his is a summary of the Interim Report January - June 2015. The complete Interim Report, including tables of financial information, is attached to this release and can be downloaded from the company’s website at www.apetitgroup.fi/en.
Second quarter (April–June)
- Consolidated net sales were up on the previous year and amounted to EUR 100.2 (98.1) million.
- Operating profit excluding non-recurring items was lower than a year earlier and came to EUR -0.7 (0.7) million.
- The reported operating result was EUR 0.0 (0.6) million.
- The profit for the period was EUR -0.6 (0.1) million, and earnings per share amounted to EUR -0.10 (0.02).
January–June
- Consolidated net sales were up on the previous year and amounted to EUR 191.7 (187.0) million.
- Operating profit excluding non-recurring items was lower than a year earlier and came to EUR -3.0 (0.4) million.
- The reported operating profit before non-recurring items was EUR -2.2 (-0.1) million.
- The profit for the period was EUR -2.9 (-1.1) million, and earnings per share amounted to EUR -0.41 (-0.12).
Assessment of profit performance for the full year is unchanged. The Group’s full-year operating profit excluding non-recurring items is expected to fall short of the previous year’s level.
The information in this Interim Report has not been audited. The figures in parentheses are the equivalent figures for the same period in 2014, and the comparison period means the corresponding period of the previous year, unless stated otherwise.
Juha Vanhainen, CEO:
“The Apetit Group’s net sales grew slightly in April–June but the operating profit excluding non-recurring items was lower than in the comparison period. The weakened profitability of the Food Business and especially its fish and fresh product groups had an adverse effect on the consolidated operating profit, which excluding non-recurring items was negative. Finland’s poor economic situation has reduced sales in the retail and restaurant sectors and shifted consumer demand to products of a lower price and with less added value. The market price level of sugar was low, as was expected, turning the associated company profit of Sucros, which is part of the Other Operations segment, negative. The April–June period was successful for the Grains and Oilseeds Business, where the large delivery volumes in the grain trade and the high profitability of oilseed products led to an improvement in the segment operating profit, excluding non-recurring items, on the previous year.
I’ve spent my first few months studying the Group’s operations, finances and stakeholders in order to understand the challenges and opportunities that we have. In the Food Business we are strengthening our competitiveness and enhancing our customer and consumer orientation in a changing operating environment. One of the first steps is to strengthen the segment’s management, and to this end we have appointed Anu Ora as Director of the Food Business. She has considerable experience and strong credentials in the Finnish retail trade and strategic business development.
In the late summer we began the planning of Apetit’s new strategy and will during the process define the methods with which we can ensure the Group’s profitability, operating efficiency and continuous customer and consumer oriented renewal in a changing operating environment. I am looking forward to the strategy collaboration work within our organisation.
In the Food Business Apetit has many strengths based on quality, products and domestic origin. Our product categories are a strong favourite of those who appreciate delicious wellbeing. At the same time the continued difficult market situation in the Finnish food sector and the poor profitability in the fish and fresh product segments are significant challenges to which we must respond with determination. The long-term profitability programmes under way in the Food Business’s fish and fresh products groups will continue throughout 2015 as planned, and we will adjust the measures taken if necessary.
In the Grains and Oilseeds Business our market position is strong and our profitability is solid. We will continue to strengthen our business in the Baltic Sea region and Finland. The expansion of the Inkoo grain terminal will be inaugurated this month and we will enjoy the benefits of the new grain export capacity during this harvest season. In the autumn we will launch a project to expand the packaging plant at the Kirkkonummi vegetable oil milling plant in response to the increased demand for vegetable oil products. Both projects support the profitable growth of the Grains and Oilseeds Business”.
KEY FIGURES
| EUR million | Q2/2015 | Q2/2014 | Change |
Q1-Q2/ 2015 |
Q1–Q2/ 2014 | Change |
Q1-Q4/ 2014 |
| Net sales | 100.2 | 98.1 | +2% | 191.7 | 187.0 | +3% | 384.7 |
| Operating profit before non- recurring items | -0.7 | 0.7 | -3.0 | 0.4 | 7.3 | ||
| Operating profit | 0.0 | 0.6 | -2.2 | -0.1 | -5.9 | ||
| Profit before taxes | -0.3 | 0.0 | -2.6 | -1.0 | -8.1 | ||
| Profit for the period | -0.6 | 0.1 | -2.9 | -1.1 | -8.7 | ||
| Profit for the period excluding non-recurring items | -1.3 | 0.1 | -3.6 | -0.7 | 3.7 | ||
| Earnings per share, EUR | -0.10 | 0.02 | -0.41 | -0.12 | -1.29 | ||
| Earnings per share excluding non-recurring items, EUR | -0.21 | 0.03 | -0.52 | -0.06 | 0.72 | ||
| Equity per share, EUR | 19.70 | 21.71 | 20.70 | ||||
| Equity ratio, % | 75.8 | 76.7 | 69.7 | ||||
| Net cash flow from operating activities | 14.1 | 28.7 | 18.1 |
OUTLOOK FOR 2015
The Group’s full-year operating profit excluding non-recurring items is expected to fall short of the previous year’s level.
Owing to the extremely challenging situation in the sugar market, the associated company Sucros, which is part of the Other Operations segment, is anticipated to make a loss this year.
In Finland, the market situation in the food sector is expected to remain challenging, which is estimated to affect the profitability of the Food Business in 2015 more than was earlier projected. The aim of the long-term profitability programmes in the Food Business is to improve profitability and competitiveness. The impact of these programmes on the operating profit is expected to be felt in stages during the year as the measures are implemented.
In the Grains and Oilseeds Business, no major change is expected in the prospects for profitability in 2015 compared with the previous year.
Due to the substantial effect of international grain market price fluctuations on the entire Group’s net sales, Apetit will not issue any estimates of the expected full-year net sales.
Further information
Juha Vanhainen, CEO, tel. +358 (0)10 402 00
Eero Kinnunen, CFO, tel. +358 (0)10 402 4025
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Invitation to a briefing
A briefing (in Finnish) for analysts and media representatives will be held today at 10.00 a.m. in Hotel Scandic Simonkenttä (address: Simonkatu 9, Helsinki). In the briefing Apetit Plc’s CEO Juha Vanhainen presents the January - June results of Apetit Plc and gives information about other current issues. Apetit Plc’s CFO Eero Kinnunen and forthcoming Director of the Food Business Anu Ora (as of 17 August, 2015) will also be present in the briefing.
The presentation material will be available on the company’s website at http://www.apetitgroup.fi/en/ after the event.
Copies to:
Nasdaq Helsinki
Main media
www.apetitgroup.fi
