Campofrio Food Group reports net sales rose of 13.6% in 2011
Net sales growth primarily was driven by branded sales, which
increased 16.5%
Growth, together with continued productivity measures,
enabled Campofrio Food Group to deliver a normalized EBITDA
of 169.4 million euros, despite a challenging market
environment The Group maintained its conservative capital
structure, improving its leverage to 2.8x EBITDA, while
ending the year with a solid liquidity position, including
138 million euros in cash
Continuing its long term strategy and reflecting the
sustained challenging market environment, Campofrio Food
Group announces a major investment program
An exceptional net provision mainly related to this program
of 88.3 million euros has been included in its 2011 accounts,
resulting in a net loss of 54.2 million of euros
Madrid, February 29th 2012. CAMPOFRIO FOOD
GROUP, Europe's leading processed meats company, reported
today consolidated turnover of 1,827.2 million euros for the
year 2011, an increase of 13.6%. Excluding the impact of
Fiorucci, acquired in April 2011, the Group's turnover grew
1.7%. A significant part of this growth was driven by branded
products, which increased retail sales by 16.5% (2.8%
excluding Fiorucci).
Reflecting both growth and continued productivity measures,
Campofrio Food Group reported normalized EBITDA of 169.4
million euros, although market environment was challenging.
After giving effect to an exceptional net provision of 88.3
million euros, mainly related to its investment program, the
company reported a net loss of 54.2 million euros.
Campofrio Food Group has reinforced its financial strength in
2011, improving its leverage ratio, defined as net debt to
EBITDA, to a level of 2.8x. The Group also maintains strong
liquidity, including a year-end cash position of 138
million.
"The Group has had a positive performance in terms of sales
and EBITDA despite the difficult macroeconomic context of
2011, which has seen a highly inflationary raw materials
landscape, especially fresh meat, which reached the highest
level of the last decade. We also see rapidly changing
consumer habits in terms of purchasing preferences and price
sensitivity. Our strategy and efforts on value creation,
through mix improvement, innovation and pricing, together
with continued productivity, enabled the Group to deliver a
strong operational result in 2011", commented Mr. Robert A.
Sharpe II, Chief Executive Officer of Campofrio Food
Group.
Campofrio Food Group's ambition to become one of Europe's
leading food companies is driven by a strategy which reflects
current and anticipated consumer preferences and customer
requirements. Based on these trends, the Group continues to
adapt to the evolving market requirements. In this regard,
Campofrio Food Group also announced today an important
increase in its investments for the future. This program
includes new investments in marketing, product and
technologies development, channel and geographic expansion,
productivity and customer service. The company anticipates
funding this program, which is expected to be deployed over
the next 3 years, from its operating cash flow.
In line with its strategy, the Group has announced today the
decision to sell a majority of its French cooked products
business to an operating partner, Foxlease. As a result,
Campofrio Food Group has reclassified this business as
discontinued operation as of January 1st 2011.
This transaction, other than the effect reflected in the 2011
accounts is not expected to have a material impact on the
Group's continued operations. Closing is expected in March
2012.
"We have accomplished many important milestones in previous
years. Nevertheless, in response to both our vision and the
extremely challenging market context, the company has decided
these important next steps. By investing in growth and
defending our competitiveness we believe we will continue
creating sustainable value for all our stakeholders,
including employees, consumers, customers, suppliers,
investors and the communities where we operate", Mr. Sharpe
concluded.
Further Information Contact
Hill + Knowlton Strategies (Campofrio Food Group press
office) Tel: +34 91 435 11 22/ Mov. +34 690 61 07 24
Juan Ignacio Moreno Arranz juan.ignaciomoreno@hkstrategies.com
Joan Ramón Vilamijana jrvilamitjana@hkstrategies.com