Implementation of IFRS 16 Leases, HKScan Corporations’s restatement for 2018
HKScan Corporation Stock Exchange Release 3 May 2019 11:30 (EEST)
Implementation of IFRS 16 Leases, HKScan Corporations’s restatement for 2018
As of 1 January 2019, HKScan has adopted the new IFRS 16 Leases standard using the full retrospective method. According to IFRS 16 lessee is required to recognise assets and liabilities for all leases and depreciation of lease assets separately from interest on lease liabilities in the income statement. The Group elected to use the recognition exemptions for short-term leases and low-value assets. Quarterly and full-year Group and Market Area financial information for 2018 has been restated accordingly.
IFRS 16 impact to opening balance on 1 January 2018 amounted to EUR 44.0 million in tangible assets, EUR 0.4 million in deferred tax asset, EUR 45.9 million in interest-bearing liabilities and EUR -1.5 million in retained earnings. In the balance sheet of 31 December 2018 tangible assets increased by EUR 44.2 million and interest-bearing liabilities increased by EUR 46.2 million. Full year 2018 operating profit improved by EUR 1.2 million. Financial expenses increased by EUR 1.4 million. Profit for the period impact was EUR -0.2 million.
HKScan Corporation
Tero Hemmilä
CEO of HKScan
For more information please contact: HKScan Media Service Desk +358 10 570 5700 or by email to: communications@hkscan.com
HKScan is a Nordic meat and meals company. We employ nearly 7 200 professionals in striving to serve the world´s most demanding consumers, maintaining quality throughout the full chain of operations, From Farm to Fork. HKScan produces, markets and sells high-quality, sustainably produced pork, beef, poultry and lamb products, as well as charcuterie and meals, with strong consumer brands, including HK®, Scan®, Rakvere®, Kariniemen®, Rose®, Pärsons® and Tallegg®. Our customers are the retail, food service,industrial and export sectors, and our home market comprises of Finland, Sweden, Denmark and the Baltics. We export to close to 50 countries. In 2018, HKScan had net sales of EUR 1.7 billion.
ATTACHMENTS
Consolidated income statement, 1-12/2018, published and restated
Consolidated statement of comprehensive income, 1-12/2018, published and restated
Consolidated balance sheet, 1-12/2018, published and restated
Cash flow statement,1-12/2018, published and restated
Financial indicators, 1-12/2018, published and restated
Analysis by segment, 10-12/2018, published and restated
DISTRIBUTION:
Nasdaq Helsinki
Key media
www.hkscan.com
| CONSOLIDATED INCOME STATEMENTPUBLISHED | ||||||
| (EUR million) | 1-3/2018 | 4-6/2018 | 7-9/2018 | 10-12/2018 | 2018 | |
| Net sales | 411.0 | 433.5 | 416.2 | 454.7 | 1 715.4 | |
| Cost of goods sold | -402.2 | -424.1 | -401.3 | -432.9 | -1 660.5 | |
| Gross profit | 8.7 | 9.5 | 14.9 | 21.7 | 54.8 | |
| Other operating items total | 1.7 | 1.8 | 1.5 | 1.9 | 6.9 | |
| Sales and marketing costs | -10.6 | -11.7 | -10.6 | -10.7 | -43.6 | |
| General administration costs | -18.3 | -16.6 | -16.0 | -16.8 | -67.6 | |
| Operating profit | -18.6 | -17.0 | -10.1 | -3.8 | -49.5 | |
| Financial income | 0.5 | 0.7 | 0.4 | 0.4 | 2.0 | |
| Financial expenses | -3.0 | -3.2 | -2.4 | -3.4 | -11.9 | |
| Share of profit/loss in associates and joint ventures | 0.4 | 0.0 | 0.4 | 0.2 | 1.1 | |
| Profit/loss before taxes | -20.6 | -19.4 | -11.7 | -6.6 | -58.3 | |
| Income tax | 4.0 | 3.0 | 2.8 | -2.6 | 7.1 | |
| Profit/loss for the period | -16.7 | -16.4 | -8.9 | -9.2 | -51.2 | |
| Non-controlling interests | -0.1 | -0.3 | -0.3 | -0.9 | -1.7 | |
| Profit/loss for the period | -16.8 | -16.7 | -9.2 | -10.2 | -52.9 | |
| Earnings per share calculated on profit attributable to equity holders of the parent: | ||||||
| EPS, undiluted, continuing operations, EUR/share | -0.31 | -0.31 | -0.18 | -0.20 | -1.00 | |
| EPS, diluted, continuing operations, EUR/share | -0.31 | -0.31 | -0.18 | -0.20 | -1.00 | |
| RESTATEMENT | ||||||
| (EUR million) | 1-3/2018 | 4-6/2018 | 7-9/2018 | 10-12/2018 | 2018 | |
| Net sales | 411.0 | 433.5 | 416.2 | 454.7 | 1 715.4 | |
| Cost of goods sold | -402.0 | -423.8 | -401.0 | -432.7 | -1 659.5 | |
| Gross profit | 9.0 | 9.7 | 15.2 | 22.0 | 55.9 | |
| Other operating items total | 1.7 | 1.8 | 1.5 | 1.9 | 6.9 | |
| Sales and marketing costs | -10.6 | -11.7 | -10.6 | -10.7 | -43.6 | |
| General administration costs | -18.3 | -16.5 | -15.9 | -16.7 | -67.5 | |
| Operating profit | -18.3 | -16.7 | -9.8 | -3.5 | -48.3 | |
| Financial income | 0.5 | 0.7 | 0.4 | 0.4 | 2.0 | |
| Financial expenses | -3.3 | -3.5 | -2.8 | -3.7 | -13.3 | |
| Share of profit/loss in associates and joint ventures | 0.4 | 0.0 | 0.4 | 0.2 | 1.1 | |
| Profit/loss before taxes | -20.7 | -19.4 | -11.7 | -6.7 | -58.5 | |
| Income tax | 4.0 | 3.0 | 2.8 | -2.6 | 7.2 | |
| Profit/loss for the period | -16.7 | -16.4 | -8.9 | -9.3 | -51.3 | |
| Non-controlling interests | -0.1 | -0.4 | -0.3 | -0.9 | -1.7 | |
| Profit/loss for the period | -16.9 | -16.8 | -9.2 | -10.2 | -53.0 | |
| Earnings per share calculated on profit attributable to equity holders of the parent: | ||||||
| EPS, undiluted, continuing operations, EUR/share | -0.31 | -0.31 | -0.18 | -0.20 | -1.00 | |
| EPS, diluted, continuing operations, EUR/share | -0.31 | -0.31 | -0.18 | -0.20 | -1.00 | |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
PUBLISHED
| (EUR million) | 1-3/2018 | 4-6/2018 | 7-9/2018 | 10-12/2018 | 2018 |
| Profit/loss for the period | -16.7 | -16.4 | -8.9 | -9.2 | -51.2 |
| OTHER COMPREHENSIVE INCOME (after taxes): | |||||
| Exchange differences on translating foreign operations | -4.2 | -1.8 | 1.5 | 0.4 | -4.0 |
| Cash flow hedging | 1.1 | 2.4 | -0.8 | 1.6 | 4.2 |
| Actuarial gains or losses | 0.0 | 0.0 | 0.0 | -6.9 | -6.9 |
| TOTAL OTHER COMPREHENSIVE INCOME | -3.1 | 0.7 | 0.6 | -4.9 | -6.7 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | -19.8 | -15.7 | -8.3 | -14.1 | -57.9 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO: | |||||
| Equity holders of the parent | -19.9 | -16.1 | -8.6 | -15.0 | -59.6 |
| Non-controlling interests | 0.1 | 0.3 | 0.3 | 0.9 | 1.7 |
| Total | -19.8 | -15.7 | -8.3 | -14.1 | -57.9 |
RESTATEMENT
| (EUR million) | 1-3/2018 | 4-6/2018 | 7-9/2018 | 10-12/2018 | 2018 |
| Profit/loss for the period | -16.7 | -16.4 | -8.9 | -9.3 | -51.3 |
| OTHER COMPREHENSIVE INCOME (after taxes): | |||||
| Exchange differences on translating foreign operations | -4.1 | -1.7 | 1.5 | 0.4 | -4.0 |
| Cash flow hedging | 1.0 | 2.4 | -0.8 | 1.6 | 4.2 |
| Actuarial gains or losses | 0.0 | 0.0 | 0.0 | -6.9 | -6.9 |
| TOTAL OTHER COMPREHENSIVE INCOME | -3.1 | 0.7 | 0.6 | -4.9 | -6.7 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | -19.8 | -15.7 | -8.3 | -14.2 | -58.0 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO: | |||||
| Equity holders of the parent | -19.9 | -16.1 | -8.6 | -15.1 | -59.7 |
| Non-controlling interests | 0.1 | 0.4 | 0.3 | 0.9 | 1.7 |
| Total | -19.8 | -15.7 | -8.3 | -14.2 | -58.0 |
CONSOLIDATED BALANCE SHEET
| PUBLISHED | ||||
| (EUR million) | 31.3.2018 | 30.6.2018 | 30.9.2018 | 31.12.2018 |
| ASSETS | ||||
| Intangible assets | 133.9 | 134.1 | 134.8 | 137.5 |
| Tangible assets | 451.2 | 442.1 | 439.1 | 434.2 |
| Holdings | 34.7 | 32.0 | 32.4 | 33.0 |
| Deferred tax asset | 36.9 | 39.6 | 42.1 | 42.9 |
| Other non-current assets | 2.7 | 2.7 | 2.6 | 2.5 |
| TOTAL NON-CURRENT ASSETS | 659.4 | 650.6 | 651.1 | 650.2 |
| Inventories | 123.0 | 113.1 | 121.8 | 121.4 |
| Current receivables | 130.1 | 142.1 | 137.2 | 130.9 |
| Cash and cash equivalents | 7.2 | 13.1 | 13.0 | 29.4 |
| TOTAL CURRENT ASSETS | 260.3 | 268.3 | 272.1 | 281.7 |
| TOTAL ASSETS | 919.6 | 918.9 | 923.2 | 931.9 |
| EQUITY AND LIABILITIES | ||||
| EQUITY | 329.6 | 309.1 | 340.6 | 326.6 |
| Non-current loans, interest-bearing | 284.4 | 279.3 | 276.3 | 242.0 |
| Non-current liabilities, non interest-bearing | 54.7 | 51.7 | 48.9 | 63.3 |
| TOTAL NON-CURRENT LIABILITIES | 339.1 | 331.0 | 325.2 | 305.4 |
| Current loans, interest-bearing | 36.4 | 51.1 | 42.5 | 77.0 |
| Current liabilities, non interest-bearing | 214.5 | 227.7 | 214.7 | 223.0 |
| TOTAL CURRENT LIABILITIES | 250.9 | 278.8 | 257.3 | 300.0 |
| TOTAL EQUITY AND LIABILITIES | 919.6 | 918.9 | 923.2 | 931.9 |
| RESTATEMENT | ||||
| (EUR million) | 31.3.2018 | 30.6.2018 | 30.9.2018 | 31.12.2018 |
| ASSETS | ||||
| Intangible assets | 133.9 | 134.1 | 134.8 | 137.5 |
| Tangible assets | 493.9 | 483.9 | 483.6 | 478.5 |
| Holdings | 34.7 | 32.0 | 32.4 | 33.0 |
| Deferred tax asset | 37.2 | 40.0 | 42.5 | 43.3 |
| Other non-current assets | 2.7 | 2.7 | 2.6 | 2.5 |
| TOTAL NON-CURRENT ASSETS | 702.4 | 692.7 | 695.9 | 694.8 |
| Inventories | 123.0 | 113.1 | 121.8 | 121.4 |
| Current receivables | 130.1 | 142.1 | 137.2 | 130.9 |
| Cash and cash equivalents | 7.2 | 13.1 | 13.0 | 29.4 |
| TOTAL CURRENT ASSETS | 260.3 | 268.3 | 272.1 | 281.7 |
| TOTAL ASSETS | 962.7 | 961.1 | 968.0 | 976.5 |
| EQUITY AND LIABILITIES | ||||
| EQUITY | 328.1 | 307.6 | 339.1 | 325.0 |
| Non-current loans. interest-bearing | 319.8 | 313.9 | 313.3 | 278.3 |
| Non-current liabilities. non interest-bearing | 54.7 | 51.7 | 48.9 | 63.3 |
| TOTAL NON-CURRENT LIABILITIES | 374.5 | 365.6 | 362.3 | 341.7 |
| Current loans. interest-bearing | 45.6 | 60.2 | 51.9 | 86.9 |
| Current liabilities. non interest-bearing | 214.5 | 227.7 | 214.7 | 223.0 |
| TOTAL CURRENT LIABILITIES | 260.1 | 287.9 | 266.6 | 309.9 |
| TOTAL EQUITY AND LIABILITIES | 962.7 | 961.1 | 968.0 | 976.5 |
CASH FLOW STATEMENT
PUBLISHED
| (EUR million) | 1-3/2018 | 4-6/2018 | 7-9/2018 | 10-12/2018 | 2018 |
| Cash flow before change in net working capital | -4.6 | -2.8 | 3.5 | 11.4 | 7.6 |
| Change in net working capital | -38.2 | 10.9 | -15.9 | 20.4 | -22.7 |
| Financial items and taxes | -2.3 | 1.1 | -5.7 | -2.6 | -9.5 |
| CASH FLOW FROM OPERATING ACTIVITIES | -45.2 | 9.3 | -18.1 | 29.3 | -24.6 |
| Cash flow from investing activities | -58.8 | -8.3 | -10.0 | -12.6 | -89.8 |
| CASH FLOW AFTER INVESTING ACTIVITIES | -104.0 | 1.0 | -28.1 | 16.6 | -114.4 |
| Hybrid loan | - | - | 39.8 | - | 39.8 |
| Change in loans | 61.1 | 9.8 | -11.8 | -0.4 | 58.6 |
| Dividends paid | -0.6 | -4.9 | - | - | -5.5 |
| CASH FLOW FROM FINANCING ACTIVITIES | 60.4 | 4.9 | 28.0 | -0.4 | 92.9 |
| NET CASH FLOW | -43.5 | 5.9 | -0.2 | 16.3 | -21.5 |
| Cash and cash equivalents at beginning of period | 50.9 | 7.2 | 13.1 | 13.0 | 50.9 |
| Translation differences | -0.2 | 0.1 | 0.1 | 0.1 | 0.1 |
| Cash and cash equivalents at end of period | 7.2 | 13.1 | 13.0 | 29.4 | 29.4 |
RESTATEMENT
| (EUR million) | 1-3/2018 | 4-6/2018 | 7-9/2018 | 10-12/2018 | 2018 |
| Cash flow before change in net working capital | -1.7 | 0.1 | 6.5 | 14.4 | 19.3 |
| Change in net working capital | -38.2 | 10.9 | -15.9 | 20.4 | -22.7 |
| Financial items and taxes | -2.7 | 0.8 | -6.1 | -2.9 | -10.9 |
| CASH FLOW FROM OPERATING ACTIVITIES | -42.6 | 11.9 | -15.4 | 31.9 | -14.3 |
| Cash flow from investing activities | -58.8 | -8.3 | -10.0 | -12.6 | -89.8 |
| CASH FLOW AFTER INVESTING ACTIVITIES | -101.4 | 3.5 | -25.5 | 19.3 | -104.1 |
| Hybrid loan | - | - | 39.8 | - | 39.8 |
| Change in loans | 58.5 | 7.2 | -14.5 | -3.0 | 48.3 |
| Dividends paid | -0.6 | -4.9 | - | - | -5.5 |
| CASH FLOW FROM FINANCING ACTIVITIES | 57.9 | 2.3 | 25.3 | -3.0 | 82.6 |
| NET CASH FLOW | -43.5 | 5.9 | -0.2 | 16.3 | -21.5 |
| Cash and cash equivalents at beginning of period | 50.9 | 7.2 | 13.1 | 13.0 | 50.9 |
| Translation differences | -0.2 | 0.1 | 0.1 | 0.1 | 0.1 |
| Cash and cash equivalents at end of period | 7.2 | 13.1 | 13.0 | 29.4 | 29.4 |
FINANCIAL INDICATORS, PUBLISHED
| 31.3.2018 | 30.6.2018 | 30.9.2018 | 31.12.2018 | |
| Earnings per share (EPS), undiluted, EUR | -0.31 | -0.62 | -0.80 | -1.00 |
| Earnings per share (EPS), diluted, EUR | -0.31 | -0.62 | -0.80 | -1.00 |
| Equity per share, EUR | 5.85 | 5.46 | 6.04 | 5.76 |
| Equity ratio, % | 35.8 | 33.6 | 36.9 | 35.1 |
| Gross capital expenditure on PPE, EUR mill. | 10.6 | 18.8 | 28.7 | 41.0 |
| Cash flow before investments (mEUR) | -42.8 | -34.6 | -47.0 | -15.1 |
| Cash flow before debt service (mEUR) | -102.7 | -103.3 | -126.1 | -107.2 |
| Cash flow before financing activities (mEUR) | -104.0 | -103.0 | -131.1 | -114.4 |
| Return on capital employed (ROCE) before taxes, % | -7.8 | -9.1 | -10.1 | -7.4 |
| Net debt (mEUR) | 313.5 | 317.1 | 305.6 | 289.4 |
| Net Gearing % | 95.1 | 102.6 | 89.7 | 88.6 |
FINANCIAL INDICATORS, RESTATEMENT
| 31.3.2018 | 30.6.2018 | 30.9.2018 | 31.12.2018 | |
| Earnings per share (EPS), undiluted, EUR | -0.31 | -0.62 | -0.80 | -1.00 |
| Earnings per share (EPS), diluted, EUR | -0.31 | -0.62 | -0.80 | -1.00 |
| Equity per share, EUR | 5.82 | 5.43 | 6.01 | 5.73 |
| Equity ratio, % | 34.1 | 32.0 | 35.0 | 33.3 |
| Gross capital expenditure on PPE, EUR mill. | 12.3 | 22.4 | 37.5 | 52.2 |
| Cash flow before investments (mEUR) | -39.9 | -28.9 | -38.2 | -3.4 |
| Cash flow before debt service (mEUR) | -99.8 | -97.5 | -117.3 | -95.4 |
| Cash flow before financing activities (mEUR) | -101.4 | -97.9 | -123.4 | -104.1 |
| Return on capital employed (ROCE) before taxes, % | -7.5 | -8.7 | -9.6 | -6.7 |
| Net debt (mEUR) | 358.0 | 360.8 | 352.0 | 335.6 |
| Net Gearing % | 109.1 | 117.3 | 103.8 | 103.3 |
ANALYSIS BY SEGMENT, PUBLISHED
| (EUR million) | 1-3/2018 | 4-6/2018 | 7-9/2018 | 10-12/2018 | 2018 |
| EBIT | |||||
| - Sweden | -1.6 | 1.7 | 3.0 | 5.5 | 8.6 |
| - Finland | -10.4 | -14.1 | -9.5 | -2.6 | -36.6 |
| - Denmark | -0.8 | -1.1 | -1.5 | -2.5 | -5.9 |
| - Baltics | -1.0 | 0.2 | 0.9 | -0.9 | -0.7 |
| Segments total | -13.8 | -13.3 | -7.2 | -0.4 | -34.6 |
| Group administration costs | -4.8 | -3.7 | -3.0 | -3.4 | -14.9 |
| Group total | -18.6 | -17.0 | -10.1 | -3.8 | -49.5 |
| INVESTMENTS | |||||
| - Sweden | 1.3 | 2.5 | 1.1 | 1.5 | 6.4 |
| - Finland | 7.2 | 3.3 | 4.8 | 6.6 | 21.9 |
| - Denmark | 0.0 | 0.3 | 0.6 | 1.4 | 2.3 |
| - Baltics | 2.0 | 2.3 | 3.3 | 2.8 | 10.4 |
| Total | 10.6 | 8.3 | 9.8 | 12.3 | 41.0 |
ANALYSIS BY SEGMENT, RESTATEMENT
| (EUR million) | 1-3/2018 | 4-6/2018 | 7-9/2018 | 10-12/2018 | 2018 |
| EBIT | |||||
| - Sweden | -1.5 | 1.8 | 3.0 | 5.6 | 8.9 |
| - Finland | -10.3 | -14.0 | -9.4 | -2.4 | -36.1 |
| - Denmark | -0.8 | -1.1 | -1.5 | -2.4 | -5.8 |
| - Baltics | -1.0 | 0.2 | 0.9 | -0.9 | -0.7 |
| Segments total | -13.5 | -13.0 | -6.9 | -0.2 | -33.6 |
| Group administration costs | -4.8 | -3.7 | -2.9 | -3.4 | -14.7 |
| Group total | -18.3 | -16.7 | -9.8 | -3.5 | -48.3 |
| INVESTMENTS | |||||
| - Sweden | 1.8 | 3.0 | 1.5 | 1.9 | 8.1 |
| - Finland | 7.9 | 4.3 | 9.1 | 8.4 | 29.7 |
| - Denmark | 0.1 | 0.3 | 1.0 | 1.5 | 3.0 |
| - Baltics | 2.4 | 2.5 | 3.4 | 3.0 | 11.3 |
| Total | 12.3 | 10.1 | 15.0 | 14.7 | 52.2 |