Stock Exchange Release – Func Food Group Q2 and Half Year 2017 Financial Report
Func Food Group has today published its Q2 and half year 2017 financial report. The report is available in English at http://www.funcfood.com/investors/?lang=en.
Second quarter 2017
• Consolidated Group revenues amounted to MEUR 10,0 (MEUR 10,2 in consolidated 2016).
• Revenues decreased by MEUR 0,2 or 1,9% in comparison to 2016.
• Consolidated Group EBITDA amounted to MEUR -0,1 (MEUR 0,9 in consolidated 2016).
• EBITDA decreased by MEUR 1,0 in comparison to 2016.
• EBITDA adjusted for items affecting comparability was MEUR -0,1 in 2017 and MEUR 1,0 in 2016 (reduction of MEUR 1,1).
Year-to-date June 2017
• Consolidated Group revenues amounted to MEUR 20,5 (MEUR 21,0 in consolidated 2016).
• Revenues decreased by MEUR 0,5 or 2,2% in comparison to 2016.
• Consolidated Group EBITDA amounted to MEUR 0,5 (MEUR 1,6 in consolidated 2016).
• EBITDA decreased by MEUR 1,0 or 66,0% in comparison to 2016.
• EBITDA adjusted for items affecting comparability was MEUR 0,7 in 2017 and MEUR 1,8 in 2016 (reduction of MEUR 1,1 or 61,4%).
In Q2 2017 the Group had a negative EBITDA and adjusted EBITDA due to financial development in Finland, while the business in Sweden generated a positive EBITDA and adjusted EBITDA. The profitability in the quarter was significantly impacted by timing of marketing investments, which increased the overall cost level of the Group. Revenue performance of the Group’s two largest brands Celsius and FAST was positive compared to the previous year. The sales of Freddy clothing were also in growth while other brands and private labels declined. Total net revenue was MEUR 10,0 (-1,9% vs. previous year). Excluding private label sales the net revenue development in the quarter was +1,9% vs. PY. Total EBITDA and adjusted EBITDA were both MEUR -0,1. Total sales margin-% was 38,6% (38,9% in Q2 2016).
The Group’s year-to-date revenue was MEUR 20,5 (-2,2% vs. PY and +3,2% vs. PY excluding private label sales). Celsius revenues increased by MEUR 1,4 or 14,3% vs. PY, followed by MEUR 0,6 (+13,1%) growth of FAST. Private label sales development was the biggest contributor to the overall revenue decline. EBITDA amounted to MEUR 0,5 in the first six months of 2017 (MEUR 1,6 in 2016) and adjusted EBITDA was MEUR 0,7 (MEUR 1,8 in 2016).
Consolidated cash and cash equivalents on 30 June 2017 amounted to MEUR 0,8 (MEUR 1,4 in the beginning of the quarter and MEUR 0,7 in the beginning of 2017). The Group generated a negative net cash flow of MEUR -0,4 from operating activities in the quarter, and a positive net cash flow of MEUR 6,3 during the first six months of the year. The positive development was largely impacted by decreased receivables relating to blocked bank account funds, which were used for bond amortization in Q1. Net cash flow from investing activities was MEUR -0,2 in the quarter and MEUR -0,3 year-to-date June. The Group did not take or repay loans during the quarter. Year-to-date impact of changes in loans was MEUR -5,9.
The Group will maintain the current strategy of developing cross-sales and strengthening our position in our core markets. Even though the retail channel is showing growth in both Sweden and Finland, the competitive pressure in the market has also increased significantly, with more impact on pricing across both more “traditional” products such as powders and growing categories such as bars. Given this, we still expect to see an overall increase in revenue for the company in 2017 with continued pressure on liquidity as the Group strives to grow its brands into new markets under the current conditions.
For further information please contact:
Robin Lybeck, CEO, Func Food Group Oyj
mobile +358 40 735 2464
Tommi Virtanen, CFO, Func Food Group Oyj
mobile +358 40 590 4040.
The information contained in this press release is such information that Func Food Group Oyj is required to publish in accordance with the Swedish Securities Market Act (2007:528) and/or the Swedish Financial Instruments Trading Act (1991:980). The information was submitted for publication on 31 August 2017, at 19.00 CET.
Func Food Group Oyj, Mäkelänkatu 91, 00610 Helsinki, Finland. The board is resident in Helsinki. For further information about the company please visit http://www.funcfood.com/?lang=en.
Func Food Group Oyj