2016 3rd quarter results on track with the Bright2020 strategic plan roadmap

2016 third-quarter and nine month financial information (1^st January to 30^st September 2016)

2016 3^rd quarter results on track with the

Bright2020 strategic plan roadmap

• Organic growth: +6.3%


• Recurring operating EBITDA margin: 15.9%


• Working capital requirements under control

Press release

Avignon, 8 November 2016 - Naturex, the global leader in speciality plant-based natural ingredients, releases its quarterly financial information for the third quarter and the first nine months of 2016.

Sound and well-managed organic growth

The Group continued and intensified its efforts in the 2016 third quarter on developing the priority areas defined under the Bright2020 strategic plan. These included building a higher value offering around innovation and the four key product categories as well as implementing a targeted customer approach and rationalising the number of product references.

2016 third quarter revenue rose in consequence to €98.4 million, displaying organic growth 6.3% like-for-like and at constant exchange rates¹, compared with last year's third quarter.

For the first nine months, revenue rose to €306.4 million, up from €297.0 million for the same period in 2015, representing organic growth of 5.7% like-for-like and at constant exchange rates

Positive trends for both strategic platforms

(€ 000's)

IFRS

(Unaudited data)
3^nd quarter

2016
3^nd quarter

2015
Revenue mix (%)
Change (%)
Organic growth¹ (%)


 
 
 
 
Current exchange rates
Constant exchange rates excl. krill toll manufacturing sales²


My Natural Food
51,496
47,193
52.3%
+9.1%
+11.1%


My Natural Selfcare
33,511
32,188
34.1%
+4.1%
+4.5%


Other activities*
13,398
14,941
13.6%
-10.3%
-5.3%


TOTAL
98,404
94,321
100.0%
+4.3%
+6.3%

* of which Q3 2015 krill toll manufacturing sales: €764,000

My Natural Food registered 11.1% in organic growth for the 2016 third quarter with a favourable comparison base in 2015, reaching revenue of €51.5 million. This performance reflected the improved product mix built around key product categories, underpinned by continuing very positive trends for natural ingredients, particularly for speciality fruit and vegetables and colours.

For the first nine months revenue reached €159.4 million, up 6.9% like-for-like from the same period in 2015.

My Natural Selfcare had organic growth of 4.5% in the 2016 third quarter from a high comparison base in 2015, with revenue of €33.5 million. This performance confirms the growing momentum for the clinically-substantiated phytoactives product range and also the effects of Naturex's traceability and quality control commitments for its plant extracts in a market of continuing volatility and subject to numerous regulatory requirements.

For the first-nine months, revenue rose to €104.6 million, gaining 7.6% like-for-like from the same period in 2015.

Other activities had revenue of €13.4 million in the 2016 third quarter, down 5.3% like-for-like and at constant exchange rates. Revenue for the first nine months amounted to €42.4 million compared to €49.9 million for the same period in 2015, reflecting mainly the discontinuation of the krill toll manufacturing.

Visible benefits from simplification across all regions

(€ 000's)

IFRS

(Unaudited data)
3^nd quarter 2016
3^nd quarter 2015
Revenue mix (%)
Change (%)
Organic growth %


 
 
 
 
Current exchange rates
Constant exchange rates excl. krill toll manufacturing sales


Europe/Africa/Middle East*
33,639
33,943
34.2%
-0.9%
+4.3%


North America,
42,710
42,106
43.4%
+1.4%
+1.6%


Latin America
8,198
7,669
8.3%
+6.9%
+7.3%


Asia/Pacific
13,857
10,604
14.1%
+30.7%
+31.0%


TOTAL
98,404
94,321
100.0%
+4.3%
+6.3%

* of which Q3 2015 krill toll manufacturing sales: €764,000

The Europe/Africa/Middle East region had revenue of 33.6 million in the 2016 third quarter with organic growth of 4.3%. This increase reflects the gradual upgrading of the product portfolio by shifting to key categories whereas simplification and rationalisation measures actively pursued will continue to weigh upon the region's business performance over the coming months.

For the first nine months, revenue amounted to €111.4 million, up 5.7% like for like from the same period in 2015.

North America had revenue of 42.7 million in the 2016 third quarter with organic growth of 1.6% compared to the same period in 2015. Measures for reducing complexity and tension within the supply chain were intensified with the goal of providing optimal service to the targeted customer base. The strong contribution from Food & Beverage is masked by the volatility of Nutrition & Health business with the nutraceutical market going through a period of transition according to regulatory requirements.

For the first nine months of 2016, revenue amounted to €133.6 million, remaining largely steady (-0.8%) in relation to a high comparison base in 2015.

The Latin America and Asia-Pacific regions, energised by the new organisation, benefited from positive trends in their respective markets. On that basis, in the 2016 third quarter, the Latin American region had €8.2 million in revenue, up 7.3% at constant exchange rates and the Asia-Pacific region €13.9 million in revenue with organic growth of 31.0%.

These two emerging regions had combined sales of €61.4 million in 2016, representing 20.0% of total Group revenue.

A steadily improving performance

Recurring operating EBITDA ³ amounted to €15.6 million in the 2016 third quarter, representing a margin of 15.9% and reflecting measures designed to make better use of production capacity and improve productivity. For the first nine months, recurring operating EBITDA in consequence amounted to €48.8 million.

Working Capital Requirements amounted to €196.3 million at 30 September 2016, up from €186.1 million at 30 June 2016. This increase is largely a consequence of the inventory categorisation process linked to measures taken to rationalise product references and build a higher value product range. The Group is also continuing to actively manage customer credit risk and supplier payment terms.

"The 2016 third quarter's good performance is on track with the roadmap of our Bright 2020 strategic plan. Our commitments in terms of rigour and discipline aimed at simplifying and energising our operating model to achieve strong and lasting growth by 2020 are starting to produce benefits. In these first nine months of 2016, we were successful in combining the rationalisation of our product portfolio and shift to a higher value offering around strategic product categories by implementing a regional commercial governance model that is now complete. We have also focused on increasing efficiencies at our industrial sites and optimising costs in order to generate the operating drivers necessary to improve our profitability ", commented Olivier Rigaud, Chief Executive Officer and Director of Naturex.

"With the nutraceutical market going through period of transition, creating volatility in the short-term and impacting performances of some of our customers that have already confirmed postponements of orders until 2017, expectations for the 2016 fourth-quarter are in consequence less favourable. In the upcoming months, particular efforts will be devoted to ramping up our investments in research and innovation but also further streamlining our product references and structuring and optimising our industrial capacities.”

You can receive all financial information of Naturex free of charge by signing up at: www.naturex.com

CONFERENCE CALL

A conference call will be held on Wednesday 9 November at 10:00 a.m. (French time);

A webcast of the presentation will be available live and by retransmission from the following link:

Access to the webcast from a computer

To access the live or replay version of this webcast from a computer, click on: http://edge.media-server.com/m/p/v7gu63pj

Access to the webcast from a mobile device - QR code

To access the live or replay version of this webcast from mobile phones or tablet devices using iOS and android operating systems:

• Upcoming events
  

  
  
  - Actionaria tradeshow (Paris)
  18-19 November 2016
  
  
  

• Financial schedule
  

  
  
  - Revenue - FY 2016
  6 February 2017
  
  
  - 2016 annual results
  29 March 2017
  
  
  

About Naturex

Naturex sources, manufactures and markets natural speciality ingredients for the food, health and cosmetic industries. As the Natural Maker, the company actively supports the global shift from synthetic to natural through an offer built on two main focus areas: My Natural Food and My Natural Selfcare. Naturex's portfolio includes colours, antioxidants, speciality fruits & vegetables, phytoactives, and numerous other plant-based natural ingredients, designed to create healthy, authentic and effective products.

The Group's strong commitment to quality, sustainability, continuous innovation process, and the talent of its people are at the heart of its success.

Headquartered in Avignon, France, Naturex has experienced steadily-increasing growth throughout the last 20 years. The group posted €397.8 million in sales in 2015 and employs 1,700 people worldwide.

The Group is listed on Euronext Paris, Compartment B - Index: Euronext Next 150, Enternext CAC PEA-PME 150, CAC Small & Mid, CAC Small, Gaïa - Ticker: NRX - Reuters: NATU.PA - Bloomberg: NRX:FP - DR SYMBOL: NTUXY

 NATUREX, From Nature to You

• Contacts

Carole Alexandre

Investor Relations

Tel.: +33 (0)4 90 23 78 28

[email protected]
Anne Catherine Bonjour

Actus Finance Press Relations

Tel.: +33 (0)1 53 67 36 93

[email protected]

APPENDIX

• Nine-month revenue highlights by business and region

(€ 000's)

IFRS

(Unaudited data)
FY

2016
FY

2015
Change (%)
Organic growth %


 
 
 
Current exchange rates
Constant exchange rates excl. krill toll manufacturing sales


1^st quarter
104,404
98,602
+5.9%
+6.3%


2^nd quarter
103,637
104,047
-0.4%
+4.4%


H1
208,041
202,650
+2.7%
+5.3%


3^nd quarter
98,404
94,321
+4.3%
+6.3%


9 months
306,445
296,971
+3.2%
+5.7%

(€ 000's)

IFRS

(Unaudited data)
9 months

2016
9 months

2015
Revenue mix (%)
Change (%)
Organic growth %


 
 
 
 
Current exchange rates
Constant exchange rates excl. krill toll manufacturing sales


My Natural Food
159,359
150,039
52.0%
+6.2%
+6.9%


My Natural Selfcare
104,638
97,069
34.1%
+7.8%
+7.6%


Other activities*
42,448
49,863
13.9%
-14.9%
-2.7%


TOTAL
306,445
296,971
100.0%
+3.2%
+5.7%

* of which 2015 nine-month krill toll manufacturing sales: €5,956,000

(€ 000's)

IFRS

(Unaudited data)
9 months

2016
9 months

2015
Revenue mix (%)
Change (%)
Organic growth %


 
 
 
 
Current exchange rates
Constant exchange rates excl. krill toll manufacturing sales


Europe/Africa/Middle East*
111,437
112,751
36.4%
-1.2%
+5.7%


North America,
133,632
133,847
43.6%
-0.2%
-0.8%


Latin America
22,241
18,281
7.3%
+21.7%
+21.6%


Asia/Pacific
39,135
32,092
12.8%
+21.9%
+23.6%


TOTAL
306,445
296,971
100.0%
+3.2%
+5.7%

* of which 2015 nine-month krill toll manufacturing sales: €5,956,000

• Quarterly revenue mix by business

1^st quarter


(€ 000's)

IFRS

(Unaudited data)
1^st quarter

2016
1^st quarter

2015
Revenue mix (%)
Change (%)
Organic growth %


 
 
 
 
Current exchange rates
Constant exchange rates excl. krill toll manufacturing sales


My Natural Food
53,083
50,049
50.8%
+6.1%
+3.2%


My Natural Selfcare
37,029
31,452
35.5%
+17.7%
+14.7%


Other activities*
14,291
17,102
13.7%
-16.4%
-1.2%


TOTAL
104,404
98,602
100.0%
+5.9%
+6.3%

* of which Q1 2015 krill toll manufacturing sales: €2,789,000.

2^nd quarter


(€ 000's)

IFRS

(Unaudited data)
2^nd quarter 2016
2^nd quarter 2015
Revenue mix (%)
Change (%)
Organic growth %


 
 
 
 
Current exchange rates
Constant exchange rates excl. krill toll manufacturing sales


My Natural Food
54,779
52,797
52.9%
+3.8%
+6.5%


My Natural Selfcare
34,099
33,430
32.9%
+2.0%
+3.9%


Other activities*
14,759
17,820
14.2%
-17.2%
-1.7%


TOTAL
103,637
104,047
100.0%
-0.4%
+4.4%

* of which Q2 2015 krill toll manufacturing sales: €2,403,000

3^rd quarter


(€ 000's)

IFRS

(Unaudited data)
3^nd quarter 2016
3^nd quarter 2015
Revenue mix (%)
Change (%)
Organic growth %


 
 
 
 
Current exchange rates
Constant exchange rates excl. krill toll manufacturing sales


My Natural Food
51,496
47,193
52.3%
+9.1%
+11.1%


My Natural Selfcare
33,511
32,188
34.1%
+4.1%
+4.5%


Other activities*
13,398
14,941
13.6%
-10.3%
-5.3%


TOTAL
98,404
94,321
100.0%
+4.3%
+6.3%

* of which Q3 2015 krill toll manufacturing sales: €764,000

• Quarterly revenue mix by region

1^st quarter


(€ 000's)

IFRS

(Unaudited data)
1^st quarter

2016
1^st quarter

2015
Revenuemix (%)
Change (%)
Organic growth %


 
 
 
 
Current exchange rates
Constant exchange rates excl. krill toll manufacturing sales


Europe/Africa/Middle East*
39,408
38,875
37.7%
+1.4%
+9.3%


North America,
45,101
45,517
43.2%
-0.9%
-6.0%


Latin America
6,339
4,162
6.1%
+52.3%
+46.1%


Asia/Pacific
13,556
10,047
13.0%
+34.9%
+34.9%


TOTAL
104,404
98,602
100.0%
+5.9%
+6.3%

* of which Q1 2015 krill toll manufacturing sales: €2,789,000.

2^nd quarter


(€ 000's)

IFRS

(Unaudited data)
2^nd quarter 2016
2^nd quarter 2015
Revenue mix (%)
Change (%)
Organic growth %


 
 
 
 
Current exchange rates
Constant exchange rates excl. krill toll manufacturing sales


Europe/Africa/Middle East*
38,389
39,933
37.0%
-3.9%
+3.4%


North America,
45,822
46,224
44.2%
-0.9%
+2.1%


Latin America
7,705
6,450
7.4%
+19.4%
+22.9%


Asia/Pacific
11,722
11,440
11.3%
+2.5%
+6.9%


TOTAL
103,637
104,047
100.0%
-0.4%
+4.4%

* of which Q2 2015 krill toll manufacturing sales: €2,403,000

3^nd quarter


(€ 000's)

IFRS

(Unaudited data)
3^nd quarter 2016
3^nd quarter 2015
Revenue mix (%)
Change (%)
Organic growth %


 
 
 
 
Current exchange rates
Constant exchange rates excl. krill toll manufacturing sales


Europe/Africa/Middle East*
33,639
33,943
34.2%
-0.9%
+4.3%


North America,
42,710
42,106
43.4%
+1.4%
+1.6%


Latin America
8,198
7,669
8.3%
+6.9%
+7.3%


Asia/Pacific
13,857
10,604
14.1%
+30.7%
+31.0%


TOTAL
98,404
94,321
100.0%
+4.3%
+6.3%

* of which Q3 2015 krill toll manufacturing sales: €764,000

¹ Organic growth: Growth at constant exchange rates and like-for-like (excluding acquisitions, disposals or discontinued operations, businesses…)

²Krill toll manufacturing sales: Business transferred at the end of 2015 to the JV with Aker BioMarine, with the disposal of Naturex's stake announced in March 2016 and, as of this date, completed.

³ To better reflect the annual performance without the impact of inventory management measures that were not generated over the period, Naturex adopted a new alternative performance indicator. The destruction of stock and inventory provisions for more than two years are now eliminated from EBITDA under the term of recurring operational EBITDA. The previously used indicator of Recurring EBITDA took into account only the restatement of amortisation, depreciation and impairment of tangible or intangible fixed assets. 

Source: Actusnews