B&S Group S.A. ("B&S") a company in the consumer goods industry, today publishes its trading update for the first quarter of 2024 ("Q1 2024").
Highlights Q1 2024
▪ With € 529.7 million turnover the first quarter of 2024 ended just above same period last year (+€ 4.1 million; +0.8%);
▪ Strong growth in all segments compared to Q1 2023 except for Liquors;
▪ Overall gross profit margin as a percentage of turnover showed a limited improvement as compared to Q1 2023;
▪ Staff costs in line with same period last year;
▪ Other operating expenses decreased as a result of one off advisory costs in 2023);
▪ Acquired a 50% economic ownership in Government and Defense projects which are expected to contribute to net result and operational cash flows in 2024 and beyond.
Message from the Executive Board
Our Q1 2024 was characterized by all segments showing strong performance except for Liquors. The challenging market circumstances as reported in Q4 continued throughout Q1 for the Liquor segment. The good topline growth in most of our segments is in line with our organic turnover breakdown, shared with the market during the last Capital Markets Day in November 2023.
G&D Investment
As announced during Capital Markets Day, we will invest further in our activities in the Government & Defense ("G&D") sector with a focus on providing food (services) to personnel engaged in foreign, diplomatic, military, and/or (non-)governmental operations across the world. These operations are mostly executed under tendered, multi-year contracts.
During 2023, the majority shareholder of B&S invested, directly and indirectly, € 10 million and $ 8 million into G&D projects, which were launched in 2022 and 2023.
These investments have been acquired by B&S at cost, with the underlying partnership-contracts for these investments novated to the company. These investments lead to an economic ownership of 50% in these projects. Purchase price through deferred considerations over the next 3 years, with an initial payment of approx. € 9 million in Q3 2024. We expect these contracts to contribute positively to our net results and our operational cash flows in 2024 and beyond.
Download full press release:
https://www.bs-group-sa.com/data/uploads/2024/05/Press-Release-Q1-2024-Trading-update.pdf
© 2024 GlobeNewswire (Europe)
