Restatement for 2013
HKScan Corporation Stock Exchange Release 28 April 2014, 11.00 AM
Restatement for 2013
As of 1 January 2014 HKScan has adopted the new IFRS 10 (Consolidated Financial Statements) and IFRS 11 (Joint arrangements) standards. This means HKScan’s results of the joint venture company in Poland and associated companies in Sweden are now recognised in a single line item in the consolidated Group operating profit (EBIT). Poland (Sokolów) is no longer reported as a separate segment in Group reporting. In addition costs incurred by of centralized Group services such as Group Technology and Operations Development are to be invoiced individual by Market Areas as of January 1, 2014. Previously these costs were reported in Group administration.
Quarterly and full-year Group and Market Area financial information for 2013 has been restated accordingly.
CONSOLIDATED INCOME STATEMENT
PUBLISHED
| (EUR million) | Q1/2013 | Q2/2013 | Q3/2013 | Q4/2013 | 2013 |
| NET SALES | 590.8 | 623.7 | 623.5 | 640.6 | 2 478.6 |
| Operating income and expenses | -573.8 | -599.7 | -595.8 | -607.2 | -2 376.5 |
| Share of associates' results | 0.0 | -0.3 | 0.1 | 0.2 | 0.0 |
| Depreciation and amortization | -18.1 | -17.9 | -17.3 | -18.3 | -71.6 |
| EBIT | -1.1 | 5.8 | 10.5 | 15.2 | 30.5 |
| Financial income | 1.2 | 1.4 | 1.4 | 2.4 | 6.5 |
| Financial expenses | -7.0 | -7.0 | -6.7 | -10.0 | -30.7 |
| Share of associates' results | 0.9 | 0.9 | 0.7 | 0.9 | 3.4 |
| PROFIT/LOSS BEFORE TAXES | -5.9 | 1.1 | 5.9 | 8.6 | 9.7 |
| Income tax | 1.8 | -0.7 | 1.1 | -2.1 | 0.1 |
| PROFIT/LOSS FOR THE PERIOD | -4.1 | 0.4 | 7.0 | 6.6 | 9.8 |
| PROFIT/LOSS FOR THE PERIOD ATTRIBUTABLE TO: | |||||
| Equity holders of the parent | -4.2 | 0.6 | 6.7 | 5.6 | 8.7 |
| Non-controlling interests | 0.1 | -0.1 | 0.3 | 0.9 | 1.1 |
| Total | -4.1 | 0.4 | 7.0 | 6.6 | 9.8 |
RESTATEMENT
| (EUR million) | Q1/2013 | Q2/2013 | Q3/2013 | Q4/2013 | 2013 |
| NET SALES | 507.1 | 531.3 | 526.9 | 547.9 | 2 113.2 |
| Operating income and expenses | -497.8 | -515.4 | -505.0 | -521.3 | -2 039.6 |
| Share of associates' results | - | - | - | - | - |
| Depreciation and amortization | -15.7 | -15.5 | -14.9 | -15.8 | -61.9 |
| EBIT | -6.5 | 0.4 | 7.0 | 10.9 | 11.7 |
| Financial income | 1.1 | 2.2 | 1.1 | 0.8 | 5.2 |
| Financial expenses | -6.7 | -7.4 | -6.4 | -8.4 | -28.9 |
| Share of associates' results | 5.4 | 5.1 | 3.6 | 4.5 | 18.6 |
| PROFIT/LOSS BEFORE TAXES | -6.7 | 0.3 | 5.3 | 7.7 | 6.7 |
| Income tax | 2.6 | 0.1 | 1.6 | -1.2 | 3.1 |
| PROFIT/LOSS FOR THE PERIOD | -4.1 | 0.4 | 7.0 | 6.6 | 9.8 |
| PROFIT/LOSS FOR THE PERIOD ATTRIBUTABLE TO: | |||||
| Equity holders of the parent | -4.2 | 0.6 | 6.7 | 5.6 | 8.7 |
| Non-controlling interests | 0.1 | -0.1 | 0.3 | 0.9 | 1.1 |
| Total | -4.1 | 0.4 | 7.0 | 6.6 | 9.8 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
PUBLISHED
| (EUR million) | Q1/2013 | Q2/2013 | Q3/2013 | Q4/2013 | 2013 |
| Profit/loss for the period | -4.1 | 0.4 | 7.0 | 6.5 | 9.8 |
| OTHER COMPREHENSIVE INCOME (after taxes): | |||||
| Exchange differences on translating foreign operations | 0.0 | -6.4 | 3.3 | -0.3 | -3.4 |
| Cash flow hedging | 1.3 | 1.6 | 1.3 | -1.3 | 2.8 |
| Revaluation | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Actuarian gains (losses) on defined benefit pension plans | - | - | - | 1.6 | 1.6 |
| TOTAL OTHER COMPREHENSIVE INCOME | 1.2 | -4.8 | 4.6 | 0.0 | 1.0 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | -2.9 | -4.4 | 11.6 | 6.5 | 10.8 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO: | |||||
| Equity holders of the parent | -3.0 | -4.2 | 11.3 | 5.6 | 9.7 |
| Non-controlling interests | 0.1 | -0.2 | 0.3 | 0.9 | 1.1 |
| Total | -2.9 | -4.4 | 11.6 | 6.5 | 10.8 |
RESTATED
| (EUR million) | Q1/2013 | Q2/2013 | Q3/2013 | Q4/2013 | 2013 |
| Profit/loss for the period | -4.1 | 0.4 | 7.0 | 6.5 | 9.8 |
| OTHER COMPREHENSIVE INCOME (after taxes): | |||||
| Exchange differences on translating foreign operations | -0.5 | -6.7 | 3.3 | 0.6 | -3.4 |
| Cash flow hedging | 1.3 | 1.6 | 1.3 | -1.3 | 2.8 |
| Revaluation | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Actuarian gains (losses) on defined benefit pension plans | - | - | - | 1.6 | 1.6 |
| TOTAL OTHER COMPREHENSIVE INCOME | 0.7 | -5.2 | 4.6 | 0.9 | 1.0 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | -3.4 | -4.8 | 11.6 | 7.4 | 10.8 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO: | |||||
| Equity holders of the parent | -3.5 | -4.6 | 11.3 | 6.5 | 9.7 |
| Non-controlling interests | 0.1 | -0.2 | 0.3 | 0.9 | 1.1 |
| Total | -3.4 | -4.8 | 11.6 | 7.4 | 10.8 |
CONSOLIDATED BALANCE SHEET
PUBLISHED
| (EUR million) | 31.3.2013 | 30.6.2013 | 30.9.2013 | 31.12.2013 |
| ASSETS | ||||
| NON-CURRENT ASSETS | ||||
| Intangible assets | 78.7 | 75.1 | 75.4 | 74.7 |
| Goodwill | 102.4 | 100.7 | 101.1 | 100.9 |
| Tangible assets | 497.4 | 482.2 | 482.8 | 478.7 |
| Shares in associates | 35.6 | 34.0 | 34.9 | 29.4 |
| Trade and other receivables | 6.0 | 4.7 | 5.6 | 3.5 |
| Available-for-sale investments | 13.2 | 12.5 | 12.7 | 14.1 |
| Deferred tax asset | 32.7 | 31.6 | 33.8 | 29.0 |
| NON-CURRENT ASSETS | 766.0 | 740.8 | 746.2 | 730.3 |
| CURRENT ASSETS | ||||
| Inventories | 190.7 | 188.2 | 195.4 | 168.8 |
| Trade and other receivables | 225.2 | 219.8 | 203.9 | 180.8 |
| Income tax receivable | 0.3 | 0.4 | 0.5 | 0.2 |
| Other financial assets | - | - | - | - |
| Cash and bank | 28.2 | 32.4 | 38.3 | 74.9 |
| CURRENT ASSETS | 444.3 | 440.7 | 438.2 | 424.6 |
| ASSETS | 1 210.3 | 1 181.5 | 1 184.5 | 1 154.9 |
| EQUITY AND LIABILITIES | ||||
| EQUITY | 399.7 | 389.8 | 401.1 | 409.0 |
| NON-CURRENT LIABILITIES | ||||
| Deferred tax liability | 28.5 | 28.3 | 28.8 | 27.0 |
| Non-current interest-bearing liabilities | 305.5 | 149.0 | 151.3 | 260.1 |
| Non-current non-interest bearing liabilities | 2,0 | 2.1 | 2.2 | 2.4 |
| Non-current provisions | 0.1 | 0.1 | 0.1 | 0.1 |
| Pension obligations | 9.3 | 6.6 | 4.9 | 9.0 |
| NON-CURRENT LIABILITIES | 345.4 | 186.1 | 187.3 | 298.6 |
| CURRENT LIABILITIES | ||||
| Current interest-bearing liabilities | 195.0 | 334.5 | 332.3 | 171.0 |
| Trade and other payables | 268.7 | 268.8 | 260.2 | 273.4 |
| Income tax liability | 0.9 | 1.4 | 1.7 | 2.0 |
| Current provisions | 0.7 | 0.8 | 1.8 | 0.8 |
| CURRENT LIABILITIES | 465.2 | 605.6 | 596.1 | 447.3 |
| EQUITY AND LIABILITIES | 1 210.3 | 1 181.5 | 1 184.5 | 1 154.9 |
RESTATEMENT
| (EUR million) | 31.3.2013 | 30.6.2013 | 30.9.2013 | 31.12.2013 |
| ASSETS | ||||
| NON-CURRENT ASSETS | ||||
| Intangible assets | 78.1 | 74.5 | 74.8 | 74.2 |
| Goodwill | 80.0 | 78.3 | 78.8 | 78.0 |
| Tangible assets | 430.5 | 418.2 | 417.0 | 411.5 |
| Shares in associates | 136.5 | 130.0 | 136.2 | 135.8 |
| Trade and other receivables | 5.9 | 4.6 | 5.5 | 3.3 |
| Available-for-sale investments | 13.1 | 12.4 | 12.6 | 14.1 |
| Deferred tax asset | 30.8 | 29.8 | 31.9 | 27.3 |
| NON-CURRENT ASSETS | 775.1 | 747.7 | 756.7 | 744.1 |
| CURRENT ASSETS | ||||
| Inventories | 171.2 | 170.0 | 178.9 | 152.5 |
| Trade and other receivables | 180.8 | 171.2 | 153.7 | 136.9 |
| Income tax receivable | 0.3 | 0.4 | 0.6 | 0.1 |
| Other financial assets | - | - | - | - |
| Cash and bank | 26.4 | 30.9 | 36.6 | 68.7 |
| CURRENT ASSETS | 378.7 | 372.4 | 369.8 | 358.1 |
| ASSETS | 1 153.8 | 1 120.2 | 1 126.5 | 1 102.2 |
| EQUITY AND LIABILITIES | ||||
| EQUITY | 400.3 | 389.6 | 401.4 | 409.0 |
| NON-CURRENT LIABILITIES | ||||
| Deferred tax liability | 28.4 | 28.3 | 28.8 | 26.9 |
| Non-current interest-bearing liabilities | 291.0 | 135.1 | 136.8 | 245.1 |
| Non-current non-interest bearing liabilities | 1.2 | 1.4 | 1.2 | 1.1 |
| Non-current provisions | 0.1 | 0.1 | 0.1 | 0.1 |
| Pension obligations | 8.7 | 6.1 | 4.4 | 8.4 |
| NON-CURRENT LIABILITIES | 329.4 | 170.8 | 171.2 | 281.6 |
| CURRENT LIABILITIES | ||||
| Current interest-bearing liabilities | 184.7 | 320.0 | 319.6 | 159.3 |
| Trade and other payables | 239.4 | 239.6 | 233.3 | 252.2 |
| Income tax liability | 0.0 | 0.0 | 0.0 | 0.1 |
| Current provisions | - | - | 1.0 | 0.0 |
| CURRENT LIABILITIES | 424.2 | 559.7 | 553.9 | 411.6 |
| EQUITY AND LIABILITIES | 1 153.8 | 1 120.2 | 1 126.5 | 1 102.2 |
CASH FLOW STATEMENT
PUBLISHED
| (EUR million) | Q1/2013 | Q1-Q2/2013 | Q1-Q3/2013 | 2013 |
| Operating activities | ||||
| Cash flow from operating activities | -12.7 | 16.7 | 45.7 | 151.3 |
| Financial items and taxes | -7.8 | -8.0 | -14.3 | -20.1 |
| Net cash flow from operating activities | -20.5 | 8.7 | 31.4 | 131.2 |
| Investments | ||||
| Gross investments in property, plant and equipment | -9.1 | -18.9 | -35.0 | -57.6 |
| Disposals of property, plant and equipment | 0.4 | 1.4 | 3.6 | 11.0 |
| Shares in associates purchased | 0.0 | 0.0 | 0.0 | -1.2 |
| Shares in associates sold | 0.4 | 0.4 | 0.4 | 1.1 |
| Loan receivables borrowings and repayments | 0.2 | 0.4 | 0.4 | 0.6 |
| Net cash flow from investing activities | -8.2 | -16.7 | -30.6 | -46.0 |
| Cash flow before financing activities | -28.7 | -8.0 | 0.8 | 85.2 |
| Financing activities | ||||
| Current borrowings raised | 15.0 | 29.2 | 37.4 | 12.9 |
| Current borrowings repaid | -6.2 | -28.6 | -39.9 | -195.5 |
| Non-current borrowings raised | 0.1 | 0.8 | 0.8 | 130.8 |
| Non-current borrowings repaid | -9.9 | -10.1 | -10.3 | -11.3 |
| Dividends paid | -0.1 | -6.0 | -6.0 | -5.9 |
| Net cash flow from financing activities | -1.0 | -14.8 | -18.0 | -69.0 |
| Change in cash and cash equivalents | -29.7 | -22.8 | -17.2 | 16.2 |
RESTATEMENT
| (EUR million) | Q1/2013 | Q1-Q2/2013 | Q1-Q3/2013 | 2013 |
| Operating activities | ||||
| Cash flow from operating activities | -21.5 | 6.8 | 24.9 | 122.6 |
| Financial items and taxes | -4.1 | -1.6 | -7.4 | -11.8 |
| Net cash flow from operating activities | -25.6 | 5.2 | 17.5 | 110.8 |
| Investments | ||||
| Gross investments in property, plant and equipment | -6.9 | -15.8 | -32.8 | -46.8 |
| Disposals of property, plant and equipment | 0.2 | 2.8 | 8.2 | 10.7 |
| Shares in associates purchased | 0.0 | 0.0 | 0.0 | -1.2 |
| Shares in associates sold | 0.4 | 0.4 | 0.4 | 1.1 |
| Loan receivables borrowings and repayments | 0.2 | 0.4 | 0.4 | 0.6 |
| Net cash flow from investing activities | -6.1 | -12.2 | -23.7 | -35.6 |
| Cash flow before financing activities | -31.6 | -7.0 | -6.1 | 75.3 |
| Financing activities | ||||
| Current borrowings raised | -366.3 | -361.2 | -340.7 | 9.9 |
| Current borrowings repaid | 369.6 | 350.5 | 333.6 | -196.1 |
| Non-current borrowings raised | -0.1 | 0.7 | 0.7 | 130.8 |
| Non-current borrowings repaid | -0.1 | -0.3 | -0.4 | -0.5 |
| Dividends paid | -0.1 | -6.0 | -6.0 | -5.9 |
| Net cash flow from financing activities | 3.1 | -16.3 | -12.7 | -61.8 |
| Change in cash and cash equivalents | -28.6 | -23.3 | -18.9 | 13.5 |
ANALYSIS BY SEGMENT
Net sales and EBIT by Market Area, PUBLISHED
| (EUR million) | Q1/2013 | Q2/2013 | Q3/2013 | Q4/2013 | 2013 |
| NET SALES | |||||
| - Finland | 194.2 | 199.4 | 200.4 | 210.1 | 804.1 |
| - Baltics | 41.9 | 43.8 | 44.7 | 44.7 | 175.1 |
| - Sweden | 228.9 | 241.8 | 238.8 | 255.8 | 965.3 |
| - Denmark | 56.3 | 60.4 | 56.7 | 52.6 | 226.1 |
| - Poland | 85.5 | 96.0 | 99.2 | 94.3 | 375.1 |
| - Between segments | -15.9 | -17.7 | -16.3 | -17.0 | -67.0 |
| Group total | 590.8 | 623.7 | 623.5 | 640.6 | 2 478.6 |
| EBIT | |||||
| - Finland | -1.3 | 0.5 | 2.0 | 1.6 | 2.8 |
| - Baltics | 0.8 | 1.3 | 4.2 | 2.1 | 8.4 |
| - Sweden | -2.6 | 2.0 | 5.2 | 3.5 | 8.1 |
| - Denmark | -0.1 | 0.0 | -1.4 | 6.4 | 4.9 |
| - Poland | 5.4 | 5.7 | 3.3 | 4.3 | 18.8 |
| - Between segments | - | - | - | - | - |
| Segments total | 2.2 | 9.5 | 13.4 | 17.9 | 43.0 |
| Group administration costs | -3.3 | -3.6 | -2.9 | -2.7 | -12.5 |
| Group total | -1.1 | 5.8 | 10.5 | 15.2 | 30.5 |
Net sales and EBIT by Market Area, RESTATEMENT
| (EUR million) | Q1/2013 | Q2/2013 | Q3/2013 | Q4/2013 | 2013 |
| NET SALES | |||||
| - Finland | 194.1 | 199.4 | 200.4 | 210.1 | 804.1 |
| - Baltics | 41.8 | 43.8 | 44.7 | 44.7 | 175.1 |
| - Sweden | 229.2 | 242.1 | 239.0 | 256.2 | 966.5 |
| - Denmark | 56.2 | 60.2 | 56.5 | 52.3 | 225.3 |
| - Poland | |||||
| - Between segments | -14.3 | -14.2 | -13.7 | -15.5 | -57.7 |
| Group total | 507.1 | 531.3 | 526.9 | 547.9 | 2 113.2 |
| EBIT | |||||
| - Finland | -1,2 | 0.6 | 2.1 | 1.7 | 3.2 |
| - Baltics | 0,6 | 1.1 | 4.1 | 1.9 | 7.7 |
| - Sweden | -2,9 | 2.2 | 5.1 | 3.5 | 8.0 |
| - Denmark | -0,3 | -0.5 | -2.0 | 6.4 | 3.6 |
| - Poland | - | - | - | - | - |
| - Between segments | - | - | - | - | - |
| Segments total | -3,7 | 3.5 | 9.3 | 13.5 | 22.5 |
| Group administration costs | -2,8 | -3.0 | -2.3 | -2.6 | -10.7 |
| Group total | -6,5 | 0.4 | 7.0 | 10.9 | 11.7 |
KEY FIGURES
PUBLISHED
| Q1/2013 | Q1-Q2/2013 | Q1-Q3/2013 | 2013 | |
| EPS, EUR | -0.08 | -0.07 | 0.06 | 0.16 |
| Cash flow before debt service (mEUR) | -20.9 | -0.7 | 13.8 | 103.4 |
| Cash Flow Before Financing Activities (mEUR) | -28.7 | -8.0 | 0.8 | 84.6 |
| Return on capital employed (ROCE) before taxes, % | 5.8 | 6.0 | 5.5 | 4.4 |
| Net debt (mEUR) | 472.2 | 451.2 | 445.3 | 355.7 |
| Net gearing % | 118.0 | 115.7 | 111.0 | 87.0 |
| Equity ratio % | 33.0 | 33.0 | 33.9 | 35.4 |
RESTATEMENT
| Q1/2013 | Q1-Q2/2013 | Q1-Q3/2013 | 2013 | |
| EPS, EUR | -0.08 | -0.07 | 0.06 | 0.16 |
| Cash flow before debt service (mEUR) | -27.2 | -5.6 | 0.6 | 86.8 |
| Cash Flow Before Financing Activities (mEUR) | -31.8 | -7.4 | -6.6 | 74.7 |
| Return on capital employed (ROCE) before taxes, % | 4.0 | |||
| Net debt (mEUR) | 448.7 | 423.7 | 419.3 | 335.3 |
| Net gearing % | 112.1 | 108.8 | 104.5 | 82.0 |
| Equity ratio % | 34.7 | 34.8 | 35.6 | 37.1 |
HKScan Corporation
Hannu Kottonen
CEO
For further information:
CFO Tuomo Valkonen, HKScan Corporation. Kindly submit a call-back request to Marjukka Hujanen, firstname.surname@hkscan.com tel. +358 10 570 6218
HKScan is the leading Nordic meat expert. We produce, market and sell high-quality, responsibly-produced pork, beef, poultry and lamb products, processed meats and convenience foods under strong brand names. Our customers are the retail, food service, industrial and export sectors, and our home markets comprise Finland, Sweden, Denmark, the Baltics and Poland. We export to close to 50 countries. In 2013, HKScan had net sales of EUR 2.5 billion and some 11 000 employees.
DISTRIBUTION:
Nasdaq OMX, Helsinki
Main media
www.hkscan.com