IFR Capital: Ebitda increased 43,5 percent in FY 2008

Nicosia / CY. (05.26. / ifr) International Food Retail Capital PLC (IFR Capital), the investment company focused on consolidation opportunities in the European food retail sector, announced its final results for the year ended 31 December 2008. Highlights:
Growth in Turnover of 59,1 percent to 758,5 million EUR
Growth in EBITDA of 43,5 percent to 57,7 million EUR
Acquisition and successful integration of Hamker in 2008
Media spending to strengthen the brands
Progress in structural change of balance sheet
Range of attractive investment opportunities identified

Heiner Kamps, CEO and significant shareholder of IFR, stated in IFR Capital´s news release that he was satisfied with the development and the progress that the Group has made so far: «The integration of Hamker has now been successfully completed and the Group continues to trade in line with the Board´s expectations, despite difficult commodity markets during 2008. The recent strengthening of our balance sheet via the share exchange will allow us to pursue our stated acquisition strategy and expedite the consolidation of the European food retail sector».

Operational review

The results for the period include contributions from Nordsee GmbH, Bastian´s GmbH, Homann Chilled Food GmbH + Co. KG and Hamker Lebensmittel Beteiligungs GmbH + Co. KG since 01 February 2008.

IFR is pleased to announce it has reported sales of 758,5 million EUR (2007: 476,6 million EUR) and an operating EBITDA of 57,7 million EUR (2007: 40,2 million EUR) representing an increase of 43,5 percent. The Group reported net losses of 72,2 million EUR (2007: profit 14,6 million EUR) with a loss per share of 0,32 EUR (2007: profit per share 0,07 EUR). The net loss reported for the year ending 31 December 2008 can be principally attributed to impairment losses of 42,2 million EUR and integration costs of 17,6 million EUR which relate to previous acquisitions.

Nordsee continues to perform at a stable EBITDA level of above 30 million EUR per annum. The Board envisages that fish raw material price increases will be compensated by efficiency improvements and sales price adjustments. The stated strategy to gradually redesign the Nordsee restaurants using a maritime style and to constantly improve product quality will be further pursued during 2009.

Outlook 2009

It is expected that Hamker will be fully integrated into Homann in 2009. Homann will continue to focus on the most profitable branded product categories and to support the sales growth by media spending in 2009. The Board expects sales of private label products to slightly decline, however, gross profit margins should increase substantially due to price increases already realised in 2008 and planned in 2009. On the cost side Homann should no longer be affected by adverse impacts from the integration of Hamker, high rapeseed oil prices and existing low margin contracts with hard discounters which were acquired with Hamker. Necessary sales price increases have already been negotiated and synergies are expected to materialise in 2009. The existing Bastian´s stores at Dusseldorf and Cologne are expected to generate organic sales growth in 2009, supported by two further planned store openings this year.

Info: IFR Capital PLC: Final audited results for the financial year ended 31 December 2008 (complete press release inclusive several tables, PDF, eleven pages, 174 KB).