Alfesca hf. - Financial Statement Release

EBITDA up 20 % in Q3 - Operating Profit €39.6 million in 9M

- EBITDA up 20 % in Q3
Operating Profit €39.6 million in 9M


Highlights

•	Sales from continuing operations €128.8m in Q3, up 7.1% with growth of 4.3%
on a like-for-like basis 
•	Sales €515.4 million in nine months, up 13.4%
•	EBITDA €8.7 million in Q3, up 20.3% and €54.0 million in nine months, up
19.1% and 
•	EBITDA ratio 10.5% in nine months
•	Operating profit €39.6 million in nine months, up 23.0%, and €3.8 million in
Q3, up 39.2% 
•	Net income €25.1 million in 9 months, up 32.5%, and €1.8 million in Q3, up
40.8% 
•	Cash generated from operations €31.9 million in 9 months, up 21.8% 
•	Acquisition of D&F to strengthen Alfesca's operations in Italy
Xavier Govare, CEO:

“In a very difficult trading environment, our results for the third quarter
were satisfactory, demonstrating once again the strength of Alfesca's business
model. 

The challenging environment was caused by a combination of several negative and
exceptional factors, which impacted our results.  These included significant
increases in recent months in commodity prices that had a major effect on our
raw material costs.  The current economic uncertainties and increasing consumer
price inflation also appear to have reduced household expenditure and consumer
confidence.  In addition, the weakening of the pound sterling against the euro
also impacted the results of our UK business. 

Despite this negative background, our results for the quarter and year to date
are encouraging as overall we continue to deliver an on-going and profitable
growth.  With our diversified portfolio, the healthy sales performance of our
salmon and prawns pillars helped to compensate the poor performance of the
other two pillars of our business - the Foie Gras and Duck and Blinis and
Spreadables pillars.  Our growth in Q3 has been profitable with our EBITDA
increasing by 20.3% compared to the same period last year, despite the
exceptional increase of our raw material costs impacting certain parts of our
business. 

Recently, we announced the sale of Christiansen Partner, our Norwegian fish
trading business, which did not fit with Alfesca's stated focus on production
of value added products.  In addition, whilst we continue with our objective to
grow Alfesca by establishing a new fifth pillar, we decided to terminate our
discussions relating to the proposed acquisition of Oscar Mayer, the UK ready
meals business.  This decision was made due to raw material inflation causing
the trading environment in the UK ready meals market to deteriorate and
impacting the results of the company.  Given the risks, we decided that the
acquisition would not create value for our shareholders and would jeopardise
the positive momentum that we have established in recent years.  Accordingly,
we determined that it was not appropriate to conclude the transaction at this
time. We have in the meantime, announced the acquisition of D&F, which will
help to strengthen and accelerate the development of our business in Italy. 

Overall, the long term prospects of Alfesca are good and we continue to be
confident of the future as Alfesca shows its strength by positively reacting to
the difficult environment, which we expect to last for some time.” 

Attachments:

interim financial statements for 31 03 2008.pdf

earnings release - fy2008 - q3.pdf