«Water and People, the Best of Nature Close to You» ANNUAL REPORT Summary

Transcription

1 «Water and People, the Best of Nature Close to You» ANNUAL REPORT 2011 Summary

2 Chairman's Message 2011, the year the Spadel strategic plan was launched, has met our expectations! Despite a disappointing summer and a context of economic gloom, we have strengthened our position in key markets. Only the Netherlands remains under pressure due to strong competitive pressure, and it is therefore a market in which we must continue to refine our strategy while leveraging the maximum strength from our brands. The overall results in terms of volume and market share show that we are staying the course and we must continue our strategy. Raw materials continue to be subject to significant price increases forcing us to permanently unite all our forces to initiate growth for our shareholders. In 2011, we invested heavily in our brands as well as industrial infrastructure and logistics. This investment policy was a strategic choice. It forms the basis for the coming years to increase our operational efficiency and anchor our strong brands in our key markets. Spadel is a dynamic group with a beautiful range of dynamic and healthy products, a group that has also established a leading position through the continuous involvement of a passionate team of competent people in whom I have complete confidence. The Board of Directors and Executive Committee are composed of experienced people who have a long-term vision and make the right strategic decisions must be the year of confirmation. We aim to improve our financial and operational performance and our markets in a volatile economic environment where pressure on consumer prices will definitely increase. However, with our 2015 strategy, we are well equipped to continue on this path. Johnny Thijs Chairman 2

3 General Management Results in line with the 2015 strategy For both Spadel and the natural mineral water market, 2011 has been a positive year. Our overall results in volume and value show a stabilisation compared to 2010, despite an unfavourable climate in the summer. We are pleased with our performance in volumes given the climatic conditions in Our group ended the year with a virtually unchanged litrage from 2010 registering a volume growth in several markets. In financial terms, the result is down on 2010, strongly influenced by the sharp rise in raw material costs beyond the effects of industrial and commercial investments made to support the Group s innovation policy. The milestones for the future are firmly anchored. In general, the results are in line with our strategic Spadel 2015 plan. A growing global market Globally, the main markets in which the Group operates recorded a growth in both volume and value for still and sparkling mineral waters. As a national or regional leader, we have contributed to improving market conditions following, among other things, the strength of our brands and the relaunch of Spa Reine and Spa pétillant in These good results also stem from recognition of the qualities, values, and fundamental characteristics of natural mineral water compared to other products. In addition, significant promotional policies, in which Spadel was thoughtfully involved, also explain this market growth. But we continue, in our communication, to hold a keynote on the strengths of natural mineral water. Spadel 2015 Our investments fall under the Spadel 2015 plan, started in 2011, with many concrete initiatives. It has three main axes: Creating value through our dynamic brand coupled with innovation; The industrial efficiency of all of our sites following a radical rethink of how we do things; Our strategy of leadership in sustainable development. The work done in 2011 by each one is significant and the objectives are fully achieved, with the expected results achieved. Outlook for is fully consistent with the objectives of the strategic plan. Many initiatives will emerge for each pillar. Commercially, each brand will be supported so as to enhance its consumer appeal while incorporating real improvements in terms of the carbon footprint. Industrially, the plants will continue to improve their efficiency through their tools and also through the introduction of integrated SAP management software and centralised storage. Jean Philippe Despontin General Manager Marc du Bois Managing Director 3

4 Spadel In a nutshell The Spadel Group specialises in the bottling and marketing of natural mineral water and a variety of soft drinks. It has four production sites in Europe: Spa Monopole (Spa, Belgium) Bru-Chevron (Stoumont-Lorcé, Belgium) Les Grandes Sources de Wattwiller (Wattwiller, France) Brecon (Trap, Wales) At the end of 2011, the Group achieved a turnover (excluding taxes) of million and an operating profit of 12.3 million. The Group employs 728 people, 83% of which in Belgium, and is a leader in Benelux in the natural mineral water sector. Group Structure Spadel SA. for Belgium, the Grand Duchy of Luxembourg and large exports. Spadel Nederland BV. for the Netherlands. Les Grandes Sources de Wattwiller SAS. for France. Spadel UK, a branch of Monopole SA, for Great Britain. 4

5 Highlights 2011 Group Spadel (millions EUR) Net sales including taxes 1 254,8 235,2 224,2 220,3 219,7 Net sales excluding taxes 222,6 207,5 199,2 196,5 196,9 EBITDA 39,5 27,9 32,4 28,9 23,9 Operating profit (loss) 26,6-4,0 18,8 16,3 12,3 Financial income 3,2 3,6 1,7 1,1 1,1 Financial charges -0,9-0,8-0,7-0,7-0,7 Profit/(loss) before taxes 28,9-1,3 19,8 16,6 12,7 Taxes -8,8-3,0-5,1-3,9-4,0 Net profit (loss) 20,1-4,3 14,7 12,8 8,7 Balance sheet 258,9 237,7 234,7 190,8 201,4 Stakeholders equity 135,8 127,0 138,5 89,1 93,7 Non-current assets 127,8 102,5 96,6 97,3 96,4 Group data by share 2 Operating profit/(loss) 6,41-0,97 4,54 3,92 2,97 Net profit (loss) 4,84-1,03 3,54 3,08 2,10 Gross dividend 0,96 0,80 1,00 1,00 0,80 Net dividend 0,72 0,60 0,75 0,75 0,60 Share price Year-end 67,00 74,50 54,00 55,99 53,65 High of the year 72,20 82,50 75,45 62,89 59,99 Low of the year 62,50 66,50 50,00 51,00 55,00 Number of shares Number of shares excluding own shares Taxes include excise taxes and package taxes. 2 Calcula on made on the number of shares excluding own shares held by the Group. 3 Quota on on EURONE XT BRU SSEL S (Code ISIN : BE ). 5

6 Our Products Spadel Group brings the best of nature: a natural mineral water with an original purity. We are committed to providing you with natural responses throughout your life, the best ever, to your hydration needs and your refreshment desires. Thus, our range of drinks offers natural mineral water and soft drinks based on natural mineral water. With these high quality products, we are a regional leader in the natural mineral water sector in the markets where we operate. NATURAL MINERAL WATER SPA When you think of natural mineral water in Benelux, you think of Spa. The sources of natural Spa mineral waters gush in the heart of the Fens in Belgium in an aquifer protected since 1889 covering 13,177 hectares (26,340 football pitches). Spa is known for its strict protection of aquifers, the environment and biodiversity to ensure a pure natural mineral water, not only for us today but for future generations. It contributes to healthy living and offers three varieties of pure waters: still, sparkling, naturally slightly sparkling and intensely sparkling. Info: Spa Reine is not just a market leader for non-carbonated natural mineral waters in Belgium but it is also the leader, by far, in the Netherlands. Spa Reine is 'purity that protects'. It is very low in mineral salts (dry residue of 33 mg/l). It is suitable for the preparation of infant food and is recommended for low-salt diets. In general, it can be consumed by all, at any time and without restriction. Spa Reine is the leading brand of natural mineral water in the Benelux and created, in 2010, a range where each format is unique to better meet consumer needs! Each format (2l, 1.5l, 1l, 75cl, 50cl and 33cl) was specifically designed for a particular purpose: whether you are at home, in the office, in a schoolbag or for sport,... everyone has their bottle. Spa Reine is the first in Europe to offer PET bottles containing 50% recycled material, which significantly reduces the need for virgin PET. Since 1975, the weight of the Spa Reine bottle has decreased by 50%, which significantly reduces the need for virgin PET. Labels are now all recycled paper and printed with vegetable inks. Spa Reine has a completely unique and new environmental profile. 6

7 Sparkling Spa as sparkling as you want A brand of sparkling water with two types of bubbles: 'intensely' for Spa Barisart and 'naturally slightly' bubbly for Spa Marie-Henriette. The new sparkling range in Pet format was completely relaunched in 2011 and now offers all new rejuvenated, modern and dynamic bottles emphasising this bubbly side'. The bottles are 100% recyclable, contain 25% recycled PET and use recycled paper labels printed with vegetable inks. Choose the bubbles that are best for you, depending on your mood or your specific needs for unique and natural refreshment. Intensely sparkling From the first sip, the intensely sparkling Spa Barisart water announces, with its red labels: a flood of bubbles for 'intense fun'. It leaves no-one indifferent with its dynamic and intense character. It goes wonderfully with all those moments when you need extra pep and awakens all your senses. 'Naturally' slightly sparkling Delicate, natural, and refined are the first words that come to mind when describing Spa Marie-Henriette. After travelling for over 50 years in the Ardennes rocks, the 'naturally' slightly sparkling water springs naturally. A miracle of nature that delights consumers in search of natural bubbles. BRU Since its arrival at our tables, the Belgian natural mineral water Bru has earned a prominent place among lovers of good food and good wines and among culinary professionals with the lightness of its sparkle and its perfect mineral balance like fine wines. But for Bru, sharing a good meal is also a moment of conviviality. Bru gives life to the meal. Thus, the new TV ad for Bru in 2011 depicts five chefs gathered around a table, in a friendly atmosphere... and of course around a bottle of Bru. With a subtle flavour and low in salt, a perfect mineral balance that complements the taste of food and a slight sparkle that titillates the taste buds, Bru is the ideal water to accompany a meal and quality wines. It is also recommended by chefs and sommeliers and is a partner of culinary and sommeliers associations. Bru naturally sparkling or still is available in several PET or glass bottle formats. In 2011, the Belgian water, which originates in the heart of the Ardennes, received the "Superior Taste Award", confirming its affiliation to products of exceptional quality! Food is not the prerogative of men. Belgium has many 'Lady Chefs' whose creative and qualitative talents should be highlighted. That's why Bru is the main sponsor of the annual "Bru Lady Chef of the Year" competition. Info: 7

8 WATTWILLER The sources of natural mineral water in Wattwiller are in the Regional Natural Park of Ballons des Vosges (Alsace) in a pre environment. This water has the unique characteristic of not containing nitrate and very little sodium. Very pure, it respects the body day after day. A true gift from nature and we strive to preserve and protect its source and the surrounding park everyday An infant s body is sensitive and requires a lot of attention. For the preparation of bottles, as well as hydration, it is important to emphasise that mineral water is appropriate. Natural Wattwiller mineral water is recommended for infant feeding. Info: BRECON CARREG Brecon Carreg natural mineral water is collected from within the Brecon Beacons National Park, one of ten British National Parks, the lushest purity Wales can offer. Given its low sodium content, Brecon Carreg is recommended for low-salt diets. Its purity is also confirmed by its low nitrate. This is the first Welsh natural mineral water and, in 2011, it earned the bronze medal in the 'Wales the True Taste Food and Drink Awards, which aims to give public recognition to producers who excel in their industry and in order to increase the visibility of food and drink from Wales. SPA CITRON Spa Citron has been revamped and now contains 100% natural ingredients: natural Spa mineral water, lemon juice, and natural cane sugar. A classic since 1925 in the Spa range of lemonades, which is still one of the most popular soft drinks. SPA FRUIT Carbonated soft drinks are available in PET and glass bottles. You can enjoy a refreshing combination of fruit juice mixed with sparkling natural mineral water. Let yourself be cooled by nature! A real splash of fruit. Still Spa Fruit is available in sustainable cartons consistent with the FSC mark. A first in Europe! All flavours are available in the 1.5L bottles. Apple-Peach and Forest Fruits are also available in 20cl easyto-carry bottles. 8

9 Export activities We export our products in more than 30 markets around the world was a stable year with 6,6 mio litres in the exporting markets. Stability in Europe and United States Bothe European and American markets show stable results with regard to This stability is also confirmed in the Dutch Antilles which is a historical important distribution zone for us. New partnerships One of the highlights of 2011 is the change of partner for the German market which is one of our key markets in Europe in terms of exportation of Spa water. This change provides the new building blocks for a revamping of our sales in this market. Growth in Asia and Middle East Also in China we started to work with a brand new dynamic partner specialized in the distribution of Belgian products. We also have chosen to rely on a new distribution partner in Taiwan. Globally, the Asian market is characterized by a clear growth in volumes and by the development of our activities in this area has been a milestone for our business in the Middle East. We had great results in Qatar and Kuwait with even great business perspectives in the future. Spadel also started to integrate within the same department the export activities for the Spa water but also for our Wattwiller brands in order to increase efficiency and consistency. Perspectives 2012 Our ambitions for 2012 are in line with our 2011 achievements and objectives. We expect our new partnerships in Germany and China to deliver concrete results and we want to reinforce our presence in some emerging markets in the Middle East. Spa Worldwide presence Europe America Asia Azerbaijan Bermuda Brunei Canary Islands Canada China Cyprus Puerto Rico Hong Kong Denmark Saint-Mar n Korea Germany The Netherlands An lles Taiwan Greece U.S. Virgin Islands Kazakhstan Lithuania Russia Spain Turkey Africa Middle-East Congo Bahrain Qatar United Arab Emirates 9

10 Contacts International website: 10