Huhtamäki Oyj Stock Exchange Release 10.5.2007 At 8:55
Solid performance in the first quarter
* Good sales growth on a comparable basis driven by positive price/mix and modest volume growth
* Operational result improved while corporate income decreased significantly
* In Europe profitability returned to previous year's level supported by growth in Flexibles, Films and Molded Fiber as well as early stage recovery in Rigid
* Good earnings in Americas from solid pricing and product mix as well as improved operational efficiency
* Ramp-up of capacity investments on schedule in Asia
|
Key figures |
|
|
|
|
|
Q1 |
Q1 |
|
|
EUR million |
2007 |
2006 |
2006 |
|
Net sales |
564.7 |
562.1 |
2,275.6 |
|
EBIT, underlying* |
37.7 |
40.9 |
157.6 |
|
EBIT margin % |
6.7 |
7.3 |
6.9 |
|
EBIT, reported |
37.7 |
37.2 |
145.5 |
|
EPS, reported |
0.24 |
0.24 |
0.94 |
* The underlying EBIT excludes restructuring charges
Business review
In the first quarter, market demand for consumer packaging in the mature markets remained stable. In the emerging markets healthy growth is driven by an increase in purchasing power and modern retail. While overall demand has remained on a similar level to last year, the increasing raw material prices require continuous efforts to pass the cost pressure upstream as well as improve productivity.
The prices for the main raw materials remained on a high level during the quarter, showing a clear increase compared to the average level of the previous year. The same applied to the development of energy prices.
Volume was slightly up, especially on a comparable basis, and price/mix changes had a positive impact (+4%). These are not fully reflected in reported net sales of EUR 564.7 million (EUR 562.1 million) due to unfavorable movement in currency translations (-3%).
The geographical distribution of sales was the following: Europe 54% (52%), Americas 29% (31%) and Asia-Oceania-Africa 17% (17%). As a whole, emerging markets represented approximately 20% (19%) of net sales.
Europe
|
|
Q1 |
Q1 |
|
|
EUR million |
2007 |
2006 |
2006 |
|
Net sales |
304.9 |
292.6 |
1,188.7 |
|
EBIT, underlying* |
13.6 |
13.9 |
52.1 |
|
EBIT margin % |
4.5 |
4.8 |
4.4 |
|
EBIT, reported |
13.6 |
10.2 |
40.3 |
|
RONA % underlying (12m roll.) |
6.6 |
8.7 |
6.7 |
In Europe, growth in the Flexibles, Films and Molded Fiber businesses was robust. Sales performance in the Rigid business varied: steady growth within Foodservice was driven by Eastern and Southern Europe as well as the UK, while within Consumer Goods sales development was negatively impacted by the divested expanded polystyrene businesses and volume decline in the UK. For the quarter, net sales increased by 4% to EUR 304.9 million positively impacted by price/mix changes (+2%) and volume growth (+1%) with minor effect from currency translations.
The region's underlying EBIT was EUR 13.6 million (EUR 13.9 million), corresponding to an EBIT margin of 4.5% (4.8%). This reflects positive momentum experienced in the Flexibles business and operational efficiency in Rigid units with major change programs moving towards targeted levels. Also, the previous year's raw material and energy cost increases were largely recovered following reinforced pricing activities. The reported EBIT was EUR 13.6 million. In the previous year the reported EBIT of EUR 10.2 million included restructuring charges of EUR 3.7 million.
Americas
|
|
Q1 |
Q1 |
|
|
EUR million |
2007 |
2006 |
2006 |
|
Net sales |
163.7 |
176.3 |
711.5 |
|
EBIT, underlying* |
18.5 |
13.7 |
61.3 |
|
EBIT margin % |
11.3 |
7.8 |
8.6 |
|
EBIT, reported |
18.5 |
13.7 |
61.3 |
|
RONA % underlying (12m roll.) |
11.7 |
9.7 |
11.0 |
In the Americas, growth within Foodservice continued strong in the Retail division. Meanwhile, the change in product assortment in the remaining categories had a negative sales impact. The Flexibles business posted strong growth especially in Pet food. The Frozen desserts category saw lower demand compared to the previous year as customers rebalanced inventories ahead of the season start. Furthermore, the divested Mexican Molded Fiber unit affected negatively the comparison. In South America, sales development was flat. For the quarter, the positive impact from price/mix changes (+7%) was largely offset by volume decline (-6%). The reported net sales of EUR 163.7 million (-7%) is depressed by currency translations (-8%).
The region's underlying EBIT increased by 35% to EUR 18.5 million (EUR 13.7 million), corresponding to an EBIT margin of 11.3% (7.8%). This includes approximately EUR 6 million received as damages compensation relating to long-pending court proceedings settled. The previous year included a capital gain of EUR 3 million from the divested business. On a comparable basis, successful price management and favorable development in product mix together with good operational efficiency more than compensated the experienced shortfall in volume and higher distribution costs.
Asia-Oceania-Africa
|
|
Q1 |
Q1 |
|
|
EUR million |
2007 |
2006 |
2006 |
|
Net sales |
96.1 |
93.2 |
375.4 |
|
EBIT, underlying* |
5.7 |
6.3 |
24.7 |
|
EBIT margin % |
5.9 |
6.8 |
6.6 |
|
EBIT, reported |
5.7 |
6.3 |
24.4 |
|
RONA % underlying (12m roll.) |
7.9 |
8.4 |
8.1 |
In Asia, growth continued in the Flexibles and Rigid businesses. Sales performance was improving in the Rigid business in Oceania. For the quarter, volume growth was strong (+7%) and price/mix changes had a positive impact (+3%). The reported net sales of EUR 96.1 million (+3%) is depressed by currency translations (-6%).
The region's underlying EBIT was EUR 5.7 million (EUR 6.3 million), corresponding to an EBIT margin of 5.9% (6.8%). The favorable volume development led by the emerging markets was mitigated by start-up costs associated with investments in added capacity.
Financial review
The underlying EBIT before corporate items increased by 12% to EUR 37.8 million (EUR 33.9 million), corresponding to an EBIT margin of 6.7% (6.0%).
Corporate net in the quarter was EUR -0.1 million (EUR 7.0 million) reflecting the expiry of the royalty income relating to a previous divestment of the pharmaceuticals business. The underlying group EBIT was EUR 37.7 million (EUR 40.9 million), corresponding to an EBIT margin of 6.7% (7.3%). The reported EBIT was EUR 37.7 million. In the previous year the reported EBIT of EUR 37.2 million included restructuring charges of EUR 3.7 million.
At EUR 9.1 million (EUR 7.9 million), the increase in net financial items was mainly due to lower financial income. The reported profit for the period was EUR 24.4 million (EUR 24.2 million) leading to an unchanged reported EPS of EUR 0.24.
The average number of outstanding shares used in the EPS calculation was 100,426,461 (98,778,283) excluding 5,061,089 (unchanged) company's own shares.
On a rolling 12-month basis, the return on investment (ROI) was 9.3% (4.3%) and return on equity (ROE) was 11.5% (1.8%).
Balance sheet and cash flow
Free cash flow of EUR -36.4 million (EUR -1.1 million) was burdened by an elevated level of working capital due to higher inventories in units with major change programs as well as normal seasonal inventory build-up. In addition, capital expenditure continued high during the quarter amounting to EUR 25.6 million (EUR 18.7 million).
Net debt at the end of the quarter increased to EUR 742.6 million (EUR 699.2 million). The corresponding gearing ratio was 0.84 (0.87).
Strategic direction
Towards the end of 2006 the emphasis in the Group was shifted to developing growth platforms in order to accelerate profitable growth in attractive markets and product segments. In addition to progress in this area, the completion of the earlier announced change programs is another key priority for the current year.
In Europe, capacity was added in Foodservice hot cups in several units during the first quarter of 2007. The final exit from Göttingen, Germany, will take place during Q2 2007. In the Americas, the capacity to be added in retortable flexibles packaging is progressing at the existing facility in Malvern, USA, and is expected to be operational during the second half of 2007. In Asia-Oceania-Africa, the new flexibles packaging facility in Rudrapur, India, was in operation at year-end and commercial production started in January 2007. The construction work of the new rigid packaging facility in Guangzhou, China, was nearing completion at the end of the first quarter and is expected to be operational by the end of 2007.
Personnel
Huhtamaki had 14,885 (14,754) employees on March 31, 2007.
Events after the reporting period
The Annual General Meeting of Shareholders (AGM) of Huhtamäki Oyj was held on April 12, 2007 in Helsinki, Finland. The meeting approved the company's and consolidated financial statements for 2006 and discharged the members of the Board of Directors and the CEO from liability. The dividend for 2006 was set at EUR 0.42 per share, increasing by 11% from the previous year. The meeting approved the proposal of the Board of Directors regarding the amendment of the Articles of Association of Huhtamäki Oyj. The AGM granted the Board of Directors authorization to decide on the conveyance of the company's own shares. The authorization is valid until December 31, 2009. The Board of Directors was re-elected and comprises the following persons: Ms. Eija Ailasmaa, Mr. George V. Bayly, Mr. Robertus van Gestel, Mr. Paavo Hohti, Mr. Mikael Lilius, Mr. Anthony J.B. Simon and Mr. Jukka Suominen. The Board of Directors subsequently elected Mikael Lilius as the Chairman and Jukka Suominen as Vice Chairman.
Huhtamaki continues to strengthen its position as a leading consumer packaging company in the Asian emerging markets. A new flexibles packaging facility will be built close to the existing facility in Bangkok, Thailand. The aim is to capture growth opportunities by supplying the local and multinational food and consumer goods industry with advanced flexibles packaging. According to the preliminary schedule the new facility will commence production around mid 2008. The value of the investment is approximately EUR 17 million.
Short-term risks and uncertainties
Volatile polymer-based raw material and energy prices as well as movements in currency translations are considered to be significant short-term business risks and uncertainties in the Group's operations.
Outlook for 2007
Organic growth will continue to be a priority. The positive impact from sales growth and cost savings should balance out the significant reduction in unallocated corporate income.
Capital expenditure is estimated to be somewhat lower in 2007 versus 2006.
The underlying EBIT for the full year is expected to be around the level of 2006.
This interim report is unaudited.
Espoo, May 9, 2007
Huhtamäki Oyj
Board of Directors
The Q2 2007 interim report will be published on July 19, 2007.
For further information, please contact:
Mr. Heikki Takanen, CEO, tel. +358-10-686 7801
Mr. Sakari Ahdekivi, CFO, tel. +358-10-686 7853
Ms. Kia Aejmelaeus, Head of Investor Relations, tel. +358-10-686 7819 or mobile +358-40-765 4616
Ms. Taina Erkkilä, Group Vice President Communications, tel. +358-10-686 7876 or mobile +358-50-577 4059
A conference for investors, analysts and media will be held at 11:00 Finnish time at Huhtamaki's head office, Länsituulentie 7, Espoo. CEO Heikki Takanen and CFO Sakari Ahdekivi will present the results.
At 15:00 Finnish / 13:00 London / 08:00 New York time a conference call for investors and analysts will start with a management presentation, followed by a question and answer session. Should you wish to participate, please dial one of the following numbers:
* Number for participants from Finland: 0923 193 019
* Number for participants outside of Finland: +44 (0) 1452 542 300
* Reference code: Huhtamaki
All materials will be available at our website at www.huhtamaki.com.
****************************
|
Group Income statement (IFRS) |
|
|
|
|
Unaudited |
|
|
|
|
|
Q1 |
Q1 |
Q1-Q4 |
|
EUR million |
2007 |
2006 |
2006 |
|
|
|
|
|
|
Net sales |
564.7 |
562.1 |
2,275.6 |
|
Cost of goods sold |
-479.1 |
-481.9 |
-1,946.4 |
|
Gross profit |
85.6 |
80.2 |
329.2 |
|
|
|
|
|
|
Other operating income |
10.0 |
16.1 |
56.2 |
|
Sales and marketing |
-20.0 |
-20.0 |
-82.8 |
|
Research and development |
-4.8 |
-5.4 |
-19.3 |
|
Administration costs |
-30.1 |
-31.5 |
-126.5 |
|
Other operating expenses |
-3.0 |
-2.2 |
-11.3 |
|
|
-47.9 |
-43.0 |
-183.7 |
|
|
|
|
|
|
Earnings before interest and taxes |
37.7 |
37.2 |
145.5 |
|
|
|
|
|
|
Financial income |
1.7 |
3.8 |
11.0 |
|
Financial expenses |
-10.8 |
-11.7 |
-47.8 |
|
Income of associated companies |
0.1 |
0.0 |
0.5 |
|
Profit before taxes |
28.7 |
29.3 |
109.2 |
|
|
|
|
|
|
Income tax expense |
-4.3 |
-5.1 |
-12.6 |
|
|
|
|
|
|
Profit for the period |
24.4 |
24.2 |
96.6 |
|
|
|
|
|
|
Attributable to: |
|
|
|
|
Equity holders of the parent company |
23.9 |
23.3 |
93.3 |
|
Minority interest |
0.5 |
0.9 |
3.3 |
|
|
|
|
|
|
Basic earnings per share (EUR) for the shareholders of parent company |
0.24 |
0.24 |
0.94 |
|
Diluted earnings per share (EUR) for the shareholders of parent company |
0.24 |
0.23 |
0.93 |
|
Group balance sheet (IFRS) |
|
|
|
|
Unaudited |
|
|
|
|
|
Mar 31 |
Dec 31 |
Mar 31 |
|
EUR million |
2007 |
2006 |
2006 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Goodwill |
524.2 |
525.2 |
535.8 |
|
Other intangible assets |
37.7 |
35.1 |
8.5 |
|
Tangible assets |
839.0 |
840.1 |
827.8 |
|
Investments in associated companies |
1.6 |
1.5 |
1.6 |
|
Available for sale investments |
1.7 |
1.8 |
1.9 |
|
Interest bearing receivables |
6.1 |
6.6 |
7.1 |
|
Deferred tax assets |
15.5 |
14.1 |
15.2 |
|
Employee benefit assets |
63.7 |
64.0 |
67.1 |
|
Other non-current assets |
5.0 |
5.0 |
5.0 |
|
|
1,494.5 |
1,493.4 |
1,470.0 |
|
Current assets |
|
|
|
|
Inventory |
375.7 |
341.8 |
331.2 |
|
Interest bearing receivables |
0.0 |
0.5 |
17.3 |
|
Current tax assets |
10.5 |
9.9 |
24.4 |
|
Trade and other current receivables |
418.8 |
400.7 |
414.9 |
|
Cash and cash equivalents |
25.2 |
22.3 |
46.2 |
|
|
830.2 |
775.2 |
834.0 |
|
|
|
|
|
|
Total assets |
2,324.7 |
2,268.6 |
2,304.0 |
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
Share capital |
358.7 |
358.7 |
353.0 |
|
Premium fund |
104.7 |
104.7 |
96.8 |
|
Treasury shares |
-46.5 |
-46.5 |
-46.5 |
|
Translation differencies |
-108.2 |
-106.7 |
-83.3 |
|
Fair value and other reserves |
2.9 |
2.1 |
2.4 |
|
Retained earnings |
555.8 |
528.8 |
460.7 |
|
Total equity attributable to equity holders of
the parent company |
867.4 |
841.1 |
783.1 |
|
|
|
|
|
|
Minority interest |
20.0 |
19.3 |
18.9 |
|
Total equity |
887.4 |
860.4 |
802.0 |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Interest bearing liabilities |
311.8 |
314.7 |
390.1 |
|
Deferred tax liabilities |
66.4 |
62.9 |
81.8 |
|
Employee benefit liabilities |
111.8 |
111.4 |
117.2 |
|
Provisions |
46.1 |
46.8 |
53.2 |
|
Other non-current liabilities |
4.0 |
3.9 |
4.5 |
|
|
540.1 |
539.7 |
646.8 |
|
Current liabilities |
|
|
|
|
Interest bearing liabilities |
|
|
|
|
- Current portion of long term loans |
45.6 |
41.7 |
15.8 |
|
- Short term loans |
416.6 |
383.7 |
363.8 |
|
Provisions |
8.4 |
11.9 |
16.8 |
|
Current tax liabilities |
19.0 |
19.7 |
27.2 |
|
Trade and other current liabilities |
407.6 |
411.5 |
431.6 |
|
|
897.2 |
868.5 |
855.2 |
|
|
|
|
|
|
Total liabilities |
1,437.3 |
1,408.2 |
1,502.0 |
|
Total equity and liabilities |
2,324.7 |
2,268.6 |
2,304.0 |
|
|
|
|
|
|
|
Mar 31 |
Dec 31 |
Mar 31 |
|
|
2007 |
2006 |
2006 |
|
|
|
|
|
|
Net debt |
742.6 |
710.7 |
699.2 |
|
Net debt to equity (gearing) |
0.84 |
0.83 |
0.87 |
|
Changes in shareholders' equity | |||||||||
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to equity holders of the parent
company |
Minor
ty
inter
st |
Total | ||||
|
EUR million |
Share
capital |
Share
Issue
Prem
um |
Trea
Ury
Shar
s |
Trans
Ation
diff. |
Fair
Value
And
Other
Reser
es |
Retai
ed
earni
gs |
Total equity |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at Dec 31,
2005 |
353.0 |
96.8 |
-46.5 |
-76.3 |
-0.2 |
475.2 |
802.0 |
18.4 |
820.4 |
|
Cash flow hedges |
|
|
|
|
|
|
|
|
|
|
Hedge result deferred to
equity |
|
|
|
4.0 |
|
4.0 |
|
4.0 | |
|
Hedge result recognized in
income statement |
|
|
-0.4 |
|
-0.4 |
|
-0.4 | ||
|
Translation differences |
|
|
|
-7.0 |
|
|
-7.0 |
-0.4 |
-7.4 |
|
Deferred tax in equity |
|
|
|
|
-1.0 |
|
-1.0 |
|
-1.0 |
|
Other changes |
|
|
|
|
|
-0.7 |
-0.7 |
|
-0.7 |
|
Net income recognized
directly in equity |
|
|
-7.0 |
2.6 |
-0.7 |
-5.1 |
-0.4 |
-5.5 | |
|
Net income for the
period |
|
|
|
|
|
23.3 |
23.3 |
0.9 |
24.2 |
|
Total recognized income and
expense for the period |
|
-7.0 |
2.6 |
22.6 |
18.2 |
0.5 |
18.7 | ||
|
Dividend |
|
|
|
|
|
-37.5 |
-37.5 |
|
-37.5 |
|
Share-based
payments |
|
|
|
|
|
0.4 |
0.4 |
|
0.4 |
|
Balance at Mar 31,
2006 |
353.0 |
96.8 |
-46.5 |
-83.3 |
2.4 |
460.7 |
783.1 |
18.9 |
802.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at Dec 31,
2006 |
358.7 |
104.7 |
-46.5 |
-106.7 |
2.1 |
528.8 |
841.1 |
19.3 |
860.4 |
|
Cash flow hedges |
|
|
|
|
|
|
|
|
|
|
Hedge result deferred to
equity |
|
|
|
0.8 |
|
0.8 |
|
0.8 | |
|
Hedge result recognized
in income statement |
|
|
-1.4 |
|
-1.4 |
|
-1.4 | ||
|
Translation differences |
|
|
|
-1.5 |
|
|
-1.5 |
0.2 |
-1.3 |
|
Deferred tax in equity |
|
|
|
|
1.4 |
|
1.4 |
|
1.4 |
|
Other changes |
|
|
|
|
|
2.7 |
2.7 |
|
2.7 |
|
Net income recognized
directly in equity |
|
|
-1.5 |
0.8 |
2.7 |
2.1 |
0.2 |
2.3 | |
|
Net income for the
period |
|
|
|
|
|
23.9 |
23.9 |
0.5 |
24.4 |
|
Total recognized income and
expense for the period |
|
-1.5 |
0.8 |
26.7 |
26.0 |
0.7 |
26.7 | ||
|
Dividend |
|
|
|
|
|
0.0 |
0.0 |
|
0.0 |
|
Share-based
payments |
|
|
|
|
|
0.3 |
0.3 |
|
0.3 |
|
Balance at Mar 31,
2007 |
358.7 |
104.7 |
-46.5 |
-108.2 |
2.9 |
555.8 |
867.4 |
20.0 |
887.4 |
|
Group cash flow statement (IFRS) | ||||
|
Unaudited |
|
|
|
|
|
|
|
Q1 |
Q1 |
Q1-Q4 |
|
EUR million |
|
2007 |
2006 |
2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period* |
|
24.4 |
24.2 |
96.6 |
|
Adjustments* |
|
33.5 |
36.4 |
126.9 |
|
- Depreciation and amortization* |
|
24.5 |
30.5 |
101.5 |
|
- Gain on equity of minorities* |
|
-0.1 |
0.0 |
-0.5 |
|
- Gain/loss from disposal of assets* |
|
0.2 |
-0.3 |
0.1 |
|
- Financial expense/-income* |
|
9.1 |
7.9 |
36.8 |
|
- Income tax expense* |
|
4.3 |
5.1 |
12.6 |
|
- Other adjustments, operational* |
|
-4.5 |
-6.8 |
-23.6 |
|
Change in inventory* |
|
-34.7 |
-22.7 |
-44.1 |
|
Change in non-interest
bearing receivables* |
-19.6 |
-1.3 |
-9.7 | |
|
Change in non-interest bearing payables* |
-1.9 |
-8.6 |
19.3 | |
|
Dividends received* |
|
0.1 |
0.3 |
1.0 |
|
Interest received* |
|
0.6 |
1.1 |
2.7 |
|
Interest paid* |
|
-12.2 |
-10.2 |
-38.0 |
|
Other financial expense and income* |
|
-0.2 |
1.4 |
0.7 |
|
Taxes paid* |
|
-1.9 |
-5.5 |
-16.3 |
|
Net cash flows from operating activities |
-11.9 |
15.1 |
139.1 | |
|
|
|
|
|
|
|
Capital expenditure* |
|
-25.6 |
-18.7 |
-154.0 |
|
Proceeds from selling fixed assets* |
|
1.1 |
2.5 |
6.5 |
|
Divested subsidiaries |
|
- |
12.8 |
22.9 |
|
Proceeds from long-term deposits |
|
0.5 |
- |
1.6 |
|
Payment of long-term deposits |
|
-0.1 |
-2.8 |
-3.9 |
|
Proceeds from short-term deposits |
|
0.5 |
5.4 |
24.8 |
|
Payment of short-term deposits |
|
- |
-5.5 |
-8.1 |
|
Net cash flows from investing |
|
-23.6 |
-6.3 |
-110.2 |
|
|
|
|
|
|
|
Proceeds from long-term borrowings |
|
164.8 |
207.0 |
409.0 |
|
Repayment of long-term borrowings |
|
-169.0 |
-221.2 |
-495.5 |
|
Proceeds from short-term borrowings |
|
691.8 |
770.4 |
2,612.7 |
|
Repayment of short-term borrowings |
|
-649.4 |
-755.6 |
-2,543.6 |
|
Dividends paid |
|
- |
- |
-37.5 |
|
Proceeds from stock option exercises |
|
- |
- |
13.5 |
|
Net cash flows from financing |
|
38.2 |
0.6 |
-41.4 |
|
|
|
|
|
|
|
Change in liquid assets |
|
2.9 |
8.6 |
-15.3 |
|
Cash flow based |
|
2.7 |
9.4 |
-12.5 |
|
Translation difference |
|
0.2 |
-0.9 |
-2.8 |
|
|
|
|
|
|
|
Liquid assets period start |
|
22.3 |
37.6 |
37.6 |
|
Liquid assets period end |
|
25.2 |
46.2 |
22.3 |
|
|
|
|
|
|
|
Free cash flow
(including figures marked with *) |
-36.4 |
-1.1 |
-8.4 | |
|
NOTES FOR THE INTERIM REPORT | ||||||||
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This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. Except for accounting policy changes listed below, the same accounting policies have been applied in the interim financial statements as in annual financial statements for 2006. | ||||||||
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Interim report is unaudited. | ||||||||
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Changes in accounting principles | ||||||||
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The Group has adopted the following IFRS standards and interpretations considered applicable to Huhtamaki, with effect from January 1, 2007: | ||||||||
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IAS 1 Presentation of Financial statements: Capital disclosures: The Amendment to IAS 1 requires information about capital and capital management during the accounting period.
IFRIC 8 Scope of IFRS 2 Share-Based Payments: The interpretation applies to share-based payments, where the received compensation is below the fair value of granted equity instrument.
IFRIC 9 Reassessment of Embedded Derivatives: The interpretation requires the determination of whether the arrangement contains embedded derivatives, which have to be reported separately as derivative instruments.
IFRIC 10 Interim Financial reporting and Impairment: IFRIC 10 denies to reverse the impairment charge reported in interim report at later closing dates. | ||||||||
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The effect of these newly adopted standards has not had a material impact on the reported results or disclosures. | ||||||||
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In 2006 in the Americas segment the price reduction type item has been transferred from sales and marketing costs to amend net sales. In the business segment the whole item fell on the Foodservice segment. The effect of this restatement on net sales was EUR -3.9 million in Q1, EUR -6.7 million in Q2 and EUR -3.2 million in Q3 of 2006. The restatement did not have material impact on net sales based key ratios. | ||||||||
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Regions |
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|
|
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|
|
|
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Net sales |
|
|
|
|
|
|
|
|
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Q1-Q4 |
|
EUR million |
2007 |
2006 |
2006 |
2006 |
2006 |
2006 |
|
|
|
|
|
|
|
|
|
Europe |
304.9 |
288.4 |
296.5 |
311.2 |
292.6 |
1,188.7 |
|
Americas |
163.7 |
170.3 |
173.8 |
191.2 |
176.3 |
711.6 |
|
Asia-Oceania-Africa |
96.1 |
98.5 |
91.9 |
91.8 |
93.2 |
375.4 |
|
Total |
564.7 |
557.2 |
562.2 |
594.2 |
562.1 |
2,275.7 |
|
Interregional sales
are not significant. | ||||||
|
|
|
|
|
|
|
|
|
EBIT |
|
|
|
|
|
|
|
|
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Q1-Q4 |
|
EUR million |
2007 |
2006 |
2006 |
2006 |
2006 |
2006 |
|
|
|
|
|
|
|
|
|
Europe |
13.6 |
0.4 |
13.2 |
16.4 |
10.2 |
40.3 |
|
Americas |
18.5 |
13.9 |
14.0 |
19.7 |
13.7 |
61.3 |
|
Asia-Oceania-Africa |
5.7 |
6.6 |
7.5 |
4.1 |
6.3 |
24.4 |
|
EBIT before corporate items |
37.8 |
20.9 |
34.7 |
40.2 |
30.2 |
126.0 |
|
Corporate net |
-0.1 |
-0.5 |
3.4 |
9.6 |
7.0 |
19.5 |
|
Total |
37.7 |
20.4 |
38.1 |
49.8 |
37.2 |
145.5 |
|
|
|
|
|
|
|
|
|
Underlying EBIT |
|
|
|
|
|
|
|
|
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Q1-Q4 |
|
EUR million |
2007 |
2006 |
2006 |
2006 |
2006 |
2006 |
|
|
|
|
|
|
|
|
|
Europe |
13.6 |
3.4 |
14.9 |
19.9 |
13.9 |
52.1 |
|
Americas |
18.5 |
13.9 |
14.0 |
19.7 |
13.7 |
61.3 |
|
Asia-Oceania-Africa |
5.7 |
6.9 |
7.5 |
4.0 |
6.3 |
24.7 |
|
EBIT before corporate items |
37.8 |
24.2 |
36.4 |
43.6 |
33.9 |
138.1 |
|
Corporate net |
-0.1 |
-0.5 |
3.4 |
9.6 |
7.0 |
19.5 |
|
Total |
37.7 |
23.7 |
39.8 |
53.2 |
40.9 |
157.6 |
|
Net assets and RONA % (12m roll.) | |||||
|
|
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
|
EUR million |
2007 |
2006 |
2006 |
2006 |
2006 |
|
|
|
|
|
|
|
|
Europe |
789.7 |
782.7 |
779.4 |
778.6 |
784.8 |
|
RONA-% underlying |
6.6% |
6.7% |
7.8% |
8.2% |
8.7% |
|
RONA-% reported |
5.5% |
5.1% |
6.1% |
5.5% |
0.1% |
|
Americas |
566.2 |
558.1 |
564.5 |
565.9 |
573.4 |
|
RONA-% underlying |
11.7% |
11.0% |
11.0% |
10.9% |
9.7% |
|
RONA-% reported |
11.7% |
11.0% |
11.0% |
10.9% |
4.3% |
|
Asia-Oceania-Africa |
303.4 |
301.0 |
295.8 |
292.2 |
293.9 |
|
RONA-% underlying |
7.9% |
8.1% |
8.1% |
7.7% |
8.4% |
|
RONA-% reported |
7.9% |
8.1% |
6.1% |
5.6% |
5.8% |
|
Business segments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
|
|
|
|
|
|
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Q1-Q4 |
|
EUR million |
2007 |
2006 |
2006 |
2006 |
2006 |
2006 |
|
|
|
|
|
|
|
|
|
Consumer Goods |
389.2 |
359.0 |
368.2 |
379.6 |
388.5 |
1,495.3 |
|
Foodservice |
175.5 |
198.2 |
194.0 |
214.5 |
173.6 |
780.3 |
|
Total |
564.7 |
557.2 |
562.2 |
594.1 |
562.1 |
2,275.6 |
|
Intersegment sales are not significant. | ||||||
|
|
|
|
|
|
|
|
|
EBIT |
|
|
|
|
|
|
|
|
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Q1-Q4 |
|
EUR million |
2007 |
2006 |
2006 |
2006 |
2006 |
2006 |
|
|
|
|
|
|
|
|
|
Consumer Goods |
26.5 |
11.6 |
23.7 |
21.1 |
18.1 |
74.7 |
|
Foodservice |
11.3 |
9.3 |
11.0 |
19.1 |
12.1 |
51.3 |
|
EBIT before corporate items |
37.8 |
20.9 |
34.7 |
40.2 |
30.2 |
126.0 |
|
Corporate net |
-0.1 |
-0.5 |
3.4 |
9.6 |
7.0 |
19.5 |
|
Total |
37.7 |
20.4 |
38.1 |
49.8 |
37.2 |
145.5 |
|
|
|
|
|
|
|
|
|
Underlying EBIT |
|
|
|
|
|
|
|
|
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Q1-Q4 |
|
EUR million |
2007 |
2006 |
2006 |
2006 |
2006 |
2006 |
|
|
|
|
|
|
|
|
|
Consumer Goods |
26.5 |
14.5 |
25.2 |
23.5 |
20.9 |
84.1 |
|
Foodservice |
11.3 |
9.7 |
11.2 |
20.1 |
13.0 |
54.0 |
|
EBIT before corporate items |
37.8 |
24.2 |
36.4 |
43.6 |
33.9 |
138.1 |
|
Corporate net |
-0.1 |
-0.5 |
3.4 |
9.6 |
7.0 |
19.5 |
|
Total |
37.7 |
23.7 |
39.8 |
53.2 |
40.9 |
157.6 |
|
Share capital and shareholders | ||||||
|
At the end of the review period, the company's registered share capital was EUR 358,657,670.00 (EUR 353,053,864.80) corresponding to a total number of outstanding shares of 105,487,550 (103,839,372) including 5,061,089 (unchanged) company's own shares. The company's own shares represent 4.8% of the total number of shares. The net figure of outstanding shares was 100,426,461 (98,778,283). | ||||||
|
|
|
|
|
|
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|
The ownership structure relating to the largest registered shareholders saw some adjustments but was not subject to major changes during the first quarter. At the end of March there were 22,033 (20,740) registered shareholders. Foreign ownership accounted for 25.9% (21.6%), of which 20.7% (18.0%) was under nominee registration within financial institutions. | ||||||
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|
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|
|
|
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|
|
Share developments | ||||||
|
Huhtamaki's share is quoted on the Helsinki Stock Exchange on the Nordic Large Cap list under the Materials sector. At the end of March, the company's market capitalization was EUR 1,307.0 million (EUR 1,619.9 million) and EUR 1,244.3 million (EUR 1,540.9 million) excluding company's own shares. With a closing price of EUR 12.39 (EUR 15.60) the share price decreased by 17% (+12%) from the beginning of the year, while the OMX Helsinki CAP PI Index increased by 6% (+17%). In January-March, the volume weighted average price for the Huhtamaki share was EUR 13.30 (EUR 15.12). The highest price paid was EUR 15.89 on January 15, 2007 and the lowest price paid was EUR 12.01 on March 14, 2007. | ||||||
|
|
|
|
|
|
|
|
|
The cumulative value of the Huhtamaki share turnover was EUR 426.9 million
(EUR 273.1 million). The trading volume of 32.1 million (18.3 million) shares equaled an average daily turnover of EUR 6.7 million (EUR 4.3 million) or, correspondingly 501,172 (285,169) shares. | ||||||
|
|
|
|
|
|
|
|
|
In total, turnover of the company's 2003 A and B option rights was EUR 1.8 million (EUR 1.6 million), corresponding to a trading volume of 341,792 (213,650). | ||||||
|
Other information |
|
|
|
|
|
Q1 |
Q1 |
Q1-Q4 |
|
EUR million |
2007 |
2006 |
2006 |
|
|
|
|
|
|
Equity per share (EUR) |
8.64 |
7.93 |
8.37 |
|
ROE, % |
11.5 |
1.8 |
11.7 |
|
ROI, % |
9.3 |
4.3 |
9.4 |
|
Capital expenditure |
25.6 |
18.7 |
154.0 |
|
Personnel |
14,885 |
14,754 |
14,792 |
|
Profit before taxes (12m roll.) |
108.7 |
25.8 |
109.2 |
|
|
|
|
|
|
Depreciation |
23.0 |
23.4 |
92.6 |
|
Amortization of other intangible assets |
1.4 |
0.8 |
2.7 |
|
Contingent liabilities |
|
|
|
|
|
Mar 31 |
Dec 31 |
Mar 31 |
|
|
2007 |
2006 |
2006 |
|
EUR million |
Group |
Group |
Group |
|
|
|
|
|
|
Mortgages |
14.6 |
14.7 |
14.9 |
|
Guarantee obligations |
6.2 |
3.8 |
4.6 |
|
Lease payments |
59.1 |
59.3 |
65.5 |
|
Capital expenditure commitments |
48.5 |
27.4 |
32.0 |
|
|
|
|
|
|
Nominal values of derivative instruments | |||
|
|
Mar 31 |
Dec 31 |
Mar 31 |
|
|
2007 |
2006 |
2006 |
|
EUR million |
Group |
Group |
Group |
|
|
|
|
|
|
Currency forwards, transaction risk hedges |
57 |
54 |
81 |
|
Currency forwards, translation risk hedges |
111 |
112 |
58 |
|
Currency swaps, financing hedges |
130 |
107 |
143 |
|
Currency options |
- |
1 |
1 |
|
Interest rate swaps |
132 |
139 |
229 |
|
Electricity forwards |
- |
2 |
- |
|
The following EUR rates have been applied to GBP, INR, AUD and USD | |||
|
|
|
Q1/07 |
Q1/06 |
|
Income statement, average: |
GBP 1 = |
1.491 |
1.458 |
|
|
INR 1 = |
0.017 |
0.019 |
|
|
AUD 1 = |
0.600 |
0.615 |
|
|
USD 1 = |
0.763 |
0.832 |
|
|
|
|
|
|
|
|
Q1/07 |
Q1/06 |
|
Balance sheet, month end: |
GBP 1 = |
1.471 |
1.436 |
|
|
INR 1 = |
0.017 |
0.019 |
|
|
AUD 1 = |
0.607 |
0.588 |
|
|
USD 1 = |
0.751 |
0.826 |
Definitions for key indicators
Earnings per share = Profit before taxes - minority interest - taxes / Average number of shares outstanding
Earnings per share (diluted) = Diluted profit before taxes - minority interest - taxes / Average fully diluted number of shares outstanding
Net debt to equity (gearing) = Interest bearing net debt / Equity + minority interest (average)
RONA-% = 100 x Earnings before interest and taxes (12 m roll.) / Net assets (12 m roll.)
Shareholders' equity per share = Equity / Issue-adjusted number of shares at period end
Return on equity (ROE) = 100 x (Profit for the period) / Equity + minority interest (average)
Return on investment (ROI) = 100 x (Profit before taxes + interest expenses + net other financial expenses) / Balance sheet total - Interest-free liabilities (average)
