Trading update Q3 2016: Sustaining profitable growth
Q3 2016 highlights
- Total reported revenue growth 9.2% (8.8% YTD)
- Own brands autonomous growth 7.4% (9.2% YTD)
- Total autonomous revenue growth 3.9% (7.0% YTD) due to accelerated decline of private label business
- EBITE margin of 7.3% despite significant increase in A&P. YTD EBITE margin is up 90bps to 8.3%
- Integration of Piramide, Ineobio and Mrs Crimbles fully on track
CEO Statement
We have sustained our good growth momentum on own brands in Q3 and YTD growth stands at 9.2%. Autonomous revenue growth for total Wessanen remains at the upper end of our guidance range of 5-7% year to date, despite an accelerated decline of private label business in Q3. YTD EBITE has increased by 22.4% and margin is up 90bps to 8.3%. In the quarter we achieved an EBITE margin of 7.3% despite investing significantly more A&P into our brands. Integration plans of Piramide, Inebio and Mrs Crimbles are being executed as planned.
We are on track to deliver a good 2016 result both in terms of growth and profit as we are further strengthening our brands in a growing market for healthier and more sustainable food.
Guidance FY 2016
- Total autonomous revenue growth at the upper end of our long term guidance range of 5-7%
- We expect to report:
- a higher EBITE in 2016 versus 2015
- an increase of the EBITE % of revenue
-
- Net financing costs around €1-2 million
- Tax rate of around 30%
- Capital expenditures €8-9 million
- Depreciation and amortisation €7-8 million
Analyst & investor meeting
At 10h00 CET, a conference call for analysts, investors, and media will be hosted by Ronald Merckx (CFO). The dial-in number is +31 20 703 8261 (toll free 0800 023 1436) - please quote "Wessanen". There will also be a live audio webcast via www.wessanen.com.
The press release and presentation are available for download at www.wessanen.com.
Media, investor & analyst enquiries
Ronald Merckx (CFO)
Phone +31 20 3122 124
Ronald.Merckx@wessanen.com
Important dates
16-11-2016 Capital Markets Day (Italy)
15-02-2017 Publication Q4 2016 results
