Bonduelle grows thanks to non-Europe markets

The Bonduelle Group's turnover for quarter 3 of FY 2015-2016 stands at 471.8 million Euro, an increase of 3% on a like for like basis and therefore up by 2.8% for the first 9 months of this financial year. Based on reported figures, the aggregated turnover remains virtually unchanged (- 0.4%), with a slight growth observed over this quarter (+ 0.4%).

Europe Zone
The Europe Zone activity experienced a slight decline over quarter 3. The national brands (Bonduelle, Cassegrain) performances were only partially offsetting a penalizing private label canned activity, due to the price decreases observed on 2015-2016 contracts, now effective and a slowdown in the delicatessen operating segment linked to historically high levels. The frozen operating segment in the food service sector bounced back with growth and recorded 3 consecutive months of sales volumes increase, despite an ever challenging consumption environment.

Non-Europe Zone
The Non-Europe Zone keeps contributing significantly to the growth of the group, up by + 12.-% on a like for like basis and by + 3.5% on reported figures for the 3rd quarter of this FY, with accumulated increase recording + 9.1% on a like for like basis*. On a reported basis, the zone's turnover remained stable despite a 45 million Euro adverse impact of exchange rates due mainly to the depreciation of the Russian rubble. Albeit still affected by an adverse consumption climate in Russia, the zone continues to be driven by the development of North America and the competitiveness of the American/Canadian dollar parity.

Ardo
The Ardo and Bonduelle groups, leaders in processing frozen vegetables in Europe, finalized on the 15th of April 2016, the plan in which the Bonduelle Group is to sell to Ardo its equity stake (50%) held in the Ultracongelados de la Ribera (UCR) joint venture co-owned with Ardo, as announced on the 3rd of February 2016.

Ardo retroactively acquired all Bonduelle shareholding on the 1st of January 2016; along with the real estate assets of the site located in Valence, up to then property of Bonduelle. The sales of the interest, previously accounted by equity
method in the financial statements of the group, will result in a pre-tax net charge of 2 million Euro on the 30th of June 2016. This transaction will, however, have no impact on the group’s financial net debt.

Outlooks
The evolving business activity of these first 9 months, nevertheless allows, despite an ever demanding and volatile economic climate, to confirm the turnover growth objectives of 1.5% - 2.5% and a higher current operating profitability
than the previous FY at constant exchange rates for the 30th of June 2016.

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