Sound annual organic growth : +6.0% My Natural Food and +4.4% My Natural SelfCare

Sound annual organic growth : +6.0% My Natural Food and +4.4% My Natural SelfCare

2016 4th quarter and 12-month revenue (1 January to 31 December 2016)

Sound annual organic growth

+6.0% My Natural Food and +4.4% My Natural SelfCare

Press release

Avignon, 6 February 2017 - Naturex, the global leader in speciality plant-based natural ingredients, announces its 2016 fourth-quarter and annual consolidated revenue:

In €m

IFRS

(Unaudited data)
2016
2015
Change (%)
Organic growth1 (%)


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


Annual revenue
404.4
397.8
+1.6%
+3.6%

Revenue highlights by quarter are presented in the appendix

In 2016, the first year of the Bright2020's plan implementation, a number of measures were taken to reduce the complexity of Naturex's operating model.

These measures set the stage for sustainable growth and provided the levers needed to reach our profitability targets by 2020.

On that basis, annual revenue amounted to €404.4 million, with organic growth of 3.6% like-for-like and at constant exchange rates1, bolstered by:

Focus on strategic product categories

(€ 000's)

IFRS

(Unaudited data)
2016
2015
Revenue mix (%)
Change (%)
Organic growth1 (%)


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


My Natural Food
208.0
197.8
51.4%
+5.2%
+6.0%


My Natural Selfcare
137.5
131.4
34.0%
+4.7%
+4.4%


Other activities*
58.8
68.6
14.6%
-14.3%
-5.8%


TOTAL
404.4
397.8
100.0%
+1.6%
+3.6%

* of which 2015 krill toll manufacturing sales: €6.0 million

My Natural Food had organic growth for the year of 6.0% with revenue of €208.0 million, bolstered by very positive trends in the mix of speciality fruit and vegetables, natural colours and natural antioxidants.

For the 2016 fourth quarter, revenue rose 3.4% like-for-like and at constant exchange rates to €48.6 million.

My Natural Selfcare had annual revenue of €137.5 million with organic growth of 4.4% driven by gains from Europe, Latin America and the Asia/Pacific region including notably growing momentum by the Fruits & Greens natural nutrition range. The phytoactives product range was primarily impacted by the United States reflecting the repercussions of a complex market environment.

In this context, revenue for the 2016 fourth quarter declined 4.5% to €32.9 million.

Other activities had revenue of €58.8 million for 2016 compared to €68.6 million in 2015. This represents a 14.3% decline at current exchange rates which includes the discontinuation of the krill toll manufacturing activity and the reduction in number of SKUs identified in 2016.

Good momentum in Europe and emerging countries

(€ 000's)

IFRS

(Unaudited data)
2016
2015
Revenue mix (%)
Change (%)
Organic growth %


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


Europe/Africa/Middle East*
147.5
149.4
36.5%
-1.2%
+4.5%


North America,
172.9
178.4
42.8%
-3.1%
-3.6%


Latin America
29.6
26.6
7.3%
+11.4%
+11.4%


Asia/Pacific
54.3
43.5
13.4%
+24.9%
+25.5%


TOTAL
404.4
397.8
100.0%
+1.6%
+3.6%

* of which 2015 krill toll manufacturing sales: €6.0 million

The Europe/Africa/Middle East region had revenue of €147.5 million in 2016 representing solid growth of 4.5% like-for-like and at constant exchange rates. This reflects mainly the effects of rationalising the number of SKUs as the portfolio is repositioned in order to focus on higher added value strategic product categories.

The 2016 fourth quarter registered a 1% increase in revenue like-for-like and at constant exchange rates, after factoring in an acceleration in the portfolio rationalisation process and an unfavourable comparison base from selected product categories rolled out in the 2015 fourth quarter.

North America had revenue of €172.9 million in 2016 compared to €178.4 million in 2015. This 3.6% decline is largely a consequence of the nutraceutical market volatility's in the US as it goes through a phase of reconstruction in response to new regulatory requirements. It will be recalled that the market's main players whose performances had been impacted for the first nine months of the year announced that they were postponing orders until 2017.

In this context, 2016 fourth-quarter revenue amounting to €39.3 million was down 12% at constant exchange rates from the same period in 2015.

Growth momentum remained on track in the Latin America and Asia-Pacific regions with combined revenue of €83.9 million, representing 20.7% of total Group sales, up from 17.6% in 2015 and overall organic growth of 20.1% for the year.

In the 2016 fourth quarter, the Latin America region was impacted by the comparison base from non-strategic businesses whereas the Asia-Pacific region benefited from more positive market conditions.

"For the Bright2020 plan's first year of execution, we succeeded in delivering quality organic growth for 2016 with strong gains from our Natural Food business and good development overall for the SelfCare segment, bolstered by emerging markets and Europe. We have voluntarily placed the emphasis on the quality of our portfolio by rationalising the number of SKUs and concentrating on our strategic product categories.

We also finalised our regional structure in order to support innovation, facilitate our development and transform Naturex into a less complex and more resilient international group. These different measures will positively impact recurring operating EBITDA margin, in line with our latest publications and analyst consensus", commented Olivier Rigaud, Chief Executive Officer and Director of Naturex.

"Our priorities for 2017 are clearly focused on growth, innovation and profitability according to the strategic pillars of our Bright2020 plan. On that basis, the rationalisation of our product portfolio should be completed in the first half while key product categories are ramped up."

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

- 2016 annual results
29 March 2017

- Analysts meeting (SFAF - French Society of Financial Analysts), Paris
30 March 2017


- AGM
20 June 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 had revenue of €404.4 million in 2016 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

Carole Alexandre

Investor Relations

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

c.alexandre@naturex.com
Anne Catherine Bonjour

Actus Finance Press Relations

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

acbonjour@actus.fr

APPENDIX

(€ 000's)

IFRS

(Unaudited data)
FY

2016
FY

2015
Change (%)
Organic growth %


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


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


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


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


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


9 months
306,445
296,971
+3.2%
+5.7%


4nd quarter
97,910
100,841
-2.9%
-2.4%


12 months
404,355
397,812
+1.6%
+3.6%

1st quarter


(€ 000's)

IFRS

(Unaudited data)
1st quarter

2016
1st 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.

2nd quarter


(€ 000's)

IFRS

(Unaudited data)
2nd quarter

2016
2nd 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

3nd quarter


(€ 000's)

IFRS

(Unaudited data)
3nd quarter

2016
3nd 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

4nd quarter


(€ 000's)

IFRS

(Unaudited data)
4nd quarter

2016
4nd quarter

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


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


My Natural Food
48,610
47,737
49.6%
+1.8%
+3.4%


My Natural Selfcare
32,907
34,335
33.6%
-4.2%
-4.5%


Other activities*
16,393
18,768
16.7%
-12.7%
-13.1%


TOTAL
97,910
100,841
100.0%
-2.9%
-2.4%

* of which Q4 2015 krill toll manufacturing sales: €14,000

1st quarter


(€ 000's)

IFRS

(Unaudited data)
1st quarter

2016
Q1 2015
Revenue mix (%)
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.

2nd quarter


(€ 000's)

IFRS

(Unaudited data)
2nd quarter

2016
2015 2nd quarter
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

3rd quarter


(€ 000's)

IFRS

(Unaudited data)
3rd quarter

2016
2015 3nd quarter
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

4rd quarter


(€ 000's)

IFRS

(Unaudited data)
4th quarter

2016
2015 4th quarter
Revenue mix (%)
Change (%)
Organic growth %


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


Europe/Africa/Middle East*
36,110
36,627
36.9%
-1.4%
+1.0%


North America,
39,260
44,523
40.1%
-11.8%
-12.0%


Latin America
7,397
8,325
7.6%
-11.1%
-11.0%


Asia/Pacific
15,142
11,365
15.5%
+33.2%
+30.7%


TOTAL
97,910
100,841
100.0%
-2.9%
-2.4%

* of which Q4 2015 krill toll manufacturing sales: €14,000

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 completed as of this date. 2015 revenue (€m): €6.0 million

3 Strategic product categories defined through the Bright2020 strategic plan: natural colours, fruit and vegetable-based ingredients, natural antioxidants and phytoactives.

Source: Actusnews