Vandemoortele: operating profit up 81% in 2012

Ghent / BE. (vg) In 2012 Vandemoortele Group realised a total turnover of 1’260 million EUR – minus one percent versus 2011. The Lipids business line – margarine and fats – increased its overall market share, resulting in an increase of volumes. Turnover was negatively affected by price decreases reflecting lower raw material prices from 604 to 601 million EUR. The Bakery Products business line – frozen bakery products – focussed on an improved product mix. Not renewing some loss-making contracts, resulted in a slight volume drop, but an increase in turnover from 638 to 647 million EUR. Overall the Group improved its profitability, thanks to a better customer and product mix and a strict control of costs. The recurring operating profit (REBIT) was 28 million EUR, an increase of 81 percent compared to the 15 million EUR of 2011. The Lipids business line achieved a good profitability, amongst others thanks to the further rationalisation of the production footprint. The Bakery Products business line improved its profitability thanks to a better product and customer mix and further efficiency gains in the operations. Building on its 60-people strong R+D team, Vandemoortele introduced several innovations in the market. The Group invested some 25 million EUR in 2012, primarily in plant efficiency improvements. In 2012, Vandemoortele successfully issued a 75 million EUR retail bond, thereby ensuring a good diversification of its financial debt. The balance sheet remains strong with an equity/total assets ratio of 37 percent.

Outlook

Vandemoortele expects to grow and to further improve its profitability in 2013. «Whilst our Lipids business operates in a mature market, the market dynamics of our Bakery Products business remain very healthy, with an expected annual growth rate of three to four percent in volume. We target to grow both in retail and foodservice channels. This growth and our continuous efforts to increase our efficiency in all processes make us confident that we will realise another substantial improvement of our results in 2013», explains Chief Executive Jean Vandemoortele.

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