Alfesca hf. - Financial Statement Release

- Creditable performance in tough market

Net sales €118.3 million
EBITDA €6.1 million 
Q3 2008/09 

Highlights

•	Net sales €492.7 million for nine month period, down by 0.9% on like for like
basis, and €118.3 million for third quarter, down 3.6% on like for like basis 
•	EBITDA, after exceptional items, €47.6 million for the nine month period,
down by 6.1% on like for like basis, and €6.1 million for third quarter, down
13.1% on like for like basis 
•	Net income €-0.3 million in third quarter, impacted by currency changes and
investment in streamlining the business 
•	Group trading impacted by continuing economic crisis, challenging consumer
environment, adverse movements in currencies and high salmon prices 
•	Rationalisation programme launched to stream line operations, reduce costs
and improve cash management 
•	Net cash flow from operating activities €43.9 million in nine month period
•	Continuing robust financial position with ongoing committed facilities in
place; net debt of €141.9 million and debt/equity ratio of 43% at end of third
quarter 

Xavier Govare, CEO:

“As expected, this has been a difficult quarter for Alfesca and an
extraordinarily volatile one for the markets in which we operate.  Rapid
changes in consumer behaviour and shopping patterns, further deterioration of
the economic environment, adverse currency movements, continuing high raw
material prices and the positioning of Easter in the fourth quarter, all
conspired to impact both our sales and margins for the third quarter. 

“In these tough circumstances, we were nevertheless satisfied with the Group's
sales, down by only 3.6% on a like for like basis at €118.3 million. 

“In light of the deteriorating economic conditions and changing consumer
behaviour favouring more value products, we monitored and adjusted our trading
stance to enable us to offer our clients great value at prices they can afford
and took action to maintain our market positioning in an ever more competitive
market.  This was achieved by offering better value, superior innovation,
focused promotional activity and aggressively managing our costs. 

“Our results for the third quarter continued to be held back by relatively high
salmon and prawn raw material prices, which were incurred in earlier periods. 
In the short and medium term we expect the price of both key raw materials to
remain relatively high due to low harvest, adverse currency exchange coupled
with continuing strong demand.  A small part of these costs will continue to be
offset by our very good industrial results and efficiency gains. 

“With these challenges in mind, we are ensuring that each of our businesses
operates a sound, resilient and well controlled model with a focus on cost
management and cash generation.  In this regard, we continue to work hard to
eliminate unproductive costs across the Group, such as by rationalising and
enhancing our operating structure in France by merging certain central
functions, implementing a common IT platform and putting in place a more
optimal organisational structure.  In addition, we are also taking decisive
action to exit unprofitable product lines and negotiating price increases where
appropriate in a robust but fair manner with our customers. 

“Furthermore, we are in the process of making significant efforts to manage our
capacity and industrial costs effectively, notably with our plan to integrate
the production facilities of our Blini and LTG operations (spreadables and
blini) and to consolidate in one site all our duck slaughtering operations in
Labeyrie. 

“With a focused business and committed team, our long term objective is to
build a stronger and sustainable business that creates shareholder value.  We
aim to do this through investment in brands, product innovation, new
technology, efficient production facilities and acquisitions.”

Attachments:

interim financial statements for 31 03 2009.pdf

press release - fy2009 - q3 - eng.pdf