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Positive consolidated EBIT guidance for the full 2022|23 financial year remains unchanged

Besides the ongoing war in Ukraine and the volatility on energy and commodity markets, the rising costs of capital in particular necessitated an impairment test of the cash generating unit Fruit to coincide with the end of the first half year (31 August 2022). This resulted in non-cash impairments of assets and goodwill in the amount of € 91.3 million on the operating profit (EBIT) in the first half year 2022|23 (1 March to 31 August 2022).

The operating profit before any exceptional items and results of equity-accounted joint ventures of the Group in H1 2022|23 was better than anticipated and, at € 86.5 million, was considerably higher than the prior year level (H1 2021|22: € 41.0 million). One of the drivers of the strong operational performance was the improvement in ethanol operations. It was also possible to return the Sugar segment to profitability. Revenue in H1 2022|23 rose by nearly 26 % to € 1,792.3 million.

The guidance of a very significant increase (by more than +50%) in consolidated EBIT in the full financial year 2022|23 remains valid despite the asset and goodwill impairment charge (EBIT 2021|22: € 24.7 million). A significant increase (ranging from +10% to +50%) in the operating profit before any exceptional items and results of equity-accounted joint ventures is forecast (operating result 2021|22: € 86.5 million).

The above guidance is based on assumptions that the war in Ukraine remains regional, physical supplies of energy and other commodities are sustained and that the sharp rises in prices, particularly in the commodities and energy sectors, can be passed on in revised customer contracts.

Results of the first orange and grapefruit maturity tests for the 2022-2023 season, using only regular bloom fruit, are listed below. Sample groves and trees remain relatively constant from season to season. Fruit was picked from trees throughout the citrus growing region on August 29-30, 2022. Each sample was weighed, juiced, and tested by the Florida Agricultural Statistics Service (FASS) on August 31, 2022, and September 1, 2022.

Please download the results under

Louis Dreyfus Company B.V. (LDC) reported strong consolidated financial results for the year ended December 31, 2021, successfully fulfilling its key role to keep essential agricultural supply chains moving safely, reliably and responsibly in a context of continued global challenges.

Net sales amounted to USD 49.6 billion, up 47.7 % compared to 2020, while Segment Operating Results rose 17.6 % year-on-year to USD 1,834 million, as the company once again leveraged its global footprint and market intelligence to mitigate risk, deliver for customers and capture profitable origination and sales opportunities. This performance drove EBITDA to USD 1,623 million, up 22.6 % compared to the same period in 2020.

“2021 was a very special year for LDC, in which we celebrated 170 years of history and opened a new chapter for the company, welcoming ADQ into our shareholder group as a strategic partner in the pursuit of our long-term plans and strategy,” said Margarita Louis-Dreyfus, Chairperson of the Supervisory Board. “It was also another challenging year for our teams and partners around the world, to whom I am deeply grateful for their exceptional commitment, which made business continuity and success possible even in a complex and rapidly changing context.”

With overall resilient demand for the main products commercialized by the Group in 2021, both its business segments contributed to LDC’s strong operating results, which reached USD 1,191 million for the Value Chain Segment (compared to USD 1,003 million in 2020) and USD 643 million for the Merchandizing Segment (up from USD 556 million in the previous year). All business platforms successfully navigated uncertain market conditions, securing profitable flows to meet demand, implementing successful hedging strategies and capitalizing on recovery from Covid-19 impacts in certain sectors, owing to easing sanitary measures.

“In another year marked by the ongoing pandemic, freight shortages and port congestions, as well as climate challenges, LDC once again navigated a complex environment to deliver for customers, while making important strides in our strategic and sustainability roadmaps,” said Michael Gelchie, LDC’s Chief Executive Officer. “Our clear vision and agile mindset have underpinned our success over 170 years, and continue to do so today as we pursue our growth ambitions, always with the safety and wellbeing of all those who work for and with us as a top priority.”

As part of its commitment to helping address increasingly urgent climate and other global sustainability challenges, LDC set up a dedicated Carbon Solutions Platform in 2021 to accelerate the Group’s decarbonization journey. This reflects the sectoral commitment, signed at the COP26 United Nations Climate Change Conference, for accelerated action on deforestation and emissions, supporting the global drive toward a net zero economy.

“Our progress in 2021 further reinforced LDC’s leading position as a key industry participant for the future, while ensuring the future we shape is fair and sustainable, in line with our company purpose,” said Michael Gelchie. “Looking ahead, in light of new geopolitical tensions and macroeconomic shifts emerging in 2022, our role to provide essential products to the world’s population is more important than ever. It remains our priority to fulfill this role safely, reliably and responsibly, working hand in hand with our teams and business partners across the globe, to whom we are extremely grateful for their collaboration and steadfast support.”

Please download the full LDC’s digital 2021 annual report as pdf-file under:

Refresco, the world’s largest independent bottler for retailers and A-brands in Europe and North America, publishes the second quarter and half-year 2021 results of Refresco Group B.V.1

Q2 2021 Highlights

  • Total volume was 3,204 million liters (Q2 2020: 2,983 million liters).
  • Gross profit margin was €531 million (Q2 2020: €477 million).
  • Adjusted EBITDA amounted to €159 million (Q2 2020: €138 million).
  • Cash and cash equivalents at the end of Q2 2021 were €504 million (June 30, 2020: €314 million).
  • Announced acquisition of HANSA-HEEMANN, a major German mineral water and CSD company, on July 8, 2021.
  • Announced agreement with The Coca-Cola Company to acquire three of its production locations in the US, on August 3, 2021.

Half-year 2021 Highlights

  • Total volume was 5,986 million liters (YTD 2020: 5,745 million liters).
  • Gross profit margin was €1,009 million (YTD 2020: €925 million).
  • Adjusted EBITDA amounted to €278 million (YTD 2020: €241 million).

Key figures

Refresco reports strong Q2 2021 results
(Photo: Refresco)

CEO Refresco, Hans Roelofs commented:

“We are pleased to report a strong performance in the second quarter of 2021. We have been able to accelerate our growth in volume and profitability this quarter, ending the first six months of 2021 with good results. We have strengthened the business organically by growing along with our customers, specifically in Contract Manufacturing. As we move into the second half of the year, we are facing increasing cost pressure on commodities and transportation, with higher inflation levels across all regions in which we operate.

On July 8, 2021, we announced the acquisition of HANSA-HEEMANN, a major German mineral water and CSD company. This acquisition will allow us to further improve our operational excellence, diversify our business and product offering, and will enable us to offer nationwide coverage to German retailers. With its five production sites spread across Germany, this acquisition is highly complementary. We look forward to welcoming HANSA-HEEMANN to Refresco, pending regulatory approval.

On August 2, 2021, we closed the acquisition of SEBB with one production site in Dade City, Florida, US. The acquisition expands our incubation capabilities for Contract Manufacturing customers looking for flexibility as they launch new, complex and innovative products. As their need for production capacity increases, customers will be able to leverage our existing footprint across North America.

On August 3, 2021, we announced that we have entered into an agreement with The Coca-Cola Company to acquire three of its production facilities in the United States, pending regulatory approval. The ongoing trend of A-brands outsourcing their production capabilities continues to provide opportunities for us as an independent beverage solution provider. With manufacturing and supply chain being at the heart of our business, the acquisition of three Coca-Cola facilities in the US is another step forward in our growth strategy.

With these strong financial results, our well-balanced customer base across Europe and North America, and our robust M&A approach, we continue to pursue our ambition of Our Drinks On Every Table.”

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1All values are rounded to the nearest million unless otherwise stated.
2Net debt as at June 30, 2020 includes €117 million shareholder funding; in Q4 2020, the shareholder loan plus accrued interest have been converted into equity.

Eckes-Granini Group GmbH can look back on a challenging business year in 2020, which was strongly influenced by the global COVID-19 pandemic. With an EBIT of 71 million EUR and an EBIT margin of 8.7 %, business results fell short of expectations in the past year, but the international corporate group for non-alcoholic fruit beverages nevertheless draws a satisfactory conclusion. Compared to the previous year, the company managed to almost maintain its EBIT margin, which was 8.9 % in 2019. Total turnover fell from EUR 921 million in the 2019 financial year to 873 million EUR in 2020 (-5.2 %), while sales volumes also declined in 2020, falling by 10 million litres to 843 million litres.

Eckes-Granini sets the course for future growth and generates solid results in the 2020 business year
Tim Berger (Photo: Eckes-Granini Group)

“The past business year was without a question a challenge for all of us. However, together we have managed to respond to this extraordinary situation with great flexibility and willingness to perform. We have maintained our supply chain and production throughout the year and expanded our market leadership in Europe. The COVID-19 pandemic will continue to affect us in 2021. This year, we will set the strategic internal course for sustainable growth “after Corona”,” says Tim Berger, CEO of the Eckes-Granini Group.

After an initially promising start to the first quarter of 2020, the spread of the COVID-19 pandemic led to a massive setback in the out-of-home business from March onwards. In almost all European countries, restaurants and hotels were completely closed for months due to the Corona restrictions. Accordingly, Eckes-Granini suffered losses of up to 50 % in the out-of-home business in some markets.

Strong food retail partially offsets losses in the out-of-home business

The demand for fruit juices and fruit beverages developed positively in 2020. In contrast to previous years, which saw a declining trend, the FJND (Fruit Juice Nectar Drinks) market developed positively in 2020, both in terms of value (+2.2 %) and volume (+1.5 %). In particular the chilled-juice and ambient-juice segments were able to grow. With a growth of 3.9 %, Eckes-Granini grew almost twice as fast as the market in terms of value and was thus the growth driver in the FJND category again last year. In the food retail segment, the Eckes-Granini Group increased sales by 3 %, driven in particular by higher demand as a result of the ongoing Corona pandemic. Overall, the good results in food retail helped to compensate, at least in part, for the drastic decline in the out-of-home business.

Ongoing health awareness among consumers offers growth potential

The rising demand for fruit juices is also attributable to the continuing strong health trend among consumers. This is reflected in the positive development of the
Eckes-Granini Benefit Ranges, which have won over consumers with their additional health benefits. In Germany, Hungary, Austria and Lithuania, for example, the hohes C PLUS range grew by a total of 10 %, thus outpacing the overall growth of Eckes-Granini brands (+5.9 %) in these markets. The juices in the God Morgon Benefit range also benefited from this trend, with growth of 5 %, as did the shots of the Eckes-Granini brands Rynkeby, Brämhults and Marli.

In solidarity through the pandemic

The difficult situation in the out-of-home market was not the only challenge Eckes- Granini was facing in the pandemic year 2020. Ensuring smooth processes along the supply chain, in production and in operations also demanded a great deal from employees in terms of flexibility and commitment. Nevertheless, in the midst of the global crisis, it was important for the Group not to lose sight of its long-standing business partners and the situation in the communities in which Eckes-Granini operates. In an effort to mitigate the impact of the pandemic, Eckes-Granini supported restaurant owners Germany, Austria and France, among other countries, with donations. Under the umbrella of the Group-wide “Corona Relief Fund”, all eleven national subsidiaries of the Eckes-Granini Group also donated some 500,000 litres of fruit juice to people in systemically important professions and to charitable institutions from April to September 2020. And in the pandemic year, the international charity cycling initiative Team Rynkeby also collected 8.7 million EUR for seriously ill children despite many restrictions with regional country tours. Eckes-Granini has been a main sponsor and partner of the charity cycling race since 2016.

Sustainable management was also a priority in 2020

In the past business year, Eckes-Granini achieved a number of strategic milestones on its way to becoming one of the world’s most sustainable fruit juice producers by establishing an in-house sustainability team. The orange juices of Brazil, granini and God Morgon have carried the Group’s own “Sustainably Grown” label since last year and are produced from 100 % sustainably grown oranges. Through its cooperation with ClimatePartner, Eckes-Granini has also come closer to its goal of successively reducing all greenhouse gas emissions caused directly or indirectly by its own business activities and offsetting them through a compensation project in Portel, Brazil.

Setting the course for future growth

“We have set ourselves a lot of goals for 2025. At the top are innovations strictly oriented to the wishes, expectations and needs of consumers. The current beverage market offers Eckes-Granini numerous growth opportunities, which we will explore. Our goal is to significantly increase our sales revenues and market share in Europe and beyond by 2025″, says Tim Berger, CEO of the Eckes-Granini Group. To this end, the Eckes-Granini Group will continue to develop and expand its strategic brands and existing channels in a targeted manner over the next five years and invest substantially in dynamic growth categories. There will be a clear focus on channels that promise profitable growth, especially e-commerce.”

You can find further information and download the business report at:

About the Eckes-Granini Group:
Eckes-Granini is the leading supplier of fruit juices and fruit beverages in Europe. For the independent family-owned company headquartered in Nieder-Olm, Germany (Rhineland-Palatinate), the focus is on committed and competent employees, strong brands in the areas of juices, fruit beverages and smoothies, and a long-term strategic orientation with sustainable value creation. Today, Eckes-Granini operates mainly in Europe with its own national companies and strategic partners and generates annual sales of 873 million euros with a total of 1708 employees. The company’s foundation is formed by the internationally renowned premium brands granini and Pago together with strong national and regional brands for juices and fruit beverages. Consumers in 80 countries worldwide and especially in Europe know and appreciate our fruit juices and the variety of fruit beverages.

Delivers double-digit net sales and earnings growth
Raises full-year net sales guidance and reaffirms EPS guidance

Keurig Dr Pepper Inc. reported financial results for the first quarter ended March 31, 2021 and increased its outlook for 2021 net sales growth to 4 % to 6 %, from the Company’s prior net sales guidance of 3 % to 4 %. KDP also reaffirmed its guidance for full-year Adjusted diluted EPS growth of 13 % to 15 %.

Net sales in the first quarter of 2021 advanced approximately 11 % on both a GAAP and constant currency basis, with each of the Company’s business segments reporting strong growth. GAAP diluted earnings per share more than doubled to $ 0.23 and Adjusted1 diluted EPS grew to $ 0.33, a double-digit increase versus year-ago.

Commenting on the announcement, Chairman and CEO Bob Gamgort stated, “We delivered an exceptional first quarter, driving double-digit net sales and earnings growth, behind outstanding in-market execution. Looking forward, we see an improving, but volatile, macro environment marked by increasing consumer mobility and rising inflationary headwinds. We remain focused on delivering our business plan, with increased net sales growth expectations and growing confidence in achieving our Adjusted diluted EPS growth target of 13 % to 15 % for the year, and we plan to reinvest any earnings upside in the business to drive future growth.”

First Quarter Consolidated Results

Net sales for the first quarter of 2021 increased 11.1 % to $ 2.90 billion, compared to $ 2.61 billion in the year-ago period, driven by strong growth in each business segment, particularly Coffee Systems. On a constant currency basis, net sales advanced 10.8 %, reflecting higher volume/mix of 10.3 % and favourable net price realization of 0.5 %.

KDP in-market performance in the quarter remained strong, with retail dollar consumption2 advancing 9.4 % across the Company’s cold beverage retail base, with particular strength in CSDs3, premium unflavoured water, teas, juice drinks, apple juice, vegetable juice, mixers, and coconut water. This performance reflected the strength of Dr Pepper, Canada Dry, A&W, 7UP, and Sunkist CSDs, CORE hydration, Snapple teas and fruit drinks, Clamato vegetable juice, Motts apple juice, and Vita Coco. On a two-year stacked basis, consumption of KDP’s cold beverage portfolio increased 17 %.

Please read the complete report under:

1Employee compensation expense and employee protection costs are both included as the COVID-19 items affecting comparability in the reconciliation of our Adjusted Non-GAAP financial measures.
2In 2021, reflected pay for temporary employees, including the associated taxes, as well as incremental benefits provided to frontline workers such as extended sick leave, in order to maintain essential operations during the COVID-19 pandemic. In 2020, primarily reflected temporary incremental frontline incentive pay and benefits, as well as pay for temporary employees, including the associated taxes. Impacts both cost of sales and SG&A expenses.
3Included costs associated with personal protective equipment, temperature scans, cleaning and other sanitisation services. Impacts both cost of sales and SG&A expenses.

Novozymes: Full-year earnings outlook maintained after early-April upgrade. Narrowed sales growth guidance following weakness in US bioethanol.

Novozymes announced its results for the first three months of 2019. All businesses developed roughly as expected except for a weaker US bioethanol industry. Organic sales growth of -4 %: Household Care -3 %, Food & Beverages -2 %, Bioenergy -8 %, Agriculture & Feed -6 %, Technical & Pharma +5 %. EBIT margin 25.7 %. Net profit 14 % lower year on-year (y/y). Free cash flow before acquisitions DKK 0.4 billion.

Peder Holk Nielsen, President & CEO: “The first – quarter decline in sales was no surprise – we communicated this back in January. We also expected US bioethanol to be down, but the decline was larger than we ha d foreseen. The flood s in the Midwest have made it tougher for our customers. With the problems continuing in to April, it will be difficult to reach the top end of the guided organic sales growth range , and we adjust our outlook to 3 – 5 %. We’ re confident sales growth will increase during the year as innovations, the freshness platform, BioAg seasonality and Bioenergy all step up, and the Middle East comparison gets easier.”

Highlights Q1 2019:

  • All businesses roughly as expected except for Bioenergy. A declining US bioethanol market has been further impacted by the Midwest flooding since mid-March
  • As expected, negative impact from the Middle East, feed enzymes and the planned price reductions in US baking enzymes
  • Developed markets flat; 10 % organic sales decline in emerging markets, with the Middle East as the main drag
  • EBIT margin soft but as expected at 25.7 %, mainly due to lower gross margin from lower sales and a planned increase in sales and distribution costs
  • Net profit down 14 % y/y due to lower EBIT and hedging losses
  • Free cash flow before acquisitions DKK 0.4 billion; net investments DKK 0.1 billion

2019 outlook: Organic sales growth 3 – 5 %; an expected 1 %-point added to growth in DKK. US bioethanol production in Q1 was more negative than expected, especially in the wake of flooding in the Midwest in March, continuing into April. The 3 – 5 % range reflects both strong new product performance and geopolitical uncertainty. Stronger growth in 2H vs. 1H y/y for multiple reasons. EBIT margin at 29 – 30 % supported by solid productivity gains and release of full deferred income as communicated on April 4 following the new BioAg setup. Net profit growth of 5 – 10 %. CAPEX at DKK 1.0-1.3 billion. FCF bef. acq. at DKK 2.0-2.4 billion. ROIC expected at ~24 % (~25 % excl. IFRS 16 Leases). Stock buyback program of up to DKK 2bn to be initiated April 25, 2019.

The entire earnings report can be downloaded at

Rolf Stangl, CEO of SIG, said: “In 2018 we successfully continued our growth strategy and achieved core revenue growth of 6.4 % at constant currencies, slightly exceeding our target range of 4 – 6 %. We saw growth across our global footprint and are reaping the rewards of our steady expansion into markets outside Europe, where growth in aseptic carton packaging is being driven by mega-trends including demographics, rising disposable income and urbanisation. The Asia Pacific region in particular delivered a strong performance during the year, with robust growth in the liquid dairy segment and growing demand for premium products.

“Our broad international presence continues to provide us with promising growth opportunities. These opportunities come with exposure to currency fluctuations, which in 2018 dampened growth in adjusted EBITDA. At constant currencies, adjusted EBITDA increased by 8 %. The adjusted EBITDA margin increased to 27.5 %, reflecting a positive business mix and ongoing cost efficiency measures. We achieved a significant increase in adjusted free cash flow, while continuing to expand our filler base in growth markets. The cash generative nature of our business underpins our intended mid-term dividend payout ratio of 50 – 60 % of adjusted net income. For 2018, we are proposing a Swiss franc dividend payout in 2019 equivalent to around €100m.”

2018 Annual Report

SIG has published its 2018 Annual Report, which includes the Group’s operating and financial results accompanied by SIG’s audited consolidated and statutory annual financial statements, the Compensation Report outlining the compensation policies of the Group and the Corporate Governance Report. All publications are available for download at

The Coca-Cola Company reported another quarter of solid operating performance, capping off strong financial results for the year. While reported net revenues declined due to refranchising and currency headwinds, the company delivered organic revenue (non-GAAP) growth within its long-term target for the sixth consecutive quarter, while also gaining value share globally.

“I am pleased with our strong organic revenue and earnings growth in 2018. Our results demonstrate progress in our transformation as a consumer-centric, total beverage company and the power of a more strategically aligned system,” said James Quincey, CEO of The Coca-Cola Company. “Coca-Cola has established a strong foundation to capitalize on long-term growth opportunities and drive sustained shareowner value.”

Download the full earnings release (PDF)

The Coca-Cola Company reported continued momentum in its business for 2018, with strong financial results for the third quarter. While reported net revenues for the quarter declined due to refranchising, the company delivered broad-based organic revenue (non-GAAP) and volume growth across all operating groups, while gaining value share globally.

Strong organic revenue (non-GAAP) growth in the quarter was driven by continued innovation and revenue growth management initiatives within sparkling soft drinks, as evidenced by double-digit volume growth of Coca-Cola Zero Sugar across all groups. In addition to sparkling soft drinks, the company saw strong performance for brands like Fuze Tea and smartwater. Coca-Cola also announced several strategic actions, including a number of acquisitions and investments, and continued to lift, shift and scale brands around the world. The company’s disciplined growth strategies and an ongoing focus on productivity led to double-digit profit growth for the quarter.

“We continue to be encouraged by our performance year-to-date as we accelerate our evolution as an even more consumer-centric, total beverage company,” said James Quincey, President and CEO of The Coca-Cola Company. “The recent leadership appointments are intended to help accelerate the transformation of our company.”


Quarterly Performance

  • Revenues: Net revenues declined 9 % to $8.2 billion, impacted by a 13-point headwind from the refranchising of company-owned bottling operations. Organic revenues (non-GAAP) grew 6 %, driven by concentrate sales growth of 4 %, which benefited from the timing of shipments, and price/mix growth of 2 %.
  • Volume: Unit case volume grew 2 %, led by Trademark Coca-Cola.
  • Margin: Operating margin, which included items impacting comparability, expanded approximately 600 basis points. Comparable operating margin (non-GAAP) improved 575 basis points, driven by divestitures of lower-margin bottling operations and the company’s ongoing productivity efforts. These drivers were partially offset by an approximate 130 basis point headwind from the adoption of the new revenue recognition accounting standard and the impact of currency.
  • Market share: The company continued to gain value share in total nonalcoholic ready-to-drink (NARTD) beverages.
  • Cash flow: Year-to-date cash from operations was $5.5 billion, down 7 %. The decline was largely due to the impact of refranchising North American bottling territories and increased tax payments, partially offset by solid cash generation in the underlying business. Year-to-date free cash flow (non-GAAP) was $4.6 billion, down 2 %.
  • Share repurchases: Year-to-date purchases of stock for treasury were $1.6 billion. Year-to-date net share repurchases (non-GAAP) totaled $707 million.

Download the full earnings release (PDF)

Coca-Cola European Partners plc (CCEP) announced its interim results for the six months ended 29 June 2018 and maintains full-year 2018 outlook.


  • First-half diluted earnings per share were € 0.85 on a reported basis or € 1.00 on a comparable basis, including a negligible impact from currency translation.
  • First-half reported revenue totalled € 5.4 billion, flat versus prior year, or up 1.0 percent on a comparable and fxneutral basis. Volume decreased 3.5 percent on a comparable basis, partly reflecting the impact of recent strategic portfolio and pricing decisions.
  • First-half reported operating profit was € 605 million; comparable operating profit was € 699 million, up 4.5 percent on a comparable basis, or up 5.0 percent on a comparable and fx-neutral basis.
  • Second-quarter diluted earnings per share were € 0.60 on a reported basis or € 0.67 on a comparable basis, including a negligible impact from currency translation.
  • CCEP affirms full-year guidance for 2018 for comparable and fx-neutral diluted earnings per share growth of between 6 percent and 7 percent when compared to 2017 comparable results.
  • CCEP raises full-year guidance for 2018 free cash flow to a range of € 900 million to € 950 million.
  • CCEP declares quarterly dividend of € 0.26 per share.

“We are pleased with our execution and performance in the first half as we continued to make bold portfolio and pricing decisions. We are confident that these are the right strategic initiatives for our business in the long-term, while acknowledging the near-term negative impact on volume,” said Damian Gammell, Chief Executive Officer.

“This strategy is reflected in another quarter of solid growth, including strong revenue per unit case gains as we focus on improving our pack and pricing architecture. Overall, we are encouraged by our first-half performance given business disruption in France owing to customer negotiations; unfavourable weather in Iberia; and new industry taxes, notably in Great Britain.

“Given our solid progress in the first half, we have affirmed our 2018 profit outlook. We are committed to implementing our Beverages For Life strategy; investing in our business; better serving our customers; and improving our in-market execution,”

Mr. Gammell said. “Importantly, we are confident that we have the right strategy and the right team in place to deliver strong cash generation and ultimately generate long-term value for our shareholders.”

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Novozymes announced its results for 2017. Solid year with 4 % organic sales growth (Q4: + 4 %): Household Care + 1 %, Food & Beverages + 9 %, Bioenergy + 11 %, Agriculture & Feed – 3 %, Technical & Pharma + 2 %. EBIT margin at 27.9 % (around 29 % excl. one-time costs). FCF before acquisitions DKK 2.4 billion.

Regarding the 2018 outlook, with good momentum in the business and a strong pipeline of products and opportunities, we see organic sales growth of 4 – 6 % and an EBIT margin of ~28 %.

Peder Holk Nielsen, President & CEO of Novozymes:
“2017 was satisfactory with solid growth and margins. Similar to other years, 2017 saw differences in divisional growth rates, but serving more than 40 industries with enzymes and microbes provides robustness. Our key priorities for 2018 are to increase our presence with new and existing customers, especially in emerging markets, and ensure we cater for individual customer needs with impactful innovation. And although uncertainties exist, with good momentum, a strong product pipeline and increased commercial activities, we see a promising outlook with accelerating growth for 2018 and beyond.”


  • Organic sales growth of 4 % (Q4: + 4 %) and 3 % in DKK (Q4: – 1 %)
  • 4 out of 5 areas grew; Food & Beverages and Bioenergy performed very well
  • Agriculture & Feed lower, mainly due to poor agriculture markets
  • 4 transformative innovations launched of the targeted 10 by 2020
  • Reported EBIT margin of 27.9 % (2016: 27.9 %). Q4 2017: 27.6 % (Q4 2016: 28.6 %)
  • Albumedix (non-core pharma) divested late 2017. DKK 66m negative Q4 EBIT charge
  • M&G financial asset write-down of remaining DKK 60m (DKK 47m post-tax) in Q4
  • Lower year-on-year tax rate despite one-off US tax charge of DKK ~30m in Q4
  • Free cash flow before acquisitions solid at DKK 2.4 billion; higher investments as expected
  • Proposed dividend payout of DKK 4.50/share. Dividend growth of 13 %. 42 % payout ratio
  • Full-year 2018 outlook: Organic sales growth 4 – 6 % (growth relatively stronger in 2H y/y), EBIT margin ~28 %, FCF before acquisitions DKK 2.3-2.6 billion, ROIC 24 – 25 %. Stock buyback program of up to DKK 2 billion. Long-term dividend payout ratio upped from ~40 % to ~50 % of net profit

Public offer for all shares of Refresco and the acquisition of Cott’s bottling activities on track

On 25 October 2017, Refresco announced that it had reached conditional agreement on a recommended, fully funded, public offer by a consortium of PAI and bcIMC for all the issued and outstanding shares of Refresco for an offer price of €20 (cum dividend) in cash per share. Both the Executive Board and the Supervisory Board of Refresco unanimously recommend shareholders to tender their shares. Based on the required steps and subject to the necessary approvals, Refresco and the consortium anticipate that the offer will close in Q1 2018.

The consortium fully supports Refresco’s buy-and-build strategy going forward, including the acquisition of Cott’s bottling activities which was announced on 25 July 2017. Refresco expects the acquisition to close in Q4 2017.

Q3 2017 Highlights[1]

  • Volume including acquisitions increased 2.7 % to 1,853 million liters (Q3 2016: 1,804 million liters).
  • Contract manufacturing volume comprised 36.9 % of total volume, up from 27.0 % in Q3 2016.
  • Gross profit margin per liter increased to 13.9 euro cents (Q3 2016: 13.8 euro cents).
  • Adjusted EBITDA amounted to €61 million (Q3 2016: €68 million).
  • Adjusted EPS was €0.28 (Q3 2016: €0.39).

CEO Refresco, Hans Roelofs commented:

“We had a challenging third quarter with weak market conditions. Volumes increased by 2.7%, driven primarily by the acquisition of Whitlock Packaging in the US in 2016 and the continued growth in contract manufacturing. Excluding acquisitions volumes declined due to poor summer weather in Western Europe and continued pressure on retailer brand volume.”

“In line with our strategy, contract manufacturing showed solid volume growth across most geographies as we are outperforming the contract manufacturing market. The outsourcing trend by international A-brands is clearly gathering pace with greater emphasis on innovation, more SKUs and different formats and therefore towards the ability to handle more complexity.”

“Gross profit margin per liter was better than expected at 13.9 euro cents compared to 13.8 euro cents in the third quarter of 2016. This reflects the decision to decline low margin contracts in the retailer brand market, mainly in Germany and Iberia. Adjusted net profit came in at €23 million compared to €32 million in the third quarter of last year. One-off costs in the quarter related to the acquisition of Cott’s bottling activities and the restructuring of the plant in Hamburg.”

“In October we announced the public offer made by the consortium of PAI and bcIMC for all the shares of Refresco. We firmly believe this is a good transaction for our stakeholders and represents a fair price for shareholders. The consortium fully endorses our buy-and-build strategy including the intended acquisition of Cott’s bottling activities which will create the world’s largest independent bottler with leadership positions across Europe and North America. Supported by the consortium’s track record, financial strength and understanding of our business we will be able to accelerate our growth plans and move forward on our journey to put our drinks on every table.”

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1 Change percentages and totals calculated before rounding.