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D.E MASTER BLENDERS 1753 : DEMB Trading Statement Q3 FY13



          D.E MASTER BLENDERS 1753 : DEMB Trading Statement Q3 FY13

             Third Quarter and First Nine Months Fiscal Year 2013

full press release in pdf
   

Key Messages Third Quarter Fiscal Year 2013

  * Total segment sales down (3.2)%, like-for-like^[1]; reported segment sales
    down (5.5)% 
  * Retail - Rest of World continues to perform well 

  * Retail - Western Europe impacted by promotional price pressure 

  * L'OR capsules show continued strong growth 

OUTLOOK FIRST 12 MONTHS FISCAL YEAR 2013 CONFIRMED

The Company expects to grow its segment sales  by 0 to +2% and to improve  the 
underlying EBIT  margin  by  +100  to  150 bps  in  the  first  12  months  of 
FY 13.  The outlook reflects  continued price and  volume pressure in  Western 
Europe.  The  Company  is  therefore   rebalancing  pricing  and  volumes   to 
re-establish its  competitive  position,  which  affects  sales.  The  Company 
continues to invest strongly in A&P to support its brands and innovations.

    Third Quarter FY 13                              First Nine Months FY 13
                Change                                             Change
 Sales (€          Reported                         Sales (€          Reported
   mln)      LFL1                                     mln)      LFL1
        292 (8.5)%  (10.0)%   Retail - W-Europe            917 (2.8)%   (3.5)%
        184   6.8%   (0.5)% Retail - Rest of World         586   6.9%     4.2%
        157 (3.3)%   (2.0)%      Out of Home               474 (2.1)%     0.9%
        633 (3.2)%   (5.5)%  Total segment sales         1,977   0.0%   (0.3)%
         10                   Non-allocated^[2]             29
        643          (9.4)%      Total sales             2,006          (4.4)%

SALES PERFORMANCE THIRD QUARTER FY 13

Total segment sales decreased (3.2)%  to € 633 mln, on a like-for-like  basis, 
in the  third quarter  of  FY 13.  Volumes declined  (4.6)% mainly  driven  by 
Retail - Western Europe and Out of Home (OOH).  Pricing was largely stable  at 
(0.3)%.  Mix/other was  able to  partly  compensate, delivering  1.7%  growth. 
Acquisitions contributed 0.1% to the reported growth and currency  translation 
effects negatively impacted growth  by (2.4)%.  Total segment sales  decreased 
by (5.5)% on a reported basis.

text

 
 
 

Retail - Western Europe

Third quarter performance of the segment Retail - Western Europe was  impacted 
by the earlier announced management changes  in the five key countries,  lower 
volumes  in  France  due  to  tough  trade  negotiations  and  by   aggressive 
promotional  activities   by  private   labels   in  most   western   European 
countries.  The related negative  effects on  volumes in R&G  and Senseo  were 
mainly visible in  January/February.  The Company is  rebalancing pricing  and 
promotional activities  to re-establish  its competitive  position, which  has 
resulted in a significant rebound in volumes and sales performance from  March 
onwards.  In these  challenging circumstances,  coffee market  shares for  the 
quarter increased in  the Netherlands, Denmark  and Germany, remained  largely 
stable in  France and  somewhat lower  in Spain  and Belgium  compared to  the 
preceding quarter.  L'OR capsules continued to deliver superior growth in  the 
quarter and are currently rolled out in Germany. Altogether, this has resulted
in a sales decrease of (8.5)% on a like-for-like basis in the quarter.  

Retail - Rest of World

The segment  Retail -  Rest of  World sustained  the good  performance of  the 
preceding quarter with a like-for-like sales growth of 6.8%.  This growth  was 
driven by  positive mix  and pricing  which  was slightly  offset by  a  minor 
decrease in volumes.  Australia sustained its excellent performance,  Thailand 
continued to improve its market share to above pre-flooding levels and  Brazil 
delivered a solid performance.  In Hungary, however, the Company continued  to 
suffer from the country's poor market circumstances while Poland was  impacted 
by aggressive pricing from competition.

Out of Home

Sales in the segment Out of Home decreased (3.3)% on a like-for-like basis  in 
the third  quarter.  The  decline  can  mainly be  explained  by  the  ongoing 
challenging market conditions  in the segment's  main markets, tough  contract 
negotiations in certain  of the segment's  key markets as  well as by  general 
price pressure due to the significant drop in green coffee prices and  pricing 
initiatives by competition.

SALES PERFORMANCE FIRST NINE MONTHS FISCAL YEAR 2013

Total segment sales remained  stable, on a like-for-like  basis, in the  first 
nine months of FY 13.  This performance was driven by 1.7% growth in mix/other
and  price  growth   of  1.0%.  Volumes   declined  by   (2.7)%.  Acquisitions 
contributed 0.7%  to  the reported  growth  and currency  translation  effects 
negatively impacted growth by (1.0)%.  Total segment sales decreased by (0.3)%
on a reported basis.

                                  Appendix 1

EXPLANATION OF NON-IFRS FINANCIAL MEASURES

This Trading Statement  refers to  like-for-like sales  growth and  underlying 
EBIT margin, which are  measures that are not  recognized under IFRS or  other 
generally accepted  accounting principles  (GAAP).  The Company  has  included 
these measures as the  Company uses these measures  in operating its  business 
and because it believes that these measures are useful to investors, and other
users of  its  financial  information,  in  helping  them  to  understand  the 
company's underlying business performance.  The  definition of these  non-IFRS 
measures are as follows:

Like-for-like sales represents sales, excluding green coffee export sales,
calculated at the exchange rate for the most recent period and adjusted to
eliminate acquisitions to the extent they are not included in both periods.

Underlying EBIT represents profit for the  period before share of profit  from 
associates, finance  income /  (costs),  income tax  expense and  adjusted  to 
exclude income or charges that management  believes are unrelated to its  core 
operating results and that are excluded in determining segment profits as well
as items that the Company deems to be non-recurring.  

The following tables  provide reconciliation between  total segment sales  and 
like-for-like total segment sales.

Sales growth third quarter FY 13

                                  Retail     Retail Rest of
                                   W-Europe      World      Out of Home Total
Volume                                                                  (4.6)%
Price                                                                   (0.3)%
Mix/Other                                                                 1.7%
Like-for-like total segment sales
change                                (8.5)%           6.8%      (3.3)% (3.2)%
Foreign exchange                      (0.1)%         (7.8)%      (0.2)% (2.4)%
Change in scope*                      (1.4)%           0.5%        1.5%   0.1%
Total segment sales change           (10.0)%         (0.5)%      (2.0)% (5.5)%

* As a result of acquisitions/divestitures and inter-segment reclassifications

Sales growth first nine months FY 13

                                  Retail     Retail Rest of
                                   W-Europe      World      Out of Home Total
Volume                                                                  (2.7)%
Price                                                                     1.0%
Mix/Other                                                                 1.7%
Like-for-like total segment sales
change                                (2.8)%           6.9%      (2.1)%   0.0%
Foreign exchange                        0.2%         (4.4)%        0.8% (1.0)%
Change in scope*                      (0.9)%           1.7%        2.2%   0.7%
Total segment sales change            (3.5)%           4.2%        0.9% (0.3)%

* As a result of acquisitions/divestitures and inter-segment reclassifications

                                  Appendix 2

DISCLAIMER

The statements contained in  this document that are  not historical facts  are 
forward-looking statements within the meaning of the safe harbor provisions of
the U.S. Private Securities Litigation Reform Act of 1995.  In addition,  from 
time to time, in  oral and written statements,  representatives of D.E  MASTER 
BLENDERS  1753   (the   Company)   discuss  their   expectations   by   making 
forward-looking statements regarding the Company.  Forward-looking  statements 
are generally but not always preceded  by terms such as "intends",  "expects", 
"projects", "anticipates", "likely" or "believes". Forward-looking  statements 
represent only the Company's beliefs regarding the future many of which are by
their nature inherently uncertain.  The  Company's actual results may  differ, 
possibly materially, from  those expressed or  implied in the  forward-looking 
statements.  Consequently, the Company wishes to caution readers not to  place 
undue reliance on any forward-looking statements. Among the factors that could
cause the  Company's  actual  results  to  differ  from  such  forward-looking 
statements are those described in the Annual Report on Form 20-F filed by  the 
Company with the Securities  and Exchange Commission.  The Company  undertakes 
no obligation to publicly update any forward-looking statements, whether as  a 
result of  new information,  future  events or  otherwise,  except as  may  be 
required by applicable law.

It is to be noted that totals in this report might deviate from the sum of the
individual inputs due to rounding.

[1] Like-for-like (LFL) growth is at constant scope of consolidation and
constant exchange rates
[2] Non-allocated sales represent green coffee export sales.  Management has
announced to bring these sales down to around € 45 mln by the end of FY 13.

DEMB Trading Statement Q3 FY13

------------------------------------------------------------------------------

This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: D.E MASTER BLENDERS 1753 via Thomson Reuters ONE
HUG#1692567
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