HIBWF -=> Not saying how far it will go, but it has flourished the past couple of days consistently....and I just jumped on today.
Hibernia Foods Plc Announces a Return to Profitability
Earnings of $.10 in Its Third Quarter
Business Wire - February 04, 1998 08:46
%HIBERNIA-FOODS HIBNY %NEW-YORK %FOODS %BEVERAGES %EARNINGS V%BW P%BW
DUBLIN, Ireland--(BUSINESS WIRE)--February 4, 1998--Hibernia Foods plc (NASDAQ:
HIBNY) today announced its unaudited financial results for the nine month period ended December
31, 1997. These results include the first full quarter's results of the Majestic Food Group Limited -
the UK's largest supplier of private-label frozen desserts which Hibernia acquired on July 29, 1997.
Since making that acquisition Hibernia has no further involvement in the beef industry and the
business of Hibernia is only that of the business of Majestic - the manufacture of frozen desserts and
convenience ready-meals. Management is pleased to report net consolidated profits for the quarter
ended December 31, 1997 of US$660,000 (earnings per share of 10 cents) and positive EBITDA
of $2,154,000, making a return to profitability for the Company. Hibernia's consolidated results for
the nine months ended December 31, 1997, which only include five months of Majestic's results and
the cost of integrating this major acquisition, show a net profit of US$164,000 compared to a loss of
US$1,345,000 for the same period in 1996, when Hibernia was still involved in the beef business.
Similarly the quarter's results compare favorably against Majestic's results for the same period in
1996, when Majestic had a net loss of US$79,000 and positive EBITDA of US$728,000. The
Company's gross margin for the quarter was 16.7% which compares favorably to Majestic's gross
margin of 12.8% for the same period in 1996. Since the acquisition of Majestic by Hibernia,
management's focus has been directed towards the improvement of margins, the development of
long-term relationships with targeted customers, the repositioning of the Company's convenience
ready-meal business and the financial restructuring of the Company. The Company's cost accounting
system has been up-dated and progress has been made in directing customers towards new
private-label products which will yield improved margins for Hibernia and the retailers alike, rather
than developing products which are modifications of branded products. The Company's investment
in product development has been significant and management is confident that this will yield major
benefits during the course of 1998 and onwards. The Company also announced the appointment of
Mr. Derek Kilpatrick as Managing Director elect of Hibernia Foods Limited, (formerly Majestic
Food Group). Mr. Kilpatrick who was former Sales and Marketing Manager of Avondale Foods
Limited and Managing Director of Crest Foods Limited, has a long career in the value-added food
business and will be responsible for the day-to-day operating management of the company and for
introducing production efficiencies and cost savings. Commenting on the results, Hibernia's Chairman
and Chief Executive Officer, Oliver Murphy, said "The last quarter's results are our best yet and we
are pleased that our confidence in the success of the Majestic acquisition is already being reflected in
the group financial results. I believe the integration of the acquisition has been successfully completed
and I look forward with great enthusiasm to our 1998/99 fiscal year which will incorporate a full year
of Majestic's operations and reflect fully the synergies which initially attracted us." Mr. Murphy,
alluding to the Company's stated goal of becoming a $250M. Company within the next three years,
continued by saying "There are tremendous opportunities now open to Hibernia. We intend to
aggressively pursue our acquisition strategy during 1998 and to integrate complementary businesses
also involved in the value-added food business." Mr. Murphy would not comment on specific
acquisitions. However he did say that preliminary discussions were taking place with a number of
potential acquisition candidates. Mr. Murphy concluded by saying that he expected considerable
progress to be made in developing an export market for the Company's products during the course
of 1998, adding that shipments were made pursuant to the Company's first export order to Denmark
in the early part of January, 1998. Hibernia Foods plc is a leading manufacturer of frozen desserts,
ready-made meals and savory products, headquartered in Dublin, Ireland This report contains
forward-looking statements based upon certain assumptions made by management, some of which
may not materialize, and unanticipated events may occur which could effect the business of Hibernia,
including that of Majestic, and the markets for their products. Forward-looking statements contained
herein involve a number of risks and uncertainties including, but not limited to, economic,
competitive, governmental and technological factors.
FINANCIAL HIGHLIGHTS
(US$'000s except share and per share data(a)
Three Months Ended Nine Months Ended Nine Months Ended
December 31, 1997 December 31, 1997 December 31, 1996
Revenues $24,395 $ 39,134 $23,460
Gross Profit 4,085 5,774 657
Net Profit/(Loss) 660 164 (1,345)
Net Profit/(Loss) per
Share $.10 $.03 $(.24)
December 31, 1997 December 31, 1996
Fixed Assets $27,607 $ 1,590
Net Assets 14,471 6,049
Long Term Debt 7,112 630
Shares Outstanding 6,786,579 5,622,400
Net Assets per Share $2.13 $1.08
(a) Financial Highlights are expressed in US Dollars, solely for
convenience, at the US Dollar rate of exchange against the Irish Pound at
the December 31, 1997 balance sheet date, i.e. IR 1 = US$1.4245
CONTACT: Colm Delves, Hibernia Foods plc
(011) 44-1429-221621
or
Richard Cooper, Strategic Growth International, Inc.
(516) 829-7111 |
