This is a summary of the Interim Report January - March 2014. The complete Interim Report, including tables of financial information, is attached to this release and can be downloaded from the company’s website at www.apetitgroup.fi/en .
FIRST QUARTER (JANUARY-MARCH)
- Consolidated net sales in the first quarter amounted to EUR 88.9 (100.0) million, down 11 per cent on the same quarter in 2013.
- Operating profit excluding non-recurring items came to EUR -0.2 (1.3) million, and the reported operating profit was EUR -0.7 (1.2) million.
- Profit for the period was EUR -1.2 (0.7) million, and earnings per share amounted to EUR ‑0.14 (0.16).
- The company’s estimate of its full-year profit performance for 2014 has been updated.
The information in this Interim Report has not been audited. The figures in parentheses are the equivalent figures for the same period in 2013 and the comparison period means the corresponding quarter of the previous year, unless stated otherwise.
Veijo Meriläinen, CEO:
" Net sales and the operating profit excluding non-recurring items for the first quarter were down on the previous year’s figures. The operating profit excluding non-recurring items was unsatisfactory, with a year-on-year decline. In the Grains and Oilseeds Business there was an improvement in profitability as a result of our focused efforts on oilseed product raw material purchasing, highly refined vegetable oils and our Finnish vegetable oil products. In Food Business, the profitability of our fish product group and fresh product group in Finland was poor and suffered from a year-on-year decrease in sales. The result for the associated company Sucros, which is part of Other Operations, was adversely affected by the declining market price of sugar and by the exceptionally large post adjustment items for transfer prices in the period.
During the first quarter we launched profitability improvement programmes in fish product group and fresh product group, and took the decision to introduce one-off savings measures in Finland in 2014 in the form of temporary lay-offs of white-collar personnel and other savings in overheads.
Our chosen strategic goals will support Apetit’s success in the current market conditions too. The goal in the Food Business is to achieve a significant improvement in profitability, strengthen the Apetit brand and significantly increase its share of the food eaten by Finnish consumers. In the Food Business we aim to ensure that the Apetit brand is the preferred food solution for consumers who value wellbeing. In the Grains and Oilseeds Business, we want to lead the way in grain trading in the Baltic region and to be an innovator in edible oils."
KEY FIGURES
| EUR million | Q1/ 2014 | Q1/ 2013 | Change | 2013 |
| Net sales | 88.9 | 100.0 | -11% | 387.3 |
| Operating profit, excluding non-recurring items | -0.2 | 1.3 | 12.2 | |
| Operating profit | -0.7 | 1.2 | 9.4 | |
| Profit before taxes | -1.0 | 0.7 | 9.3 | |
| Profit for the period | -1.2 | 0.7 | 9.3 | |
| Earnings per share, EUR | -0.14 | 0.16 | 1.63 | |
| Shareholders' equity per share, EUR | 21.77 | 21.60 | 22.90 | |
| Equity Ratio, % | 69.5 | 63.3 | 70.3 |
OUTLOOK FOR 2014
The Apetit Group is aiming to achieve organic growth in its Food Business and Grains and Oilseeds Business. The Group’s net sales will be affected particularly by the level of activity in the grain and oilseed markets and by changes in the price level of grains and oilseeds. Net sales for the first half of 2014 are expected to be lower than in the previous year as a result of lower market prices for grains.
The company’s estimate of its full-year profit performance for 2014 has been updated. On 25 February 2014, Apetit stated in its financial statements bulletin that the Group’s full-year operating profit excluding non-recurring items is not expected to exceed the previous year’s level. The company’s new assessment is that the Group’s full-year operating profit excluding non-recurring items is expected to fall short of the previous year’s level.
In the Other Operations segment, lower market prices for sugar are expected to weaken the result for the associated company Sucros. In the Food Business and the Grains and Oilseeds Business, the company is seeking an improvement in profitability from the figures for 2013. The second half of the year is expected to be more significant in terms of the total result than in 2013. The operating profit before non-recurring items for the first half of the year is expected to be lower than in the previous year.
In addition, the outcome of the shareholder agreement dispute concerning Sucros may have a significant effect on the result for 2014. The decision is expected to be issued during 2014.
PUBLICATION DATES FOR FINANCIAL REPORTS
Interim reports for 2014 will be published as follows: January - June on 14 August at 8.30 am, and January - September on 6 November at 8.30 am.
FURTHER INFORMATION
Veijo Meriläinen, CEO, tel. +358 (0)10 402 00
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INVITATION TO BRIEFING
A briefing (in Finnish) for analysts and media representatives will be held today at 10.00 a.m. in Hotel Scandic Simonkenttä (address: Simonkatu 9, Helsinki). In the briefing Apetit Plc’s CEO Veijo Meriläinen presents the January - March results of Apetit Plc and gives more information about current issues.
The presentation material will be available on the company’s website at http://www.apetitgroup.fi/en/ after the event.
COPIES TO
NASDAQ OMX Helsinki Ltd Main media www.apetitgroup.fi
