MARR: The Board of Directors approves the results as of 30 June, 2007
• Total consolidated revenues at 499.3 million euros (+7.2%)
• Consolidated EBITDA at 31.4 million euros (+15.4%)
• Consolidated EBIT at 27.1 million euros (+17.3%)
• Consolidated net profit at 12.8 million euros (+11.9%)
New development drive trough external lines as a result of new market segments, product specialisation and development of sector-specific capabilities.
Rimini, 2 August 2007 - The Board of Directors of MARR S.p.A. (Milan: MARR.MI), the leading company in Italy in the distribution of food products to the foodservice, today approved the quarterly report as at 30 June 2007.
Main consolidated results of the 1st half-year of 2007
In the first six months of 2007, total consolidated revenues reached 499.3 million euros, up 7.2% compared to 465.7 million euros over the same period of 2006.
EBITDA increased by 15.4% to 31.4 million euros (27.2 million euros in 2006), while EBIT increased by 17.3%, reaching 27.1 million euros (23.1 million in 2006).
The improved operating profitability has benefited from the 0.7 million euros accounted for in the profit and loss account in the second quarter of 2007, and relating to the actuarial calculation of staff severance provision ("TFR"), as provided for by Law no. 296 of 27 December 2006 (the Italian Budget law for 2007) and subsequent Decrees and Regulations.
The overall net profit was 12.8 million euros, up 11.9% compared the 11.4 million of the previous financial year. This result was influenced by the financial result, that was affected by higher interest rates compared to 2006 and by charges for securitisation, which ended 24 April 2007, that generated extraordinary charges which were entirely accounted for in the first quarter of 2007.
The Group's Net Financial Position (NFP) amounts to 130.3 million euros (127.6 million euros as at 30 June 2006), and is stable compared to the 129.5 million euros as at 31 March 2007, taking into account 23.9 million euros in dividends paid out on 10 May 2007 (21.6 million in 2006) and taking into account financial expenditure amounting to approximately 10 million euros in extraordinary investments (MARR Toscana and New Catering) and repayment of the first instalment of the Efibanca loan.
Trade net working capital, at 151.6 million euros, improves compared to the 154.9 million euros in 2006, despite increased turnover.
Net consolidated equity as at 30 June 2007 is 164.7 million euros (159.9 million in 2006).
Main consolidated economic results for the 2nd quarter of 2007
In the 2nd quarter of 2007, the Group's total consolidated revenues amounted to 290.7 million euros, an increase of 6.1% compared to 273.9 million euros in 2006.
EBITDA reached 23.1 million euros (+14.3% compared to 20.2 million euros in the 2nd quarter of 2006), while EBIT increased by 16.2%, reaching 20.8 million euros (17.9 million in 2006); both profitability indicators benefit from the 0.7 million euros relating to the actuarial calculation of staff severance provision.
The Group's net profit in this quarter was 10.5 million euros, compared to 9.3 million euros in 2006 (+13.5%).
Results by business sector and new lines of growth
Despite uncertainties in the reference context and difficulties in the tourist sector, which, according to some recent forecasts (Federalberghi, July 2007), might not repeat last year's good performance, MARR ends a first half-year with positive results, with a higher than expected organic sales growth and with a confirmation of the growth strategies adopted. Revenues owe their positive trend to organic sales growth (+6.1%) and to the latest acquisitions, New Catering and Fratelli Baldini Srl (+1.1%).
In particular, the "Street Market" category (Restaurants and hotels not belonging to Groups or Chains) shows a 7.6% growth in this half-year (+5.5% for the second quarter) and again establishes itself as MARR's reference sector, accounting for approximately 65% of total growth for this period. This growth is primarily organic sales growth (+5.8%) and confirms MARR's ability to maintain a higher growth rate than the market.
The "National Accounts" category - operators in structured commercial catering and canteens - grew by 8.3% in the second quarter, bringing the growth figure for the half-year to +4.4%, this is also to be attributed to the contribution of the structured commercial catering sector (holiday resorts chains, in-flight catering, hotel chains) that grew by 7.2% in this half-year.
The "Wholesale" category (food product wholesalers) also increased, by 8.3% in this half-year.
"MARR - comments CEO Ugo Ravanelli - in addition to closing this half-year on an upward trend, over these months has also been able to promote its development trough growth by external lines and and by concluding important transactions."
"This year - continues Ravanelli - began with the acquisition of New Catering, which immediately provided us with many satisfactions and allowed us to enter the fast food and bar segment. Then came the April opening of the new MARR Toscana distribution centre in Pistoia, along with the award of important supply contracts with the Public Administration, Intercent-ER in March and Consip a few days ago.
Especially significant are the lease of the going concern, concluded in June, of the F.lli Baldini Srl business and the preliminary contract, signed in July, for the purchase of the going concern of Cater Roma SpA; these two transactions enable MARR to acquire or enhance its capabilities in terms of product specialisation (fresh shellfish) and customer base (Canteens)."
Events following the end of the quarter
On 17 July 2007, a preliminary contract was signed for the purchase of the going concern belonging to Cater Roma S.p.A., a company based in Rome and operating in the distribution of food products to foodservice operators, especially in the Canteens sector.
On 23 July 2007, MARR was awarded, with a final decision, the Consip tender for the supply of food products to Public Administrations in the Emilia Romagna, Marches, Abruzzi and Sardinia Regions. The agreement, lasting 18 months and renewable for a further 6 months, is worth 10 million euros.
Outlook
The results achieved during the first 6 months of 2007 exceed management's budget estimates and confirm the reliability of forecasts of sales growth and profitability increases for the 2007 financial year.
MARR (Cremonini Group), listed on the STAR segment of the Italian Stock Exchange, is the leading Italian company in the specialised distribution of food products to the non-domestic catering sector and is controlled by Cremonini S.p.A..
With an organisation comprising more than 650 sales agents, MARR serves over 36,000 clients (mainly restaurants, hotels, pizza restaurants, holiday villages and canteens), with an offer that includes 10,000 food products, including fish, meat, various food products and fruit and vegetables.
The company operates nationwide through a logistical-distribution network composed of more than 20 distribution centres, 4 cash & carry, and 4 agents with warehouses and more than 550 vehicles.
In 2006, MARR achieved consolidated revenues amounting to 972.7 million Euros, a consolidated EBITDA of 61.6 million Euros and net Group profit of 26.6 million Euros.
For more information about MARR visit the company's web site at www.marr.it
Contact: Barabino & Partners
Tel.: +39 (0)6 679.29.29
Massimiliano Parboni
m.parboni@barabino.it
Raffaella Perugini
r.perugini@barabino.it