2016 third-quarter and nine month FINANCIAL information (1st January to 30st September 2016)
2016 3rd 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) |
3nd quarter 2016 |
3nd 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) |
3nd quarter 2016 | 3nd 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.”
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CONFERENCE CALL
A conference call will be held on Wednesday 9 November at 10:00 a.m. (French time);
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- 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 c.alexandre@naturex.com |
Anne Catherine Bonjour Actus Finance Press Relations Tel.: +33 (0)1 53 67 36 93 acbonjour@actus.fr |
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 | |||
| 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% |
| (€ 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
| 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
| 3rd 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
- Quarterly revenue mix by region
| 1st quarter | |||||
| (€ 000's) IFRS (Unaudited data) |
1st quarter 2016 |
1st 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.
| 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 | ||||
| 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
| 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 | ||||
| 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.
