This is a summary of the Interim Report January - March 2015. 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 amounted to EUR 91.5 (88.9) million, up 3 per cent.
- Operating profit excluding non-recurring items was EUR -2.3 (-0.2) million. The reported operating profit was EUR -2.3 (-0.7) million.
- Profit for the period was EUR -2.3 (-1.2) million, and earnings per share amounted to EUR -0.31 (-0.14).
The information in this bulletin is unaudited. The figures in parentheses are the equivalent figures for the same period in 2014, and the comparison period means the corresponding period of the previous year, unless stated otherwise.
The profit guidance for 2015 was amended with a stock exchange release on 18 March 2015.
Juha Vanhainen, CEO:
There was a slight increase in our net sales during the first quarter. Net sales in the Food Business were at the previous year’s level and satisfactory considering the challenging market situation in the food sector. Net sales in the Grains and Oilseeds Business grew on the previous year on account of active grain trading.
In March, we lowered our expectations regarding our full-year financial performance based on the weakened economic outlook for the sugar market and domestic food sector in the near future. The first-quarter operating profit excluding non-recurring items decreased as expected from the previous year. Profitability in the fish and fresh products groups of the Food Business in Finland was unsatisfactory, and the low price level in the sugar market substantially weakened the result of the associated company Sucros from the previous year.
In January, we launched an investment project to develop a grain terminal at the port of Inkoo. This investment will strengthen our position as a partner to Finnish farmers and significantly increase our grain export capacity starting this crop year.
The long-term profitability programmes under way in the Food Business’s fish and fresh products groups progressed as planned. The programme measures are being implemented in stages during 2015, and the aim is to achieve a total reduction of EUR 4.5 million in annual costs going forward. In the first quarter of the year, we implemented changes in the production structure by centralising operations in fish products in the Kuopio and Helsinki. In the first quarter, the impact of these programmes on the cost level of the Food Business was EUR -0.4 million year-on-year.
This year our main target in the Food Business is to achieve the goals of our long-term profitability programmes and to stabilise the profitability development of the business on a positive track.
KEY FIGURES
| EUR million | Q1/2015 | Q1/2014 | Change | 2014 |
| Net sales | 91.5 | 88.9 | +3% | 384.7 |
| Operating profit excluding non- recurring items | -2.3 | -0.2 | 7.3 | |
| Operating profit | -2.3 | -0.7 | -5.9 | |
| Profit before taxes | -2.3 | -1.0 | -8.1 | |
| Profit for the period | -2.3 | -1.2 | -8.7 | |
| Profit for the period, excluding non-recurring items | -2.3 | -0.8 | 3.7 | |
| Earnings per share, EUR | -0.31 | -0.14 | -1.29 | |
| Earnings per share, excluding non-recurring items, EUR | -0.31 | -0.08 | 0.72 | |
| Equity per share, EUR | 19.63 | 21.77 | 20.70 | |
| Equity ratio, % | 68.0 | 69.5 | 69.7 | |
| Net cash flow from operating activities | 0.1 | 6.4 | 18.1 |
OUTLOOK FOR 2015
The Group’s full-year operating profit excluding non-recurring items is expected to fall short of the previous year’s level.
Owing to the extremely challenging situation in the sugar market, the associated company Sucros, which is part of the Other Operations segment, is anticipated to make a loss this year.
In Finland, the market situation in the food sector is expected to remain challenging. The aim of the long-term profitability programmes in the Food Business is to improve profitability and competitiveness. The impact of these programmes on the operating profit is expected to be felt in stages during the year as the measures are implemented.
In the Grains and Oilseeds Business, no major change is expected in the prospects for profitability in 2015 compared with the previous year.
Due to the substantial effect of international grain market price fluctuations on the entire Group’s net sales, Apetit will not issue any estimates of the expected full-year net sales.
FOR FURTHER INFORMATION Juha Vanhainen, CEO, tel. +358 (0)10 402 00 Eero Kinnunen, CFO, tel. +358 (0)10 402 4025
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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 Juha Vanhainen 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 Helsinki Main media www.apetitgroup.fi
