Message from the Executive Board
Although the underlying trends per segment differ, all segments contributed to an overall turnover
growth of 11.8% in the third quarter. This strong growth was realised in market circumstances
impacted by geopolitical uncertainty. Trade tensions and global logistical disruptions are directly
and indirectly affecting both our realised gross margins as well as our working capital positions.
Our 9M YTD turnover increased by 6.8% well within our projected turnover growth of 5%-7%.
We reconfirm the previously shared outlook for 2024. As a result of current market
circumstances, we expect EBITDA margin to land at the lower half of the range of 5%-6%.
Segmental review
The YTD 2024 turnover increased by 6.8% compared to 2023. All segments, except for Liquors,
contributed to this increase. The acquisition of Tastemakers within the Personal Care Segment
contributed € 1.4 million in turnover during Q3.
Turnover split per segment
9M YTD
€ million
2024
reported
2024
organic
2024
acquisitive
2024
FX
2023
Reported
? (%)
reported
? (%)
constant
currency
Beauty 554.4 41.5 - (0.8) 513.7 7.9% 8.1%
Food 278.5 42.8 - (0.3) 236.0 18.0% 18.1%
Health 45.8 7.6 - - 38.2 19.9% 19.9%
Liquors 419.3 (25.4) - (0.7) 445.4 (5.9%) (5.7%)
Personal Care 317.7 27.3 1.4 - 289.0 9.9% 9.9%
Travel Retail 95.5 15.4 - (0.1) 80.2 19.1% 19.2%
TOTAL TURNOVER 1,711.2 109.2 1.4 (1.9) 1,602.5 6.8% 6.9%
Q3
€ million
2024
reported
2024
organic
2024
acquisitive
2024
FX
2023
reported
? (%)
reported
? (%)
constant
currency
Beauty 187.2 18.6 - (0.7) 169.3 10.6% 11.0%
Food 110.4 22.0 - (0.1) 88.5 24.7% 24.9%
Health 17.0 4.1 - - 12.9 31.8% 31.8%
Liquors 142.9 9.4 - (0.8) 134.3 6.4% 7.0%
Personal Care 115.7 7.4 1.4 - 106.9 8.2% 8.2%
Travel Retail 35.9 2.9 - (0.1) 33.1 8.5% 8.8%
TOTAL TURNOVER 609.1 64.4 1.4 (1.7) 545.0 11.8% 12.1%
Beauty
As a result of improving market conditions due to flattening global inflation combined with
improved availability of goods, turnover increased by 10.6% during Q3, attributable to the B2B
(+16%) and B2C (+12%) sub-segments of Beauty. Whilst for B2B there was a decrease in turnover
per HY compared to last year, this was reversed into sales growth during the third quarter and is
partly the result of inventory availability. B2R sales (-/-6%) have come under pressure due to
increased competition.
Food
In this third quarter the Food segment continued its solid business growth, on the back of the
segment’s focus on stable operations and service excellence. Turnover growth in the Maritime
market was driven by the Cruise business. The Duty Free business within the segment showed
significant increase in turnover during Q3, mainly the result of onboarded new clients. Expansion
of the team and the existing brand partnerships has led to new added customers, as well as
growth of the existing portfolio. Focus on value retail customers fuelled the turnover growth
within the Export markets margins further tightened due to increased product availability. The
segment continued to focus on digital transformation and improved its client and supplier
interactions supported by the KingofReach.com platform.
Health
In the third quarter B&S Health showed continued strong performance, with 31.8% turnover
increase compared to the same quarter last year. The continued high demand for travel related
vaccines contributed to the higher turnover, as well as growth in other product segments like
medical devices and medicines. The strategic focus on the cruise market is starting to pay off,
resulting in a growing order portfolio and increasing footprint in the cruise industry.
Liquors
The challenging market circumstances in the international Liquor markets continued throughout
the third quarter of 2024. Although turnover increased, the challenging market circumstances
lead to decreased gross profit levels. Our European Liquor Wholesale companies continued its
modest turnover growth in Q3. Furthermore, the segment has been working on the further
integration of the European wholesale business from both a managerial and logistical perspective,
which is expected to be rolled out in HY1 2025.
Personal Care
Personal Care realized a turnover growth of 8.2% during the third quarter of 2024. This increase
is mainly driven by our Private Label product category. Pressure on Stocklot and Regular items
will persist due to the ongoing scarcity of A-brands and increased competition in certain product
categories. Furthermore gross profit margins were impacted by increased container prices from
Asia to Europe.
Travel Retail
Turnover for the period increased by 8.5% as a result of the higher number of visitors and the
newly opened shops late 2023 (3 shops) and beginning of 2024 (1 shop). While passenger
numbers have rebounded to approximately 90% of pre-pandemic levels, depending on the
location, the passenger profile has shifted, and average spending per customer has yet to return
to the desired level.
Cash flow & financial position
Working capital increased compared to year-end 2023, due to higher stock levels and higher
receivables outstanding, following the seasonality of our activities.
Despite falling interest rates, which have been implemented by central banks, interest rates
remain relatively high. During Q3 we have hedged a significant portion of our variable interest
exposure based on our implemented interest risk policy. We will continue to closely monitor the
interest developments and working capital management. We were within the agreed covenants
per the end of the quarter. Furthermore, we project to be within agreed covenants as per the end
of Q4 as well.
Outlook
For the remainder of 2024, we reconfirm the previously shared outlook with projected topline
growth of 5%-7% and EBITDA margin in the range of 5% to 6%. Both in line with our Financial
objectives 2024-2026. Although it should be noted that as a result of current market
circumstances, we project EBITDA margin to land at the lower half of the range.
Conference call
Our CEO Peter van Mierlo and CFO Mark Faasse will host an analyst call at 10:30 CET this
morning to discuss the 9M 2024 trading update.