Yesterday the results of Pinguin were put in to the shade of the permission from the European Commission (on the basis of the EU merger regulation) to McCain for the acquisition of the Lutosa division. The Commission declares not to oppose the proposed transaction and related obligations. FY12/13 (12 months ending 31 March 2013) sales of the deep-frozen vegetable division amounted to € 407.7m. EBITDA of continued operations came in at € 42.1m and REBITDA at € 43.5m (7.1% REBITDA-margin). ? The EBITDA in the deep-frozen vegetable division amounted to € 19.9m, compared to € 2.2m for the previous accounting year (15 months). This increase of the EBITDA by € 17.7m is influenced by 1) the contribution of the CECAB activity for 12 months in the accounting year 2012/2013 compared to 7 months during previous accounting year and 2) strong results were realised within the deep-frozen vegetable division in FY12-13 by as well strong sales and a good production yield. We were happy to read that the measures taken within the British subsidiaries also had a positive effect on the results. There were some non-recurring costs (mainly related to the British subsidiaries for an amount of € -2.3m), as a result REBITDA of the division amounted to € 21.3m, which represents an increase of € 10.9m compared to the 15 months of FY11/12. ? The canning division was responsible for € 204.4m of the sales in the same period. The (R)EBITDA of the canning division contributed € 22.2m (+€ 11.9m compared to the 15 months in FY11/12). The significant increase is caused by 1) the contribution to the results for 12 months in accounting year FY12/13 compared to 9 months during previous accounting year and 2) a number of non-recurring elements with a negative impact on the results of € -6.9m during FY11/12. FY12/13 EBIT of continued operations came in at € 20.0m an increase of € 16.7m compared to FY11/12 (15 months). The EBIT-margin amounted to 3.3% (0.4% in the previous accounting year). The increase of the EBIT is the combined effect of an increase within the deep-frozen vegetable division of € 21.9 m (from € -14.6m to € 7.24m) and an increase of the EBIT within the canning division of € 8.5m (from € 4.36m to € 12.81m). In FY11/12 the Potato products contributed € 13.6m to EBIT. Below the EBIT-line, net financial results of € -19.4m were somewhat higher than expected influenced by an increase in fair value (market-to-market value) of financial instruments in an amount of € 4.7m. These concerns mainly the interest rate swaps (IRS) that needed to be concluded for the new club deal financing. By these IRS PinguinLutosa hedges against a possible increase in interest rates on the drawn financing. The net profit of € 11.1m is impacted for € 10.96m by discontinued operations (Lutosa). As a result the EPS from continued operations ended at € 0.01 ( € -1.8 EPS in FY12/13). Conclusion: The sale of the Lutosa division can be finalised in the coming days. Over FY12/13 good results were obtained but no clear guidance was given, but we hope to get more info of the impact of the current weather conditions as well as on the intention to acquire four real estate companies from UFM (Union Fermiere Morbihannaise SCA) at an analyst meeting on 10 June 2013. We maintain our € 16 Target Price and our BUY rating -even after the recent share price performance- as we see close to 20% upside.