LÄNNEN TEHTAAT PLC’S INTERIM REPORT, JANUARY-MARCH 2012

This is a summary of the Interim Report for the first quarter of 2012. 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.lannen.fi

• Consolidated net sales amounted to EUR 79.4 (84.0) million, down by 5 per cent
• Operating profit, excluding non-recurring items, was EUR -0.5 (0.8) million; non-recurring items totaled EUR -0.1 (0.0) million
• The Group acquired Caternet Finland Oy during the first quarter; EUR -0.5 million in transaction expenses related to this acquisition are included in the consolidated operating profit
• The estimate of full-year profit performance has been updated. It is forecast that the full-year operating profit, excluding non-recurring items, will reach at the best the level of 2011, due to the lacklustre profit performance in early part of the year

The information in this Interim Report has not been audited. The figures in parentheses are the equivalent figures for the same period a year earlier, unless stated otherwise.

KEY FIGURES      

Matti Karppinen, CEO:

“In order to strengthen its future profit performance, Lännen Tehtaat acquired Caternet Finland Oy at the end of March. Caternet has a strong position in Finland as a supplier of ready-to-use fresh products to the hotel, restaurant and catering sector. Caternet’s fresh products are very suitable additions to Lännen Tehtaat’s current product selection, which focuses on great taste, healthiness and light choices. The acquisition supports Lännen Tehtaat’s growth strategy and will bring plenty of synergy benefits to the business. Caternet has modern production facilities that are excellently located in terms of logistics and will provide good potential for increasing sales.  Caternet’s and Lännen Tehtaat’s product selections and customer relationships complement each other well, and together we will be able to further improve customer service and utilise our expertise and product sales channels more effectively”.

“The consolidated operating profit excluding non-recurring items for the first quarter was down year on year, and was reported as a loss. The result for the Grains and Oilseeds business was weaker than a year earlier, as grain sales were significantly slower and the vegetable oil refining margin was down year on year.  The result for the Seafood business was down from a year earlier, while in the Frozen Foods business the result was unchanged, and in Other Operations the associated company Sucros improved its result.”

ASSESSMENT OF EXPECTED FUTURE DEVELOPMENTS

The short-term outlook, which contains a great deal of uncertainty, is weaker than that of the same period last year. The second-quarter operating profit, excluding non-recurring items, is expected to be weaker than that for the same period in 2011, due to the more moderate profit expectations for the Grains and Oilseeds business.

In the financial statements bulletin issued in February, it was stated that the Group’s full-year operating profit in 2012, excluding non-recurring items, is expected to be higher than the previous year.

It is forecast that the full-year operating profit, excluding non-recurring items, will reach at the best the level of 2011. The profit performance in the second half of the year will be influenced substantially by the extent of activity in the grain and oilseed markets, which at this stage of the year is still difficult to assess.

PUBLICATION DATES FOR FINANCIAL REPORTS IN 2012

The following Interim Reports will be published during 2012: January-June on 15 August at about 8.30 a.m. and January-September on 9 November at about 8.30 a.m.

Further information:

Matti Karppinen, CEO, tel. +358 (0)10 402 00

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Invitation to a press conference

CEO Matti Karppinen will present Lännen Tehtaat’s first quarter 2012 results and give more information about the acquisition of Caternet Finland Oy to analysts and to the media in Finnish today, 4 May 2012, at 10.00 a.m. The press conference will be held at the Scandic Simonkenttä hotel in Helsinki (address: Simonkatu 9).

The presentation material will be available on the company’s website at http://www.lannen.fi/en/investor_information after the press conference.

COPIES TO:

NASDAQ OMX Helsinki Ltd
Main media
www.lannen.fi