Fourth quarter and year-end report 2015
26 February 2016
Fourth quarter
- Net sales increased by 10 percent to MSEK 1,376.0 (1,252.0), and by 12 percent at constant exchange rates, with strong growth in Sweden and Norway and a decline in Denmark.
- Adjusted*operating income decreased to MSEK 68.1 (79.6), corresponding to an adjusted operating margin of 5.0 (6.4) percent, due to the consolidation of the newly acquired Finnish operation which reported a loss of MSEK -11.7.
- Income for the period declined to MSEK 28.1 (42.9), including non-comparable items of MSEK -15.9 (-5.2), and earnings per share were SEK 0.47 (0.71).
- Adjusted* operating cash flow amounted to MSEK 39.4 (64.5).
Full year 2015
- Net sales increased by 3 percent to MSEK 5,422.9 (5,267.2), and by 3 percent at constant exchange rates, with higher net sales in Sweden and Denmark more than offsetting lower net sales in Norway.
- Adjusted* operating income decreased to MSEK 291.5 (301.0), corresponding to an adjusted operating margin of 5.4 (5.7) percent.
- Income for the period increased to MSEK 163.9 (56.1), including non-comparable items of MSEK -24.8 (-89.0), and earnings per share were SEK 2.73 (1.02).
- Adjusted* operating cash flow decreased to MSEK 324.1 (438.1) MSEK, negatively affected by higher capital expenditure and an increase in inventories compared to last year.
- The Board of Directors proposes a dividend for 2015 of SEK 1.80 (1.30) per share.
| MSEK | Q4 2015 | Q4 2014 | Change | 2015 | 2014 | Change |
| Net sales | 1,376.0 | 1,252.0 | 10% | 5,422.9 | 5,267.2 | 3% |
| Operating income | 47.6 | 73.5 | -35% | 259.5 | 238.5 | 9% |
| Income for the period | 28.1 | 42.9 | -35% | 163.9 | 56.1 | 192% |
| EPS | 0.47 | 0.71 | -34% | 2.73 | 1.02 | 168% |
| Adjusted* EBITDA | 112.8 | 118.8 | -5% | 477.4 | 470.2 | 2% |
| Adjusted* operating income | 68.1 | 79.6 | -14% | 291.5 | 301.0 | -3% |
| Adjusted* operating margin | 5.0% | 6.4% | 5.4% | 5.7% | ||
| Adjusted* income for the period | 44.0 | 48.1 | -9% | 188.7 | 145.1 | 30% |
| Adjusted* EPS, SEK | 0.74 | 0.80 | -8% | 3.15 | 2.63 | 20% |
| Adjusted* operating cash flow | 39.4 | 64.5 | -39% | 324.1 | 438.1 | -26% |
*) Adjusted for non-comparable items in Q4 2015 of MSEK -20.5 (-6.1) in EBITDA and operating income and MSEK -15.9 (-5.2) in income for the period, and for the full year 2015 of MSEK –32.0 (-62.5) in EBITDA and operating income and MSEK -24.8 (-89.0) in income for the period. See page 4.
CEO Statement
We saw a substantial increase in net sales in the fourth quarter driven by strong growth in both Sweden and Norway. Adjusted operating income and margin declined, however, due to the consolidation of the newly acquired Finnish operation.
The growth in net sales in Sweden was achieved on the basis of continued strong market growth and successful product launches. Adjusted operating income for the Swedish operation increased substantially as a result of a higher volumes. The adjusted operating margin was in line with last year.
Net sales in Norway have increased gradually since deliveries to Coop under the new supply agreement started in August. It was also gratifying to see a recovery of the Norwegian market after several quarters of decline. Adjusted operating income and operating margin for the Norwegian operation declined, however, due to a less favourable product mix and stock clearance.
The price pressure in Denmark continued in the quarter both in the local market and on exports, and net sales for the Danish operation were lower than last year. We managed to improve both adjusted operating income and margin through continued efficiency gains in the supply chain.
Sales volumes in Finland were still small in the quarter. Finland is an attractive market and we expect to be able to increase volumes during 2016. We are also focusing on improving efficiency in the facility.
For the full year 2015, higher net sales in Sweden and Denmark more than compensated for a decline in Norway. The adjusted operating margin declined to 5.4 percent from 5.7 percent in 2014, due to the consolidation of the Finnish operation. For comparable units, the adjusted operating margin increased to 5.8 percent. Cash flow was strong although lower than last year due to higher capital expenditure and an increase in inventories compared to a significant decrease in 2014. The increase in capital expenditure relates to investments in new processing capacity for ready to eat products. Adjusted income for the period and adjusted earnings per share improved, benefitting from substantially lower finance expenses. The net debt/adjusted EBITDA ratio improved to 2.7 from 3.0 in 2014.
We made progress in a number of areas during the year. Our efforts in product development generated an increased number of product launches in all countries, and efficiency in production was improved. The market position was strengthened in both Sweden and Norway. The operation in Finland is in a start up phase and we will gradually build our position and improve profitability. I believe the Group is well positioned for continued profitable growth, and we will continue to strengthen operations during 2016.
Leif Bergvall Hansen
Managing Director and CEO
Further information
For further information, please contact:
Leif Bergvall Hansen, Chief Executive Officer Tel: +45 22 10 05 44
Tobias Wastensson, Head of Group Finance Tel: +46 10 456 14 86
Patrik Linzenbold, Investor Relations Tel: +46 708 25 26 30
Financial calendar
- Annual Report: to be published on the website: week 13 2016
- Annual General Meeting: 25 April 2016.
- Interim report for the first quarter 2016: 10 May 2016.
This interim report comprises information which Scandi Standard is required to disclose under the Securities Markets Act and/or the Financial Instruments Trading Act. It was released for publication at 07:30 CET on 26 February 2016.
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