In 2006, consolidated sales of Vivartia Group (pro forma) increased by 7,8% to 949,7 mil. euros from 881mil. Euros in 2005. Also, EBITDA increased by 10,9% to 142,3 mil euros from 128,3mil euros in 2005, while net profits reached 49,5mil euros from 32 mil euros in 2005 thus recording an increase of 54,7%. Last, earnings per share (EPS) reached 0,67euros from 0,48 euros, thus increased approximately by 40%, however stressing the difference in the number of shares in both years.
Above figures refer to the total operations of all divisions of Vivartia Group for the two years 2005 and 2006 and are as such directly comparable. They reflect therefore the true picture which results following the merger and after deducting the extraordinary income from the termination of the agreement with Danone.
The published accounts differ as they account for the results of the former Chipita only as from the date of the merger between Delta Holding with Chipita International, which means that only four months of operations of the bakery and pastry division are included in addition to the continuing activities of former Delta Holding.
Taking therefore into consideration that the published figures (continuing activities) are not in fact comparable, 2006 published figures are as follows: Vivartia sales increased by 25,2% to 731,3mil euros from 584,2mil euros. EBITDA reached 114,1mil. Euros from 102,9 mil. Euros, increased by 11%, while net profits are increased by 35% reaching 44,4mil euros in 2006 from 32,9mil euros in 2005.
In particular the sales and the profitability of each division for the full year ending 2006 are analyzed as follows:
- For the Dairy and Beverages division, sales reached 374,2mil. euros from 366,1mil. euros in 2005, increased by 2,2% and including the sales of the Vlachas brand for four and a half months, despite the competitive and rough market conditions in 2006. The division''s EBITDA recorded an increase of 20,8%, to 60,5mil. euros from 50,1mil. euros in the equivalent period in 2005 (not including the income recorded from the termination of the Danone partnership).
- For the Bakery and Pastry division, sales for 2006 increased by 16,8% to 346,9mil. euros from 297,0mil. euros, as a result of the further development of the products of the division with the launching of new innovative products and the strengthening of its market presence. On a profitability level, EBITDA reached 50,5mil. euros from 41,0mil. euros in 2005, increased by 23,2% not including non-repeated other income of 3,7mil. euros in 2005.
- The Catering Services and Entertainment division, recorded an increase of 7% in sales, to 156,5mil. euros from 146,3mil. euros the same period in 2005, as a result mainly of the improvement in sales of the Flocafe chain. EBITDA reached 24,4mil. euros from 23,9mil. euros, increased by 2,1%.
- For the Frozen Foods division, sales increased by 6,3% to 73,4mil. euros from 69,1mil. euros, due to the increase in the core business (frozen vegetables), and the launch of new products. On a profitability level, the significant improvement in costs resulted in an 18% increase in EBITDA which reached 16,2mil. euros from 13,7mil. euros in 2005.
Therefore, the Group''s targets for a profitable growth and increase of free cash flow which reached 72 mil. euros in 2006 from 41 mil. euros in 2005, have been met successfully. The strong financial position of the Group today, is depicted from the Net Debt to EBITDA and Net Debt to Equity ratios of 2,3:1 and 0,5:1 respectively in 2006.
Taking into consideration the Group''s above strong capital structure, the future cash flows and profitability that will result to the decrease in leverage, creates cash of at least 400mil. euros for potential acquisitions in Southeast Europe, so as to reinforce further the organic growth of Vivartia for the next three years. Within these frameworks and implementing a strategy t will secure both the development as well as the optimal capital structure for meeting the targets of the Group, which are the reduction of the weighted average cost of capital and the increase in the economic value added (EVA), Vivartia''s management will propose to the Shareholders General Assembly on the 9th of May 2007, the distribution of a special dividend of euro 1,25 per share, through the decrease in the share capital. Vivartia will further proceed with the restructuring of the Group''s financial obligations in order to achieve the optimal capital structure.
Last, VIVARTIA Group with its new structure, acquires significant opportunities for development in new geographical areas and new product markets while it further benefits from the synergies achieved. Above factors will contribute to its further profitable growth. It is therefore expected, that during the period 2007-2009, sales will increase at an average annual growth rate of 8% thus exceeding 1,1 billion euros in 2009, EBITDA will increase at an average annual growth rate of 14% thus exceeding 200mil. euros in 2009, while EPS are expected to double.