Refresco reports solid Q2 2016 results

Rotterdam, the Netherlands - August 11, 2016. Refresco Group N.V. publishes second quarter and half year 2016 results.

Q2 2016 highlights:

• Group volume of 1,703.3 million liters (Q2 2015: 1,672.2 million liters), an increase of 1.9%.
• Co-Packing volume increased 18.8% and comprised 25.2% of total volume (Q2 2015: 21.6%). Private Label volume decreased 2.8%.
• Gross profit margin per liter was 14.0 euro cents (Q2 2015: 14.2 euro cents).
• Adjusted EBITDA increased to €68.3 million (Q2 2015: €67.6 million).
• Adjusted net profit amounted to €30.3 million (Q2 2015: €29.0 million).
• Adjusted EPS increased to 37.3 euro cents (Q2 2015: 35.7 euro cents).
• Announced acquisition of US-based bottler Whitlock Packaging on 26 July.

CEO Refresco, Hans Roelofs: "The unfavorable weather conditions throughout Europe and continued pressure on the private label market have created a challenging environment for Refresco to grow volumes while keeping margins at a sustainable level. Even though we gained some private label volumes, the impact of our earlier decision to discontinue low margin-large volume contracts, mainly in water and CSD's, was still visible in the second quarter. Mainly driven by the recent DIS acquisition, Co-Packing volumes continued to develop favorably during the quarter. Looking ahead, the third quarter had a soft start due to the poor summer weather and continued challenging market conditions for private label affecting our volumes in July. Therefore, we expect volumes this year to be below our medium term guidance."

"We are well on track to complete the acquisition of US-based Whitlock Packaging, which was announced in July and we expect to complete the transaction in September. It is our first step beyond Europe and the start of creating a second growth platform with value creating opportunities similar to what we have in Europe."