This is a summary of the Interim Report January - June 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.
SECOND QUARTER (APRIL-JUNE)
- Consolidated net sales were at the previous year’s level and amounted to EUR 98.1 (98.4) million.
- Operating profit excluding non-recurring items was lower than a year earlier and came to EUR 0.7 (2.4) million; non-recurring items totalled EUR ‑0.1 (‑0.3) million.
- The profit for the period was EUR 0.1 (1.7) million, and earnings per share amounted to EUR 0.02 (0.28).
JANUARY-JUNE
- Consolidated net sales were down on the previous year and amounted to EUR 187.0 (198.4) million.
- Operating profit excluding non-recurring items came to EUR 0.4 (3.8) million; non-recurring items totalled EUR ‑0.5 (-0.5) million.
- The profit for the period was EUR -1.1 (2.4) million, and earnings per share amounted to EUR -0.12 (0.44).
The assessment of profit performance for the full year is unchanged.
he 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 period of the previous year, unless stated otherwise.
Veijo Meriläinen, CEO:
The Apetit Group’s second-quarter net sales were at the previous year’s level. Net sales grew in the Grains and Oilseeds Business as a result of high sales volumes in the grain trade and despite a decrease in market prices. In the Food Business, net sales declined as a result of a decrease in sales of fresh products to the professional food service sector.
S econd-quarter operating profit excluding non-recurring items was down on the previous year. The Food Business operating profit in the comparison period included EUR 1.5 million recognised as income in association with the additional purchase price of Caternet Finland Oy. In the Other Operations segment, lower market prices for sugar weakened the result for the associated company Sucros.
Despite the decrease in operating profit, there were positive aspects in the profit performance of the business areas. The profitability of the Grains and Oilseeds Business improved on the previous year as a result of the volume growth in the grain trade and strong demand for vegetable oils and expeller. In Food Business, the profitability was better than the comparison period , t aking into consideration the income recognition of the reduction in the additional purchase price of Caternet Finland Oy, which was included in the operating profit for the comparison period. The profitability of frozen products was good and the profitability of fish and fresh products improved or remained unchanged from the previous year, although this was again at an unsatisfactory level. In response to the weak state of the market and unsatisfactory profitability level, we are seeking to reduce overhead costs by EUR 1.6 million in comparison with the figures for 2013. Savings of EUR 1.0 million towards this total were made during the first half of the year.
We also launched long-term programmes early in the year aiming to improve the profitability of the fish and fresh products groups. The majority of the measures under the programmes will be carried out in 2014 and 2015, and we expect them to improve the efficiency of operations extensively in purchasing, in the supply chain and in sales. The expected financial impact of these programmes will be announced later in the year.
The import ban set by Russia effects a wide range of food products produced by Finnish food companies. Apetit Plc’s business segments do not export to Russia in considerable amounts. Therefore the sanctions are not expected to have a direct impact on our sales or operations.
Our longer-term target is to strengthen Apetit as a Finnish company and brand operating in the food industry and solidly integrated with primary production. We will revise our food and vegetable oil solutions in order to better meet consumers’ and customers’ needs, and will actively seek opportunities to strengthen our market position in the grains and oilseeds market."
KEY FIGURES
| EUR million | Q2 2014 | Q2 2013 | Change | Q1-Q2/ 2014 | Q1-Q2/ 2013 | Change | Q1-Q4/ 2013 |
| Net sales | 98.1 | 98.4 | 0% | 187.0 | 198.4 | -6% | 387.3 |
| Operating profit, excluding non-recurring items | 0.7 | 2.4 | 0.4 | 3.8 | 12.2 | ||
| Operating profit | 0.6 | 2.1 | -0.1 | 3.3 | 9.4 | ||
| Profit before taxes | 0.1 | 1.7 | -1.1 | 2.4 | 9.3 | ||
| Profit for the period | 0.02 | 0.28 | -0.12 | 0.44 | 1.63 | ||
| Earnings per share, EUR | 21.71 | 21.80 | 22.90 | ||||
| Shareholders' equity per share, EUR | 76.7 | 73.1 | 70.3 |
OUTLOOK FOR 2014
The Apetit 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. As a result of the lower global market prices of grains, the Group’s net sales for this year are expected to decrease or to be no higher than the previous year’s level.
The Group’s full-year operating profit excluding non-recurring items is expected to fall short of the previous year’s level. In the Food Business, the market conditions are expected to continue to be challenging. In comparison with the same period in 2013, the profitability of the Grains and Oilseeds Business has been positively influenced by the volume growth in the grain trade and in vegetable oil products, and by the success in raw material procurement. In the Other Operations segment, lower market prices for sugar are expected to weaken the result for the associated company Sucros. The Group’s July-December operating profit excluding non-recurring items is expected to be no higher than the previous year’s level.
In addition, the outcome of the shareholder agreement dispute concerning Sucros may have a significant effect on the result for 2014. Apetit has received a notification from the Arbitral Tribunal that the Arbitral Award regarding the dispute is rendered to the Parties on Tuesday 19 August 2014, unless nothing unexpected will take place.
PUBLICATION DATES FOR FINANCIAL REPORTS
Interim reports for 2014 will be published as follows: 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 A 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 - June 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.
