 | Amortisation of goodwill | 103 | 75 | 38 |
107 | 123 | -12 | Operating result after amortisation of goodwill (EBIT), continued operations | 402 | 347 | 16 |
– | 9 | – | Operating profit discontinued operations | – | 28 | – |
-39 | -49 | -20 | Financial income and expenses | -123 | -103 | 20 |
68 | 83 | -19 | Profit on ordinary activities before tax | 279 | 272 | 3 |
26 | 31 | -16 | Tax on profit on ordinary activities | 95 | 89 | 7 |
42 | 52 | -20 | Profit on ordinary activities after taxation / Group profit | 184 | 183 | – |
-1 | -1 | 9 | Minority interests | -4 | -3 | 52 |
41 | 51 | -21 | Net profit before extraordinary items | 180 | 180 | -1 |
– | – | – | Extraordinary items after tax | 494 | – | – |
41 | 51 | -21 | Net profit after extraordinary items | 674 | 180 | 274 |
77 | 86 | -10 | Net profit before amortisation of goodwill and extraordinary items | 283 | 255 | 11 |
* For comparative purposes, sales and operating expenses in the 2000 figures of the discontinued operations (NDDG, Zonnatura and some MLM activities) have been excluded on a line by line basis while the related operating result (EBIT) of these activities (year to date EUR 28 million) is shown separately.
Detailed key figures for the 3rd quarter and first 9 months
3rd quarter | First 9 months | |||||
2001 | 2000* | 2001 c/w 2000 % | 2001 | 2000* | 2001 c/w 2000 % | |
| As % of net sales | ||||||
16.1 | 17.8 | EBITDA | 18 | 18.2 | ||
13.4 | 14.9 | EBITA | 15.5 | 15.4 | ||
7.2 | 8.2 | Net profit before amortisation of goodwill (“cash earnings”) | 23.8 | 9.3 | ||
7.2 | 8.2 | Net profit before amortisation of goodwill (“cash earnings”) and extraordinary items | 8.6 | 9.3 | ||
3.8 | 4.9 | Net profit after amortisation of goodwill | 20.6 | 6.6 | ||
3.8 | 4.9 | Net profit after amortisation of goodwill before extraordinary items | 5.5 | 6.6 | ||
| Number of ordinary shares of EUR 0.25 (in millions) | ||||||
162.8 | 159.4 | 2 | Outstanding at period-end | 162.8 | 159.4 | 2 |
162.8 | 159.4 | 2 | Average oustanding | 162.8 | 153 | 6 |
192.1 | 189.9 | 1 | Fully diluted at period-end 1) | 192.1 | 189.9 | 1 |
| Per share development (EUR) 2) | ||||||
0.47 | 0.54 | -13 | Net profit before amortisation of goodwill (“cash earnings”) | 4.77 | 1.67 | 186 |
0.47 | 0.54 | -13 | Net profit before amortisation of goodwill (“cash earnings”) and extraordinary items | 1.73 | 1.67 | 4 |
0.25 | 0.32 | -22 | Net profit after amortisation of goodwill | 4.14 | 1.18 | 251 |
0.25 | 0.32 | -22 | Net profit after amortisation of goodwill before extraordinary items | 1.1 | 1.18 | -6 |
– | – | Capital and reserves per share | 16.17 | 12.96 | ||
0.64 | 0.72 | -12 | Gross cash flow per share (adjusted for extraordinary items) | 2.25 | 2.18 | 3 |
| Per share development fully diluted 3) (EUR) | ||||||
0.46 | 0.53 | -12 | Net profit before amortisation of goodwill (“cash earnings”) and extraordinary items | 1.69 | 1.62 | 5 |
0.25 | 0.32 | -22 | Net profit after amortisation of goodwill before extraordinary items | 1.09 | 1.15 | -6 |
1) Assuming full conversion of outstanding convertibles and exercise of option rights
2) Based on average number of outstanding shares, except for Capital and reserves, which is based on the number of shares outstanding at period-end.
3) Details on calculation included in separate note.
Consolidated balance sheet (unaudited)
(EUR millions)
30-Sep-01 | 31 December 2000 (after appropriation of profit) | 30-Sep-00 | ||||
| Fixed assets | ||||||
| · Intangible fixed assets | 4,101 | 4,133 | 4,456 | |||
| · Tangible fixed assets | 716 | 767 | 794 | |||
| · Financial fixed assets | 194 | 163 | 78 | |||
5,011 | 5,063 | 5,328 | ||||
| Current assets | ||||||
| · Stocks | 753 | 806 | 768 | |||
| · Trade debtors | 421 | 480 | 472 | |||
| · Other debtors 1) | 1,011 | 422 | 327 | |||
| · Deposits, cash at bank & in hand | 247 | 149 | 226 | |||
2,432 | 1,857 | 1,793 | ||||
| Trade creditors | 312 | 352 | 301 | |||
| Other creditors 2) | 1,824 | 1,209 | 794 | |||
| Net current assets | 296 | 296 | 698 | |||
| Total | 5,307 | 5,359 | 6,026 | |||
| Long-term liabilities | 2,426 | 3,314 | 3,757 | |||
| Provisions | 227 | 150 | 184 | |||
| Minority interests | 21 | 20 | 20 | |||
| Capital and reserves | 2,633 | 1,875 | 2,065 | |||
| Total | 5,307 | 5,359 | 6,026 | |||
1) The 30 September 2001 amount includes a receivable of EUR 704 million from the sale of the NDDG-group.
2) The 30 September 2001 amount includes EUR 1,262 million for the current portion of long-term loans (31 December 2000: EUR 376 million).
Consolidated cash flow statement (unaudited)
(EUR millions)
First 9 months 2001 | First 9 months 2000 | ||||
| Net profit from ordinary operations | 180 | 180 | |||
| Adjustments to operational cash flow: | |||||
| Depreciation | 84 | 83 | |||
| Goodwill amortisation | 103 | 75 | |||
| Provisions | -33 | 4 | |||
| Long-term liabilities | 1 | -1 | |||
| Tax on profit | 25 | -17 | |||
| Net change in working capital | 1 | -24 | -106 | ||
156 | 38 | ||||
| Net cash flow from operational activities | 336 | 218 | |||
| Investments: | |||||
| Proceeds of sale of tangible fixed assets | 8 | 10 | |||
| Capital expenditures | -88 | -77 | |||
| Long-term investments | 7 | -11 | |||
| Proceeds of sale Zonnatura | 26 | – | |||
| Acquisition subsidiaries, minority interests and brands | 2 | 18 | -2,032 | ||
| Net cash flow from investment activities | -29 | -2,110 | |||
| Financing: | |||||
| Issued new shares | 3 | 30 | 583 | ||
| Issued convertible bonds | 1 | 693 | |||
| Change of lease commitments and loans (short + long) | 3 | -6 | 1,470 | ||
| Dividend paid in the year under review | -63 | -80 | |||
| Minority interests | 1 | 7 | |||
| Exchange rate differences on cash and cash equivalents | – | 10 | |||
| Net cash flow from financing activities | -37 | 2,683 | |||
| Change of net cash position | 270 | 791 | |||
| Net cash position 1 January | -144 | -856 | |||
| Net cash position 30 September | 126 | -65 | |||
| 1 | This concerns changes exclusive of tax on profit, dividends, borrowings and swaps | ||||
| 2 | Including net cash position of acquired companies and non-operational cash movements related to acquisitions | ||||
| 3 | Exclusive of conversion | ||||
Primary segment information
(EUR millions)
3rd quarter 2001 | 3rd quarter 2000 * | |||||
Net sales | EBITA | EBITA in % of sales | Net sales | EBITA | EBITA in % of sales | |
| Infant Nutrition | 237 | 42 | 18 | 230 | 44 | 18 |
| Clinical Nutrition & Diets | 117 | 29 | 25 | 105 | 25 | 24 |
| Consumer Diets & Sports Nutrition | 322 | 38 | 12 | 279 | 33 | 12 |
| Vitamins & Herbs | 341 | 34 | 10 | 394 | 58 | 14 |
| Other (including not allocated) | 44 | 0 | – | 41 | -2 | – |
| Total | 1,061 | 143 | 13.4 | 1,049 | 158 | 14.9 |
First 9 months 2001 | First 9 months 2000 * | |||||
Net sales | EBITA | EBITA in % of sales | Net sales | EBITA | EBITA in % of sales | |
| Infant Nutrition | 724 | 131 | 18 | 678 | 124 | 18 |
| Clinical Nutrition & Diets | 349 | 83 | 24 | 305 | 71 | 23 |
| Consumer Diets & Sports Nutrition | 934 | 119 | 13 | 674 | 72 | 11 |
| Vitamins & Herbs | 1,136 | 171 | 15 | 967 | 163 | 17 |
| Other (including not allocated) | 120 | 1 | – | 120 | -8 | – |
| Total | 3,263 | 505 | 15.5 | 2,744 | 422 | 15.4 |
Secondary segment information
(EUR millions)
3rd quarter | First 9 months | |||||
| Net sales, continued operations | 2001 | 2000* | 2001 c/w 2000 % | 2001 | 2000* | 2001 c/w 2000 % |
| Northern Europe | 149 | 138 | 7 | 456 | 423 | 8 |
| Central Europe | 61 | 61 | 1 | 183 | 177 | 3 |
| Southern Europe | 79 | 73 | 9 | 245 | 223 | 10 |
| Eastern Europe | 49 | 49 | 0 | 152 | 132 | 15 |
| North America | 632 | 643 | -2 | 1,974 | 1,548 | 28 |
| Asia, Africa, America | 91 | 85 | 7 | 253 | 241 | 5 |
| Total continued | 19 | |||||
1,061 | 1,049 | 1 | 3,263 | 2,744 | ||
| Discontinued operations: | ||||||
| NDDG | 94 | 276 | ||||
| Zonnatura | 4 | 14 | ||||
| Other (mainly MLM) | 6 | 16 | ||||
1,061 | 1,153 | 3,263 | 3,050 | |||
* Restated for discontinued business and some reclassifications
Extraordinary items after tax
This consists of the following items (EUR millions):
- net book profits on the divestments of NDDG and Zonnatura 616
- provisions related to the aforementioned divestments (net of EUR 15 million tax) (72)
- write-off on stocks (net of EUR 10 million tax) (50) 494
Capital and reserves
During the first 9 months of 2001, capital and reserves rose by EUR 758 million to EUR 2,633 million. The increase can be specified as follows:
| 30-Sep-01 | 31-Dec-00 | |
| Capital and reserves as at beginning of the year | 1,875 | 955 |
| Conversion/option rights | 6 | 39 |
| Issue shares | 28 | 551 |
| Share issue costs | -20 | |
| Interim dividend | -40 | – |
| Stock dividend | 62 | 47 |
| Change in accounting principles | 15 | |
| Net profit for the period | 674 | 162 |
| Exchange rate differences | 28 | 126 |
| Capital and reserves at the end of the period | 2,633 | 1,875 |
As at 30 September 2001 Guarantee Funds amount to 55.9% of total assets (49.1% at 2000 year-end).
