Milcobel 2012 —
1
Content
Foreword
3
The Milcobel Group in 2012
5
Cooperative news
9
Key figures 2012
11
Industrial products and third-country export
13
Consumer cheese and butter
17
Consumer milk and functional drinks
19
Ice cream
21
Cheese packaging and distribution
23
Who is who in Milcobel 2012?
24
Financial report
25
Credits
45
Milcobel 2012 —
1
Dairy in motion
Foreword
It is clear that Milcobel’s prices continue to be the main benchmark for milk prices in Belgium. From that
standpoint, 2012 was an eventful year for us. Sharp increases in costs coupled with disappointing fodder
crop yields in some regions put pressure on revenue at member companies. The uncertainty felt at large
dairy farmer groups (non-cooperatives) stemming from a faltering commitment on the part of their
buyers for long-term sales also led to unrest, which in turn had its effect on Milcobel.
The relatively weak prices that were set for milk in accordance with European standards at Milcobel and
the other Belgian companies were cause for lively debate, both inside and outside our member structures.
Our milk prices were under pressure in 2012, this due to both disappointing market trends for powder as
well as a number of operational handicaps that are specifically related to the transitions that Milcobel is
undergoing. In addition to this, more fundamental handicaps such as energy and wages - in comparison
to neighbouring countries - are definitely playing an increasing role in the food sector.
Together with management, Milcobel’s Board of Directors has outlined plans for further growth using our
own resources. This approach is based on our belief that the best way for dairy farms in our operating area
to thrive and be able to count on a long-term future is for them to be part of a cooperative dairy group
managed from Belgium that guarantees market access for its members. The total commitment on the
part of the Milcobel family to do this, even when times are tough, is illustrated by the strengthening of
shareholders’ equity through retained earnings and the increase in capital contribution approved by the
general assembly.
Guido Veys
Chairman of the Board of Directors
Milcobel 2012 —
Nevertheless, 2012 was still a “good” year in many areas:
• In 2012, we celebrated the 20th anniversary of Oud Brugge. ”Brugge” has evolved into the premiere
brand for the Belgian cheese palette. In a market segment for higher-quality cheeses that is otherwise
feeling pressure, it is capturing an increasing market share and achieving net growth.
• The new cheese factory in Moorslede was opened in October. Here the artisanal skills of cheese masters
are combined with cutting-edge technology and automation in order to offer cheeses to “suit all tastes”.
Expectations are very high. Belgian cheeses - with Brugge as the flagship cheese - are also gaining
notoriety outside Belgium.
• Through its takeover of SherlockCheese in Nieuw-Vennep (now DupontCheese NL), our cheese service
and distributor “DupontKaas” has evolved from its beginnings in Bruges into a genuine Benelux
organisation. The entire domestic market is now indulged with the most specialised cheese palette in
Europe from locations in Bruges, Nieuw-Vennep and Liège.
• Work commenced on the expansion of the mozzarella factory in Langemark. This expansion will ensure
that the factory’s increased production capacity will be operational by early 2014. This will strengthen
Milcobel’s already strong position as the standard bearer for the use of mozzarella cheese in pizza
toppings as well as emerging segments such as mozzarella slices. This investment represents the final
component of our cheese strategy: 60% of our members’ milk is destined for this type of production. We
also managed to increase the valorisation of derived whey products in 2012.
• Powder continues to be especially important for the group, both as a specialised ingredient and as a
nutritional consumer product for international markets. In 2012 it was decided to expand the powder
operations in Kallo, a plan which will involve new construction. The land surrounding the existing
factory has been purchased, and the project study is now in its final phase.
• In a difficult market for milk and milk drinks, Inza was successful at staying afloat. It did this by enforcing
strict cost controls and by concentrating more on specialised drinks under the name brand of third
parties, as well as by repositioning its own Yogho!Yogho!, Choco!Choco and Inza brands.
• Ice cream, which accounts for 23% of our turnover and occupies almost 30% of our workforce, continues
to be an essential component of Milcobel’s business model. Activities which are further removed from
dairy are intended to mitigate the volatility of milk prices, especially during downturns affecting the
dairy market. In spite of a terrible summer and cutthroat competition, this is what Ysco did in 2012. Ysco
held its ground and remained profitable in a European ice cream sector that is undergoing consolidation.
3
— Milcobel 2012
Important initiatives
within the group
4
The Milcobel Group in 2012
The Milcobel Group again took a proactive stance in 2012, with important steps taken to further its growth in an effort to fulfil
the mission of the cooperative. This mission can be summed up in 4 points:
• Asalesguaranteeforthemilkproducedbythememberdairyfarmers.
• Therightmilkpriceforitsmemberdairyfarmersbasedonindustrialandcommercialactivitiesandapresenceinmultiple
markets with multiple products.
• Asmuchinvolvementaspossibleonthepartofmemberdairyfarmers.
• Together,putaninternationalfaceonBelgiumasadairycountry:“Belgiandairyproductsforyoutoenjoy”.
Milcobeltookthesestepsduringadifficultyearforthedairyindustry.Pricescollapsedformilkpowderandbutterinparticular
andpricesforcheese,andespeciallymozzarella,weakenedaswell.Butthankstostrongdemand,thesepricesdidnotcollapse
entirely, as has often been the case in the past when the dairy market is less than favourable. Because our cheese factory in
Langemarkwasalreadyrunningatfullcapacity,however,wewereunabletotakefurtheradvantageofthisdemand.Atthe
same time we had to contend with the start-up costs of the newly renovated and expanded cheese factory in Moorslede.
Valorisationbymeansofconsumptionmilkyieldedanaveragepriceformilk.Whenbearinginmindthatmilkpowder
is an important means by which the Milcobel Group valorises the milk of its members, this added up to a
substandard year for the price of milk when compared to its European competitors. Nonetheless, there
are once again a number of noteworthy developments to report.
New strides in growth during 2012
InJanuary,MilcobelmadeitsentryintotheDutchcheesedistributionsectorthrough
thetakeoverofSherlockCheeseinNieuw-Vennep.Thiscompanywasthenrenamed
DupontCheeseNederlandafewmonthslater.WithKaasimportJanDupontin
Bruges and with Camal in Barchon, Milcobel is building a genuine Benelux
operation for the distribution of its best cheeses, which can now be found
everywhere.
Meanwhile,constructionstartedonthenewmozzarellafactory
inLangemark,whichwillinitiallyincreaseproductioncapacity
InzabuiltanewdivisioninSchoteninordertofulfilamajorco-packingcontractfortoddlergrowthmilksunderthebestpossible
conditions.IndoingthisInzaisimplementingoneofitsstrategicaxes.
The spring and summer of 2012 were anything but stimulating for the consumption of ice cream, yet Ysco still realised a slight
rise in turnover thanks to a larger contract perimeter. This increase in turnover combined with the benefits from the streamlining
efforts made in recent years meant that, even in a year with a poor summer, Ysco’s result was still a good one.
Finally, a large amount of research was carried out in Kallo. This was done in preparation for the decision on the best scenario
for modernising the Kallo site so as to be able to produce milk powders and baby food under state-of-the-art conditions in the
future.
Milk supply and processing stable
In 2012, the Milcobel Group processed only slightly more milk than it did the year before. Both the supply and third-party
purchases were stable, while a bit more milk was sold. The group processed 2% less milk in its factories; in 2011, the total amount
of milk processed was 1.058 billion litres.
Results of the subsidiaries
Theindustrialproductsandthird-countryexportsdepartment(Belgomilk,Kemfoods)obtainedgoodresultswithmozzarella.
Milk powder, however, brought down Milcobel’s average price for milk.
The consumer cheese and butter department (Belgomilk and Kempico) experienced a transitional year and yielded a weaker
result. The transfer of production from the cheese factory in Gierle to that of Moorslede and the launch of the new line in
Moorslede generated additional costs before production could be brought back up to speed. One positive development was that
sales of Brugge Kaas cheeses again grew by multiple percentage points.
Belgomilk’sconsumerbutterwasalsoabletomaintainitspositiononthedomesticmarketthankstotheNazarethandDixmuda
brands.
Asaspecialistinlong-lifeconsumptionmilkandmilkdrinks,2012provedtobeabetteryearforInza.Themarketforconsumption
milklaggedlessbehindthoseofotherproducts.Comparedtotheyearbefore,Inzamanagedtovastlyimproveitsresultand
almost broke even, mainly through intensive cost savings and the initiation of new co-packing contracts.
Despitetheunfavourablesummer,Yscoachievedgoodresultsin2012.Theseresults,alongwiththepositivecontributionthey
made to the group’s overall results, can be attributed to better prices, well-functioning factories and more sales contracts, all of
which combined to produce a slight increase in turnover in spite of the disappointing summer.
Milcobel 2012 —
The cheese factory in Gierle ceased all operations in late April, at
which point the new line in the cheese factory in Moorslede was
put into operation. On 6 October the new cheese factory in
Moorslede was officially inaugurated by Chairman GuidoVeys
andFlemishMinister-PresidentKrisPeeters.Thiswasfollowed
that afternoon by an open house for members and employees,
and again on Sunday for the general public as part of the
company open house. And the public arrived in large numbers:
there were more than 10,000 visitors over the course of the
weekend.
from 25,000 tonnes to 45,000 tonnes, with the option to expand this to 70,000 tonnes in the future. Besides allowing Milcobel
toprocesstheanticipatedincreaseinmembers’milkproduction,thesetwoinvestments(MoorsledeandLangemark)willalso
further accelerate the shift from powder to cheese.
5
Thanks to the takeover of SherlockCheese (now DupontCheese Nederland), the
turnover of the cheese packaging and distribution department began to rise again.
Kaasimport Jan Dupont was the only one to see its turnover fall, while Camal’s
turnover increased. When one considers the investment in, and reorganisation of,
DupontCheese Nederland, the overall results met expectations.
Group results
The consolidated turnover of the Milcobel Group fell by a slight 0.5% to EUR 880
million. This drop was mainly a result of price declines.
The consolidated results of the group ended the year at EUR 3.7 million, compared
to EUR 4.4 million for the previous year. The group’s cash flow amounts to EUR 24.6
million.
A dividend of 4% will be proposed at the general meeting. The remaining results will
go to shoring up the group’s reserves.
Milk price
The milk price paid fell by 9% as compared to 2011. With a fat content of
42.93 grams/litre and a protein content of 35.27 grams/litre, an average milk price
of EUR 31.53 per 100 litres was paid.
If this is converted into the standard milk in Belgium (38 g fat and 33.5 g protein
per litre), the average milk price for members amounted to EUR 29.14 per 100 litres,
which is 9% less than in 2011.
— Milcobel 2012
Investments
Milcobel is maintaining its high investing rhythm. The group’s investments in tangible fixed assets totalled EUR 35.9 million in 2012. Belgomilk accounted for 69% of
this figure, which was devoted mainly to the cheese factories in Moorslede and the
expansion of the mozzarella factory in Langemark. Inza’s share of investments was
8%, with Ysco accounting for 15% and Dupont and Camal 3%.
6
Personnel
Milcobel’s aim is to be a group in which every employee is convinced of the objectives
of the Group in general and of those of his or her department in particular. In that
way, each and every person will apply his or her talent with pleasure to achieve
these objectives and will also be shown appreciation for their efforts. This is known
as involvement by each and every person.
The group continued its policy of open communication and deliberation by way of
appropriate official bodies, work groups and safety units. This is all with a view to a
good working atmosphere, health and safety at work and continued improvement
in the quality of the work delivered and of the final products.
Corporate social responsibility
Milcobel places great emphasis on socially responsible entrepreneurship, which
is characteristic of a cooperative enterprise. A social character and solidarity are
ingrained in the origin and nature of cooperatives. It is therefore no surprise that
Milcobel is concerned about social issues and human rights.
For Milcobel, sustainability means taking responsibility for - and providing
sustainability to - the incomes of 3,000 dairy farmers and their families, the
incomes of 1,800 employees and their families, a relationship with 100 or so buyers/
customers that is based on trust, and contributing to the dairy consumption of
millions of consumers.
The step towards other issues of socially responsible enterprise is small. Care for
the environment is a question of sustainability of the enterprise, society and the
environment in which it must prosper.
Belgomilk and Ysco participate in the West-Flanders Corporate Sustainability
Charter through which work is being done to continually improve environmental,
social and economic performance. Other branches of the Milcobel Group also follow
this initiative.
Corporate sustainability is implemented by means of specific projects. Two examples
of this include the visualisation of consumption trends for utilities in the workplace
and the 45+ experience fund, which helps workers extend their working careers
through the valorisation of experience and the avoidance of physical strain.
Milcobel cooperates in various projects and inter-professional deliberations on
sustainable dairy farming.
Prospects
The long-term prospects for dairy products remain good, especially at the global
level. In particular, the increasing world population and rising purchasing power in
developing countries are expected to raise dairy product consumption.
These favourable long-term prospects, however, do not change the fact that the
markets remain volatile and that we may experience weaker years such as 2012 in
the future.
But the prospects for 2013 are better. The market for dairy products began to
improve in September 2012, when particularly strong improvements were recorded
for the prices for milk powders and butter, and the imbalance in the market for the
most part disappeared. Better prices have also been paid for consumption milk since
November. The downside of this improvement is that it is basically a result of the
diminished supply of milk. The diminished supply of milk in Europe is a result of the
poor harvest season for fodder crops on dairy farms (lower quality grass silage and
disappointing silage maize yields). High prices for concentrated feed are also putting
a check on high milk production. The demand for milk remains quiet due to the ongoing economic crisis, though we can probably expect to see prices remain steady or
even improve into the new growing season if milk production lags in other parts of
the world as well, particularly in New Zealand.
The factory in Moorslede is now capable of running at full capacity in order to keep
up with the growth in sales of our branded cheeses. During 2013 Inza will begin
work on the new co-packing contract and Ysco has once again netted a nice portfolio
of contracts for the year. Dupont continues to work on building full coverage of the
Benelux market. We have the prospect of a high-performing mozzarella factory in
Langemark while the most appropriate decision will be made regarding the future
of powder and baby food production in Kallo.
The Milcobel Group’s management and employees will therefore continue to develop
a versatile and sustainable cooperative dairy group. Milcobel’s sustainability is the
cornerstone of the sustainability of its members’ dairy farms and the sustainability
of employment for its employees.
The group’s values are quality (a taste you can trust), service and flexibility
(“customerthusiasm”), involvement on the part of members and employees, and
respect for the environment.
Members
Group structure
cvba Belgomilk
50%
50%
50%
cvba
MILCOBEL
nv Fassbel
nv Kaasimport
J. Dupont
geie Les From.
des Flandres (2)
nv Cheeseline
cvba Inza
nv Ysco
bv Milcobel Ndl
sasu Ysco Fr
Holding
sarl BMF Lait
sasu Ysco
France
nv Bedrijvenpark
Wingene (2)
Prodinco
7,07%
cvba Kempico
cvba
Zuivelindustrie
Zandhoven (2)
cvba
Milcobel 3F
cvba St. Marie
20%
sa Camal
(1) as to asset mutation
(2) not included
bv
Dupontcheese
NL
Milcobel 2012 —
sa Héritage
1466 (1)
7
— Milcobel 2012
To listen
and be heard
8
Cooperative news
Throughout 2012, the cooperative member structures – following changes to their
composition in 2011 – were heavily involved in Milcobel’s operations. At the board
level of the 9 member circles a total of 21 board meetings were held.The Cooperative
Board met 5 times.
An important topic covered in these meetings was the strategic development of the
Milcobel Group, and the associated required increase in the shareholders’ equity of
Milcobel and of the members’ capital in particular. A detailed explanation was also
provided for the transitions which are underway in several divisions of the Group, as
a result of which - and due also to difficult market conditions for a number of dairy
products - Milcobel’s performance failed to meet expectations during 2012. This was
communicated to all members via a special edition of the Milcobel Flash.
A members-only area was added to the Milcobel website last autumn. Members will
be able to consult their individual delivery information and membership data in this
members-only area, which will also allow for a greater amount of cooperative news
to be disseminated more quickly. The members-only area of the Milcobel website
will also become a tool for estimating the future milk deliveries of the members as
accurately as possible in the post-milk-quota era.
The general assembly of 19 June 2012 approved an increase in members’ capital
of EUR 1 per 100 litres, to be spread over 4 years. At the request of the member
structures - and also because of the difficult dairy year - the Board of Directors
resolved not to move forward with this capital increase until 2013.
The quality of the milk that was supplied continued to adhere to the previously
attained high level of extra-quality during 2012 as well:
• 98.1% of the milk supplied met the germ count standard of max. of 50,000/ml;
• 94.4% of the milk had a somatic cell count below 350,000/ml;
• 85.8% of the milk met the count standard for coli bacteria of max. of 50/ml;
• 99.7% of the supplied milk remained free of any demonstrable residues of
inhibitors.
Throughout all of 2012, 80.5% of the milk that was collected satisfied all of the
additional quality standards maintained by Milcobel. As a result, this volume of milk
was awarded an additional quality premium. Proposals for modifying the additional
quality premium system were made several times during 2012. Simulation
calculations of these were submitted to the Cooperative Board. This means that,
beginning on 1 June 2013, the switch will be made to a differentiated additional
quality premium based on a revised germ count standard of 25,000/ml and a
reduced somatic cell count standard of 300,000/ml. The coli bacteria count standard
will remain unchanged at 50/ml.
The quality policy at the level of the milk supply continues to rest on the further
remediation of a relatively small number of situations involving structural
shortcomings. Intensified monitoring of the germ count appears to be a usable
parameter for this policy. Since 1 November 2012, a special monitoring procedure
has applied to suppliers in cases where a germ count of more than 100,000/ml is
found. If no improvement is forthcoming, the collection of milk can be temporarily
suspended.
Finally, Milcobel – as a major cooperative of dairy farmers – also continued its
active participation in sectoral consultations throughout 2012. This participation
occurred under the auspices of the Belgian Dairy Industry Confederation (BCZ/
CBL), the General Association of Cooperative Dairies (AVCZ), and within the context
of interprofessional consultations between the dairy industry and the agricultural
organisations in Belgium. As such, Milcobel continues to play an important role
within various consultative bodies regarding the future implementation of RFID
sampling, the development of sustainability criteria for dairy farms, adjustments to
the Dairy Quality Assurance (IKM/QFL) specifications and the implementation of the
elements of the EU Dairy Package.
Within the framework of the Dairy Package, Milcobel submitted an application in
2012 to be authorised as a producer organisation. This authorisation was obtained
on 3 January 2013 and confirms that Milcobel, as a cooperative, is by nature a
producer organisation.
And finally, Milcobel left no stone unturned – mainly by providing testimony – in
its effort to contribute to the body of knowledge on the cooperative business model
as part of the many initiatives that were taken on the occasion of the International
Year of Cooperatives. More and more attention is being paid to the cooperative
story, and more and more people are realising that a cooperative business model is
synonymous with sustainable business and corporate social responsibility!
Milcobel 2012 —
In order to arrive at a better estimate of the capacity needed to process members’
milk and to tailor investment planning accordingly, a survey was conducted of
members that inquired into the future development plans of the member farms. The
response to this survey was overwhelming, with more than 80% of those surveyed
responding. Indications are that future increases in milk production stemming from
the elimination of the milk quota will be achieved in large part by filling cow stalls
that are already available. The combination of individual business development
versus others ceasing activities points to a net increase in the milk supply of
between 13% and 16% after the milk quota is dropped. As mentioned earlier, the
members-only area of the Milcobel website will be used as a tool to make more
accurate prognoses of both short-term and medium-term supply.
The following trends can be reported as regards the milk supply over the course of
2012:
• The number of member suppliers decreased further, from 3,096 in 2011 to 2,993 in
2012. This corresponds to a relatively low rate of decline of only 3.3%. The decline
in membership has slowed down somewhat compared to 2011. Belgium as a
whole saw the number of milk suppliers drop by more than 4% during 2012.
• The number of Dutch (81) and French (42) member suppliers remained fairly
constant. The share of the overall volume of milk supplied came to 5.6% for the
Netherlands and 2.6% for France.
• Milcobel also preserved the closed nature of the cooperative during 2012. For
business and economic reasons, no new members will be accepted into the
cooperative until further notice. Access to Milcobel will continue to be restricted
to milk producers who are related to an existing Milcobel member or who take
over a company of a Milcobel member. This measure safeguards the development
potential of the existing member companies based on the commitment that
Milcobel will not exert any control over production or manage supplies in any way
whatsoever.
• It is worth noting that the supply of members’ milk in 2012 more or less stagnated
at a total volume of 1,114,948,082 litres. This represents an increase of only
1,135,459 litres, or 0.1%, over 2011. This stagnation is a clear reflection of the less
favourable conditions for milk production in 2012: adverse climate, poor grazing
season, low fodder crop yields, high prices for concentrated feed and relatively low
economic margins.
• The average volume of milk supplied by individual Milcobel members rose to
372,519 litres, which is only a 3.5% increase over 2011.
9
COOPERATIvE
STRUCTURE
Milcobel-members
board of the member circle
9 regional member circles
statutory general assembly
council of the cooperative
5 delegates per member circle
11 members of the
board of directors
GROUP STRUCTURE
milk collection
holding & coordination
& group services
Milcobel cvba
Consumer cheese and butter
Consumer milk and
functional drinks
Belgomilk cvba
Ste Marie Zuivel cvba
— Milcobel 2012
Inza cvba
10
Cheese packaging and
distribution
Industrial products and
export third countries
Kaasimport Jan Dupont nv
Camal SA
DupontCheese NL B.V.
Belgomilk cvba
Ice cream
Ysco nv
Ysco France SAS
kEy fIGURES MILk fLOW
2012
2 011
2010
Milk from members’ farms
1,114,948,082
1,113,812,623
1,098,473,243
Available total incl. third parties
1,131,898,100
1,131,500,576
1,116,910,726
73,582,945
49,281,594
69,901,889
1,058,315,155
1,082,218,982
1,047,008,837
2012
2011
2010
2,993
3,096
3,296
1,114,948,082
1,113,812,623
1,098,473,243
Average fat content
42.93
42.56
43.00
Average protein content
35.27
35.12
35.24
Price paid for milk in millions of euro
351.57
386.18
358.07
Euro per litre
0.3153
0.3467
0.3260
2012
2011
2010
880,205
884,599
819,977
37,443
39,781
31,523
3,683
4,399
6,028
113,011
106,894
101,885
27.5
26.7
28.0
1,967
1,951
1,951
Total sales
Available for transformation
Key figures
kEy fIGURES COLLECTION Of ThE MEMBERS
Average number of suppliers
Quantity of milk supplied
kEy fIGURES MILCOBEL GROUP
(IN ThOUSANdS Of EURO)
Turnover
Investments fixed assets
Result
Solvability %
Average number of employees
Milcobel 2012 —
Capital and reserves
11
— Milcobel 2012
12
From farm to
world market
Industrial products and exports to third countries
The year 2012 was characterised by a high level of volatility on the dairy markets.
An underlying cause of this was the milk supply, which was a determining factor in
key market trends. The following events also had an impact on the market in 2012:
the on-going economic slump in Europe, political indecisiveness in the US and the
turmoil affecting a number of Arab and African countries (Syria, Mali, etc.).
On the supply side, strong growth in milk production in New Zealand, Europe and the
U.S. gave rise to a milk surplus during the first half of 2012. This created downward
pressure on market prices for dairy products. Full-fat milk powder, skimmed milk
powder and butter all saw substantial price declines beginning early on in the year.
These prices bottomed out around the month of May, at which point they found
themselves at their lowest level since 2009.
The opposite effect manifested itself during the second half of the year by way of a
milk shortage in the main production areas. It started in summer with a period of
severe drought in the US, and was followed by a scarcity of milk on the European
markets. This led to a recovery of market prices. Towards the end of the year, liquid
dairy products - namely milk, milk concentrate and cream - experienced an unusually active market.
New Zealand came to dominate the market for full-fat milk powder ever more emphatically in 2012. The large quantities of extra milk produced in that country the
previous season (2011-2012) found their way to the world market by way of the
efficiently equipped New Zealand dairy factories, and did so primarily in the form
of full-fat milk powder at unbeatable prices. Conversely, skimmed milk powder of
EU origin proved to be genuinely competitive on the world market in 2012, which
ensured steady demand for that product.
The price of skimmed milk powder from the EU remained competitive on the world
market in 2012. As a result, both the production of skimmed milk powder in Europe
as well as EU exports remained strong. Driven by the high supply of milk, the market
price for skimmed milk powder experienced a continual decline into the month of
May, but it rebounded by the end of the year and even closed at a slightly higher
level than at the start of the year.The difference between the lowest and the highest
price at any point during the year was 28%. The average European market price was
2% lower than the previous year.
In 2012, Belgomilk launched its popularly positioned Binco brand (based on
skimmed milk powder with added vegetable oils). This nutritional, high-quality and
popularly-priced brand concept received a positive initial response on many
international markets. As a result, Belgomilk foresees good opportunities for
the further growth of Binco.
Belgomilk’s sales of dairy ingredients to the food and beverage industry
(chocolate industry, ice cream industry and baby food) continued to grow
throughout 2012. New top European clients once again showed active interest
in purchasing dairy ingredients from Belgomilk in 2012.
The Belgomilk factory in Langemark put a new, state-of-the-art packaging machine for powder into operation in 2012 which allows the packaged
milk powder to be gas flushed with a modified atmosphere.
The Belgomilk factory in Kallo made a series of modifications and improvements to its packaging area for high-quality consumer packaging in 2012. This factory also opened a new laboratory in 2012.
This laboratory is fully equipped to carry out quality controls on
high-quality milk powder products.
Butter
Early on in 2012 European market prices for butter fell sharply and continued to
decline into the month of May. At that point prices began a gradual recovery, and
ended up closing the year at almost the same level as at the start of the year. The
lowest price recorded in 2012 was 31% lower than the highest one recorded. The
average European market price for butter was 24% lower than in 2011.
Mozzarella
The demand for Belgomilk mozzarella remained strong in 2012 and was driven by all
of the major sales channels: pizza restaurants (mozzarella used as a pizza topping),
the pizza industry, retail sales and the ever-increasing demand from new markets
outside Europe. Major sporting events in the summertime (such as European Championship football and the Olympic Games) also served to drive up demand. In spite of
the volatility in the surrounding dairy market and the price pressure felt mainly from
countries in Southern Europe, the price level remained relatively stable. The average
price remained barely 2% under its 2011 level.
The demand for so-called single-loaf (individually packaged, single block) mozzarella appears strong, especially from new markets outside Europe. In 2012, Belgomilk
sold this new packaging option in more than 50 countries.
The Belgomilk factory in Langemark commenced
work in 2012 on a major project to build a
new mozzarella factory. This new factory is
intended to provide the additional capacity
that will be needed to meet the increase in
demand for mozzarella expected in the years
ahead.
Milcobel 2012 —
Milk powder
European exports of full-fat milk powder and derived products faced continued difficulty throughout 2012 due to significantly lower prices for these products from New
Zealand. The demand for full-fat milk powder from the European food and beverage
industry was somewhat erratic. Driven as it was by a milk surplus, the market price
for full-fat milk powder in Europe experienced a continual decline into the month of
May. However, it had rebounded by the end of the year and even closed at a slightly
higher level than at the start of the year. The difference between the lowest and
highest price at any point during the year was 21%. During 2012, the average European market price was 21% below the average in 2011.
Incolac (instant full-fat milk powder) continued to experience decent growth in its
core markets in 2012. This was in spite of the adverse market conditions caused by
operating at a pricing disadvantage to New Zealand in the area of instant full-fat
milk powder, as well as the unfavourable economic conditions in some markets.
Time and time again, the outstanding intrinsic quality of Incolac and its Belgian origin have proved to be strong assets that work to the advantage of the Incolac brand.
In 2012, Belgomilk expanded its cooperation with local co-packers in destination
countries that package Incolac under licence.
13
Whey products
Worldwide demand for whey products remained strong in 2012, especially from
the sport food (WPC80), baby food (WPC35 and DWP) and clinical food market
segments. The difference between the lowest and highest European price recorded
for whey powder over the course of the year came to 26%. The European market
price for whey powder rose 7% in 2012 compared to its 2011 level.
Research and development
Belgomilk is continually seeking to enhance its products with new characteristics
that will serve to further distinguish these products from others on the market. This
could include characteristics related to nutritional value and health, sensory aspects
such as aroma and taste, or so-called functional characteristics, one example of
which is the elastic quality of mozzarella on a pizza.
Baby food
Worldwide demand for high-quality baby food continued to grow sharply in 2012,
driven notably by unusually strong demand from the Chinese market. As would be
expected, sales of Belgomilk’s baby food, which is produced in cooperation with
Fasska, continued to benefit from this increasing demand.
Corporate Social Responsibility
Belgomilk consciously opts for CSR (Corporate Social Responsibility). In this
connection, the Belgomilk factories in Langemark and Kallo are now both
operating in accordance with a so-called CSR charter. This charter comprises the
concrete initiatives undertaken by both sites in the areas of people (social), planet
(environment) and profit (economic sustainability).
People
People are important to Belgomilk. Belgomilk strives to provide all of its employees
with a fascinating and varied work experience. Enthusiastic employees are afforded
ample leeway and resources to grow their skills and expand Belgomilk’s business.
Moreover, Belgomilk believes in collaboration within a strong team. Belgomilk is a
solid employer that invests vigorously in people, markets and infrastructure.
In 2012, each and every one of our employees was invited to participate in a presentation and discussion concerning Belgomilk’s future plans and the results of the staff
survey on employee satisfaction and engagement.
— Milcobel 2012
Quality
Belgomilk’s Langemark and Kallo factories again successfully passed BRC, IFS and
ACS quality audits in 2012. And once again, a large number of new and reputable
clients audited Belgomilk’s factories as well. The quality requirements put forward
by these authorities and clients are becoming more and more demanding.
Belgomilk welcomes this challenge of continuously evaluating and improving
its quality perceptions and quality systems. And in this context, when it comes to
quality, food safety comes first. Belgomilk also pays a great deal of attention to the
sensory aspects of its products: taste, aroma, instant and other functional aspects.
Belgomilk’s goal is to consistently score higher on these points than its competitors.
14
In 2012, Belgomilk’s Kallo plant put a CHP (Combined Heat and Power, or
cogeneration) unit into operation.
Every precaution has been taken with the mozzarella project at Langemark to
minimise the environmental impact of the new factory.
Prospects
In the years ahead, Belgomilk is seeking to continue its growth in accordance with
its two main pillars of business.
The first pillar relates to the development of brands for international consumer
markets. This includes milk powders, toddler growth
milk, baby food and other high-grade dairy products.
Nutritional value and health play a key role here. The
brand portfolio consists of Incolac (instant full-fat milk
powder), Binco (popularly positioned milk powder)
and baby food.
As a second pillar, Belgomilk concentrates on specialised ingredients for the food
and beverage industry. Its focus here is primarily on European markets, but it is
increasingly paying attention to markets outside Europe. To succeed, it is crucial to
operate in a solution- and service-oriented way and to provide clients with technical
support. The products in question include mozzarella cheese as topping for use by
pizza restaurants and the pizza industry as well as (specialised) powder products
for the food and beverage industry (chocolate industry, ice cream industry, bakery
industry and baby food).
As such, Belgomilk’s business plan provides not only for the continued expansion of
state-of-the-art production facilities, it also guarantees a range of products of the
highest quality which are produced in the most efficient way possible.
Special cheese
Milcobel 2012 —
15
— Milcobel 2012
Excellent cheeses
16
The cheese master plan of the Milcobel Group calls for an increasing amount of members’ milk to be processed into a wide range of cheese
specialities in order to enhance the group’s product portfolio. Moreover, the goal is to process up to 25% of the current milk supply at the
Moorslede site by 2020. In order to carry out the industrial component of the cheese plan, EUR 50 million was invested in the Moorslede
factory during the 2008-2012 period.
In addition to being used to perform extensive renovations on existing plants and to make further progress in the area of quality and food
safety assurance, these investments were also devoted to a significant expansion of capacity. On the one hand, this increase in capacity
allowed the production of the Milcobel Group’s consumer cheeses to be concentrated. The production of consumer cheese, which had
previously taken place at the Gierle factory, has been integrated into operations at Moorslede since May 2012. On the other hand, it also
provides additional capacity with which to carry out the growth strategy.
A higher degree of automation and robotisation was sought as part of the renovation efforts and the new investments that were made,
but care was also taken during the process design and implementation stages to fully preserve the specific characteristics of the cheese
factory in Moorslede. The overall concept enables customised versions of a large assortment of cheeses to be produced. This flexibility
is vital to supporting the product development of our cheese specialities as well as to fulfilling the growth strategy which is driven by
product differentiation.
Consumer cheese and butter
The open house that was held on the first weekend of October, along with a robust media campaign which included a well-received TV
commercial, resulted in a 15% increase in sales of Brugge Kaas in the final months of the year as compared to the same period in 2011.
Recent market research indicates that Brugge Kaas is now a member of the exclusive club of top brands in Belgium: two out of three
Belgians are familiar with the Brugge Kaas brand. The thing that makes us most confident in the future is that we are the best at
translating our name recognition into sales, which means that we have the highest fan score. Brugge Kaas consumers are loyal customers
who also spread the word about our products.
The continual growth trajectory of Brugge Kaas over the last several years - at a time when so many name brands have taken a beating at
the hand of store brands - has not gone unnoticed by retailers. Its distribution and visibility within the retail product range are continually
improving. This means that the growth trajectory can and will continue to progress in the years to come as well.
In addition to our own brands, our cooperation with Belgian retailers for their store brands constitutes an important development pole.
This primarily involves the supply of pre-packaged cheese solutions that rely upon the cutting and packaging capabilities within the
group, namely Kaasimport Jan Dupont.
Milcobel 2012 —
Step by step, the position of the Belgian cheese category is being staked out within the overall range of cheeses at the international level.
In the meantime, a large number of cooperation agreements have been finalised with local partners for the distribution and promotion
of consumer cheeses produced at the factory in Moorslede. Our primary focus is on the traditional channels of cheese merchants and
specialty stores that play a key role in the development of new cheese habits everywhere. In a number of countries, however, retailers
have already been persuaded to start carrying Brugge Kaas specialties.
17
— Milcobel 2012
Re-marque-able milk
18
Consumption milk
and functional drinks
Inza is the Milcobel Group’s consumption milk division. Inza’s business activities
are increasingly being oriented towards the production and commercialisation of
functional drinks and the development of the product range under its own brands.
In addition to this, there was an increase in business activity compared to 2011.
Volume rose by 4.5% and turnover increased by 3.5%. Together with extensive cost
savings, this also contributed to the company’s improved profitability.
Research and development, targeted investments, a comprehensive quality policy
supported by IFS, ACS and GMP certificates, as well as experienced and dedicated
employees, guarantee a contemporary production system and a broad range of
quality products.
Investments in 2012 were devoted mainly to the expansion of infrastructure and
processing equipment in order to further develop the specialised product range.
Traditionally, Inza is well represented in all important distribution channels, either
with products of its own brand, products of a third party with a premium brand,
or with a private label. More than half of the total number of products is exported
both in and outside Europe. Wholesale, wholesale dairy distribution and groups
such as schools and industrial kitchens are the traditionally important customers.
Inza also works in the out-of-home market segment.
2012: a year of change
Following a few difficult years with respect to profit and margins for the consumption milk sector in general, and for Inza in particular, a positive change occurred in
2012. Nonetheless, prices of consumption milk had declined considerably during
the first 6 months of the year, which made for a difficult first half of 2012. During
the second half of the year, however, it became possible to raise sales prices. Better
margins were achieved on average over the course of the year. These improvements
in margin were partially facilitated by the lower price that was paid for milk on
average during 2012 compared to 2011.
In order to be able to fully realise a significant expansion of the volume of
products with higher added value, important investments in infrastructure
and processing equipment are anticipated for 2013. This will also contribute
to a boost in the overall level of quality, with the aim of complying with
the specific requirements related to the production of baby food.
As far as this is concerned, innovation through research and development, not only
on new products but also on processes, takes centre stage. In addition, increasing
attention will also be paid to the export of milk and milk drinks outside Europe,
including China. In 2012, a substantial growth in exports was recorded compared
to the previous year.
There are also on-going efforts to further expand partnerships with strategic
partners for specialised products. This will be carried out within a sustainable
development framework and for the benefit of all stakeholders. In 2013, it is once
again expected that an important step will be taken in the right direction by
significantly expanding these operations.
Because brands are also more immune to a volatile raw materials market,
more effort will be devoted to the development of the Choco!Choco
and Yogho!Yogho! brands in 2013. The necessary commercial and
marketing activities will be organised to support this effort.
Special attention will continue to be paid to even more extensive cost savings
and improvements in yield, both of which
must contribute to the improved
profitability of the company.
Milcobel 2012 —
A major shift also occurred in the product range during 2012 towards more products
with higher added value.This was a result of the continued development and growth
of the specialised product range as well as the launching of the new Yogho!Yogho!
range.
Prospects for 2013
Continued positive change is expected for 2013. In line with the strategy that
has been outlined, a further expansion of the specialised product range with
higher added value is anticipated. The aim is therefore to minimise the influence
of the highly volatile nature of the raw materials market as much as possible.
Challenges
Having regard to matters of scale, Inza is obliged to constantly expand the share of
products with higher added value and flexibly tap into market circumstances that
are changing at an increasingly fast pace. In this context, the influence of relatively
large price fluctuations on consumption milk is diminished under a private label.
19
A very late summer
Given the large number of new contracts it procured in the latter part of 2011,
there were high hopes for Ysco in 2012. But unfortunately, in contrast to 2011, poor
weather resulted in a very disappointing spring, and sales remained subpar through
the first part of summer as well. This meant that, contrary to all expectations, Ysco
ended June 2 million litres behind 2011. Fortunately, much of this lost ground was
made up during the month of August, and the year ended with a net gain of 2.5
million litres, or almost 2% higher than 2011. Even turnover was almost 7% higher.
Ysco managed to maintain a steady volume on the French market, which at 23%
remains its biggest. The sales volume on the Dutch market - Ysco’s second biggest
- again saw an increase, this time by 1.5 million litres to its highest level ever, and
now accounts for 19% of the total volume. Albert Heijn in particular experienced a
sensational growth in sales. Ysco’s sales in the United Kingdom also continued to
improve in 2012. With a 13% share of total volume - driven mainly by Lidl - the
UK is now Ysco’s third-largest market. In a collection of various smaller countries,
Ysco’s volume grew by an impressive 3.5 million litres. This growth came primarily
from Greece and Italy. The volume in the Belux region remained unchanged at 14
million litres, and as such remains Ysco’s fifth-largest market for volume with a share
of 9%. Ysco again experienced a slight downturn in Scandinavia and Germany. These
markets still account for a volume share of 9% and 8% respectively. In Spain, Ysco
lost a great deal of volume for the fourth year running; its share has now shrunk to
6% of the total volume.
— Milcobel 2012
The private label share of the brand portfolio continued to rise for the 12th year
running and now accounts for 90.5% of total volume. Co-packing – producing items
under the brand of a different producer – rose to 2%, due mainly to the growth
of Dale Farm, based in Ireland. Sales of own Ysco brands continued to fall and now
amount to only 7.5% of the total volume. The main reasons for this are the privatelabel substitution of the Ysco brand by more and more clients and the continued
growth of private labels on the European market. Figures also show that the retail
segment accounts for 93% of total Ysco sales and that the food service share, though
amounting to only 5% of the total volume, is holding steady.
20
Sales of cones, Ysco’s largest product group, dropped by 1 million litres. However,
this product group still accounted for 34% of the total volume. Scoop ice cream saw
the biggest increases in 2012, with a growth of almost 4 million litres. The main
reason for this was the continued growth in sales of premium 900 ml tubs, with an
additional 2 million tubs sold. The share of scoop ice cream in the total package now
amounts to 33%. Sales of jumbos once again rose by one million litres and account
for 20% of the total volume. The chocosticks product group fell for the third year in
a row and now maintains a 6% share of volume. The volume share of cakes and cups
remained unchanged at 3% and 2% respectively. Despite a weak summer, sales of
sorbet rose by a half million litres and captured a volume share of 1%.
Good results nonetheless
Despite an altogether mediocre summer that failed to produce the expected
growth in volume that had been budgeted, Ysco still managed to record very good
results. This is remarkable considering the fact that Ysco operates in an extremely
competitive market with overcapacity, and one in which many of its competitors
find themselves in deep trouble. As a result, consolidations and closures have
become commonplace in the ice cream market.
These good results can be attributed in part to extensive efforts on the part of Ysco
in recent years to keep fixed costs to an absolute minimum, continually increase
production efficiency and reduce logistical costs. In addition to this, utmost effort
has gone into increasing margins. During annual negotiations, price increases were
negotiated for the majority of our clients. Moreover, prices for raw materials also
remained within the anticipated budgets and production yields were very good at
both Langemark and Argentan.
2013: strong momentum, continued growth
Most annual contracts with the supermarket chains for 2013 were negotiated in the
autumn of 2012. Ysco again succeeded in negotiating price increases for some of
these new contracts, which should have a positive impact on results. In addition to
this, a number of new contracts were again landed during these negotiations, which
will likewise guarantee the volume for 2013. If this summer is normal weatherwise,
further growth in volume is definitely possible.
Langemark’s production capacity for jumbos will be further expanded in 2013
by investing in a new production line for bulk packaging. A smaller line for the
production of a mini 200 ml version of the successful premium tub will also be set up.
All of the fundamentals needed to achieve good results are firmly in place, and
the only major unknown is how prices for raw materials will evolve. If these prices
remain within budget Ysco is practically assured to once again be in a position to
achieve good results in 2013.terug een goed resultaat kunnen halen.
Ice cream
Wonderful
products
Milcobel 2012 —
21
— Milcobel 2012
Cheese-service
22
Cheese
packaging and
distribution
The link between consumers and producers for the BENELUX!
The strategic mission of cheese packaging and distribution (hereafter referred to as “Cheese Service”)
has remained unchanged for years: to maintain a route-to-market to every point of sale where cheese
is sold. The Cheese Service must be able to make direct or indirect deliveries anywhere, whether it’s
to a specialty cheese shop, a traditional shop (butcher, delicatessen, market stall, etc.), a convenience
store, a deli shop, a social and corporate event caterer, or a retail outlet.
Further to the takeover of DupontCheese NL located in Nieuw-Vennep (near Schiphol Airport), the
infrastructure needed to achieve this on the Dutch market has been in place since January 2012. This
means that, within the Benelux countries, a distribution service consisting of the three companies
involved can be provided to both buyers (“customers”) and producers (“suppliers”) that covers the
entire Benelux territory and is typified by a high level of service.
In late August, Milcobel took over the shares of local Bruges firm Vandenbroucke-Lemaître bvba
(better known in Bruges under the trade name Keesbollekaas). As of 1 November, these cheese trade
activities have been successfully integrated into Dupont Belgium’s operations.
Consolidation in the sector is proceeding unabated and the number of cheese wholesalers/
distributors/packagers is steadily declining. Recently, cheese packager IDB (Belgium) and wholesaler
Zijerveld & Veldhuyzen (Netherlands) were absorbed by Royal FrieslandCampina. In northern France,
wholesaler Prolaidis was incorporated into the national structure of France Frais. Competition will
continue to grow in the years to come and even national borders will begin to dissolve.
We remain very much convinced that a strong regional presence consisting of Dupont in northern
Belgium, Camal in southern Belgium and DupontCheese in the “Randstad region” of the Netherlands
will form the foundation of a customer proximity strategy, with the added asset of many years’
worth of expertise in cheese. To achieve this, the competence and dedication of our 300 passionate
employees will be a critical factor. Our low rate of turnover is proof of this passion for cheese and at
the same time serves as a guarantee that our competence in this area will be preserved within the
organisation.
Milcobel 2012 —
The common denominator here is a “Passion for Cheese” in all respects, with a clear focus on the
premium segment. The product range is nevertheless differentiated and tailored to the needs of each
channel, with a total focus on cheese.In this sense, there is a clear evolution towards a true specialist and
supplier to other wholesalers/distributors (including meat products, dairy
and the hospitality industry) and franchise formulas.This focus on cheese
in all its forms (bulk and packaged) has led to a deep and wide range
(1,000 types of cheese and more than 2,000 references) that can be
delivered within 24 hours according to the “make to order” principle.
To be able to realise this in daily practice, preferential relationships
have been developed with a pool of suppliers consisting of more
than 250 cheese producers, a number of whom are specialised in
raw-milk cheese and/or AOC certification. In order to optimise the
delivery route for these smaller producers, platforms (“grouping”)
has been opted for in France, Italy, Switzerland and Spain.
For the companies in Belgium, the year 2012 ended up in line with expectations. In the Netherlands,
there were a number of non-recurring expenditures following the acquisition that had a negative
impact on results. The necessary corrective actions were taken to address this issue so that a future
founded on a Benelux organisation can be faced with confidence.
23
Board of directors
Who is who
in Milcobel 2012?
Veys Guido
Geelen Jean
Wittevrongel Henri
Desmet Christian
Bruurs Jan
Van Laer Luc
Coens - De Roo Greet
Vermander Geert
Wallays Jan
D’haemer Kris
Peeters Paul
Chairman
Deputy Chairman, Circle Limburg & Brabant
Circle Noord Oost-Vlaanderen
Circle Zuid Oost-Vlaanderen
Circle Noord-West Antwerpen
Circle Kempenland
Circle ‘t Brugse Ommeland
Circle Westhoek
Circle Zuid West-Vlaanderen
French-speaking Circle
External director
Audit committee
Wallays Jan
Veys Guido
Geelen Jean
D’haemer Kris
Bruurs Jan
Statutory auditors
PricewaterhouseCoopers
Represented by Lozie Filip
— Milcobel 2012
Managing board
24
Buggenhout Patric
Neirynck Geert
Van Gelder Luk
Van Hoe Luc
Mottar Jef
Huyskens Patrick
Van Nieuwenborgh Bert
CEO
CFO
Industrial products and third-country export
Consumer cheese and butter
Consumer milk
Cheese packaging and distribution
Ice cream
Financial report
Milcobel 2012 —
25
A.
annual accounts
1. Consolidated balance
sheet after appropriation
ASSETS
Codes
PERIOD 2012
in €
PERIOD 2011
in €
FIXED ASSETS
20/28
183,123,499
165,799,176
21
8,940,889
7,428,595
9920
2,341,110
1,721,961
Tangible fixed assets
Land and buildings
Plant, machinery and equipment
Furniture and vehicles
Leasing and other similar rights
Other tangible fixed assets
Assets under construction and advance payments
22/27
22
23
24
25
26
27
170,684,773
42,303,853
104,233,367
6,547,884
1,895,778
180,097
15,523,794
155,451,881
37,632,450
82,209,020
5,610,726
2,801,951
204,542
26,993,192
Financial fixed assets
Companies accounted for using the equity method
Participating interests
Other enterprises
Participating interests and shares
Amounts receivable
28
9921
99211
284/8
284
285/8
1,156,727
1,005,015
1,005,015
151,712
2,790
148,922
1,196,739
1,031,407
1,031,407
165,332
2,790
162,542
CURRENT ASSETS
29/58
227,432,834
234,332,644
29
291
2,112,720
2,112,720
2,207,685
2,207,685
Stocks and contracts in progress
Stocks
Raw materials and consumables
Finished goods
Goods purchased for resale
3
30/36
30/31
33
34
95,150,196
95,150,196
18,039,256
64,357,729
12,753,211
96,264,916
96,264,916
17,756,789
66,828,762
11,679,365
Amounts receivable within one year
Trade debtors
Other investments and deposits
40/41
40
41
126,112,249
114,806,998
11,305,251
133,183,303
122,387,400
10,795,903
Cash at bank and in hand
54/58
1,572,085
1,735,362
Deferred charges and accrued income
490/1
2,485,584
941,378
TOTAL ASSETS
20/58
410,556,333
400,131,820
Intangible fixed assets
Positive consolidation differences
— Milcobel 2012
Amounts receivable after more than one year
Other amounts receivable
26
Codes
PERIOD 2012
in €
PERIOD 2011
in €
EQUITY
10/15
113,011,230
106,894,698
Capital
10
100
101
11
9910
9912
15
30,500,382
31,707,895
1,207,513
32
78,463,994
2,731
4,044,091
28,289,249
29,799,817
1,510,568
32
75,918,890
2,731
2,683,796
9913
72,198
88,062
16
26,656,322
29,575,318
Provisions for liabilities and charges
Pensions and similar obligations
Other liabilities and charges
Deferred tax and latent taxation liabilities
160/5
160
163/5
168
3,666,596
3,198,756
467,840
22,989,726
7,050,533
2,351,617
4,698,916
22,524,785
AMOUNTS PAYABLE
17/49
270,816,583
263,573,742
Amounts payable after more than one year
Financial debts
Leasing and other similar obligations
Credit institutions
Other amounts payable
17
170/4
172
173
178/9
95,050,423
95,043,943
1,752,635
93,291,308
6,480
92,221,728
92,212,008
2,303,815
89,908,193
9,720
Amounts payable within one year
Current portion of amounts payable after more than one year falling due within one year
Financial debts
Credit institutions
Trade debts
Suppliers
Taxes, remuneration and social security
Taxes
Remuneration and social security
Other amounts payable
42/48
42
43
430/8
44
440/4
45
450/3
454/9
47/48
174,030,464
24,691,651
46,722,284
46,722,284
80,136,027
80,136,027
18,429,258
2,407,184
16,022,074
4,051,244
169,967,308
22,687,868
31,831,007
31,831,007
93,659,096
93,659,096
17,983,498
2,246,749
15,736,749
3,805,839
Deferred charges and accrued income
492/3
1,735,696
1,384,706
TOTAL LIABILITIES
10/49
410,556,333
400,131,820
Issued capital
Uncalled capital
Share premium account
Consolidated reserves
Translation differences
Investment grants
(+)(-)
(+)(-)
MINORITY INTERESTS
PROVISIONS, DEFERRED TAXES AND LATENT TAXATION LIABILITIES
Milcobel 2012 —
LIABILITIES
27
2. Consolidated
income statement
Codes
PERIOD 2012
in €
PERIOD 2011
in €
70/74
70
891,574,105
880,204,950
901,236,898
884,599,138
71
74
-2,783,554
14,152,709
3,375,309
13,262,451
60/64
60
600/8
609
61
62
883,217,888
632,532,119
633,082,665
-550,546
123,890,948
105,020,990
895,171,277
654,168,763
655,963,576
-1,794,813
117,205,532
98,593,771
630
20,936,118
20,755,193
(+)(-)
(+)(-)
631/4
635/7
640/8
448,966
-3,382,941
3,771,688
126,586
905,426
3,416,006
(+)(-)
9901
8,356,217
6,065,621
Financial income
Income from financial fixed assets
Income from current assets
Other financial income
75
750
751
752/9
5,641,909
50,500
144,390
5,447,019
5,151,070
932,164
757,605
3,461,301
Financial charges
Debt charges
Amounts written down on positive consolidation differences
Other financial charges
65
650
9961
652/9
10,047,641
6,529,011
687,823
2,830,809
8,961,415
6,607,411
426,429
1,927,575
9902
3,950,485
2,255,276
Extraordinary income
Gain on disposal of fixed assets
Other extraordinary income
76
763
764/9
427,664
278,826
148,838
2,621,617
2,602,379
19,238
Extraordinary charges
Amounts written down financial fixed assets
Loss on disposal of fixed assets
Other extraordinary charges
66
661
663
664/8
196,034
12,523
183,511
150,128
6
116,792
33,330
9903
4,182,115
4,726,765
Operating income
Turnover
Increase (decrease) in stocks of finished goods,
work and contracts in progress
Other operating income
Operating charges
Raw materials, consumables
Purchases
Increase (Decrease) in stocks
Services and other goods
Remuneration, social security costs and pensions
Depreciation of and amounts written off formation
expenses, intangible and tangible fixed assets
Amounts written down stocks, contracts in progress and
trade debtors - Appropriations (write-backs)
Provisions for risks and charges - Appropriations
Other operating charges
OPERATING PROfIT (OPERATING LOSS)
— Milcobel 2012
PROfIT (LOSS) ON ORdINARy ACTIvITIES BEfORE TAXES
28
PROfIT (LOSS) fOR ThE PERIOd BEfORE TAXES
(+)(-)
(+)(-)
(+)(-)
(+)(-)
Codes
PERIOD 2012
in €
PERIOD 2011
in €
Transfer from postponed taxes and latent taxation liabilities
780
770,041
1,054,564
Transfer to postponed taxes and latent taxation liabilities
680
1,168,538
1,270,479
67/77
670/3
90,319
95,204
147,057
147,057
77
4,885
Income taxes
Income taxes
Adjustment of income taxes and write-back of tax
provisions
(+)(-)
PROfIT (LOSS) fOR ThE PERIOd
(+)(-)
9904
3,693,299
4,363,793
(+)(-)
9975
99751
99651
-26,392
32,318
32,318
Share in the result of the companies accounted
for using the equity method
Profits
Losses
26,392
CONSOLIdATEd PROfIT (LOSS)
(+)(-)
9976
3,666,907
4,396,111
Of which:
Share of third parties
Share of the group
(+)(-)
(+)(-)
99761
99762
-15,864
3,682,771
-2,740
4,398,851
Milcobel 2012 —
29
1. LIST Of ThE CONSOLIdATEd SUBSIdIARy COMPANIES ANd COMPANIES INCLUdEd USING ThE EQUITy METhOd
— Milcobel 2012
3. Notes
on the consolidated
annual accounts
30
Method used
(1)
Proportion of
capital held
(2) (in %)
Change of percentage
of capital held
(as compared to
the previous period)
B.M.F. Lait sarl
Rue de la Gare 3087 - 59299 Boeschepe - Frankrijk
I
100.00
0.00
Milcobel Nederland bv
Everdenberg 15 - 4902 Oosterhout
I
100.00
0.00
Milcobel 3 F cvba
Fabriekstraat 141 - 9120 Kallo (Beveren-Waas) - België - BE 0424.899.491
I
100.00
0.00
Cheeseline nv
Lieven Bauwensstraat 9 - 8200 Sint-Andries - België - BE 0441.187.078
I
100.00
0.00
Fassbel nv
Fabriekstraat 141 - 9120 Beveren-Waas - België - BE 0476.830.917
I
50.00
0.00
Kaasimport Dupont nv
Lieven Bauwensstraat 9 - 8200 Sint-Andries - België - BE 0405.109.216
I
100.00
0.00
Ysco nv
Fabriekstraat 141 - 9120 Beveren-Waas - België - BE 0472.336.451
I
100.00
0.00
Ysco France sas
Avenue de la 2e DB 53 - 61208 Argentan - Cedex - Frankrijk
I
100.00
0.00
Ysco holding France sasu
Rue de la Gare 3087 - 5929 Boeschepe - Frankrijk
I
100.00
0.00
Belgomilk cvba
Fabriekstraat 141 - 9120 Beveren-Waas - België - BE 0870.017.447
I
99.99
0.00
ZVF Inza cvba
Wasserijstraat 5 - 2900 Schoten - België - BE 0428.890.547
I
100.00
0.00
Kempico cvba
Melkerijstraat 1 - 2275 Lille - België - BE 0431.515.287
I
99.74
0.00
99.99
0.00
100.00
0.00
NAME, full address of the REGISTERED OFFICE and for the enterprise governed by Belgian law,
the COMPANY NUMBER
Zuivelindustrie Zandhoven cvba
Wasserijstraat 5 - 2900 Schoten - België - BE 0406.045.562
Camal nv
Route de Légipont 12 - 4671 Barchon - België - BE 0412.859.912
I
NAME, full address of the REGISTERED OFFICE and for the enterprise governed by Belgian law,
the COMPANY NUMBER
Method used
(1)
Bedrijvenpark Wingene nv
Oude Bruggestraat 13 - 8750 Wingene - België - BE 0461.014.769
Proportion of
capital held
(2) (in %)
Change of percentage
of capital held
(as compared to
the previous period)
7.77
0.00
Héritage 1466 nv
Rue de Charneux 32 - 4650 Herve - België - BE 0425.964.513
V4
20.00
0.00
St Marie cvba
Bredabaan 522 - 2990 Wuustwezel - België - BE 0403.743.989
I
100.00
0.00
DupontCheese Nederland BV
Escudoweg 1 - 2153 PC Nieuw-Vennep- Nederland - NL 800505177B01
I
100.00
100.00
(1) F Full consolidation
E4 Joint subsidiary enterprise accounted for using the equity method where its activities cannot be closely integrated into the activities of the enterprise having the joint
control (article 134, second al. of the aforementioned Royal Decree).
(2) Proportion of capital of those enterprises being held by the enterprises included in the consolidated accounts and persons acting in their own names but on behal of
these enterprises
2. LIST Of SUBSIdIARy COMPANIES EXCLUSIvELy OR JOINTLy CONTROLLEd NOT INCLUdEd (pursuant to article 107 of the royal decree of 30 january 2001 in implementation of company law) ANd ASSOCIATEd ENTERPRISES ACCOUNTEd fOR USING ThE EQUITy METhOd ( )
NAME, full address of the REGISTERED OFFICE and for the enterprise governed by Belgian law,
the COMPANY NUMBER
Proportion
of capital held
(2) (in %)
Change of percentage
of capital held
(as compared to
the previous period)
A
50.00
0.00
(1) Reason for exclusion:
A. Subsidiary company of minor importance.
(2) Proportion of capital of those enterprises being held by both enterprises included in the consolidated accounts and persons acting in their own names but on behalf of
these enterprises.
Milcobel 2012 —
Les Fromagers des Flandres GEIE
Rue de Luxembourg 15 - 59059 Roubaix cédex 1 - Frankrijk
Method used
(1)
31
3. Consolidation criteria and changes in the consolidation scope
Information and the criteria governing the application of full consolidation, proportional consolidation and the equity method as well as those cases in which these
criteria are departed from, and justification for such departures (Decree of 30 january 2001 in implementation of Company Law).
The full consolidation method was applied to all companies which are controlled directly or indirectly by the consolidating company, by law or in fact, and to companies
over which control is shared. These companies have been included in the consolidated annual accounts using the full consolidation method or the equity method,
according to the degree of integration into Milcobel. The participations in affliated companies have been valued and included in the accounts using the equity method..
4. Summary of valuation rules and methods of calculating of deferred taxes
Disclosure of the criteria governing the valuation of the various items in the consolidated annual accounts, and in particular:
- the application and adjustments of depreciation, amounts written down and provisions for liabilities and charges, and revaluations (pursuant to article 165, VI.a. of the
Royal Decree of 30 january 2001 in implementation of Company Law).
- the bases of translation applied to express in the consolidated accounts items which are, or originally were, expressed in a currency other than the currency in which
the consolidated accounts are stated, and the translation in the consolidated accounts of the accounting statements of subsidiaries and associated companies
governed by foreign law (by application of 165 VI.b of the aforementioned Royal Decree).
ASSETS
— Milcobel 2012
IIntangible fixed assets
The establishment costs are depreciated on a straight-line basis at 20%.
32
Immateriële vaste activa
The acquisitions and brought in intangible fixed assets are booked on the asset side of the balance sheet at their acquisition price or brought in value and are
depreciated on a straight-line basis in accordance with the following percentages:
min.
max.
1. Research and development costs
20
20
2. Concessions, patents, licences, brands, etc.
10
20
3. Goodwill
10
20
4. Advance payments
0
0
Consolidation differences
The consolidation differences represent the divergences between on the one hand the acquisition value and on the other the corresponding part of the equity
capital on the date on which the shares have been acquired or a nearby date close to it.
Insofar as these differences originate from an over or under valuation of specific items on the asset or liabilities side, they will be allocated to it. The remaining
difference is included in the consolidated accounts in the item “consolidation differences” on the asset or liabilities side of the balance sheet, depending on
whether the acquisition value is higher or lower than the share in the (possibly recalculated) equity capital.
Activated consolidation differences are depreciated in a straight line over a five-year period. Additional or extraordinary depreciations are applied to these
differences when, as a result of changes in economic circumstances, it is no longer justified to retain them at that particular value in the
consolidated balance sheet.
Negative consolidation differences are booked to the liabilities side. They only benefit the consolidated profit & loss account to cover operational losses incurred
for reasons existing at the time of the acquisition (overcapacity, staffing levels too high) and within a limited period of time. They are booked to code 9960
‘Amounts written down on positive consolidation differences’.
Tangible fixed assets
Tangible fixed assets are booked to the asset side of the balance sheet at their acquisition price (incl. additional costs) or their brought in value.
Depreciations are booked according to the straight-line method (pro rata temporis) over the economic life.
The depreciation percentages are as follows:
min.
max.
1. Industrial, administrative and commercial buildings
3
10
2. Plant, machinery and equipment
5
25
3. Vehicles
10
25
4. Office equipment and furniture
10
33
5. Other tangible fixed assets
3
20
6. Assets under construction and advance payments
0
0
7. Leasing and similar rights:
according to the category to which the asset belongs
Stocks
Accounts receivable within one year
Accounts receivable are included at nominal value. Write downs are booked to these accounts receivable when their collectibility is in doubt.
Milcobel 2012 —
- Raw materials: acquisition value according to weighted average price or lower market value on balance sheet date for solid and liquid dairy produce and for ice
cream activities
- Consumables and goods purchased for resale::
• acquisition value according to weighted average price or lower market value on balance sheet date for solid and liquid dairy produce and for ice cream
activities;
• acquisition value according to FIFO method or lower market value on balance sheet date for liquid dairy produce;
• acquisition value according to the weighted average price, FIFO method or individualisation of the price of each component for the cheese distribution and this depending on the nature of the product. The acquisition value may not exceed the market value on the balance sheet date;
- Finished goods: valuation at manufacture price or market value, if this is lower on the balance sheet date;
• In addition to the purchasing cost of raw materials, consumer goods and consumables, the manufacture price includes production costs that are directly
accountable to individual products or product groups.
33
IPLCestments
Shares and fixed income securities: acquisition value.
Credit balances at financial institutions: nominal value.
Cash at bank and in hand
Valuation at nominal value.
LIABILITIES
Consolidated reserves
The group reserves include the reserves and results carried forward of the consolidated company, raised with the share of the group in the results, after
deduction of dividends, of the full and proportionally consolidated companies and the companies to which the equity method has been applied.
IPLCestment grants
IPLCestment grants are valued at nominal value after deduction of deferred taxes.
Provisions for risks and costs
The Board of Directors decides, on the basis of a prudent evaluation, which provisions should be made to cover the cost of early retirement, major repairs and
maintenance, settlement of claims, supplied guarantees, hedge risks and possible other risks and costs that are probable or certain on the balance sheet date,
but the extent of which is not yet known.
Deferred tax and latent liabilities
Deferred tax and latent liabilities are booked:
- To the differences resulting from the application of the valuation rules of the Group with respect to the statutory valuation rules of the Group companies,
- To the temporary differences between accounting and tax results,
- To the granted not yet depreciated iPLCestment grants and untaxed gains values included in the company’s equity capital.
Amounts payable after one year and within one year
Amounts payable are booked at their nominal value.
— Milcobel 2012
Deferred charges and accrued income
Revenue and costs are allocated to the period to which they apply.
34
Foreign currency
Foreign currency receivables and payables are valued at the exchange rate applicable on the balance sheet date. Negative exchange rate differences are booked
in results. Positive exchange rate differences are booked to transitory accounts on the liabilities side.
fUTURE TAXATION ANd dEfERREd TAXES
(code 168)
Analysis of Heading 168 of the liabilities
Future taxation (Pursuant to article 76 of the Royal Decree of 30 january 2001 in implementation of Company Law)
Deferred taxe (Pursuant to article 129 of aforementioned Royal Decree)
22,989,727
220,405
22,769,322
Detailed explanation on the methods applied in determining deferred taxes
Deferred tax and latent liabilities are booked:
- To the differences resulting from the application of the valuation rules of the Group with respect to the statutory valuation rules of the Group
companies,
- To the temporary differences between accounting and tax results,
- To the granted not yet depreciated iPLCestment grants and untaxed gains values included in the company’s equity capital.
5. STATEMENT Of INTANGIBLE fIXEd ASSETS
RESEARCH AND
DEVELOPMENT
COSTS
10,017,628
Acquisition value at the end of the previous period
Movements during the period
Acquisitions, including produced fixed assets
Sales and disposals
Transfers from one heading to another
Other movements
CONCESSIONS, PATENTS,
LICENCES, KNOWHOW,
BRANDS AND SIMILAR
RIGHTS (code 211)
GOODWILL
(code 212)
7,652,847
31,619
8,782
49,573
1,727,527
219,993
31,619
11,924,357
7,652,847
Depreciation and amounts written down at the end of the previous period
4,737,085
6,868,038
Movements during the period
Recorded
Cancelled
Other movements
1,191,502
49,574
25,498
211,603
5,904,511
7,079,641
6,019,846
573,206
(+)/(-)
(+)(-)
Acquisition value at the end of the period
depreciation and amounts written down at the end of the period
NET BOOk vALUE AT ThE ENd Of ThE PERIOd
31,619
1,363,244
2,680,501
-1,727,527
2,316,218
Milcobel 2012 —
(+)(-)
ADVANCE PAYMENTS
(code 213)
2,316,218
35
6, STATEMENT Of TANGIBLE fIXEd ASSETS
LAND AND
BUILDINGS
(code 22)
PLANT, MACHINERY
AND EQUIPMENT
(code 23)
FURNITURE
AND VEHICLES
(code 24)
Acquisition value at the end of the previous period
75,704,123
289,984,256
20,770,814
414,500
1,284,627
16,902,223
41,265,261
345,150
398,427
2,049,009
1,720,693
260,884
83,406,814
315,977,071
21,101,809
38,071,672
207,775,236
15,160,088
3,020,060
14,621,380
15,928,384
5,102,079
173,394
1,152,068
1,858,378
Movements during the period
Acquisitions, including produced fixed assets
Sales and disposals
Transfers from one heading to another
Other movements
(+)/(-)
(+)(-)
Acquisition value at the end of the period
Depreciation and amounts written down at the end of the previous period
Movements during the period
Recorded
Cancelled
Transfers from one heading to another
Other movements
(+)/(-)
(+)(-)
100,147
41,102,961
211,743,705
14,553,925
NET BOOk vALUE AT ThE ENd Of ThE PERIOd
42,303,853
104,233,366
6,547,884
LEASING AND
SIMILAR RIGHTS
(code 25)
OTHER TANGIBLE
FIXED ASSETS
(code 26)
ASSETS UNDER CONSTRUCTION
AND ADVANCED PAYMENTS
(code 27)
Movements during the period
Acquisitions, including produced fixed assets
Sales and disposals
Transfers from one heading to another
Other movements
9,899,709
116,483
(+)/(-)
(+)(-)
Depreciation and amounts written down at the end of the previous period
Movements during the period
Recorded
Cancelled
Transfers from one heading to another
Other movements
749,290
25,578
Acquisition value at the end of the period
— Milcobel 2012
11,229
depreciation and amounts written down at the end of the period
Acquisition value at the end of the previous period
36
7,288,191
(+)/(-)
(+)(-)
-5,330,000
4,595,287
632,807
7,097,758
544,749
715,060
24,444
116,483
33,800,665
286,873
-44,944,145
-39,045
15,523,794
-5,113,309
depreciation and amounts written down at the end of the period
2,699,509
452,710
NET BOOk vALUE AT ThE ENd Of ThE PERIOd
1,895,778
180,097
OF WICH:
Plant, machinery and equipment
26,993,192
1,895,778
15,523,794
7. STATEMENT Of fINANCIAL fIXEd ASSETS
ENTERPRISES
ACCOUNTED FOR
USING THE EQUITY
METHOD (code 280)
AOTHER
ENTERPRISES
(code 282)
PARTICIPATING INTERESTS
Acquisition value at the end of the period
Acquisition value at the end of the period
Movements in the capital and reserves of the enterprises at the end of the previous period
Share in the result for the financial period
1,041,229
2,791
1,041,229
2,791
(+)(-)
-9,821
-26,393
Movements in the capital and reserves of the enterprises accounted for using the equity method
-36,214
NET BOOK VALUE AT THE END OF THE PERIOD
AMOUNTS RECEIvABLE
Net book value at the end of the previous period
Movements during the period
Additions
Repayments
NET BOOK VALUE AT THE END OF THE PERIOD
1,005,015
2,791
OTHER
ENTERPRISES
(code 283)
162,542
10,010
23,630
148,922
Milcobel 2012 —
37
8. STATEMENT Of CONSOLIdATEd RESERvES
(code 9910)
CONSOLIDATED RESERVES
75,918,890
Consolidated reserves at the end of the previous period
Movements during the period:
Shares of the group in the consolidated income
Other movements
Dividends
3,682,771
-1,137,667
-1,137,667
(+)(-)
(+)(-)
78,463,994
Consolidated reserves at the end of the previous period
9. STATEMENT Of CONSOLIdATION dIffERENCES ANd dIffERENCES RESULTING fROM ThE APPLICATION Of ThE EQUITy METhOd
(code 9920)
POSITIVE DIFFERENCES CONSOLIDATION
Net book value at the end of the previous period
1,721,960
Movements during the period:
Arising from an increase of the percentage held
Write-downs
1,306,973
-687,823
Net book value at the end of the period
2,341,110
10. STATEMENT Of AMOUNTS PAyABLE
— Milcobel 2012
ANALYSIS OF THE AMOUNTS ORIGINALLY PAYABLE AFTER ONE YEAR ACCORDING TO
THEIR RESIDUAL TERM
38
Financial debts
Leasing and other similar obligations
Credit institutions
Other loans
Total
DEBTS
WITHIN ONE YEAR
(code 42)
BETWEEN
ONE AND FIVE YEARS
(code 17)
OVER FIVE YEARS
(code 17)
24,691,650
575,199
24,116,451
73,713,943
1,752,635
71,961,308
6,480
21,330,000
24,691,650
73,720, 423
21,330,000
21,330,000
11. RESULTS
OPERATING INCOME
Aggregate turnover of the group in Belgium
AVERAGE NUMBER OF PERSONS EMPLOYED AND PERSONNEL CHARGE
Average number of persons employed
Workers
Employees
Management personnel
Personnel costs
Remuneration, social security costs
Pensions
Average number of persons employed in Belgium by the enterprises concerned
12. RIGhTS ANd COMMITMENTS NOT REfLECTEd IN ThE BALANCE ShEET
Substancial commitments to acquire fixed assets
Commitments from transactions to exchange rates
PERIOD 2012
PERIOD 2011
420,625,432
430,948,848
PERIOD 2012
PERIOD 2011
1,967
1,494
454
19
1,951
1,499
431
21
104,700,704
320,287
98,269,516
324,255
1,742
1,772
PERIOD 2012
14,240,000
2,930,784
Information concerning important litigation and other commitments
- All engagements of the Milcobel Group by the banks have been honoured.
- The allocated CO² emission rights to the Milcobel Group for 2008-2012 have been swapped from EUA certificates to CER certificates.
- An engagement for a minimum turnover of 5.189 K euro for external storage in 2013.
- Long term agreement of 9 years with the obligation to buy Alpla bottles, although with a possibility to stop the agreement - 1.990 K euro (early termination fee).
Milcobel 2012 —
Commitments with respect to retirement and survivors’ pensions in favour of their personnel or executives, at the expense of the enterprises included in the consolidation
The company has contracted a group insurance policy for its employees and managers with a Belgian insurance company.
The costs are partially supported by the company and partially by the concerned person.
39
13. RELATIONShIPS WITh AffILIATEd ENTERPRISES ANd ENTERPRISES LINkEd By PARTICIPATING INTERESTS BUT NOT INCLUdEd
IN ThE CONSOLIdATION
AFFILIATED ENTERPRISES
Financial fixed assets
Participating interests and shares
Transactions with related parties outside normal market conditions
PERIOD 2012
PERIOD 2011
1,005,015
1,031,407
nihil
nihil
14. fINANCIAL RELATIONShIPS WITh
DIRECTORS OR MANAGERS OF THE CONSOLIDATION ENTERPRISE
Total amount of remuneration granted in respect of their responsibilities in the consolidation enterprise,
its subsidiary companies and its affiliated companies, including the amounts in respect of retirement pensions
granted to former directors or managers
AUDITORS OR PEOPLE THEY ARE LINKED TO
PERIOD 2012
1,141,494
PERIOD 2012
fees for auditor’s mandate
Fees for auditor’s mandat
Fees for exceptional services or special missions executed in the group by the auditor
Other attestation missions
127,000
6,954
— Milcobel 2012
fees for people linked to the audito
40
Fees for auditor’s mandate
Fees for exceptional services or special missions executed in the group by the people they are linked to the auditor
Other missions external to the audit
17,000
45,725
In accordance with legal and statutory obligations, we are delighted to report on the consolidated annual accounts of Milcobel CVBA as at 31 December 2012.
4. Consolidated Annual
Accounts 2012
ASSETS
II. Intangible fixed assets (8,940,888 euros)
This item mainly concerns investments in software (EUR 7.0 million), the purchase of greenhouse gas allowances, and the acquisition of the “Nazareth” and “Sint-Maarten”
brands.
III. Tangible fixed assets (170,684,772 Euro)
Investments for the financial year amounted to EUR 35.9 million and can be broken down as follows:
General: 1.4 million euros
Butter, powder and chees: 25.0 million euros
Consumption milk: 2.8 million euros
Ice cream: 5.5 million euros
Cheese: 1.2 million euros
V. Financial fixed assets (1,156,726 Euro)
Companies with a participating interest (EUR 1,005,014) relate to CVBA Zandhoven, NV Bedrijvenpark Wingene and Héritage 1466 SA.
VII. Stock (95,150,195 Euro)
Stock represents 23% of the balance sheet total and decreased slightly compared to the previous year.
LIABILITIES
IX. Provisions and deferred taxation (26,656,322 Euro)
The deferred taxation item (EUR 22,989,726) is mainly attributable to the difference between the business economic and tax valuation of the tangible fixed assets.
X. Debts maturing in more than 1 year (95,050,423 Euro)
XI. Debts maturing in 1 year at most (174,030,463 Euro)
Debts increased by 2.4% compared to the previous year.
Milcobel 2012 —
Financial debts (EUR 95,043,943) mainly relate to fixed-term credits entered into with various banks. In 2012, EUR 27.5 million in loans was taken out and EUR 22.7 million
in loans repaid.
41
RESULTS
I. & II. Operating results
Sales achieved in 2012 amounted to EUR 880 million.
The turnover can be broken down as follows:
- 523 million generated by dairy activities.
- 200 million generated by ice cream activities.
- 157 million generated by distribution and packaging activities for the cheese trade.
IV. & V. Financial results
Financial results were influenced in a positive manner by interest and capital subsidies received in the context of investments.
Debt servicing costs remained stable compared to 2011. The previous year had benefited from the generation of capital gains and a dividend paid out within the
framework of participating interests.
Events after balance sheet date
No significant events occurred after the balance sheet date that would profoundly affect future activities.
Financial instruments
Foreign exchange risks associated with sales transactions are primarily hedged by means of forward currency contracts.
A large proportion of short-term interest-bearing debts are hedged through forward interest contracts so as to reduce the impact of interest rate fluctuations.
Most long-term interest-bearing debt has been contracted at fixed rates of interest.
Prospects
Market conditions are favourable for B2B activities thanks to increasing sales prices.
Research and development
Existing research and development activities are continuing in the various divisions.
— Milcobel 2012
Risks and uncertainties
42
In addition to general business risks the Milcobel Group also faces risks specifically associated with a dairy business. Various catastrophes can cause serious disruptions to
milk supply chains and the production and sales process. This risk is managed through the implementation of a quality assurance system (IKM).
The dairy market is characterised by strongly fluctuating commodities sales prices.
Kallo, 26 March 2013
G. Veys
President
J. Geelen
Vice-President
Statutory auditor’s report to the general members’ meeting on the consolidated accounts of the company Milcobel cvba as of and for the year ended 31 december 2012.
5. Statutory auditor’s
report
As required by law and the company’s articles of association, we report to you in the context of our appointment as the company’s statutory auditor. This report includes
our opinion on the consolidated accounts and the required additional disclosure.
Unqualified opinion on the consolidated accounts
We have audited the consolidated accounts of Milcobel CVBA and its subsidiaries (the “Group”) as of and for the year ended 31 December 2012, prepared in accordance
with the financial-reporting framework applicable in Belgium, and which show a consolidated balance-sheet total of EUR 410,556,333.13 and a consolidated profit for the
year 2012 (group share) of EUR 3,682,770.91.
The company’s board of directors is responsible for the preparation of the consolidated accounts. This responsibility includes: designing, implementing and maintaining
internal control relevant to the preparation and fair presentation of consolidated accounts that are free from material misstatement, whether due to fraud or error;
selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Our responsibility is to express an opinion on these consolidated accounts based on our audit. We conducted our audit in accordance with the legal requirements
applicable in Belgium and with Belgian auditing standards, as issued by the “Institut des Réviseurs d’Entreprises/Instituut der Bedrijfsrevisoren”. Those auditing standards
require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated accounts are free of material misstatement.
In accordance with the auditing standards referred to above, we have carried out procedures to obtain audit evidence about the amounts and disclosures in the
consolidated accounts. The selection of these procedures is a matter for our judgment, as is the assessment of the risk that the consolidated accounts contain material
misstatements, whether due to fraud or error. In making those risk assessments, we have considered the Group’s internal control relating to the preparation and fair
presentation of the consolidated accounts, in order to design audit procedures that were appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control. We have also evaluated the appropriateness of the accounting policies used and the reasonableness of
accounting estimates made by management, as well as the presentation of the consolidated accounts taken as a whole. Finally, we have obtained from the board of
directors and Group officials the explanations and information necessary for our audit. We believe that the audit evidence we have obtained provides a reasonable basis
for our opinion.
In our opinion, the consolidated accounts give a true and fair view of the Group’s net worth and financial position as of 31 December 2012 and of its results and cash flows
for the year then ended in accordance with the financial-reporting framework applicable in Belgium.
Additional remark
The company’s board of directors is responsible for the preparation and content of the management report on the consolidated accounts.
Antwerp, 17 April 2013
The statutory auditor
PwC Reviseurs d’Entreprises / Bedrijfsrevisoren
represented by Filip Lozie - Auditor
Milcobel 2012 —
Our responsibility is to include in our report the following additional remark, which does not have any effect on our opinion on the consolidated accounts:
- The management report on the consolidated accounts deals with the information required by the law and is consistent with the consolidated accounts.
However, we are not in a position to express an opinion on the description of the principal risks and uncertainties facing the companies included in the
consolidation, the state of their affairs, their forecast development or the significant influence of certain events on their future development. Nevertheless, we
can confirm that the information provided is not in obvious contradiction with the information we have acquired in the context of our appointment.
43
PERIOD 2012
PERIOD 2011
consolidated result, share of group
third party share
depreciation of fixed assets
provisions
depreciation of positive consolidation differences
deferred taxes
3,683
-16
20,936
-3,384
688
465
4,399
-3
20,755
899
426
266
= cash flow
22,372
26,742
1,115
7,580
-509
-13,523
691
-1,193
-4,586
-10,472
-3,067
-32
902
-216
-5,839
-17,471
16,533
9,271
additions of intangible fixed assets
additions of tangible fixed assets
reclassifications of tangible assets
movements in financial fixed assets
increase positive consolidation differences
movements in the consolidated circle
-2,689
-35,924
1,451
40
-1,307
-519
-1,609
-38,364
627
-58
-17
120
NET CASh fLOW fROM INvESTMENT ACTIvITIES
-38,948
-39,301
27,526
-22,690
-3
95
3,571
-1,138
41,200
-19,499
-3
292
1,687
-1,076
7,361
22,601
= NET CASH (A+B+C)
-15,054
-7,429
+ OPENING CASH
-30,096
-22,667
= CLOSING CASH (*)
-45,150
-30,096
A. OPERATING ACTIVITIES
B.
Consolidated
cash flow
statement
movement in stocks
movement in trade accounts receivable
movement in other accounts receivable
movement in trade debts
movement in other debts
movement in accrued and deferred accounts
= movement in requirement for working capital
NET CASh fLOW fROM OPERATING ACTIvITIES
B. INVESTMENT ACTIVITIES
— Milcobel 2012
C. FINANCING ACTIVITIES
44
increase of long-term financial debts
repayment of long-term debts
movement in other long-term debts
movement in other long-term receivables
movement in shareholders’ equity
paid dividends
NET CASh fLOW fROM fINANCING ACTIvITIES
(*) cash = ‘deposits’ + ‘cash at bank’ + ‘short-term financial debts to credit institutions’
CREDITS
Editors: E. Leloup - P. Buggenhout - R. Op de Beeck - K. Vertenten
Production: E. Leloup
Concept & realisation: www.crea.be
Photographie: Studio DSP - Christophe Vander Eecken
Secretariat: R. Op de Beeck - Tel. +32 (0)3 730 18 00
— Milcobel 2012
46
www.milcobel.be