Ter Beke records lower turnover and net loss

Food producer Ter Beke realized less turnover last year and also recorded a net loss. The company announced this on Monday (March 1). It also makes it very clear that it does not want to cut the dividend.

The East Flemish food producer Ter Beke recorded a turnover of €717,4 million in the past year, a decrease of 1,5% compared to the previous year. The net result decreased from a profit of €4,4 million to a loss of €2,5 million. There were losses, especially in the first half of the year. "The raw material prices rose sharply in the first six months of the year, we reorganized the Dutch processed meats activities and then there was also the corona virus. It all affected our results," the company explains.

Ter Beke's results improved considerably in the second half of the year. "This was partly due to a reduction in costs as a result of the aforementioned reorganisation, operational improvements and the fact that raw material prices have returned to normal," Ter Beke said in a press statement. However, Ter Beke expects that the EBITDA (profit before the deduction of interest, taxes, depreciation and write-offs) will again be higher this year than last year. In short: higher than €37,1 million.

Keep Dividend
The company also explicitly states that there will be no cuts on the dividend. According to the organization, this will remain at €4 per share (gross). "The dividend will again take the form of an optional dividend, with payment in cash or in shares. This choice was made in view of the impact of the corona crisis, the improved results in the second half of the year and the decrease of debt (-€25 million to just under €100 million)."

Finally, the food producer announces that the search for a new CEO is still in full swing. Current CEO Francis Kint, former CEO of Vion, will leave Ter Beke at the end of June.

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.