Wessanen sees Bjorg, other brands, lift performance

Wessanen sees Bjorg, other brands, lift performance

Dutch food group Wessanen booked higher sales and earnings for the first nine months of the year this morning (24 October).

Releasing its financial update for the period, Wessanen revealed sales grew 6.5% on the year, climbing to EUR325.3m (US$411.5m). The company said product launches and increased distribution contributed to continued sales growth of its own brands in the third quarter.

Operating profit was up 40% climbing from EUR15.4m to EUR21.6m in the nine months. The Dutch company said its profit profile benefited from "increased profitability at continuing operations and a lower profitability at discontinued operations". The company has been stepping back from lower margin businesses such as its ABC and Bio-Distrifrais units.

Net profit, excluding discontinued operations, rose to EUR4.2m, up from EUR2.9m. Total net profit attributable to shareholders of Wessanen rose to EUR51.7m from EUR7.6m boosted by disposals and discontinued operations.

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Wessanen Q3 2014 trading update 

Autonomous revenue growth 6.7%; core brands performing well EBITE increased to €4.9 million; year-to-date EBITE €22.3 million ABC reported as discontinued operation as of 30 September; divestment process under way EBITE at Branded is expected to increase in H2 2014 versus the second half of last year Ronald Merckx to be nominated for re-appointment as member of the Executive Board and CFO at next AGM in April CEO statement

Christophe Barnouin (CEO) commented: "We continue to execute our strategy to transform Wessanen into a focused European player in healthy and sustainable food.

Our brands growing profitably

In Q3, strong sales of our own brands, on the back of new product launches and increased distribution, were translated into autonomous growth of over 7%. We invested more in marketing in the quarter to build our brands, for example airing TV commercials for Bjorg, Alter Eco, Krisprolls and Zonnatura. We will continue to invest in our brands to grow and strengthen their positions in our growing markets.

Non-core divestments

We have initiated the divestment process of ABC, which we aim to complete in the coming months. This should complete our transformation into a pure player in healthy and sustainable food.

A unique contribution to sustainability

By focusing our entire organisation and product portfolio exclusively on organic, fair trade, vegetarian and nutritional products, all teams at Wessanen contribute every day to one clear and unified goal, defined by our mission 'healthier food, healthier people, healthier planet'."

Original source: Royal Wessanen