PARIS, Feb. 18, 2002 (PRIMEZONE) -- Groupe DANONE (NYSE:DA) 2001 figures:
-- Like for like sales growth +5.1%
-- Solid increase in operating margin from 10.8% to 11.1%
-- Net result (excluding exceptional one-time items) of E 780
million: +8.3%
-- Exceptional one-time items: E 648 million (after tax)
The Board of Directors of Groupe DANONE, meeting on February 18, approved the audited consolidated accounts for 2001.
Key Figures
(E millions) 2000 2001 Growth
Net Sales 14,287 14,470 +5.1%(1)
Operating Result 1,550 1,609 +9.8%(1)
Operating Margin 10.8% 11.1% +48bp(1)
Net Result 720 780 +8.3%
(exc. exceptional one-time
items)
EPS (f. diluted) (exc 5.09 5.51 +8.3%
exceptional one-time items)
Exceptional one-time items 1 (648)(2)
(after tax)
Net result 721 132
Net debt 4,401 4,827
Gearing ratio 55% 72%
(1) like for like: at constant scope of consolidation and exchange
rates
(2) Including Biscuits restructuring provisions and exceptional
impairment of Galbani's goodwill
1. Net Sales: +5.1% (like for like)
As already published on January 22, Groupe DANONE net sales grew 5.1% like for like in 2001.
2. Operating margin grew up to 11.1%
In 2001, operating margin pursued its growth, in line with the Group's targets. Operating margin reached 11.1%, growing 27 basis points (48bp on a like for like basis).
This performance was achieved in a challenging environment because of the strikes that followed the announcement of the Biscuit restructuring plan in France, very difficult economics conditions in Argentina and unfavorable price evolutions for some key Group's raw materials. Increases in milk and PET prices led to a 50 basis points operating margin impact partially offset by higher pricing.
Operating results and margins by business line and area
BY BUSINESS LINE Operating Result Operating Margin
(E millions) 2000 2001 2000 2001
Fresh Dairy Products 712 790 10.9% 11.4%
Beverages 513 432 12.4% 11.4%(1)
Biscuits 282 316 8.7% 9.4%
Other Food Activities 49 60 13.0% 16.0%
Unallocated Items -6 11 -- --
Group 1,550 1,609 10.8% 11.1%
(1) Including significant impact of the European Beer Business
deconsolidation.; the operating margin of the beverages division
grew 22 bp at constant scope of consolidation and exchange rates.
BY AREA Operating Result Operating Margin
(E millions) 2000 2001 2000 2001
France 526 462 12.2% 11.5%
Rest of Western Europe 541 584 10.3% 11.4%
Rest of World 489 552 8.9% 8.9%
Unallocated Items -6 11 -- --
Group 1,550 1,609 10.8% 11.1%
Operating result structure
The operating result structure has been significantly affected by changes observed in 2001 within the scope of consolidation, mainly due to the disposal of the European Beer Business that had a cost structure significantly different from the Group average.
(E millions) 2000 % of 2000 2001 % of 2001
Sales Sales
NET SALES 14,287 14,470
Cost of goods sold (6,973) 48.8% (7,196) 49.7%(1)
Selling expenses (4,453) 31.2% (4,331) 29.9%
Others (1,311) 9.2% (1,334) 9.2%
OPERATING RESULT 1,550 10.8% 1,609 11.1%
Like for like, as a percentage of sales, 2001 cost of goods sold improved vs 2001
3. Net result (Exc. exceptional one-time items) reached E 780 million, up 8.3%
Thanks to the positive dynamic of the operating result, net profit (excluding exceptional one-time items) grew 8.3% in 2001
Exceptional one-time items, in line with Group's initial announcements, include E 236 million (before tax) for the Biscuits restructuring and E 475 million for an impairment to the Galbani's goodwill linked with the divestment projects contemplated.
After exceptional one-time items, net result was E 132 million.
(E millions) 2000 2001 OPERATING RESULT 1,550 1,609 Exceptional items 23 (757) Interest expenses (193) (180) Taxes (562) (416) Result before minority Interests 818 256 Minority interests (130) (163) Net earning of equity method companies 33 39 Net result 721 132 Of which exceptional one-time items 1 (648)(1) Net result (exc. exceptional one-time items) 720 780 (1) gross amount = E (737) million; tax effect = E 89 million
4. Second semester net EPS up 10.4%, in line with the Group's target
Net Earning Per share (exc. Exc. Exceptional one-time items) grew 10.4% in the 2nd half, beating the Group 10% target.
In 2001, Net Earning Per Share (exc. exceptional one-time items) grew 8.3% after goodwill amortization and 10.1% before goodwill amortization.
5. Sound financial structure and growing free cash-flow
Group's financial structure remained strong with a 72% gearing ratio and the ability to cash in roughly E 2 billion from the finalization of the European Beer business divestment.
Free cash flow grew by more than 30%, thanks to the first results of measures taken by the Group to accelerate the growth of this key indicator in the measurement of its performance. Capital expenditures decreased by 7.6% and went down from 5.6% of net sales in 2000 to 5.1% in 2000.
(E millions) 2000 2001 Operating Cash Flow 1,558 1,611 Capital Expenditures (798) (737) Net change in working capital (136) (56)(1) Free cash flow 624 818 Net Debt 4,401 4,827 Equity (inc. minority interests) 8,019 6,727 Gearing Ratio 55% 72% (1) excluding receivables securitization
The Board will ask the Annual General Meeting of Shareholders, to be held on April 25, 2002, to approve a dividend of E 2.06 per share for 2001, a rise of 8.4% compared to the amount paid last year.
For 2002, Groupe DANONE confirms its targets: like for like sales growth of at least 5%, operating margin growing at least 20 basis points and an EPS growth of 10%.
Net Sales for the Q1 2002 to be released on April 23, 2002