PRESS RELEASE – Func Food Group Q4 and Full Year 2016 Financial Report
Func Food Group has today published its Q4 and full year 2016 financial report. The report is available in English at http://www.funcfood.com/investors/?lang=en.
SUMMARY
Fourth quarter 2016
• Consolidated Group revenues amounted to MEUR 8,4 (MEUR 8,8 in consolidated 2015).
• Revenues decreased by MEUR 0,4 or 4,3% in comparison to 2015.
• Consolidated Group EBITDA amounted to MEUR 7,0 (MEUR -2,9 in consolidated 2015).
• EBITDA increased by MEUR 10,0 in comparison to 2015.
• EBITDA adjusted for items affecting comparability was MEUR -0,2 in 2016 (MEUR -2,0 in 2015).
Year-to-date December 2016
• Consolidated Group revenues amounted to MEUR 40,0 (MEUR 29,4 in consolidated 2015 and MEUR 42,6 in pro forma 2015).
• Revenues increased by MEUR 10,6 or 36,1% in comparison to consolidated 2015 and decreased by MEUR 2,6 or 6,2% in comparison to pro forma 2015.
• Consolidated Group EBITDA amounted to MEUR 10,2 (MEUR -2,5 in consolidated 2015 and MEUR -0,3 in pro forma 2015).
• EBITDA increased by MEUR 12,7 in comparison to consolidated 2015 and by MEUR 10,5 in comparison to pro forma 2015.
• EBITDA adjusted for items affecting comparability was MEUR 3,1 in 2016 (consolidated 2015 was MEUR -0,6 and pro forma 2015 was MEUR 2,1).
The Group restates the fair value calculation of its senior secured callable floating rate bonds in periods Q2-2015 – Q3 2016. The restatement affects financial expenses and deferred taxes in the consolidated statement of comprehensive income. As for the consolidated statement of financial position the items affected are other receivables, retained earnings, deferred tax liabilities, and financial liabilities. The restatement does not have an impact on 2015 or 2016 EBITDA or cash levels. Restated figures for previous quarters are reported in tables 1, 2, 7, 9, 11, 12, and 13.
In Q4 2016 the Group recorded significant other income related to acquisitions made in 2015. As for the underlying business Celsius in Sweden continued its strong revenue growth vs. PY while sales of branded products and private labels in Finland declined. Adjusted EBITDA was MEUR -0,2 in the quarter and MEUR 3,1 for the full year, improving by MEUR 1,8 vs. previous year in the quarter and by MEUR 1,0 vs. full year pro forma 2015.
Total consolidated EBIT for the Group was MEUR 0,5 for Q4 2016 and MEUR 0,7 for the full year 2016. Previous year’s figures were MEUR -3,9 and MEUR -4,9, respectively. EBIT was impacted by other income relating to 2015 acquisitions as well as impairment loss recorded for the Swedish cash generating unit. Sales margin-% excluding items affecting comparability was slightly lower than the average margins in the previous quarters of 2016, but higher than in 2015. Operating expenses were MEUR 3,5, MEUR 0,6 lower than in Q4 2015 but somewhat higher than the average opex earlier in 2016.
Consolidated cash and cash equivalents on 31 December 2016 amounted to MEUR 0,7 (MEUR 1,5 in the beginning of the quarter). The Group generated a negative net cash flow from operating activities totaling MEUR -1,4 in the quarter. The shareholders of the Group granted it a subordinated convertible loan worth MEUR 0,5. The Group’s inventory levels were MEUR 0,8 higher than in the beginning of the quarter, and MEUR 0,1 lower vs. the beginning of the year. Total receivables and payables both decreased vs. the beginning of the year. The net effect of receivables and payables development was a MEUR 0,3 decrease in the working capital tied in the business.
On January 10 2017 the Group initiated a written procedure to its bondholders, requesting to amend the terms and conditions of the bonds. The bondholders approved the amendments to the bond terms on February 3 2017.
Uncertainty in the market in terms of development of the Group’s key categories and competitive pressures is likely to continue in the short-term. In terms of cross trade the Group expects to see an increase in Celsius sales in Finland during 2017 as well as FAST sales in Sweden in Q1 2017.
For further information please contact:
Robin Lybeck, CEO, Func Food Group Oyj
email robin.lybeck@funcfoodgroup.com
mobile +358 40 735 2464
Tommi Virtanen, CFO, Func Food Group Oyj
email tommi.virtanen@funcfoodgroup.com
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 28 February 2017, at 21.00 CET.
Func Food Group Oyj, Pyynikintie 25 Y 10, 33230 Tampere, Finland. The board is resident in Tampere. For further information about the company please visit http://www.funcfood.com/?lang=en.
Func Food Group Oyj