Press release First-half 2021-2022 results
Nogent-sur-SeineApril 20, 2022 – The Malteries Franco-Belges Group (Euronext Paris / FR0000030074) announces the publication of its half-year results as of December 31, 2021.
Provision
The half-year report as of December 31, 2021 was filed with the‘Authority des marchés financiers (AMF) on March 31, 2022. It can be viewed and downloaded from the website:https://www.malteriesfrancobelges.fr/. It is available free of charge at the company’s registered office.
Main financial data from the consolidated financial statements of Malteries Franco-Belges*
In millions euros | H1 2021 | H1 2020 |
Sales | 40.9 | 43.4 |
Operating income | 6.9 | 0.4 |
Share of profit in associates | 5.3 | 7.3 |
Charge tax | (1.9) | (0.1) |
Net profit – Group share | 10.6 | 7.7 |
Net financial cash | 70.7 | 38.7 |
*IFRS standards; the half-yearly accounts did the object of a limited review by the statutory auditors
For the first half of the‘practice 2021-2022, the Malteries Franco-Belges group achieved sales of 40.9 M€, down 6% compared to the first half of exercise previous. Shipments were slowed down, particularly during summer due to both unfavorable weather conditions in Europe, but also to the still restrictive health context in certain regions (Asia in particular).
The operating result shows a profit of 6.9 €m against a result of 0.4 €m over the corresponding period of exercise previous. This improvement is mainly related to an indemnity received of one supplier in connection with the termination of a natural gas supply contract.
The share of equity-accounted companies (Compagnie Internationale de Malteries – CIM and its subsidiaries) is established at 5.3M€ as of December 31, 2021 compared to 7.3 M€ as of December 31, 2020. Although CIM’s consolidated sales increased by 15.2%, mainly supported by good sales volumes in the Czech Republic, Poland and Russia, this half-year was marked by‘high barley prices and a general increase in the price of‘energy and transport.
Net income group share gets up thus at 10.6 €m for the first half of 2021-2022, up 38% compared to the net income Group share for the first half of 2021-2022‘Previous exercice (7.7€).
As of December 31, 2021, the balance sheet total is established at 256.4 €m with net financial cash of 70.7 €m against a total balance sheet of 251.1 €m and net financial cash of 38.7 €m as of December 31, 2020.
Outlook
The COVID-19 pandemic has led to many changes in consumption patterns; the beer industry is not no exception and the restrictions put in place to limit the spread of the virus have led to a drop in consumption in many countries.
This phenomenon its continued over this semester, with less intensity. Its impact therefore remains under control. In effect, implantation geographical location of the group’s factories has made it possible to take advantage of growth in certain areas of the world, particularly in Africa and South America where consumption continues to rise. Malt exports to these countries continue to date to largely offset the fall in European consumption.
The flight courses of barley and prices of energy created a difference in results compared to forecasts. Indexing provided for in the main Long-Term Contracts should make it possible to absorb part of this difference.
The outlook for the second half of exercise2021/2022 are as follows:
• In France, factories are expected to produce at full capacity, with export demand remaining strong;
• In Central Europe, forecasts shipping over this period are stable compared to the year last ;
• Demand should be stable in Kazakhstan;
• The current situation in Ukraine and Russia, which is discussed in the next chapter, makes forecasts uncertain. Russia benefited of one growing market, but is not not possible to time current to know how will evolve the activity.
These forecasts are based on a more favorable health situation than at previous semester of exercise. Consequently, if the health situation were to deteriorate again, with the implementation of new restrictive measures or, conversely, improve in malt-importing countries, these forecasts could change.
Events after the half-year closing
At the end of February, Russia entered the war against Ukraine.
An immediate consequence was the stop of factory of the group located in Slavuta (Ukraine) for an as yet undetermined period.
Furthermore, the economic sanctions imposed on against of Russia come to modify the conditions operating of the group’s subsidiary in Saint Petersburg. The activity continues to this day, but the bank financing conditions of the activity are very degraded. Moreover he is not Not possible devalue to what extent the local clientele will be weakened.
About Malteries Franco-Belges:
Malteries Franco-Belges is a subsidiary of Malteries Soufflet.
A leading international player, Malteries Soufflet meets the most demanding specifications of its customers in each of its countries. implantation – major brewers and artisan brewers, distillers and producers of ingredients – thanks to its mastery of the barley sector: from seed to beer, from the selection of new varieties until choice of the best qualities of barley.
Malteries Soufflet produces malts of excellence, standard or special, pilsner, roasted or organic, in an approach improvement continued sustainability of its products. Malteries Soufflet operates 28 malting plants in Europe, Latin America, Asia and Africa for an annual malt production capacity of 2,360,000 tonnes.