Stock Exchange Release – Func Food Group Q3 and Year-to-Date September 2017 Financial Report
Func Food Group has today published its Q3 and year-to-date September 2017 financial report. The report is available in English at http://www.funcfood.com/investors/?lang=en.
SUMMARY
THIRD quarter 2017
• Consolidated Group revenues amounted to MEUR 10,6 (MEUR 10,6 in consolidated 2016).
• Revenues increased by MEUR 0,04 or 0,3% in comparison to 2016.
• Consolidated Group EBITDA amounted to MEUR 1,2 (MEUR 1,6 in consolidated 2016).
• EBITDA decreased by MEUR 0,4 or 22.9% in comparison to 2016.
• EBITDA adjusted for items affecting comparability was MEUR 1,3 in 2017 and MEUR 1,5 in 2016 (reduction of MEUR 0,2 or 11,4%).
Year-to-date September 2017
• Consolidated Group revenues amounted to MEUR 31,1 (MEUR 31,6 in consolidated 2016).
• Revenues decreased by MEUR 0,4 or 1,4% in comparison to 2016.
• Consolidated Group EBITDA amounted to MEUR 1,8 (MEUR 3,2 in consolidated 2016).
• EBITDA decreased by MEUR 1,4 or 44,5% in comparison to 2016.
• EBITDA adjusted for items affecting comparability was MEUR 2,0 in 2017 and MEUR 3,3 in 2016 (reduction of MEUR 1,3 or 39,1%).
In Q3 2017 the Group had a positive EBITDA and adjusted EBITDA in both its key markets Finland and Sweden. Revenue performance of the Group’s two largest brands Celsius and FAST was very positive compared to the previous year, while other brands declined and private label sales were largely discontinued. Total net revenue was MEUR 10,6 (+0,3% vs. previous year). In order to account for seasonal imbalances and strategic decisions to exit private label manufacturing, this report includes pro forma revenue growth comparisons without Freddy Store Ab and private label sales. In Q3 2017 net revenue excluding these businesses grew by +8,5% vs. PY. Total EBITDA was MEUR 1,2 and adjusted EBITDA was MEUR 1,3. Total sales margin-% was 40,1% (44,5% in Q3 2016, or 42,1% excluding the impact of reported other income of 250.000 EUR due to non-realization of additional purchase price relating to the company’s acquisition of CocoVi Import Oy in 2014).
The Group’s year-to-date revenue was MEUR 31,1 (-1,4% vs. PY and +7,3% vs. PY excluding Freddy Store and private label sales). Celsius revenues increased by MEUR 2,2 or 14,1% vs. PY, followed by MEUR 1,0 (+14,6%) growth of FAST. Discontinuation of private label sales together with Freddy were the biggest contributors to the overall revenue decline. EBITDA amounted to MEUR 1,8 in the first nine months of 2017 (MEUR 3,2 in 2016) and adjusted EBITDA was MEUR 2,0 (MEUR 3,3 in 2016).
Consolidated cash and cash equivalents on 30 September 2017 amounted to MEUR 0,7 (MEUR 0,8 in the beginning of the quarter and MEUR 0,7 in the beginning of 2017). The Group generated a negative net cash flow of MEUR -0,1 from operating activities in the quarter, and a positive net cash flow of MEUR 6,2 during the first nine months of the year. The positive development was largely impacted by decreased receivables relating to blocked bank account funds, which were used for bond amortization in Q1. Net cash flow from investing activities was close to zero in the quarter and MEUR -0,3 year-to-date September. The Group did not take or repay loans during the quarter. Year-to-date impact of changes in loans was MEUR -5,9.
The Group has continued to follow its expansion strategy established in 2016, with focus on driving the revenue of our core brands in their home markets and additionally investing behind expanded cross-sales for FAST and Celsius. Operations of Func Food Norge AS are proceeding as planned and the outlook remains unchanged.
On November 6 2017 the company called for an extraordinary shareholders’ meeting in order to approve a financing arrangement. The purpose of the arrangement is to enable a further acceleration of growth in the company’s operations, including geographical expansion. The extraordinary shareholders’ meeting was held on November 20 2017. The meeting resolved that the Group will offer a subordinated convertible loan for subscription to its current shareholders in proportion to their shareholdings. The maximum amount of the loan is MEUR 3,0.
The current amortization schedule of the Group’s bond has prompted it to start assessing its position regarding financing solutions. The Group maintains its previous outlook of reaching net revenue growth in 2017 vs. the previous year, despite continuing competitive pressures in the market. The Group will continue to pursue its growth strategy and drive the key initiatives started in 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 30 November 2017, at 19.00 CET.
Func Food Group Oyj, Mäkelänkatu 91, 00610 Helsinki, Finland. The board is resident in Helsinki. For further information about the company please visit http://www.funcfood.com/?lang=en.
Func Food Group Oyj