Apetit Plc Interim Report, January-September 2015
This is a summary of the Interim Report January - September 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.
Third quarter (July–September)
- Consolidated net sales were down on the previous year and amounted to EUR 75.3 (77.0) million.
- Operating profit excluding non-recurring items was EUR 1.5 (1.6) million.
- The reported operating profit was EUR -2.8 (-11.1) million and non-recurring items totalled EUR -4.3 (-12.7) million.
- The profit for the period was EUR -4.0 (-11.1) million, and earnings per share amounted to EUR -0.64 (-1.74).
- The profit for the period excluding non-recurring items came to EUR 0.4 (1.0) million, and earnings per share excluding non-recurring items amounted to EUR 0.06 (0.20).
January–September
- Consolidated net sales were up on the comparison period and amounted to EUR 267.0 (264.0) million.
- Operating profit excluding non-recurring items was lower than a year earlier and came to EUR -1.5 (2.0) million.
- The reported operating profit was EUR -5.1 (-11.2) million, and non-recurring items totalled EUR -3.6 (-13.2) million.
- The profit for the period was EUR -6.8 (-12.1) million, and earnings per share amounted to EUR -1.05 (-1.86).
- The profit for the period excluding non-recurring items came to EUR -3.2 (0.3) million, and earnings per share excluding non-recurring items amounted to EUR -0.46 (0.15).
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 final-quarter operating profit excluding non-recurring items is also expected to be lower than in the comparison period.
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 third quarter net sales and operating profit excluding non-recurring items were slightly down on the previous year. Profitability was supported by the performance of the Grains and Oilseeds Business which matched the comparison period’s figures, but on the whole, consolidated profit was unsatisfactory. In the Food Business, the third quarter operating profit excluding non-recurring items improved on the first half of the year but nevertheless remained on an unsatisfactory level. Due to the low market price of sugar, the associated company Sucros’s result was negative.
We continued our long-term profitability programmes in the Food Business. We have concentrated operations of the fish products group in Kuopio, and made investments to improve profitability and changed work arrangements. In the fresh products group we have significantly streamlined the production structure at the Helsinki plant. The profitability programme measures will be implemented in stages by the end of 2015. When fully implemented, the objective of the programmes is to achieve a reduction of EUR 4.5 million in annual operating costs.
Management of the Food Business was strengthened in the early autumn to boost the revision of its business operations and implementation of the profitability programmes. Anu Ora took up the position of Director of the Apetit Group’s Food Business in August. She has strong experience in the retail trade and strategic business development. Changes were also made in the management of the fish and fresh products groups to focus the best talent and resources to managing profitability and renewal.
In the early autumn we launched a planning process for a new Apetit Group strategy. The work is now in full swing and proceeding according to schedule. We aim to have the new strategy ready in early 2016.”
KEY FIGURES
| EUR million | Q3/ 2015 | Q3/ 2014 | Change | Q1–Q3/ 2015 | Q1–Q3/ 2014 | Change | 2014 |
| Net sales | 75.3 | 77.0 | -2 % | 267.0 | 264.0 | +1 % | 384.7 |
| Operating profit before non-recurring items | 1.5 | 1.6 | -1.5 | 2.0 | 7.3 | ||
| Operating profit | -2.8 | -11.1 | -5.1 | -11.2 | -5.9 | ||
| Profit before taxes | -3.8 | -11.1 | -6.3 | -12.1 | -8.1 | ||
| Profit for the period | -4.0 | -11.1 | -6.8 | -12.1 | -8.7 | ||
| Profit for the period, excl. non-recurring items | 0.4 | 1.0 | -3.2 | 0.3 | 3.7 | ||
| Earnings per share, EUR | -0.64 | -1.74 | -1.05 | -1.86 | -1.29 | ||
| Earnings per share, excl. non-recurring items, EUR | 0.06 | 0.20 | -0.46 | 0.15 | 0.72 | ||
| Equity per share, EUR | 19.07 | 20.08 | 20.70 | ||||
| Equity ratio, % | 60.2 | 61.4 | 69.7 | ||||
| Gearing, % | 13.0 | 14.8 | -1.3 | ||||
| Net cash flow from operating activities | -8.4 | -4.0 | 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.
The final-quarter operating profit excluding non-recurring items is expected to be lower than a year earlier.
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 addition, harvest-time production, which will be lower than that of the comparison period, is anticipated to have a negative impact on Sucros’s result during the latter part of the year compared with the comparison period.
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 anticipated in the early part of the year. The aim of the long-term profitability programmes in the Food Business is to improve profitability and competitiveness. The effect of the profitability programmes will increase towards the end of the year but the improvement of profitability will be slowed down by the continuing challenging market conditions.
The outlook of the Grains and Oilseeds business is stable. The segment’s operating profit excluding non-recurring items is, however, expected to fall short of the strong figures of the comparison period.
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
***************
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 - September results of Apetit Plc and gives information about other current issues. Apetit Plc’s CFO Eero Kinnunen 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