Chairman's message

In 2010, the Toupargel Group saw a decline in business for the fourth consecutive year, while consolidated financial results achieved the same level as 2009. Within a difficult business environment, the Group also had to face increasing difficulty in attracting and retaining new customers.
 
The Group has begun the roll-out of its Cap 2013 strategic plan, which will help it drive loyalty among its traditional customers and also recruit new consumers. A return to growth is expected in the fourth quarter of 2011 for the Frozen Foods division, with sustained development and improved profitability for the Fresh Food and Groceries division.

How did Toupargel Group's sales develop in 2010 ?

Sales were good for Fresh Food and Groceries, and showed a rise of 6.2%, to finish at over €20 million. This was mainly due to the increase in the average basket, following the broadening of our range and the development of our e-commerce site. The year was more difficult for Frozen Foods, which slipped by 2.6%, as we failed to bring in enough new customers (€-4 million) and saw higher churn of customers recruited in 2009 (€-4 million). The number of customers buying home delivery frozen goods has seen a gradual decrease over the last few years, with the number of households going down from 19% in 2007 to 17.1% in 2010 (1).

 What can you tell us about the consolidated financial results?

Generally speaking, consolidated financial results for 2010 held up compared to 2009, with operating income totalling €21.9 million (against €21 million in 2009), and an operating margin of 6.2% (against 5.8% in 2009). Net income amounted to €12.9 million, the same level as in 2009. Net debt came down significantly, from €17.7 million 2009 year-end, to €12.3 million at 31 December 2010.

Will you be maintaining your dividend policy ?

The Toupargel Group has consistently paid out high dividends since 2005, driven by substantial cash flow generation. The Board of Directors has decided to recommend a dividend of €1 per share for 2010, paid in cash and in stock

What is the outlook for 2011, a year of considerable change for the sales organisation?

The Group is taking a cautious outlook with regard to 2011, and projects a return to growth in Q4 2011 in the Frozen Foods division, alongside sustained growth and improved profitability for Fresh Food and Groceries.

(1) (Source: Kantar World Panel 2010)