Apetit’s strategy and financial objectives for 2020–2022: Further strengthening of the unique value chain is at the core of the renewed strategy
Apetit Plc, Stock Exchange Release 12 May 2020 at 09:00 a.m.
Apetit Plc is releasing its strategy for 2020–2022. A key feature of the renewed strategy is strengthening the existing unique value chain that has a strong foundation in Finnish primary production. The operations of the strategy season aim towards the objective of building Apetit into a successful Finnish company focusing on plant-based food products.
“In our strategy, we focus on utilising our existing strengths and strengthening them further in all of our business areas. A key factor in everything we do is ensuring future success,” says Esa Mäki, Apetit’s CEO.
Apetit has identified the phenomena in the operating environment that both steer and support the company’s strategy and its execution.
“The demand for plant-based food products is on the increase. As culinary trends, making daily life easier, well-being and the origin of food are highlighted further. In addition, the frozen foods market will grow. In the big picture, climate change will increase extreme weather phenomena and seasonal variations in harvest. Climate-responsible everyday actions are emphasised when we are building a sustainable food supply chain through different value chains,” describes Mäki.
Five strategic focus areas of the Apetit Group
- Optimising core business functions
We will improve process efficiency in all of our operations. We will scale our operations in relation to the company’s existing size. We will improve resource efficiency through partnerships. We will develop our trading ability in the grain trade.
- Strong foothold in Sweden
We will strengthen the Swedish market as the primary focus area of export. We will ensure and deepen our existing customer relationships and also build new customer relationships. We will develop and expand our market-specific product portfolio. We will build appropriate partnerships for other selected markets.
- Growth from plant-based added value products
We will increase the sales of our existing product portfolio and expand our customer base. We will expand to new product segments. We will strengthen our commercial position in Foodservice channels. We will create a model for the commercialisation of the rapeseed protein ingredient.
- Developing farming partnerships
Food Solutions: We will expand contract farming in pea and possible new plants. We will improve the preconditions for farming by developing cultivation measures, soil health and plant protection measures, among other things. We will make use of new opportunities, such as carbon farming.
Oilseed Products: We will deepen our contract farming model to ensure the availability of Finnish raw materials.
Grain Trade: We will become the farmer’s primary partner by developing logistics solutions and utilising selected partnerships.
- Sustainable actions
We will promote cultivation development and implement new sustainable cultivation methods. We will provide new diverse alternatives to increase plant-based and sustainable eating. We will make sustainability an even more intertwined part of all of our operations. We will decrease the Group’s environmental and climate impacts in accordance with set objectives.
“The focus areas set in the strategy are summarised well in the renewed Apetit mission: Good food for everyone. Locally. Food directly or indirectly and integration with Finnish primary production link all of our business operations. Our goal is that our products and operations have a positive impact on everything: both the environment and people. Our production takes place in Finland, and it’s largely based on Finnish raw materials,” says Mäki.
Financial objectives
EBITDA will be EUR 14 million in 2022 (continuing operations in 2019 EUR 2.5 million)
Return on capital employed (ROCE %) > 8% (2019: -4.0%)
The realisation of set strategic objectives is based on regular harvest development and systematic execution of strategic measures. The company is open to corporate transactions that are in line with its strategy. The possible impacts of the ongoing COVID-19 pandemic on financial objectives will be reassessed later, if necessary.
Dividend policy remains as before
The Board of Directors of Apetit Plc aims to ensure that the company’s shares provide shareholders with a good return on investment and retain their value. The company will distribute at least 50 per cent of the profit for the financial year in dividends.
Apetit Plc
For further information, please contact:
Esa Mäki, CEO, tel. +358 10 402 2100
Apetit is a food industry company firmly rooted in Finnish primary production. Our operations are based on a unique value chain: we create well-being with vegetables by offering healthy and tasty food solutions that make daily life easier. We also produce high-quality vegetable oils and rapeseed expellers for feeding stuff, and trade grain on the international markets. Apetit Plc's shares are listed on Nasdaq Helsinki. In 2019, Apetit Group's net sales were EUR 313 million. Read more at apetit.fi.