Cie du Bois Sauvage : Results 2023

COMPAGNIE  DU BOIS SAUVAGE

www.bois-sauvage.be

ANNUAL RESULTS 2023 (unaudited)

RESULTS

➢  Operating income before disposals, changes in fair value and depreciations at EUR 32.9 million compared to EUR 41.0 million in 2022.

➢  Net result, Group’s share, equals to EUR -27.8 million compared to EUR 108.1 million in 2022. 

INTRINSIC VALUE

➢ Intrinsic value amounts to EUR 543.7 per share on December 31, 2023 compared to EUR 558 on December 31, 2022.

DIVIDEND

➢ Proposed gross dividend of EUR 8.20 per share compared to EUR 8.00 per share in 2022.

BUY BACK OF OWN SHARES

➢ Compagnie du Bois Sauvage continues its share buyback program. 

After a financial year 2022 that produced very good results, 2023 saw more mixed results. The complex economic environment, marked by inflation and high interest rates, weighed on some of our holdings, particularly in real estate, while our other activities posted stable or growing performances. 

The Chocolate Group (Neuhaus, Jeff de Bruges, Corné Port Royal and Artista) has achieved an increase in turnover of + 7,9% and continues to represent a solid pillar with good growth potential. The net income, Group’s share, remained stable illustrating the ability of our various brands to absorb the effects of inflation without any significant erosion of volumes. Our shareholding in Ecuadorcolat enables us to ensure security of supply for our chocolate-makers and to moderate significant rises in the price of cocoa.

The Industry and Services segment generated an increase in dividends to EUR 9.8 million, compared with EUR 7.8 million in 2022, illustrating the good spread of our investments and risks between holdings that provide recurring dividend flows (Berenberg, Umicore, Ageas, ...) and those that are resolutely committed to the industries of the future (bioplastics and biobased fibers with Futerro and Noosa, protein foods with Ÿnsect and Maash).

However, this division recorded a significant loss in fair value due to the sharp fall in Umicore's share price (EUR -37.3 million).

The Real Estate segment, which comprises both our investments in Eaglestone, in funds, and our direct investments in property development projects, had a difficult year. Like all players in the property construction industry, Eaglestone was faced with a very sharp slowdown in transactions and interest rates that rose rapidly and sharply. Every adjustment measure was taken to protect the company's cash position. Against this sluggish market backdrop, some funds also suffered and recorded falls in their valuation projections. On the other hand, the real estate projects in Portugal and Poland (50% owned by Bois Sauvage) confirmed their potential thanks to a good increase in the level of sales. Similarly, the FRI 2 fund sold a number of business parks in Belgium, Portugal and Romania at the end of 2023, confirming their valuation and the positive result for Bois Sauvage. More fundamentally, Bois Sauvage remains cautious but confident in the potential of its property investments. These are well diversified geographically and sectorally and are ready to rebound as soon as the fall in interest rates and the upturn in transactions materialize.

During the year 2023, the Group Compagnie du Bois Sauvage has :

•       paid up EUR 3.2 million net capital in the FRI 2 fund and received a capital repayment of EUR 0.9 million, bringing the capital investment to EUR 11.8 million,

•       purchased 364,787 Ageas shares for a total amount of EUR 15.2 million and transferred them from "Financial assets at fair value through profit or loss" to "Investments at fair value through profit or loss",

•       purchased 5,59% of the capital of Serendip (Galactic-Futerro) to other shareholders for EUR 8.8 million and participated in its capital increase for EUR 4.5 million. Bois

Sauvage's shareholding in Serendip thus increased from 24.75% to 32.29%,

•       lent EUR 7.5 million to Praça de Espanha II (a 50%-owned real estate project in Portugal) in line with its commitments, 

•       lent EUR 4.6 million to its shareholding Esch 404 (« Prism » real estate project in Luxemburg. in line with its commitments. The total amount invested is EUR 14.79 million, 

•       lent EUR 1.5 million out of a total commitment of EUR 3.5 million to Futerro to finance its cash requirements pending the fund-raising, 

•       invested EUR 8.9 million in a residential construction project in Warsaw (Poland) alongside BPI (AvH Group),

•       lent USD 0.9 million to Ecuadorcolat to finance its cash requirements, 

•       converted a USD 5 million loan to Noël Group into capital,

•       received the confirmation that the “milestone” to receive an additional amount of EUR 4 million relating to the sale of the stake in Ogeda in 2017 has been approved. However, this amount will only be recognized, if at all, in the first half of 2024, as the approval may be appealed for one year and the amount is therefore held as collateral,

•       received dividends for a total amount of EUR 21.2 million (including dividends from fully consolidated companies and companies consolidated using the equity method), • sold its stake in Nanocyl for EUR 2.3 million (of which EUR 0.3 million is still receivable),

•       repaid EUR 62.5 million in bank debt and EUR 21.3 million in bonds.

CHANGES IN SHARE CAPITAL IN 2023

As part of the renewal of the authorization granted by the Extraordinary General Meeting on April 28, 2021, Compagnie du Bois Sauvage bought back in 2023 own shares for EUR 2.6 million (EUR 5.1 million in 2022). The Company also cancelled 18,837 own shares in June 2023 (representing 1.12% of the total number of shares) for a total value of EUR 6.3 million. 

SIGNIFICANT EVENTS AFTER THE CLOSING DATE

Post-closing events

•       Compagnie du Bois Sauvage has received a capital repayment of EUR 5.5 million from its FRI 2 real estate investment. 

•       There are currently no investment projects in the pipeline. Compagnie du Bois Sauvage continues to be attentive to any proposal that could strengthen its strategic axes. 

Consolidated statement of comprehensive income as of 31 December (IFRS) (unaudited) 

Figures unchanged from the press release of March 6, 2023.

The operating income before disposals, changes in fair value and depreciations of Compagnie du Bois Sauvage amounts EUR 32.9 million compared with EUR 41.0 million in 2022. This result is mainly influenced by the combined effect of the following items: 

•       The Chocolate Group (Neuhaus, Jeff de Bruges, Corné Port Royal and Artista) has achieved an increase in turnover of + 7,9% compared with 2022, characterized by an increase in shop traffic at both Neuhaus and Jeff de Bruges, with an “average shopping basket” remaining stable or rising slightly. The net income, Group’s share, amounts EUR 18.7 million compared with EUR 19.2 million in 2022,

•       The result of companies consolidated using the equity method amounts EUR -16.7 million compared with EUR – 1.9 million in 2022. This result is mainly relative to Eaglestone (EUR -6.5 million), Fidentia and Plaine 17 (EUR -5.3 million), Noël Group and Vinventions (EUR -4.7 million),

The « net result Group’s share » of EUR -27.8 million (compared with EUR 108.1 million in

2022 which included the result on disposals of EUR 95 million from the sale of our stake in Recticel) includes changes in the fair value of Umicore EUR -37,3 million, Berenberg EUR 3.9 million and property in the USA EUR – 4.7 million.

The « net global result Group’s share » amounts EUR -30.1 million compared with EUR

110.9 million in 2022. This amount corresponds to the Group’s net income share adjusted for items recognized directly in equity such as exchange differences on foreign currency activities outside the Euro zone (EUR -1.95 million).

The Group has a consolidated net cash surplus excluding IFRS 16 of EUR 17.3 million at December 31, 2023 compared with a consolidated net cash surplus excluding IFRS 16 of EUR 54.0 million at December 31, 2022. 

After payment of the 2022 dividend (EUR 13.3 million), the share buyback and taking into account the results of the year (EUR -27.8 million), the Group’s equity stands at EUR 597.1 million at the end of 2023 compared with EUR 642.6 million in 2022.

DIVIDEND

The Board of Directors proposes a gross dividend of EUR 8.20 per share compared to EUR 8.00 per share in 2022. It wishes to express its confidence in the prospect of an increasing dividend combined with an attractive growth of the Group.

PARTICIPATING INTERESTS

Consolidated operating income before disposals, changes in fair value and depreciations at December 31, 2023 is globally in line with the Group’s expectations given the results for the first half of the year and in view of the economic context. 

OUTLOOK FOR THE CURRENT FINANCIAL YEAR

The Board remains confident in the quality of the assets but cautious on the short/medium term outlook given the current interest rates and the geopolitical risks.

AUDITOR’S REPORT

The Statutory Auditor, Deloitte Reviseurs d'Entreprises, has not yet finalized its audit work on certain significant elements of the Group’s consolidated financial statements. Accordingly, the financial statements presented in this press release should be considered, at this stage, as unaudited.  

ALTERNATIVE PERFORMANCE INDICATORS 

Intrinsic Value : the intrinsic value represents consolidated shareholder’s equity adjusted for the difference between the market value and the book value of the fully consolidated participations. Compagnie du Bois Sauvage reminds its investors that the calculation of intrinsic value is subject to the uncertainties and risks inherent of this type of valuation and is not a measure of the current or future value of the Company’s common shares.  

Consolidated cash-position : the consolidated cash-position is the sum of « current and noncurrent assets », « financial assets at fair value through profit or loss » and « cash and cash equivalents ». 

Consolidated net debt excluding IFRS 16 / Consolidated net cash surplus excluding IFRS 16: the consolidated net debt excluding IFRS 16 (if negative) / consolidated net cash surplus excluding IFRS 16 (if positive) is the consolidated cash position minus current and non-current « Financial debt » excluding IFRS 16. 

Operating income before disposals, changes in fair value and depreciations : the operating income before disposals, changes in fair value and depreciations is the difference between the « operating products » (sales, interests and dividends, rental revenues and other revenues) and « operating costs » (supplies, staff costs, depreciations, impairment losses, provisions, financial expenses and other expenses) increased by the « share in the comprehensive income of shareholdings consolidated using the equity method ». 

FINANCIAL CALENDAR

Contact

Benoit DECKERS

Chief Executive Officer

Mobile: 0475 44 15 96

Consolidated statement of financial position as of 31 December (unaudited)

                     x € 1.000                                                                                           31-12-2023           31-12-2022

Figures unchanged from the press release of March 6, 2023.  

This press release is available in French and Dutch. In the event of divergence, the French version shall be final.