D.E. MASTER BLENDERS 1753 N.V. 8.88 euros (Amsterdam Exchange symbol DE; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 594.9 million; Market cap: 5.3 billion euros (1 euro = $1.28 Canadian); Price-to-sales ratio:1.9; No dividends paid; TSINetwork Rating: Average; www.demasterblenders1753.com) makes coffee and tea under a variety of brands, including Senseo, Pickwick and Douwe Egberts.
In its fiscal 2013 first quarter, which ended September 30, 2012, D.E. Master’s sales rose 1.1%, to 626 million euros from 619 million euros a year earlier. D.E. Master raised its prices to offset rising costs for coffee beans. That offset a 2.7% decline in sales volumes. The company did not report earnings.
D.E. Master recently began a restructuring that includes closing a plant in Denmark and outsourcing its accounting and other administrative functions. This should cut 55 million to 75 million euros from its annual costs by 2015.
The company has not yet declared its initial dividend. However, it plans to pay out 25% of its earnings before unusual items in fiscal 2013.
D.E. Master Blenders is a hold.
