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Vandemoortele Group: Profit up 39 percent in FY-2018

Ghent / BE. (vg) In its financial year 2018 Belgium’s Vandemoortele Group realised a turnover of 1’414 million EUR (2017: 1’422). Vandemoortele N.V. succeeded in increasing its Rebitda to 130 million EUR (2017: 119) and its Rebit to 75 million EUR (2017: 63). Ebit grew from 52 to 68 million EUR, Ebitda from 109 to 123 million EUR. Profit before tax jumped to 62 million EUR (2017: 39), the Group outlines in its financial report 2018.

Overview FY/2018

Revenues in FY/2018 are comparable to last year’s results – 1’414 million EUR versus 1’422 million EUR or minus 0,5 percent.

The Rebitda increased from 119 million EUR in 2017 to 130 million EUR (plus 9,8 percent) bringing a Rebit of 75 million EUR compared to 63 million EUR last year which is a good performance (plus 18,4 percent).

The Bakery Products business line increases with 2.1 percent in revenue and reaches nearly 890 million EUR in 2018; the 2018 Rebitda of this business line amounts to 79 million EUR, an improvement of 6 percent on last year’s 75 million EUR Rebitda.

The Margarines, Culinary Oils + Fats (MCOF) business line, despite lower revenues (minus 5,1 percent) due to the decrease of raw materials, has performed its best year ever with an Rebitda of 51 million EUR, an increase of 16,3 percent compared to 44 million EUR in 2017.

In 2018 Vandemoortele Group has invested again 57 million EUR in enhancing and improving its production capacity for Bakery Products and in further rationalizing and modernizing our MCOF production sites, at the same level as in the previous financial year.

IFRS Key Figures

(in million EUR) 2017 2018 Change
Turnover 1422 1414 -0.5%
Rebitda 119 130 +9.9%
Ebitda 109 123 +13.0%
Rebit 63 75 +18.4%
Ebit 52 68 +29.8%
Eat total 37 51 +39.4%

Rebit : profit from operations before non-recurring items
Rebitda : Rebit before recurring depreciation and amortization
Eat : profit after taxes

The balance sheet structure of the Vandemoortele Group is very sound, despite high investments. The Senior Net Financial Debt of the Group at December 31, 2018, amounts to 190 million EUR compared to 202 million EUR at the end of last year resulting in a leverage ratio of 1.4:1. The leverage covenant of the Group is thus easily complied with.

Bakery Products Business Line

The business line Bakery Products realized a strong performance thanks to a good development in most of its product categories and notwithstanding some operational challenges and margin pressure in the bread product category. Overall Vandemoortele has achieved a growth of 2,1 percent in revenues and a Rebitda result 2018 of 79 million EUR, which is 6 percent higher than 2017 and at the same level as 2016.

Margarines, Culinary Oils + Fats Business Line

The MCOF business line has achieved a new record result in 2018 thanks to excellent cost and margin management across the business line and good volume development in the last months of the year. The Rebitda of the MCOF business has increased 16,3 percent from 44 million EUR in 2017 to over 51 million EUR in 2018. Operational efficiency improvement remains a constant value driver for this business line.

Lipidos – Shareholding

Lipidos Santiga SA has realized a good result and has delivered a contribution of 3,1 million EUR to the 2018 consolidated result of Vandemoortele.

Outlook 2019

Vandemoortele intends to strengthen the position of the MCOF business line through organic and external growth as well as to improve the profitability of the Bakery Products business considerably in the short term.

The Group will continue the important investment program to further strengthen its footprint and to consolidate its leadership in a number of markets. The Group will also continue its innovation program to respond timely to new market trends both in MCOF and Bakery Products and to improve of its products in quality, taste and nutrition.

Vandemoortele is investing in a new Food Experience Center (FEC) in Ghent to be opened by the end of 2019. At the heart of the FEC the Group will have a professional kitchen and a bakery, close to its associates, accessible for customers and suppliers to implement the mission «Shaping a tasty future». With effect from April 15, 2019, the registered office of the company is transferred to Ottergemsesteenweg-Zuid no. 816 in Ghent, the address of the new Food Experience Center of the Group.