H1 2017 RESULTS (6 months) LAUNCH OF OXYGEN 2020 STRATEGIC PLAN

Civrieux d'Azergues (France), 13 September 2017

The Toupargel Groupe SA Board of Directors met on 13 September 2017 to approve the interim financial statements on the basis of IFRS for the period from 1 January to 30 June 2017.

The interim financial statements have been subjected to a limited review by the Statutory Auditors.

Key figures
  • Consolidated income statement

    (in €m)

    H1 2017

    (6 mos.)

    H1 2016

    (6 mos.)

    Sales

    135.3

    145.0

    Gross profit

    77.3

    83.8

    Ebitda*

    (1.4)

    5.7

    Income from ordinary activities

    (5.8)

    1.7

    Operating margin

    (4.3 %)

    1.2 %

    Goodwill depreciation

    Operating profit/loss

    (5.8)

    1.7

    Net profit/loss, Group share

    (4.2)

    1.3

    Cash flow

    (2.4)

    4.5

    2016

    (12 mos.)

    293.2

    168.2

    11.5

    2.8

    0.9 %

    (20.0)

    (17.2)

    (18.0)

    9.3

    *EBITDA: income from ordinary activities - gains (+ losses) on divestment of non-current assets - reversals of provisions + depreciation, amortisation and provisions for the year

    Consolidated sales contracted by 6.7% in H1 2017 compared with H1 2016 as a result of erosion of the company's historical business (telephone sales of frozen foods). Sales of frozen foods and fresh foods & groceries via incoming channels (internet and incoming calls) increased by 30% in H1 2017 and represented 11% of Toupargel brand sales vs. 8% in H1 2016.

    Operating expenses rose from €82.2 million to €83.3 million, reflecting the resources deployed to implement the new Oxygen 2020 plan. Specifically, a new Toupargel application for mobile devices was launched, the e- commerce team was beefed up, and capital expenditure and reorganisation costs were recognised to make the fresh foods & groceries line available throughout France from mid-October.

    Income from ordinary activities totalled €-5.8 million, vs. €1.7 million in H1 2016.

  • Shareholders' equity - Debt- Capital expenditure

(in m€m)

30/06/2017

30/06/2016

Shareholders' equity

57.1

79.7

Net debt

34.1

27.3

Net debt excl. pre-financing of "CICE" tax credit

20.1

13.7

Gearing

60 %

34 %

Net debt excl. pre-financing of "CICE" tax credit / Equity

35 %

17 %

Net debt (excl. pre-financing of "CICE" tax credit)/EBITDA*

4.62

0.84

Capital expenditure

1.8

2.9

Net assets per share (in €)

5.6

7.7

31/12/2016

59.9

21.3

7.3

36 %

12 %

0.64

5.2

5.9

*12-month rolling EBITDA

The Toupargel Group has a low level of debt. After restatement to account for the pre-financing of the competitiveness and employment tax credit (€13.9 million), offset on the balance sheet by assets in the amount of

€17.7 million, the ratio of net debt to shareholders' equity stood at 35%. To finance the Oxygen 2020 plan, the Group is considering the sale of certain property assets.

Oxygen 2020 plan

The plan is based on the unique ability Toupargel will have starting in October 2017 to deliver frozen, fresh and grocery products to customers in all of France's 36,000 cities, towns and villages.

In the first phase, now being implemented, Oxygen 2020's goal is to stabilise catalogue sales by focusing on the traditional customer base, and to accelerate the development of sales via incoming channels. In this regard, the new website went on line in July. At the same time, work has begun on adjusting operating costs.

In the second phase, which will be effective in 2018, Toupargel will offer a range of products aimed at increasing its total sales and gross margin.

The plan also calls for the Group to strengthen its partnerships to take advantage of available logistics capacity.

Outlook

In H2 2017, the Toupargel Group will continue to devote significant resources to i) digitalisation, ii) a new marketing drive to attract and keep new customers, and iii) achieving nationwide coverage for Toupargel's fresh foods & groceries line and the Eismann subsidiary's frozen foods line. These programmes will affect profitability, but to a lesser degree than in H1 2017. The objective of the plan is to stabilise the top line and return to breakeven by 2019.

Upcoming event

- SFAF meeting, 14 September 2017 at 11 am at the Etoile Saint Honoré conference center in Paris.

ABOUT THE TOUPARGEL GROUP

Founded in 1947, Toupargel is France's leading food home delivery company. Headed by Romain Tchénio, the Group has nearly 3,500 employees throughout France and generated annual sales of €293 million in 2016. Toupargel delivers to one million customers and has a catalogue of over 1,400 products, including 800 own-brand items. Its products are adapted to the needs of all consumers and all dietary requirements. 80% of Toupargel's own-brand recipes are made in France. Toupargel provides local service by telephone, online at www.toupargel.fr and via its new mobile application. The Group is celebrating its 70th anniversary this year.

Toupargel, the specialist in home delivery of food products to individual customers

Euronext Paris, Segment C CAC®All-Share, Gaia Index

Isin FR 0000039240 - Bloomberg: TOU - Reuters: TPGEL.PA

Financial reporting - infofinanciere@toupargel.fr Analyst & shareholder relations - cyril.tezenas@toupargel.fr

Tel.: +33 (0)4.72.54.10.00

www.toupargelgroupe.fr

Toupargel Groupe SA published this content on 13 September 2017 and is solely responsible for the information contained herein.
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