INTERIM REPORT 1 January - 30 September 2010
LÄNNEN TEHTAAT PLC Interim Report 3 November 2010, 8.30 am
INTERIM REPORT 1 January - 30 September 2010
July-September (third quarter):
- Consolidated net sales came to EUR 65.9 (64.1) million, up 3%
- Operating profit, excluding non-recurring items, was EUR 1.3 (1.3) million;
non-recurring items totalled EUR 0.0 (-0.3) million
- Profit for the period came to EUR 0.7 (1.1) million, and earnings per share
amounted to EUR 0.10 (0.18).
January-September:
- Consolidated net sales came to EUR 220.8 (194.3) million, up 14%
- Operating profit, excluding non-recurring items, was EUR 3.2 (2.2) million;
non-recurring items totalled EUR 0.0 (-0.8) million
- Profit for the period came to EUR 2.1 (1.6) million, and earnings per share
amounted to EUR 0.34 (0.26).
In its second-quarter Interim Report, the company estimated that the
consolidated full-year operating profit, excluding non-recurring items, would be
at least at the level of 2009. The updated guidance for the full year is that
the consolidated operating profit, excluding non-recurring items, is expected to
exceed the level of 2009.
The information in this Interim Report has not been audited.
Matti Karppinen, CEO:
“Profit performance continued to be steady during the third quarter. For
July-September, the consolidated operating profit, excluding non-recurring
items, was about the same as a year ago. Both Frozen Foods and Other Operations
posted a year-on-year improvement in their profits. Grains and Oilseeds managed
the strong and rapid changes in market prices well, bringing the profit almost
to the previous year's level. In Seafood, the result was down on the previous
year's figure. The greatest operational challenges still lay with Seafood's
Finnish operations, where high raw material costs burdened the result until late
in the period. The profits of Myrskylän Savustamo Oy and the associated company
Taimen Oy, which were acquired in June, have been in line with expectations and
have had a positive impact on Seafood's result.
“The integration of the new companies into Apetit Kala's functions has proceeded
as planned, and Apetit Kala's reorganisation took effect at the beginning of
September. Following the Taimen arrangement, the streamlining of the fresh fish
supply chain has continued as planned. To improve the level of service, it was
decided at the end of the period to begin fish processing at the Kustavi
production plant.”
KEY FIGURES
EUR million Q3/ Q3/ Jan-Sep Jan-Sep Jan-Dec
2010 2009 2010 2009 2009
Net sales 65.9 64.1 220.8 194.3 266.0
Operating profit 1.3 1.0 3.2 1.4 6.8
Operating profit,
excluding non-recurring items 1.3 1.3 3.2 2.2 7.7
Profit before taxes 1.2 1.4 3.3 2.1 7.3
Profit for the period 0.7 1.1 2.1 1.6 5.8
Earnings per share, EUR 0.10 0.18 0.34 0.26 0.94
NET SALES AND PROFIT
July-September (third quarter):
Consolidated net sales for the third quarter amounted to EUR 65.9 (64.1)
million, an increase of 3% on the same quarter in 2009. The majority of the
growth was in the Seafood business.
The Group's third-quarter operating profit, excluding non-recurring items, was
EUR 1.3 (1.3) million. The non-recurring items totalled EUR 0.0 (-0.3) million.
The operating profit includes EUR 0.6 (0.3) million as the share of the profits
of associated companies. In the Frozen Foods and Other Operations segments the
operating profit, excluding non-recurring items, was better than the previous
year. In Seafood and the Grains and Oilseeds business, the profit was down year
on year.
January-September:
Consolidated net sales for January-September came to EUR 220.8 (194.3) million,
up by 14%.
The operating profit, excluding non-recurring items, was EUR 3.2 (2.2) million.
The non-recurring items came to EUR 0.0 (-0.8) million. A total of EUR -0.7
million of the non-recurring items in the comparison period was in the Seafood
business and EUR -0.1 million in the Grains and Oilseeds business. The operating
profit includes EUR 0.8 (0.7) million as the share of the profits of associated
companies.
Financial income and expenses came to a total of EUR 0.1 (0.7) million. This
figure includes valuation items of EUR 0.8 (0.6) million with no cash flow
implications. Financial expenses also include EUR -0.6 (-0.4) million of Avena
Nordic Grain Group's profit as the share attributable to the Avena Nordic Grain
Oy employee shareholders.
Profit before taxes was EUR 3.3 (2.1) million. Profit for the period came to EUR
2.1 (1.6) million, and earnings per share amounted to EUR 0.34 (0.26).
FINANCING AND BALANCE SHEET
The Group's liquidity was good and its financial position is strong.
The cash flow from operating activities in January-September after interest and
taxes amounted to EUR -3.1 (23.3) million. The impact of the change in working
capital was EUR -7.3 (18.1) million, most of this being in the Grains and
Oilseeds business. The net cash flow from investing activities came to EUR 6.9
(-11.5) million. Deposits and withdrawals of liquid assets into and from
short-term fixed income funds had an impact of EUR 13.0 (-12.0) million on
the cash flow from investing activities. The cash flow from financing activities
came to EUR -4.7 (-16.8) million, and this included EUR -4.7 (-5.3) million in
dividend payments.
At the end of the period the Group had EUR 3.5 (5.6) million in interest-bearing
liabilities and EUR 11.4 (20.9) million in liquid assets. Net interest-bearing
liabilities totalled EUR -7.9 (-15.4) million. The Group's liquidity over the
next few years is secured with committed credit facilities; a total of EUR 25
(25) million was available in credit at the end of September. No credit
facilities were used during the January-September period.
The consolidated balance sheet total stood at EUR 178.5 (172.7) million. At the
end of September, equity totalled EUR 134.8 (132.1) million. The equity ratio
was 75.6% (76.7%) and gearing was -5.9% (-11.6%).
INVESTMENT
Gross investment in non-current assets in January-September came to EUR 2.6
(2.0) million.
PERSONNEL
The average number of personnel during January-September was 624 (659). Most of
the reduction in personnel occurred in the Seafood business.
OVERVIEW OF OPERATING SEGMENTS
Frozen Foods
EUR million Q3/ Q3/ Jan-Sep Jan-Sep Jan-Dec
2010 2009 2010 2009 2009
Net sales 10.0 10.4 33.8 34.6 46.0
Operating profit 1.3 1.1 1.9 1.9 3.4
Operating profit,
excluding non-recurring items 1.3 1.1 1.9 1.9 3.4
Third-quarter net sales were down by 3% year on year. The decrease was in sales
to the food industry and export sales. Sales of retail products and sales to the
hotel, restaurant and catering sector were favourable. The hot summer reduced
frozen foods consumption and monthly fluctuations were strong.
Apetit Pakaste launched several new products during the period. The most
significant new retail products were the Apetit Focaccia breads, comprising
three products, and the lactose-free Apetit soups (puréed potato and root
vegetable soup, salmon soup). The most important new items for the hotel,
restaurant and catering sector were carrot patties and whitefish fishcakes.
Third-quarter operating profit improved on the previous year's figure as a
result of the sales emphasis on more profitable products, higher productivity
and good management of overheads.
Net sales in Frozen Foods for January-September fell by 2% year on year. Sales
of retail products and sales to the hotel, restaurant and catering sector were
at the previous year's level, while sales to the food industry and exports were
down year on year. Within product groups, the good sales performance of frozen
vegetables, frozen potato products and frozen soups continued. Operating profit
for January-September was at the level of the previous year.
The number of personnel in Frozen Foods during January-September was 191 (199).
The most significant of the investments during the period, which totalled EUR
1.1 (1.4) million, were the replacements in crop-season production facilities
and in the frozen ready meals factory, and the enlargement of the dispatch area
at the Pudasjärvi production plant.
Seafood
EUR million Q3/ Q3/ Jan-Sep Jan-Sep Jan-Dec
2010 2009 2010 2009 2009
Net sales 19.7 18.1 57.1 54.9 75.9
Operating profit -1.1 -1.1 -2.2 -3.0 -2.5
Operating profit,
excluding non-recurring items -1.1 -0.9 -2.2 -2.4 -1.8
The third-quarter net sales of the Seafood business were up by about 9% on the
same quarter a year earlier. This growth was in the Finnish Seafood business.
The growth was attributable to the higher average price of fish product sales
compared with a year earlier, the positive sales trend in higher added value
cold-smoked and raw-pickled products, and the addition of Myrskylän Savustamo to
the Group at the start of June.
Net sales of Seafood's Norwegian and Swedish operations in euros were at about
the level of a year earlier. Measured in local currencies, net sales were down
by about 10%. Most of the decrease in net sales was on the Norwegian market. On
the Swedish market, retail sales performed favourably, whereas sales in the
hotel, restaurant and catering sector were slightly short of the previous year's
level.
Seafood's third-quarter operating profit, excluding non-recurring items, was
down a little, year on year. In the Finnish Seafood business the result
improved. The result in Seafood's Norwegian and Swedish operations was adversely
affected by unrealised changes in the fair value of currency hedges, for which
EUR -0.4 (-0.1) million was included in the operating result for the period. The
share of the third-quarter profit of the associated company Taimen Group
amounted to EUR 0.4 million.
The profitability of the Finnish Seafood business was affected by raw material
prices for rainbow trout and Norwegian salmon, which remained exceptionally
high. Due to the market environment and the retail trade's pricing periods, it
has so far only been possible to pass on a proportion of the higher raw material
costs to sales prices.
The operating efficiency of Seafood's Norwegian and Swedish operations has been
good. In Norway, the high raw material price for salmon also continued to have
an adverse impact on profit-earning capacity, as it was possible to introduce
only a proportion of the price rises that would have compensated for the
increased raw material prices, due to market circumstances.
Seafood's net sales for January-September were up by 4% on the same period in
2009. The operating profit, excluding non-recurring items, was up by EUR 0.2
million year on year, but was a loss overall. The operating profit included EUR
-0.3 (-0.1) million as unrealised changes in the fair value of currency hedges.
The share of the profit of the associated company Taimen Group, acquired in
June, amounted to EUR 0.3 million.
The process of integrating Apetit Kala and Myrskylän Savustamo Oy, acquired in
June, and its subsidiary, Safu Oy, has proceeded according to plan. The
functions of Apetit Kala were reorganised, and the new organisation took effect
at the start of September. To streamline the fresh fish supply chain and improve
the service level, Apetit Kala is to begin fresh fish processing at the Kustavi
production plant at the start of November. This will expand the fish processing
capacity, reduce logistics costs and shorten the time from sea to table.
The average number of personnel in the Seafood business totalled 363 (387).
Investment in the Seafood business in January-September amounted to EUR 0.8
(0.4) million. Most of this was in completing the productivity investment
programme at the Kuopio production plant.
Grains and Oilseeds
EUR million Q3/ Q3/ Jan-Sep Jan-Sep Jan-Dec
2010 2009 2010 2009 2009
Net sales 36.1 35.6 129.7 104.7 143.4
Operating profit 1.5 1.5 5.6 4.6 7.3
Operating profit,
excluding non-recurring items 1.5 1.6 5.6 4.8 7.4
Third-quarter net sales in the Grains and Oilseeds business were up by slightly
more than 1% year on year. This growth was attributable to a small increase in
deliveries and stronger prices.
The operating profit of Grains and Oilseeds, excluding non-recurring items, was
down slightly on the previous year's third-quarter figure.
As part of its growth strategy, Avena Nordic Grain Oy established a subsidiary
named TOO Avena Astana in Kazakhstan during the summer to strengthen its grain
purchasing and trading operations in the region.
January-September net sales in Grains and Oilseeds were up by 24% year on year,
thanks to a growth in volumes. Operating profit, excluding non-recurring items,
was up on the previous year's level.
Due to exceptional weather, this autumn's grain crop was below that of 2009 in a
number of key grain production regions, particularly in Russia, Ukraine and
Kazakhstan. The EU crop was down by 20 million tonnes year on year. As there was
no corresponding drop in world demand, market prices rose in late July to a
level significantly higher than a year earlier. At the end of harvesting, prices
came down on the world market but have since strengthened again.
The grain crop in Finland was the smallest for a decade, amounting to a quarter
less than the previous autumn's crop. The area under rapeseed doubled, but the
per-hectare crop was below average on account of the hot, dry summer.
Although the grain crop in Finland and many other countries was down year on
year, there is an abundance of trading opportunities in the crop season
currently under way, due to changes in grain flows, quality differences among
crops on different markets, and price fluctuations.
The Grains and Oilseeds business employed an average of 60 (62) people.
In January-September, investment came to EUR 0.6 (0.2) million and focused on
the renewal of Avena's Internet marketplace (Avenakauppa) and the renewal of the
process automation system and other replacement investment for the Kirkkonummi
vegetable oil mill.
Other Operations
EUR million Q3/ Q3/ Jan-Sep Jan-Sep Jan-Dec
2010 2009 2010 2009 2009
Net sales 0.5 0.5 1.4 1.3 2.4
Operating profit -0.4 -0.5 -2.0 -2.1 -1.3
Operating profit,
excluding non-recurring items -0.4 -0.5 -2.0 -2.1 -1.3
Other Operations comprise the service company Apetit Suomi Oy, Group
Administration, items not allocated under any of the business segments, and the
associated companies Sucros Ltd and Ateriamestarit Oy. The cost impact of the
services produced by Apetit Suomi Oy is an encumbrance on the operating result
of the Group's businesses in proportion to their use of the services.
In the third quarter, net sales from the sale of services were at the previous
year's level.
The third-quarter operating profit came to EUR -0.4 (-0.5) million, which
includes EUR 0.2 (0.3) million as the share of the profits of associated
companies.
The January-September operating profit was EUR -2.0 (-2.1) million. This figure
includes EUR 0.5 (0.7) million as the share of the profits of associated
companies.
Investment in Other Operations totalled EUR 0.1 (0.0) million.
USE OF THE AUTHORISATIONS GRANTED TO THE BOARD OF DIRECTORS
Authorisations to issue shares
The company's Board of Directors has not exercised the authorisation granted to
it by the Annual General Meeting on 30 March 2010 to issue new shares or to
transfer Lännen Tehtaat plc shares held by the company.
SHARES AND TRADING
The number of Lännen Tehtaat plc shares traded on the stock exchange during
January-September was 917,244 (1,105,775), representing 14.5% (17.5%) of the
total number of shares. The euro-denominated share turnover was EUR 16.1 (14.0)
million. The highest share price quoted was EUR 20.00 (15.20) and the lowest EUR
15.51 (11.90). The average price of shares traded was EUR 17.60 (12.64).
At the end of September, the market capitalisation totalled EUR 116.6 (93.1)
million.
OWN SHARES
At the end of September, the company had in its possession a total of 130,000 of
its own shares, with a combined nominal value of EUR 0.26 million. These shares
represent 2.1% of the company's total number of shares and of the total number
of votes.
FLAGGING ANNOUNCEMENTS
Lännen Tehtaat received 3 flagging announcements in the period
January-September.
On 7 May 2010, EM Group Oy announced that its holding in Lännen Tehtaat plc had,
on 6 May 2010, exceeded 5% of the total number of Lännen Tehtaat plc shares and
votes. At the time of the announcement, EM Group Oy owned 316,000 Lännen Tehtaat
plc shares, equating to 5.002% of the total number of Lännen Tehtaat plc shares
and 5.107% of the votes.
On 15 September 2010, Valio Ltd announced that its holding of Lännen Tehtaat plc
shares had, on 14 September 2010, fallen below the 5% flagging level. Prior to
the share transactions of 14 September 2010, Valio Ltd's holding amounted to
327,912 shares and votes. Following the share transactions of 14 September 2010,
Valio Ltd owns no Lännen Tehtaat plc shares.
On 15 September 2010, the Valio Pension Fund announced that its holding of
Lännen Tehtaat plc shares and votes had, on 14 September 2010, exceeded 5%.
Prior to the share transactions of 14 September 2010, the Valio Pension Fund
held 86,478 Lännen Tehtaat plc shares and votes. Following the share
transactions of 14 September 2010, the Valio Pension Fund holds 414,390 Lännen
Tehtaat plc shares, which equates to 6.5% of the total of Lännen Tehtaat plc
shares and votes.
SEASONALITY OF OPERATIONS
In accordance with the IAS 2 standard, the historical cost of inventories
includes a systematically allocated portion of the fixed production overheads.
In production that focuses on seasonal crops, raw materials are processed into
finished products mainly during the final quarter of the year, which means that
the inventory volumes and their balance-sheet values are at their highest at the
end of the year. Since the entry of the fixed production overheads included in
the historical cost as an expense item is deferred until the time of sale, most
of the Group's annual profit is accrued in the final quarter. The seasonal
nature of operations is most marked in Frozen Foods and in the associated
company Sucros, due to the link between production and the crop harvesting
season.
In the Seafood business, the sales of Apetit Kala Oy and Myrskylän Savustamo Oy
peak at weekends and on holidays. A significant proportion of these companies'
profits depends on the success of Christmas season sales. The profit accrual of
the Taimen Group, which reports as an associated company, is weighted towards
the end of the year and the early months of the year.
Net sales in the Grains and Oilseeds business vary from one year and quarter to
the next to a greater extent than in the other businesses, being dependent on
the demand and supply situation and on the price levels domestically and on
other markets.
SHORT-TERM RISKS AND UNCERTAINTIES
The most significant short-term risks for the Lännen Tehtaat Group concern the
following: the management of raw material price changes and currency risks;
availability of raw materials; the impact of seafood price rises on consumer
demand; the success of Christmas season sales in the Seafood business; the
effects of a prolonged economic downturn on demand from consumers and customers;
the solvency of customers and the delivery performance of suppliers; changes in
the Group's businesses and customerships; introduction of a new enterprise
resource planning (ERP) system in Seafood's Norwegian and Swedish operations;
and corporate acquisitions and the subsequent integration processes.
SIGNIFICANT EVENTS SINCE THE END OF THE REVIEW PERIOD
Erkki Lepistö has relinquished his position as Managing Director of Apetit Kala
Oy for personal reasons, and on 14 October 2010 Matti Karppinen was appointed as
his successor. Karppinen also continues as CEO of Lännen Tehtaat plc.
OUTLOOK FOR THE FULL YEAR
The Group's net sales will be affected particularly by the level of activity in
grain and oilseed markets and by changes in the price level of grains and
oilseeds. Based on developments so far and on the current outlook, the Group's
full-year net sales are expected to be up on the 2009 figure.
As in 2009, a high proportion of the Group's annual profit will accrue in the
final quarter of the year, and so the consolidated operating profit for 2010,
excluding non-recurring items, is expected to exceed the level of 2009.
CONSOLIDATED INCOME STATEMENT
EUR million Q3/ Q3/ Jan-Sep Jan-Sep Jan-Dec
2010 2009 2010 2009 2009
Net sales 65.9 64.1 220.8 194.3 266.0
Other operating income 0.2 0.2 0.8 0.8 1.5
Operating expenses -64.1 -62.2 -215.2 -190.4 -257.3
Depreciation -1.4 -1.3 -4.0 -4.0 -5.3
Impairments 0.0 -0.1 0.0 -0.1 -0.1
Share of profits of
associated companies 0.6 0.3 0.8 0.7 2.0
Operating profit 1.3 1.0 3.2 1.4 6.8
Financial income and expenses 0.0 0.4 0.1 0.7 0.5
Profit before taxes 1.2 1.4 3.3 2.1 7.3
Income taxes -0.5 -0.3 -1.2 -0.4 -1.5
Profit for the period 0.7 1.1 2.1 1.6 5.8
Attributable to
Equity holders of the parent 0.7 1.1 2.1 1.6 5.8
Non-controlling interests - - - - -
Basic and diluted earnings per
share, calculated of the profit
attributable to the shareholders of
the parent company, EUR 0.10 0.18 0.34 0.26 0.94
STATEMENT OF COMPREHENSIVE INCOME
EUR million Q3/ Q3/ Jan-Sep Jan-Sep Jan-Dec
2010 2009 2010 2009 2009
Profit for the period 0.7 1.1 2.1 1.6 5.8
Other comprehensive income
Cash flow hedges 0.1 -0.4 -0.6 0.1 1.1
Taxes related to cash flow hedges 0.0 0.1 0.2 0.0 -0.3
Translation differences 0.1 0.6 0.6 1.2 1.4
Total comprehensive income 0.9 1.4 2.2 3.0 8.0
Attributable to
Equity holders of the parent 0.9 1.4 2.2 3.0 8.0
Non-controlling interests - - - - -
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million 30 Sep 30 Sep 31 Dec
2010 2009 2009
ASSETS
Non-current assets
Intangible assets 6.1 6.0 5.6
Goodwill 8.5 6.7 6.9
Tangible assets 37.7 38.1 37.9
Investment in associated companies 31.7 22.6 24.0
Available-for-sale investments 0.1 0.1 0.1
Receivables 0.5 1.8 1.8
Deferred tax assets 1.4 2.1 1.1
Non-current assets total 86.0 77.3 77.4
Current assets
Inventories 51.6 46.3 48.1
Receivables 29.5 24.6 25.5
Income tax receivable 0.0 0.0 0.1
Financial assets at fair value
through profits 4.4 16.1 17.2
Cash and cash equivalents 7.0 4.8 7.9
Current assets total 92.5 91.9 98.7
Non-current assets held for sale - 3.6 -
Total assets 178.5 172.7 176.1
EUR million 30 Sep 30 Sep 31 Dec
2010 2009 2009
EQUITY AND LIABILITIES
Equity attributable to the equity
holders of the parent 131.9 132.1 137.3
Non-controlling interests 2.9 - -
Total equity 134.8 132.1 137.3
Non-current liabilities
Deferred tax liabilities 3.9 4.0 4.1
Long-term financial liabilities 2.5 3.7 2.4
Non-current provisions 0.0 0.1 0.2
Other non-current liabilities 4.6 0.1 -
Non-current liabilities total 11.0 7.9 6.6
Current liabilities
Short-term financial liabilities 1.0 1.9 0.9
Income tax payable 1.0 1.3 1.5
Trade payables and other liabilities 30.7 29.5 29.7
Current liabilities total 32.7 32.7 32.1
Total liabilities 43.7 40.6 38.8
Total equity and liabilities 178.5 172.7 176.1
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million Jan-Sep Jan-Sep Jan-Dec
2010 2009 2009
Net profit for the period 2.1 1.6 5.8
Adjustments, total 5.2 4.5 6.5
Change in net working capital -7.3 18.1 14.9
Interests paid -0.8 -1.2 -1.8
Interests received 0.1 1.0 1.0
Taxes paid -2.2 -0.8 -0.6
Net cash flow from operating activities -3.1 23.3 25.8
Investments in tangible and intangible assets -2.6 -2.0 -2.7
Proceeds from sales of tangible
and intangible assets 0.5 0.4 3.2
Acquisition of associated companies -8.1 - -
Transactions with non-controlling interests 2.7 -1.2 -1.2
Purchases of other investments -26.8 -15.0 -22.0
Proceeds from sales of other investments 39.8 3.0 9.0
Dividends received from investing activities 1.5 3.3 3.3
Net cash flow from investing activities 6.9 -11.5 -10.4
Repayments of short-term loans 0.4 -10.2 -9.5
Repayments of long-term loans -0.4 -1.4 -2.7
Payment of financial lease liabilities 0.0 0.0 0.0
Dividends paid -4.7 -5.3 -5.3
Cash flows from financing activities -4.7 -16.8 -17.5
Net change in cash and cash equivalents -0.8 -5.0 -2.0
Cash and cash equivalents at the
beginning of the period 7.9 9.9 9.9
Cash and cash equivalents at the
end of the period 7.0 4.8 7.9
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
EUR million
A = Share capital
B = Share premium account
C = Net unrealised gains
D = Other reserves
E = Own shares
F = Translation differences
G = Retained earnings
H = Attributable to equity holders of the parent, total
I = Non-controlling interests (NCI)
J = Total equity
A B C D E F G H I J
Shareholders'
equity at
1 Jan. 2010 12.6 23.4 0.0 7.2 -1.8 -0.5 96.4 137.3 - 137.3
Dividend
distribution - - - - - - -4.7 -4.7 - -4.7
Transactions
with NCI - - - - - - -2.9 -2.9 2.9 -
Other changes - - - - - - 0.0 0.0 - 0.0
Total comprehensive
income - - -0.4 0.0 - 0.6 2.1 2.2 - 2.2
Shareholders'
equity at
30 Sep. 2010 12.6 23.4 -0.4 7.2 -1.8 0.1 90.8 131.9 2.9 134.8
Shareholders'
equity at
1 Jan. 2009 12.6 23.4 -0.8 7.2 -1.8 -1.9 96.6 135.1 0.5 135.6
Dividend
distribution - - - - - - -5.3 -5.3 - -5.3
Transactions
with NCI - - - - - - -0.7 -0.7 -0.5 -1.2
Other changes - - - - - - 0.1 0.1 - 0.1
Total comrehensive
income - - 0.1 - - 1.2 1.6 3.0 - 3.0
Shareholders'
equity at
30 Sep. 2009 12.6 23.4 -0.7 7.2 -1.8 -0.7 92.2 132.1 - 132.1
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The interim report has been prepared in accordance with IAS 34, Interim
Financial Reporting, as adopted by the EU. The accounting policies adopted are
consistent with those of the Group's annual financial statements for the year
ended 31 December 2009.
SEGMENT INFORMATION
A Frozen Foods
B Seafood
C Grains and Oilseeds
D Other Operations
E Total
Operating segments, January-September 2010
EUR million A B C D E
Total segment sales 33.8 57.1 129.7 1.4 222.0
Intra-group sales 0.0 0.0 0.0 -1.2 -1.2
Net sales 33.8 57.1 129.7 0.2 220.8
Share of profits of
associated companies
included in operating
profit - 0.3 - 0.5 0.8
Operating profit 1.9 -2.2 5.6 -2.0 3.2
Gross investments in
non-current assets 1.1 0.8 0.6 0.1 2.6
Corporate acquisitions
and other share purchases - 10.5 - - 10.5
Depreciations 1.6 1.4 0.5 0.5 4.0
Impairments - 0.0 - - 0.0
Personnel 191 363 60 10 624
Operating segments, January-September 2009
EUR million A B C D E
Total segment sales 34.6 54.9 104.7 1.3 195.5
Intra-group sales 0.0 0.0 0.0 -1.2 -1.2
Net sales 34.6 54.9 104.7 0.1 194.3
Share of profits of
associated companies
included in operating
profit - - - 0.7 0.7
Operating profit 1.9 -3.0 4.6 -2.1 1.4
Gross investments in
non-current assets 1.4 0.4 0.2 - 2.0
Corporate acquisitions
and other share purchases - 1.2 - - 1.2
Depreciations 1.4 1.5 0.5 0.5 4.0
Impairments - 0.0 0.1 - 0.1
Personnel 199 387 62 10 659
Operating segments January-December 2009
EUR million A B C D E
Total segment sales 46.0 75.9 143.4 2.4 267.8
Intra-group sales -0.1 0.0 0.0 -1.6 -1.7
Net sales 46.0 75.9 143.4 0.8 266.0
Share of profits of
associated companies
included in operating
profit - - - 2.0 2.0
Operating profit 3.4 -2.5 7.3 -1.3 6.8
Gross investments in
non-current assets 1.9 0.6 0.3 - 2.7
Corporate acquisitions
and other share purchases - 1.2 - - 1.2
Depreciations 2.0 2.0 0.7 0.7 5.3
Impairments - - 0.1 - 0.1
Personnel 205 379 62 11 657
KEY INDICATORS
30 Sep 30 Sep 31 Dec
2010 2009 2009
Shareholders' equity per share, EUR 21.31 21.36 22.19
Equity ratio, % 75.6 76.7 78.0
Gearing, % -5.9 -11.6 -15.8
Gross investments in non-current
assets, EUR million 2.6 2.0 2.7
Corporate acquisitions and other
share purchases, EUR million 10.5 1.2 1.2
Average number of personnel 624 659 657
Average number of shares, 1,000 pcs 6 188 6 188 6 188
The key figures in this interim financial report are calculated with same
accounting principles than presented in year 2009 annual financial statements.
CONTINGENT LIABILITIES, CONTINGENT ASSETS AND OTHER COMMITMENTS
EUR million 30 Sep 30 Sep 31 Dec
2010 2009 2009
Mortgages given for debts
Real estate mortgages 2.8 5.6 2.0
Guarantees 13.7 10.0 11.1
Non-cancellable other leases,
minimum lease payments
Real estate leases 5.0 4.7 4.3
Other leases 0.8 0.7 0.8
DERIVATIVE INSTRUMENTS
Outstanding nominal values of
derivative instruments
Forward currency contracts 8.0 6.9 4.0
Commodity derivative instruments 17.2 13.8 9.2
CONTINGENT ASSETS
The present value of proceeds from the
sale of shares in the joint entry account 0.7 0.7 0.7
INVESTMENT COMMITMENTS
Lännen Tehtaat has no significant investment commitments at 30 September 2010.
OTHER COMMITMENTS
Based on the shareholder agreements on the ownership arrangement between Apetit
Kala Oy and Taimen Oy, once certain terms and conditions are met the contracting
parties are entitled to terminate the cross ownership at fair value. The
liability in any termination of ownership will, on the basis of IAS 32, be
recognised under non-current liabilities. The receivable arising in connection
with this may not, under IFRS rules, be recognised.
CHANGES IN TANGIBLE ASSETS
EUR million 30 Sep 30 Sep 31 Dec
2010 2009 2009
Book value at the beginning of the period 37.9 43.5 43.5
Additions 2.1 1.2 2.0
Additions through acquisitions 0.7 - -
Disposals -0.2 -4.0 -4.0
Depreciations and impairments -3.3 -3.4 -4.5
Other changes 0.4 0.8 0.9
Book value at the end of the period 37.7 38.1 37.9
TRANSACTIONS WITH ASSOCIATED COMPANIES AND JOINT VENTURES
EUR million Jan-Sep Jan-Sep Jan-Dec
2010 2009 2009
Sales to associated companies 0.3 0.3 1.0
Sales to joint ventures 5.5 5.1 6.7
Purchases from associated companies 1.6 1.4 2.2
Long-term receivables from associated companies - 1.5 1.3
Long-term receivables from joint ventures 0.1 0.1 0.1
Trade receivables and other
receivables from associated companies 1.5 1.6 1.6
Trade receivables and other
receivables from joint ventures 1.1 1.0 0.7
Trade payables and other liabilities
to associated companies 0.0 0.0 0.2
LÄNNEN TEHTAAT PLC
Board of Directors
Further information: Matti Karppinen, CEO, tel. +358 40 8448 692
Distribution:
NASDAQ OMX Helsinki Ltd
Principal media
www.lannen.fi
