Q3 2010 highlights
- Revenue up 1.2% to EUR 173.4 million, autonomous growth (2.0%)
- Operating result EUR 1.6 million, impacted by higher spending on marketing, sales force and IT
- Strategic initiatives (e.g. brand harmonisation and centralised sourcing) are on schedule
- Successful introduction of SAP in our Benelux wholesale business
- Second half year outlook (normalised operating result around break-even) maintained

Consolidated key figures Q3 2010
X EUR million, unless stated otherwise Q3 2010 Q3 2009 % change 9M 2010 9M 2009 % change
Revenue 1 173.4 171.3 1.2% 539.7 533.6 1.1%
Autonomous revenue development 1, 2 (2.0)% (0.7)%
EBITDA ¹ 5.2 7.6 (31.3)% 27.9 17.6 56.3%
Operating result (EBIT) 1 1.6 5.0 (68.4)% 17.4 (0.7)
EBIT margin (as a % of revenue)1 0.9% 2.9% 3.2% (0.1)%
Result from discontinued operations, net of income tax 0.3 (14.8) (4.7) (44.4)
Net result, attributable to equity holders of Wessanen 1.0 (20.1) 2.8 (108.0)
Operating cash flow ¹ 9.2 6.6 12.9 8.7
Net debt 57.6 179.0
Earnings per share (in euro) (total Wessanen) 0.01 (0.30) 0.04 (1.60)
Average nr. of outstanding shares (x 1,000 shares) 74,587 67,616 73,229 67,609

CEO Statement
Piet Hein Merckens, Wessanen CEO, comments: “Our performance in the quarter was in line with our expectations. Low consumer confidence in general affected our markets, particularly in the health food channel, while grocery markets fared better. We continue to focus on advertising and promotion to build
and grow our brands. Tangible results include the continued increase in market share of Bjorg, successful introductions in the UK, the further roll-out of Whole Earth in Germany and the build-up of distribution in Italy. SAP was successfully introduced in our Dutch wholesale business, following the implementation in the French grocery business in the previous quarter. We continue our investments to enhance capabilities (like market research, innovations and category management) and improve the overall quality
of the organisation.
1 From continuing operations
2 Including adjustments for currency effects, acquisitions and trading days (index Q3-09: 100%)
All data in this press release are unaudited.

For Wessanen, 2010 is a year of investments in which the core business is strengthened and consolidated.
While Wessanen has clear pockets of strength, we will need to standardise our processes and leverage best practices to a greater degree. Centralised sourcing, innovation, category management and brand harmonisation in accordance with well-defined consumer benefit platforms are other key areas for us. We are further fine-tuning our strategy to increase our focus.
In general, the economy in our core countries remains sluggish, resulting in challenging organic food markets in both grocery and health food store channels. Despite the current market dynamics, we are fully convinced of the potential of the organic food market. Further acceptance by mainstream consumers, new health food store openings, innovations and frequent activation will result in increased per capita consumption and revenue growth.”

Priorities FY2010
• Wessanen Europe: strengthening the core through centralised sourcing, alignment based on consumer benefits, strategic cooperation with suppliers and customers, brand and product alignment and increased marketing and ICT spending
• Frozen Foods: revitalising the Beckers brand, innovation and continued focus on production costs
• ABC: completing business process redesign, cost reductions, improving weighted distribution and instore presence and innovation, with the intention to divest in 2011
• PANOS Brands: expected to be divested during 2010

Outlook H2 2010
As announced before, Wessanen expects its normalised operating result for the second half of 2010 to be around break-even, implying a small normalised operating loss in the fourth quarter. The operating result of Wessanen Europe in the second half is expected to be below last year’s normalised earnings for reasons indicated earlier. ABC, while generating a full year operating result above break-even, will be loss-making in the fourth quarter owing to seasonally low production.
For full year 2010, non-allocated costs are expected to increase versus last year due to the corporate
transition process, while capital expenditures will be below the level of depreciation and amortisation of EUR 14 million.

Financial summary
In the third quarter, revenue from continuing operations increased 1.2% to EUR 173.4 million with higher revenue at Wessanen Europe and ABC (in EUR) partly offset by lower sales of Frozen Foods. The currency effect was 1.8% (from a stronger British pound and US dollar) and the acquisition effect 1.4%.
Autonomous growth amounted to (2.0)% with all three segments posting a decline.
Operating result (EBIT) was EUR 1.6 million. Lower non-allocated costs (corporate expenses) and a stable operating result at Frozen Foods were offset by lower profitability at Wessanen Europe and ABC compared to Q3 2009. Increased investments in marketing, sales force and ICT contributed to the decline in Wessanen Europe, while at ABC this was a consequence of lower sales (in USD) and higher advertising and promotional spending.
Net financing costs amounted to EUR (1.0) million (Q3 2009: EUR (7.6) million) of which EUR 0.7 million
related to interest expenses. Total income taxes were EUR 0.3 million positive, due to country mix and recognition of previously unrecognised income tax losses. Profit from discontinued operations, net of tax, amounted to EUR 0.3 million.

Net result, attributable to Wessanen equity holders, was EUR 1.0 million (Q3 2009: EUR (20.1) million) resulting in earnings per share (EPS) of EUR 0.01.
Operating cash flow from continuing operations (after interest and income tax paid) was EUR 9.2 million (Q3 2009: EUR 6.6 million), mainly due to profit from operations and working capital reductions of EUR 5.6 million. Working capital at ABC decreased over the quarter following the end of the summer selling season and reduced production volume.

Net debt decreased to EUR 57.6 million (Q2 2010: EUR 63.1 million). The net debt to EBITDAE ratio amounted to 1.6x as at 30 September (Q2 2010: 1.6x).