Lower Q2 performance impacting expected growth for 2018

H1 and Q2 2018 highlights

• Autonomous growth in own brands 2.0% for H1 (Q2: (0.3)%)
• Further reduction of private label and distribution business of (10.0)% for H1 (Q2: (9.4)%)
• EBITE of €28.3 million, equal to 8.7% of revenue for H1 (Q2: €11.6 million)

CEO Statement

Our second quarter results were lower than expected mainly as a result of trade related developments in France and the UK. In France, the very dynamic development of organic assortments in grocery have relatively benefitted a large number of smaller brands in place of Bjorg and have also impacted the growth in the specialized organic trade(HFS).

In the UK our business was affected as the trade drove further range reductions and reduced support in response to price increases we put through last year in order to protect our margins.

Results in our German and Spanish operations were very positive and Clipper continued to outperform across all international markets. Our core categories of Breakfast Cereals, Veggie Meals, Dairy Alternatives and Hot Drinks are growing ahead of the rest of the business in H1.

While action plans are in place which we expect to improve our performance in the coming quarters, the impact of Q2 means that we finish the first half of 2018 below what we had planned. As a result, we are changing our guidance for own brands growth for the year as a whole to 'moderate'.

Analyst & investor meeting

At 10h00 CET, an analyst & investor conference call will be hosted by Christophe Barnouin (CEO) and Ronald Merckx (CFO). The dial-in number is +31(0)20 531 5851. There will also be a live audio webcast via www.wessanen.com

The press release and presentation are available for download at www.wessanen.com.

Media, investor & analyst enquiries

Ronald Merckx (CFO)
Phone  +31 (0)20 3122 126
Email ronald.merckx@wessanen.com
Twitter @Wessanen_250

Important dates

19-10-2018      Publication Q3 2018 trading update

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