The decline in meat sales at Findus – after horsemeat was found in its products earlier this year – only marginally impacted its business and was offset by a stronger performance in fish, Findus Group has revealed.
Findus’ parent company, Lion/Gem Luxembourg 3 S.à r.l., made the statement this afternoon as it announced it had secured £410m through an issue of bonds.
It is the first time Findus has spoken openly about the impact of the horsemeat crisis on its business since horsemeat was found in a Findus lasagne in early February.
Findus had recapitalised its balance sheet in September 2012 to allow the management team to refocus on operations and invest in the business to improve performance, Lion/Gem Luxembourg 3 S.à r.l said in a statement: “Subsequently, Findus has had six consecutive periods now of stable performance despite the product recall earlier this year.”
The recall had only marginally impacted Findus because it was “predominantly a fish and vegetable-led business” it said.
Earlier this year, it was reported that Findus was mulling a bond issue to take advantage of strong markets.
The £410m will be used to repay senior debt, refinance the group’s existing credit facilities and pay related expenses. In addition, Findus will enter into a new £60m multi-currency revolving credit facility.
The rearrangement of Findus’s capital structure created further flexibility for it, said CEO James Hill. “Findus has a great platform for the future and is in even better shape to make further progress.”