Consolidated annual results 2002 financial year
Operating results for 2002 in line with expectations in an unfavourable economic climate. International expansion and strong balance sheet limit fall in profits. Net profit rises by 16.6% thanks to exceptional capital gains.
1. Broad outlines
The operating results of VPK Packaging Group in 2002 were satisfactory, given the poor economic situation. The operational cash flow (EBITDA) decreased by 5.5 million euro. Thanks to lower financial costs and a lower tax burden, the current net profit only decreased by 4%.
The main contribution to the profit came from the recent acquisitions and the successful integration of the international expansion.
The operating results of VPK Packaging Group in 2002 were satisfactory, given the poor economic situation. The operational cash flow (EBITDA) decreased by 5.5 million euro. Thanks to lower financial costs and a lower tax burden, the current net profit only decreased by 4%.
The main contribution to the profit came from the recent acquisitions and the successful integration of the international expansion.
2. Consolidated results for 2002
Extension of the consolidation perimeter: figures as at 31-12-2002 include 100% of Twinpack in Barneveld (NL) during 7 months and 50 % of Ondulys Industrie in Lisieux (F) during 6 months.
(1) Operating profit + depreciation + amortisation + provisions.
(2) Operating profit, i.e. : the result before financial results, taxes and extraordinary results.
(3) Operating profit minus financial results but before extraordinary results and taxation.
(4) Total net profit - extraordinary result (after adjustment for taxes) + amortisation on consolidation goodwill.
(5) Current net profit + depreciation + amortisation + provisions + balance of transfers from and transfers to deferred taxes.
(1) Operating profit + depreciation + amortisation + provisions.
(2) Operating profit, i.e. : the result before financial results, taxes and extraordinary results.
(3) Operating profit minus financial results but before extraordinary results and taxation.
(4) Total net profit - extraordinary result (after adjustment for taxes) + amortisation on consolidation goodwill.
(5) Current net profit + depreciation + amortisation + provisions + balance of transfers from and transfers to deferred taxes.
3. Notes
a) turnover
In 2002, the group’s turnover rose by 2.2% to 371.3 million euro. The rise is mainly to be attributed to the extension of the consolidation structure to include Twinpack, which generated turnover from June 2002 onwards, and by the acquisition of Ondulys Industrie in Lisieux (F).
The group’s turnover (the consolidated turnover including 100% of Ondulys) amounted to 435 million euro in 2002. This means that the group ranks among the top 10 companies operating in this sector in Europe. In 2002, 73% of the turnover was recorded outside Belgium.
b) investments
In 2002, a total of 27 million euro was invested in intangible and tangible fixed assets.
The intangible investments (2.4 million euro) related mainly to the goodwill of Ondulys Industrie and the further implementation of the ERP system with a view to simplifying business processes, improving customer service and strengthening cost control.
Investments in tangible assets included the extension of the corrugated board plant in Aalst and the modernisation of the corrugated board plant in Desborough. In addition, the assets of Ondulys Industrie were purchased via the subsidiary Ondulys and a paper machine was modernised to increase capacity and improve the quality of the paper for the solid board industry and the tubewinding industry.
c) financial result
In 2002 the financial result amounted to –5 million euro, as against –6.6 million euro in 2001. This improvement may be attributed primarily to the lower outstanding debts.
At the end of the financial year, the net financial debts stood at 33 million euro (49.6 million euro in 2001 and 85.7 million euro in 2000). The improvement in the net financial debt is the result of the strong cash flow, which amply exceeded investments.
Capital and reserves (after distribution of profit) rose to 163.1 million euro or 48% of the total assets, which guarantees a very sound financial structure.
The gearing recorded a further spectacular improvement to 20% (35% in 2001 and 70% in 2000), which is clearly lower than the average of 65% common in the industry.
d) exceptional results
The exceptional result amounted to 4.7 million euro and may be attributed mainly to the capital gain on the sale of “La Rochette” shares after a public bid.
e) proposed dividend
The Board of Directors will propose to increase the gross dividend by 14 % to € 0.40 per share at the Annual General Meeting dated 30 May 2003.
Statutory auditors’ report
The statutory auditor, Grant Thornton, Lippens & Rabaey BVCV Belgian Member Firm of Grant Thornton International, represented by Mr. Stefaan Rabaey, has confirmed that its audit, which has been fundamentally completed, has not revealed any significant correction which must be incorporated into the accounting information included in the press release.
a) turnover
In 2002, the group’s turnover rose by 2.2% to 371.3 million euro. The rise is mainly to be attributed to the extension of the consolidation structure to include Twinpack, which generated turnover from June 2002 onwards, and by the acquisition of Ondulys Industrie in Lisieux (F).
The group’s turnover (the consolidated turnover including 100% of Ondulys) amounted to 435 million euro in 2002. This means that the group ranks among the top 10 companies operating in this sector in Europe. In 2002, 73% of the turnover was recorded outside Belgium.
b) investments
In 2002, a total of 27 million euro was invested in intangible and tangible fixed assets.
The intangible investments (2.4 million euro) related mainly to the goodwill of Ondulys Industrie and the further implementation of the ERP system with a view to simplifying business processes, improving customer service and strengthening cost control.
Investments in tangible assets included the extension of the corrugated board plant in Aalst and the modernisation of the corrugated board plant in Desborough. In addition, the assets of Ondulys Industrie were purchased via the subsidiary Ondulys and a paper machine was modernised to increase capacity and improve the quality of the paper for the solid board industry and the tubewinding industry.
c) financial result
In 2002 the financial result amounted to –5 million euro, as against –6.6 million euro in 2001. This improvement may be attributed primarily to the lower outstanding debts.
At the end of the financial year, the net financial debts stood at 33 million euro (49.6 million euro in 2001 and 85.7 million euro in 2000). The improvement in the net financial debt is the result of the strong cash flow, which amply exceeded investments.
Capital and reserves (after distribution of profit) rose to 163.1 million euro or 48% of the total assets, which guarantees a very sound financial structure.
The gearing recorded a further spectacular improvement to 20% (35% in 2001 and 70% in 2000), which is clearly lower than the average of 65% common in the industry.
d) exceptional results
The exceptional result amounted to 4.7 million euro and may be attributed mainly to the capital gain on the sale of “La Rochette” shares after a public bid.
e) proposed dividend
The Board of Directors will propose to increase the gross dividend by 14 % to € 0.40 per share at the Annual General Meeting dated 30 May 2003.
Statutory auditors’ report
The statutory auditor, Grant Thornton, Lippens & Rabaey BVCV Belgian Member Firm of Grant Thornton International, represented by Mr. Stefaan Rabaey, has confirmed that its audit, which has been fundamentally completed, has not revealed any significant correction which must be incorporated into the accounting information included in the press release.
4. Comments on the main activities
Paper
In 2002, the paper machines of the group produced a total of 408,000 tonnes.
In 2001, production amounted to 400,000 tonnes.
The paper activity’s contribution to the profit fell after an exceptionally strong year in 2001.
The raw materials prices of recycled paper remain high, despite the weak economic situation.
Corrugated board and solid board
In 2002, the consolidated turnover in corrugated board and solid board in the Benelux, France and the UK rose by 5%. This growth is primarily due to the acquisition of Ondulys Industrie and the internal growth in the UK.
Tubes and edge protectors
The consolidated turnover from the tubes division rose by 8% in 2002 thanks to the development of new products.
Trade and services
VPK Packaging Group acts as an ideal logistics partner, making the most of customers’ specific needs and thereby creating higher added value.
This division has been expanded to include Twinpack, which specialises in packaging for poultry and eggs and in addition, Maasbach, which specialises in packaging for the meat industry, has joined it this year.
The results were again good in 2002.
Paper
In 2002, the paper machines of the group produced a total of 408,000 tonnes.
In 2001, production amounted to 400,000 tonnes.
The paper activity’s contribution to the profit fell after an exceptionally strong year in 2001.
The raw materials prices of recycled paper remain high, despite the weak economic situation.
Corrugated board and solid board
In 2002, the consolidated turnover in corrugated board and solid board in the Benelux, France and the UK rose by 5%. This growth is primarily due to the acquisition of Ondulys Industrie and the internal growth in the UK.
Tubes and edge protectors
The consolidated turnover from the tubes division rose by 8% in 2002 thanks to the development of new products.
Trade and services
VPK Packaging Group acts as an ideal logistics partner, making the most of customers’ specific needs and thereby creating higher added value.
This division has been expanded to include Twinpack, which specialises in packaging for poultry and eggs and in addition, Maasbach, which specialises in packaging for the meat industry, has joined it this year.
The results were again good in 2002.
5. Outlook for 2003
Given the uncertain economic situation, it is extremely difficult to make reliable forecasts.
VPK Packaging Group will continue to grow thanks to a sound balance between internal investments and, when the opportunity arises, external acquisitions in order to further strengthen its basic activities in France, the UK and the Benelux.
Over a period of three years, VPK Packaging Group has developed from a product-oriented organisation to a service organisation in which a great deal of attention is paid to customers’ specific needs in the field of packing, printing, the supply chain, JIT deliveries, etc.
The full range of services offered to the customer is combined in the VPK Packing Solutions® concept, which further strengthens the market position of the VPK Packaging Group.
Given the uncertain economic situation, it is extremely difficult to make reliable forecasts.
VPK Packaging Group will continue to grow thanks to a sound balance between internal investments and, when the opportunity arises, external acquisitions in order to further strengthen its basic activities in France, the UK and the Benelux.
Over a period of three years, VPK Packaging Group has developed from a product-oriented organisation to a service organisation in which a great deal of attention is paid to customers’ specific needs in the field of packing, printing, the supply chain, JIT deliveries, etc.
The full range of services offered to the customer is combined in the VPK Packing Solutions® concept, which further strengthens the market position of the VPK Packaging Group.
6. Company profile
VPK Packaging Group, listed on Euronext Brussels, has in the Benelux, France and the UK, two paper plants, nine corrugated board plants for the production of transport packaging, one solid board plant and four tubeswinding companies.
The current packaging divisions in the group have a combined paper consumption of 400,000 tonnes a year and record a group turnover of 435 million euro. This ranks the group among the best performing companies operating in its sector in Europe.
VPK Packaging Group employs over 2,400 people in five countries.
VPK Packaging Group, listed on Euronext Brussels, has in the Benelux, France and the UK, two paper plants, nine corrugated board plants for the production of transport packaging, one solid board plant and four tubeswinding companies.
The current packaging divisions in the group have a combined paper consumption of 400,000 tonnes a year and record a group turnover of 435 million euro. This ranks the group among the best performing companies operating in its sector in Europe.
VPK Packaging Group employs over 2,400 people in five countries.
7. Financial Calendar
30 May 2003 at 3 pm : General Meeting of shareholders (2002 financial year)
16 June 2003 : Dividend become payable
18 September 2003 :Press announcement and publication of the half-yearly results for the 2003 financial year
30 May 2003 at 3 pm : General Meeting of shareholders (2002 financial year)
16 June 2003 : Dividend become payable
18 September 2003 :Press announcement and publication of the half-yearly results for the 2003 financial year
For additional information:
Pierre MACHARIS, CEO
Luc LEDEGEN, Investor Relations
Tel.: +32 (0)52 26 12 08
E-mail : mailto:luc.ledegen@vpk.be
Pierre MACHARIS, CEO
Luc LEDEGEN, Investor Relations
Tel.: +32 (0)52 26 12 08
E-mail : mailto:luc.ledegen@vpk.be
Last update: 25-03-2003
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