CSM trading update third quarter 2008

  • In our first half-year results statement we indicated that our Bakery Supplies markets had started to be influenced by recessionary pressures and that customer behaviour was being affected by the price increases that had followed from the unprecedented rise in raw material costs.
  • These trends have intensified during the third quarter and we anticipate a challenging environment in the periods to come as demand weakens in our markets.
  • Down trading and downscaling is affecting Bakery Supplies volumes, but particularly so in Europe where volumes fell by 6% in the third quarter.
  • CSM is responding by adapting to the changing consumer environment by accelerating the launches and offering of value for money products.
  • We expect PURAC to make substantial progress with its full year results for 2008.
  • We are accelerating moves to drive efficiency improvements including headcount reduction.
  • Sales for the first nine months were €1,886.7 million (2007 €1,833.6 million). Organic growth was 9.5%, driven by pricing growth of 11.5% and volume decline of 2%.
  • Our EBITA for the first nine months is €95.7 million (2007 €104.8 million) with €27 million generated in the 3rd quarter (2007 €35 million). Currency translation has a significant impact on our reported results. On a constant currency basis our EBITA for the nine months would have been €103.9 million, with €28.8 million generated in the 3rd quarter.
  • We expect EBITA before exceptional items for the full year to be 10 -15% below the €153.7 million delivered in 2007. Approximately half of the decline in EBITA is due to currency movements.
  • CSM intends to publish future trading updates on a quarterly basis.

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