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RFRG - Refresco NV News Story

€20.8 0.5  2.3%

Last Trade - 25/04/18

Sector
Consumer Defensives
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £3.56bn
Position in Universe th / 847

Refresco reports Q4 & FY 2017 results and starts integration of Cott's bottling activities

Mon 5th March, 2018 6:30am
Refresco reports Q4 & FY 2017 results and starts integration of Cott's bottling activities

Rotterdam, the Netherlands - 5 March 2018. Refresco Group N.V. publishes fourth quarter and full year 2017 results.

Update on acquisition of Cott's bottling activities and launch of recommended cash offer for all shares
On 30 January 2018, Refresco and Cott's bottling activities joined forces creating the world's largest independent bottler for retailers and A-brands. In combining Refresco's strong European capabilities and Cott's strength in the UK and North America, Refresco almost doubles its production volume to approximately 12 billion liters. Integration of the two businesses has begun in North America while in the UK we are in the process of obtaining clearance from the Competition and Markets Authority. Brad Goist, formerly President of Cott's bottling business in North America has been appointed COO North America and a new member of the Executive Board, subject to shareholder approval at the Annual General Meeting in May.

On 22 January 2018, Refresco, PAI and bcIMC jointly announced the launch of a recommended cash offer for all shares of Refresco for an offer price of €20 (cum dividend) per share. Both the Executive Board and the Supervisory Board unanimously recommend shareholders to tender their shares. The acceptance period, unless extended, expires at 17:40 hours CET, on 19 March 2018. Shareholders will be informed about the offer and are able to vote on the respective resolutions during an Extraordinary General Meeting, held today 5 March 2018 at 14:00 hours CET at Inntel Hotels, Leuvehaven 80, Rotterdam.

Q4 2017 Highlights

  • Total volume was 1,525 million liters (Q4 2016: 1,631 million liters).
  • Gross profit margin per liter was 14.6 euro cents (Q4 2016: 14.5 euro cents).
  • Adjusted EBITDA amounted to €50 million (Q4 2016: €52 million).

FY 2017 Highlights

  • Total volume was 7,104 million liters (2016: 6,462 million liters).
  • Contract manufacturing volume comprised 36.3% of total volume, up from 26.8% in 2016.
  • Gross profit margin per liter was 14.0 euro cents (2016: 14.2 euro cents).
  • Adjusted EBITDA amounted to €214 million (2016: €222 million) and adjusted EPS was €1.00 (2016: €1.06).

Key figures

  Unaudited Unaudited Audited
In millions of €, unless stated otherwise (unaudited) Q4 2017 Q4 2016 YTD 2017 YTD 2016
Volume (millions of liters) 1,525 1,631 7,104 6,462
Revenue 520 529 2,269 2,107
Gross profit margin 223 236 992 916
Gross profit margin per liter (euro cents) 14.6 14.5 14.0 14.2
EBITDA 41 50 191 217
Adjusted EBITDA 50 52 214 222
Net profit / (loss) 10 17 53 82
Adjusted net profit / (loss) 25 19 81 86
Adjusted EPS (euro cents) 31 23 100 106
Net debt ratio (net debt/LTM adj. EBITDA) - - 2.8 2.8
Dividend proposal (euro cents) - - - 38

CEO Refresco, Hans Roelofs commented:
"2017 was for Refresco strategically very good year and financially challenging. We signed a transformational deal to acquire Cott's bottling activities, creating the world's largest independent bottler with leadership positions across Europe and North America. As a result we will grow considerably, gain 4,000 new colleagues, 29 manufacturing sites and fulfil our ambition to operate a market leading bottling platform across two continents. It is a huge step forward, right at the heart of our buy & build strategy.

A weak summer in almost all markets and continued pressure on retailer brands had an adverse effect on volumes and results. Our results were also influenced by higher than expected costs linked to the start-up of several new Aseptic PET lines across the business. This technology is critical to our future because it enables us to meet changing consumer preferences for more innovative recipes and packaging formats.

The launch of the recommended cash offer of all Refresco shares by PAI and bcIMC is a further exciting development for our company. With their track record, financial strength and understanding of our business and the beverages industry, the consortium can support Refresco's strategy going forward. We are convinced that this is a good transaction for the company and its stakeholders.

Finally, integration of Refresco and Cott's bottling activities has begun in 2018 and we are pleased to welcome Brad Goist, COO North America as a new Executive Board member, subject to shareholder approval at the upcoming AGM."

Please open the link below for the press release.




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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Refresco via Globenewswire

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