Financial Statements at 31 December 2019
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FINANCIAL STATEMENTS AT 31 DECEMBER 2019 Cremonini S.p.A. Via Modena, 53 41014 Castelvetro di Modena (Mo) Italia Share Cap. Euro 67,073,931.60 fully paid-up Modena Register of Companies no. 00162810360 Modena Economic Admin. Reg. no. 126967 Tax Code and VAT no. 00162810360 TABLE OF CONTENTS TABLE OF CONTENTS Cremonini Group Organization chart ………………………….…………….…………………. 2 Corporate Bodies of Cremonini S.p.A. …………………………………………………………..... 3 Financial Statements at 31 December 2019 ….……………………………………….………….……………... 4 - Directors’ report - Financial statements of Cremonini S.p.A. - Notes to the financial statements of Cremonini S.p.A. - Consolidated financial statements - Notes to the consolidated financial statements 1 GROUP ORGANIZATION CORPORATE BODIES DIRECTORS ’ REPORT CREMONINI S. P.A. FIN . STATEM . CONSOLIDATED FIN . STATEM . CREMONINI GROUP ORGANIZATION AT 31 DECEMBER 2019 CREMONINI S.p.A. PRODUZIONE DISTRIBUZIONE RISTORAZIONE ATTIVITA’ CENTRALIZZATE Carne bovina Foodservice On board Chef Express S.p.A. INALCA S.p.A. MARR S.p.A. Global Service S.r.l. Div «ristorazione ferroviaria» 71,6% 50,42% 100% 100% Interjet S.r.l. Cremonini Restauration S.a.s. 100% Società Agricola Corticella S.r.l. Marr Food Service Iberica S.a.u. 100% 100% 100% Cremovit S.r.l. As.Ca. S.p.A. Avirail Italia S.r.l. in liquidaz. 51% 100% 51% Ges.Car. S.r.l. New Catering S.r.l. Railrest S.A. 100% 100% 51% Guardamiglio S.r.l. Cremonini Chef Iberica S.A. 100% 100% Inalca Algeria S.a.r.l. 70% Chef Express UK Ltd 100% Inter Inalca Angola Ltda. 100% Lounge Services S.a.s. Inalca Kinshasa S.a.r.l. 100% 85% Momentum Services Ltd. Inalca Brazzaville S.a.r.l.u. 100% 100% Chef Express Eurasia Llc. Inalca Angola Ltda 100% 95% Alliance Express Llc. Sara S.r.l. 100% 51% Inalca Food & Beverage China Hld Ltd. 55% Chef Express Tren Ici Hizmetleri A.S. in liq. Kaskad Llc. 100% 100% Top Best International Hld Ltd 100% Orenbeef Llc . 80% Zhongshan Inalca Food & Beverage Co Ltd 100% Agrosakmara Llc. In concessione Inalca Food & Beverage (Shanghai) Co. Ltd. 100% 100% Chef Express S.p.A. Agrosakmara Bashkiriya Llc. Div «ristorazione in concessione» 100% Bright View Trading HK Ltd. 69,81% 100% Marr Russia Llc. Inalca Food &Beverage Malaysia Hld Sdn Bhd 75% Gabf Holding Ltd. 100% 100% Inalca Food Service Kaz Llp . Inalca Food & Beverage Sdn Bhd 100% 100% Bagel Nash (Retai) Ltd. 100% Zaklady Miesne Sochocin S.p.zo.o. 100% Inalca Food & Beverage (Thailand) Ltd. 100% Realbeef S.r.l. Commerciale 51% Inalca Food & Beverage Cabo Verde Lda. 80% Fiorani & C. S.p.A. Roadhouse S.p.A. 51% ITAUS Pty Ltd. 100% 100% Tecno-star Due S.r.l. Roadhouse Grill Roma S.r.l. 100% Fresco Gourmet Pty Ltd. 55% 100% Inalca Mocambique Lda. 60% Inalca Food & Bev. Queensland Pty Ltd 75% Inalca CI S.a.r.l. 99,9% IF&B Holding Inc. 100% Parma Serv S.r.l. 51% Inalca Food & Beverage North America Llc. 80% Parma France S.a.s. 51% Fratelliditalia S.A. 80% Parmaubrac S.a.s. 51% Comit S.L. 60% Parma Lacombe S.a.s. 70% Hosteria Buttarelli S.L. Parma Turc S.a.s. 100% 51% Tecali S.L. Parma Capel S.a.s. 62,81% 66,67% Mille Sapori Plus S.p.zo.o. Inalca Food & Beverage S.r.l. 60% 90% Mille Sapori Due Sp.zo.o. Salumi e Snack 100% Mille Sapori Tre S.p.zo.o. 100% Italia Alimentari S.p.A. 100% Mille Sapori Krakow Sp.zo.o. 100% Montana Alimentari GMBH 100% MSP Transport Sp.zo.o. 100% Cibo Sapiens S.r.l. 100% 2 GROUP ORGANIZATION CORPORATE BODIES DIRECTORS ’ REPORT CREMONINI S. P.A. FIN . STATEM . CONSOLIDATED FIN . STATEM . CORPORATE BODIES OF CREMONINI S.p.A. Board of Directors Chairman Luigi Cremonini Vice Chairman Illias Aratri Chief Executive Officer Vincenzo Cremonini Directors Paolo Boni Serafino Cremonini Board of Statutory Auditors Chairman Eugenio Orienti Statutory Auditors Giulio Palazzo Paola Simonelli Alternate Auditors Patrizia Iotti Daniele Serra Independent Auditors PricewaterhouseCoopers S.p.A. 3 GROUP ORGANIZATION CORPORATE BODIES DIRECTORS ’ REPORT CREMONINI S. P.A FIN . STATEM . CONSOLIDATED FIN . STATEM . DIRECTORS’ REPORT Introduction The financial statements at 31 December 2019, pursuant to Legislative Decree No. 38 of 28 February 2005, have been prepared in accordance with the accounting and measurement policies laid down in the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and adopted by the European Commission according to the procedure set out in Article 6 of Regulation (EC) No. 1606/2002 of the European Parliament and of the Council of 19 July 2002. As from 1 January 2019, the Group adopted the new international accounting standard IFRS 16 by using a modified retrospective approach for which the restatement of comparative data is not required. The effects of the adoption of this standard, which are detailed hereinbelow, consist of the derecognition of lease payments accrued in the period, falling within the scope of application of IFRS 16, from the income statement, thus giving rise to an improvement in EBITDA. Furthermore, amortisation of right-of-use assets is charged to profit or loss, with an adverse impact on the operating result, and notional interest expense is recognised on lease liabilities. With regard to balance sheet ratios, net invested capital recorded an increase during the half- year as a result of the recognition of right-of-use assets, while net financial position was adversely affected by the recognition of right-of-use liabilities. Group performance and results for the 2019 financial year In 2019, the Cremonini Group recorded revenues of Euro 4,437.0 million compared to Euro 4,184.1 million in 2018, showing an increase of Euro 252.9 million (+6.0%). The gross operating margin amounted to Euro 377.2 million compared to Euro 289.4 million in 2018, showing an increase of Euro 87.8 million (+30.3%), while the operating result was Euro 193.9 million compared to Euro 167.2 million in 2018, up by Euro 26.7 million (+160%). The first-time adoption of the new accounting standard IFRS 16, which provides for a different method of accounting for leases with the direct control of the asset covered by the contract, resulted in an increase of Euro 62.9 million in gross operating margin and Euro 9.9 million in operating result. The gross operating margin and operating result, as adjusted by the effect of IFRS 16, amounted to Euro 314.3 million and Euro 184.9 million, respectively, in any case showing an improvement of Euro 24.9 million and Euro 16.8 million, respectively, against comparable data for 2018. The profit from ordinary activities, which amounted to Euro 145.8 million (Euro 150.8 million in 2018), was adversely affected by the recognition of notional financial costs of Euro 19.9 million connected with the adoption of IFRS 16, as well as by accounting for a loss on the net cash position of the Angolan subsidiaries, equal to Euro 10.9 million. This loss arose from the adoption of “IAS 29 – Financial Reporting in Hyperinflationary Economies” in the financial statements of the Angolan subsidiaries, the currency of which recorded a considerable depreciation in recent years. Finally, the net profit was Euro 44.6 million, down by Euro 6.5 million compared to Euro 51.6 million in 2018, mainly due to the effects of the non-recurring notional items mentioned above. Net of the effects of IFRS 16, the net result would be equal to Euro 52.5 million, up by Euro 0.9 million compared to 2018. Below are summarised the schedules of the income statement, balance sheet and cash flows for 2019, compared with the consolidated financial statements for the period ended 31 December 2018. For a more complete analysis of the Group’s results, the related details are reported below, broken down by business sector. 4 GROUP ORGANIZATION CORPORATE BODIES DIRECTORS ’ REPORT CREMONINI S. P.A FIN . STATEM . CONSOLIDATED FIN . STATEM . Consolidated Income Statement (Euro/000) Year 2019 Year 2018* Change % Total revenues 4,436,953 4,184,084 6.04 Changes in inventories of work in progress, semi-finished and finished goods (1,055) 35,430 Value of production 4,435,898 4,219,514 5.13 Cost of production (3,618,048) (3,516,432) Value added 817,850 703,082 16.32 Personnel costs (440,663) (413,634) Gross operating margin (a) 377,187 289,448 30.31 Amortization, depreciation and write-downs (130,334) (122,230) Rightof use amortization and depreciation (52,908) - Operating income (b) 193,945 167,218 15.98 Net financial income (charges) (28,266) (16,431) Right of use financial charges (19,874) - Profit from ordinary activities 145,805 150,787 (3.30) Net income (charges) from investments 594 2,760 Net extraordinary financial income (charges) (2,800) (17) Result before taxes 143,599 153,530 (6.47) Income taxes for the financial year (51,799) (57,758) Result before minority interests 91,800 95,772 (4.15) (Profit) Loss attributable to minority interests (47,233) (44,182) Net profit attributable to the Group 44,567 51,590 (13.61) Consolidated Balance Sheet (Euro/000) 31.12.2019 31.12.2018 Change % Intangible assets 229,975 230,374 Tangible assets 1,151,512 1,061,121 Right of use 307,222 - Equity investments and other financial assets 49,980 31,002 Total fixed assets 1,738,689 1,322,497 31.47 Trade net working capital - Trade receivables 595,003 565,252 - Inventories 497,231 483,857 - Trade payables (639,681) (605,101) Total trade net working capital 452,553 444,008 Other current assets 81,771 79,404 Other current liabilities (111,658) (103,847) Net working capital 422,666 419,565 0.74 Staff Severance Indemnity Provision and other m/l term provisions (96,351) (99,501) Net invested capital 2,065,004 1,642,561 25.72 Shareholders' Equity attributable to the Group 605,319 555,632 Shareholders' Equity attributable to minority interests 364,091 318,858 Total Shareholders' Equity 969,410 874,490 10.85 Net medium/long-term debt 691,219 604,195 Net short-term debt 90,411 163,876 Net debt before IFRS 16 781,630 768,071 1.77 Net medium/long-term debt - Right of use 265,767 Net short-term debt - Right of use 48,197 IFRS 16 effects on net debt 313,964 0 Net debt 1,095,594 768,071 42.64 Net equity and net debt 2,065,004 1,642,561 25.72 a – EBITDA (Gross operating margin) is an economic indicator not defined in the International Accounting Standards and the IFRS.