2008 final results Acomo: net profit of € 8.7 million
Date:
Apr 16, 2009
Dividend policy maintained - Proposed dividend € 0.35 per share
- Net profit € 8.7 million (2007: € 8.8 million)
- Proposed final dividend 2008 € 0.25 per share (2007: € 0.25)
- Total ordinary dividend 2008 € 0.35 per share (2007: € 0.35)
- 8.6% dividend return (based on average 2008 stock price)
- Extra-ordinary jubilee dividend € 0.05 per share paid in June 2008
Reaching historical levels
Consolidated sales increased by 8% to € 175 million (2007: € 162 million). Management is also satisfied that all activities were profitable. The prices of most commodities continued to rise in the first half of 2008, reaching historical levels. Demand exceeded the offer for many products. The emerging financial crisis spread into a worldwide economic contraction during the second half of the year, and mainly in the last quarter. Consumption slowed down, industrial production declined and inventories were depleted.This combination of factors resulted in much lower demand for raw materials and the prices of almost every commodity dropped at previously unseen speed. Our trading teams proved once again their expertise in anticipating and reacting very alertly to these market movements. Volatility is an opportunity for experienced traders and the 2008 results show that Acomo as trading house can benefit from rising as well as declining price movements. Key figures 2008
| € x Million |
2008 |
2007 |
| Sales |
175.3 |
161.9 |
| Operating profit |
9.4 |
11.3 |
| Financial income and expenses |
(0.9) |
(1.1) |
| Result of non consolidated subsidiary |
2.6 |
1.2 |
| Tax
|
(2.3) |
(2.6) |
| Net profit |
8.7 |
8.8 |
|
|
|
|
| Shareholders’ equity (before final dividend) |
34.9 |
32.1 |
| Total balance sheet |
64.2 |
66.3 |
|
|
|
|
| Earnings per share (in €) |
0.54 |
0.54 |
| Dividend proposed per share (in €) |
0.35 |
0.35 |
| Pay-out ratio |
65.4% |
64.7% |
| Equity per share (in €) |
2.14 |
1.96 |
| Return on shareholders’ equity |
26.1% |
28.8% |
| Dividend yield on average stock price |
8.6% |
8.0% |
Catz International B.V.
(spices, nuts, dried fruits and raw materials for the food industry). Trading house Catz performed strongly and was once again the main contributor to the group's results. Sales increased by 8% to € 164 million (2007: € 152 million), mainly due to higher prices in the first half year. The profit before tax amounted to € 9.5 million, slightly lower than in 2007 (€ 10.4 million), a year in which Catz recorded a more than 50% increase in results. Tropical products (spices and coconut products) and nuts achieved high turnover and profits, while the other activities were affected by the economic slowdown in the traditionally very active last quarter of the year. This demonstrates once again the flexibility of Catz and the value and robustness of a broad product range. In 2008, the company opened a branch in Vietnam to be closer to this important origin, and to gain better control on product quality and logistics.
TEFCO Food Ingredients
(natural ingredients for the food industry), the company acquired by Acomo in 2006 continued to grow and reached for the first time a turnover of more than € 11 million (+11%). Profit before tax amounted to € 995 thousand (2007 € 802 thousand). These outstanding results were achieved thanks to continued focus on needs of the clients, new applications of the existing product portfolio and high prices of many ingredients.
RCMA Commodities Asia (Pte) Ltd (RCA)
(42.52% not consolidated participation active in the international rubber trade). RCA realised profits after tax of US$ 8.9 million (2007: US$ 3.8 million). Traded tonnages were 10% higher, and average rubber prices 30% above 2007 levels, resulting in peak sales reaching US$ 1.3 billion (+43%). In the first six months, prices continued their near uninterrupted climb and reached historic records early July. For the RCA trading teams, this was calling for very prudent trading in the first half of the year. The brutal turn in the market was correctly anticipated, and during the second half prices plummeted with nearly 70%.
Acomo N.V.
Thanks to the steadfast policy aimed at strengthening the group's equity, and based on the past profit track record, the group did not experience significant difficulties from the credit crisis. In 2008, management has had intensive acquisition discussions, in line with the group strategy to enlarge and diversify the trade and distribution activities in food ingredients. Acomo considers the actual economic challenges as an opportunity to further strengthen the group activities, with respect, however, of its own strict selection criteria. In January 2009 and after year-end close, Acomo announced to have reached an agreement in principle to acquire the Belgian based company Snick Ingredients Bvba (Snick). This transaction has been concluded successfully in the meantime. The activities of Snick and TEFCO complement each other and this acquisition will contribute immediately to the group´s earnings per share.
Dividend
In June 2008, Acomo paid an extra-ordinary jubilee dividend of 5 eurocents per share at the occasion of the hundredth anniversary of the company. The management and Supervisory Board propose to the Shareholders to agree with an unchanged normal dividend of € 0.35 per share (2007: € 0.35). This dividend represents a return of 8.6% (excluding jubilee dividend) based on the average stock price (€ 4.07) in 2008 (2007: 8.0% based on € 4.38 respectively). Taking into account the interim dividend paid in October 2008 of € 0.10 per share, the final dividend therefore amounts to € 0.25 per share. The dividend shall be payable on 18 June 2009 and the ex-dividend date is 1 June 2009.
Current performance
World economies have entered into a long and severe recession. The food industry is traditionally less cyclical, although we note a slowdown in sales. Demand for natural rubber is severely affected by the downturn of the automotive industry in Europe and the USA. A prolonged period of weaker demand and low prices, combined with less volatility can affect the levels of sales and profits in the current year. For these reasons, it is not possible to make any forecast about the further development of trading activities and the results of the group in 2009. Management and supervisory directors have, however, confidence in the talent of our trading teams to make good use of trading opportunities and to trade profitably in both upward as well as downward markets.
General meeting of Shareholders
The annual General meeting of Shareholders will be held on 28 May 2009 (at 10:30 hrs) in the World Trade Center in Rotterdam. The annual report will be published on our website www.acomo.net on 29 April 2009.
The Supervisory Board and management
Notes to editors For further information, please contact:
Amsterdam Commodities N.V. (Acomo)
De heer S.G.J. Holvoet
WTC, Beursplein 37, 8e etage
Rotterdam
sholvoet@acomo.nl
Tel. +31 10 4051195
Fax +31 10 4055094
Creative Venue public relations
De heer F. Witte, woordvoerder
Vliegtuigstraat 26
1059 CL Amsterdam
f.witte@creativevenue.nl
Tel. +31 20 4525225
Fax +31 20 4528650
www.creativevenue.nl (see 'persruimte')
