Wessanen reports reduced profits for 2001
with market expectations and forecast a 15 percent rise in core
earnings this year as its acquisition strategy reaps rewards.
Dutch food group Wessanen reported reduced 2001 net profit in line with market expectations and forecast a 15 percent rise in core earnings this year as its acquisition strategy reaps rewards.
The organic, ethnic and diet foods company posted net profit of €78 million compared to €98 million in 2000.
Looking to the current year, Wessanen said it saw 2002 earnings before tax, interest and amortisation (EBITA) rising about 15 per cent, excluding its recent divestment of its US dairy companies and Golden Food International.
The company, which is implementing a "wellness" foods strategy geared towards consumers with a health and quality-conscious lifestyle, said that its outlook for this year did not include further acquisitions to support its strategy.
Wessanen also reiterated its target of achieving average earnings per share growth (before goodwill amortisation) of 10 per cent annually over the next five years.
According to a Reuters survey of nine analysts, Wessanen was forecast to report full year net profits between €75 million and €81 million, with consensus at €78 million, while the company itself in October forecast a 2001 net profit from ordinary activities of €75-80 million.
Earlier this week Wessanen said it was interested in buying the health and nutrition brands that Swiss pharmaceutical company Novartis recently put up for sale.
Analysts however doubt whether Wessanen would be able to outbid potential rivals such as Swiss Nestle and French Danone.
Shares in Wessanen, listed on Amsterdam's AMX midcap index, barely reacted to the results announcement and by 1242 GMT yesterday were 0.4 percent lower at 10.15 euros, giving the company a market capitalisation of about 880 million euros.
Wessanen shares were underperforming the broader Dow Jones Food and Beverages index which added 0.7 percent.
