Good profitability development in fish products – strong consolidated cash flow – unsatisfactory result
This is a summary of the Financial Statements Bulletin for 2016. Complete Financial Statements Bulletin for 2016 is attached to this release and can be downloaded from the company’s website at www.apetitgroup.fi/en
Fourth quarter (October–December):
- Consolidated net sales amounted to EUR 100.1 (113.8) million.
- Operational EBITDA was EUR 3.4 (4.5) million.
- Operational EBIT* ) was EUR 1.6 (2.7) million.
- The profit for the period was EUR 2.4 (2,2) million, and earnings per share were EUR 0.38 (0.36).
Financial year (January–December)
- Consolidated net sales amounted to EUR 386.5 (380.8) million.
- Operational EBITDA was EUR 7.5 (8.5) million.
- Operational EBIT* ) was EUR 0.9 (2.6) million.
- The profit for the period was EUR 1.2 (-4.6) million, and earnings per share were EUR 0.19 (-0.69).
- Consolidated cash flow was EUR 21.9 (-17.1) million.
The Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.70 per share be paid.
The figures for 2016 and 2015 are audited. The quarterly figures are unaudited. The figures in parentheses are the equivalent figures for the same period in 2015, and the comparison period means the corresponding period of the previous year, unless otherwise stated.
*) Due to the amendments to the regulations of the European Securities and Markets Authority (ESMA), Apetit has replaced the key figure “operating profit excluding non-recurring items” with the key figure “operational EBIT” as of 2016. Operational EBIT does not include restructuring expenses, any significant impairment on goodwill or other balance sheet items or reversal of impairment, the profit of the associated company Sucros or other extraordinary and material items.
Juha Vanhainen, CEO:
“2016 was the first year of our new strategy period. It was a year of renewal and creating favourable conditions for growth. We strengthened product development and invested in the Apetit consumer brand, and achieved good results in these areas. We implemented expanded capacity for the production of the new Tuorekset consumer-packaged ready-to-use vegetables and inaugurated the packaging plant extension to our vegetable oil milling plant. We fine-tuned our operating models and structures according to need, to increase efficiency and execution ability throughout the organisation. Our consolidated cash flow was strong as a result of freed-up working capital.
Our net sales grew in all segments, with the exception of Grain Trade, where the historically low price levels in the grain markets reduced net sales despite an increase in volumes. In the frozen foods group, we were able to regain growth after a long period of steady sales, thanks to high-selling new products and effective marketing. In the retail trade, we expanded into new product groups by introducing the Kasvisjauhis and Vegepops products in early 2017.
Despite the favourable developments, the full-year operational EBIT was at an unsatisfactory level. The profitability of the Seafood segment improved strongly during the year, and it recorded a positive operational EBIT for October–December. The good profitability of the frozen foods group and Oilseed Products had a positive effect on the result.
In Grain Trade, we suffered from the low price and margin levels caused by excessive supply in the grain markets. In fresh products, we began to change our operating model in an effort to transform the company from a direct-delivery wholesaler for the professional food service sector into a fresh product partner and a manufacturer of consumer products. This process burdened the result, but I am expecting the profitability of the product group to increase with new sales and increased operational efficiency in 2017.
In line with our strategy, we are establishing our position as a leader in vegetable-based food solutions. We aim for profitable growth in 2017. To this effect, we will improve operational efficiency across our operations and will continue to invest in increasing sales and in renewal and product development.”
CONSOLIDATED KEY FIGURES
| EUR million | Q4 2016 | Q4 2015 | Change | 2016 | 2015 | Change |
| Net sales | 100.1 | 113.8 | -12% | 386.5 | 380.8 | 1% |
| Operational EBITDA | 3.4 | 4.5 | 7.5 | 8.5 | ||
| Operational EBIT | 1.6 | 2.7 | 0.9 | 2.6 | ||
| Operating profit | 1.2 | 2.7 | 0.6 | -1.0 | ||
| Share of profit of associated company Sucros | 1.5 | 0.4 | 0.7 | -1.0 | ||
| Profit for the period | 2.4 | 2.2 | 1.2 | -4.6 | ||
| Earnings per share, EUR | 0.38 | 0.36 | 0.19 | -0.69 | ||
| Equity per share, EUR | 19.00 | 19.53 | ||||
| Working capital | 52.9 | 69.6 | ||||
| Operational return on capital employed (ROCE-%) | 1.2% | 1.2% | ||||
| Net cash flow from operating activities | 21.9 | -17.1 | ||||
| Equity ratio,% | 64.1% | 61.1% | ||||
| Gearing, % | 12.4% | 19.0% | ||||
| Investment | 9.7 | 9.1 |
OUTLOOK FOR 2017
Sales in the Finnish retail sector and professional food service sector are expected to pick up in comparison to the previous year, but the price competition is expected to remain intensive. Ample supply is expected to continue to prevail in the global grains market, keeping prices and margins at a low level. This situation is not expected to change significantly before a more specific outlook is available for the new harvest season.
The Group’s full-year operational EBIT* is expected to improve year-on-year (EUR 0.9 million in 2016). Due to the seasonal nature of the Group’s operations, most of the annual profit is accrued in the second half of the year.
With regard to profitability, favourable development will be supported by higher added value and positive sales development in Food Solutions, improved operational efficiency in Seafood and increased sales volumes in Grain Trade in comparison to the previous year.
Due to the substantial effect of international grain market price fluctuations on the Group’s net sales, Apetit will not issue any estimates of its expected full-year net sales.
*) Due to the amendments to the regulations of the European Securities and Markets Authority (ESMA), Apetit has replaced the key figure “operating profit excluding non-recurring items” with the key figure “operational EBIT” as of 2016. Operational EBIT does not include restructuring expenses, any significant impairment on goodwill or other balance sheet items or reversal of impairment, the profit of the associated company Sucros or other extraordinary and material items.
BOARD OF DIRECTORS’ DIVIDEND PROPOSAL
The parent company’s distributable funds totalled EUR 66,281,263.53 on 31 December 2016, of which EUR 3,332,724.66 is profit for the financial year.
The Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.70 per share be paid. The Board will propose that a total of EUR 4,340,539.70 be distributed in dividends and that EUR 61,940,723.83 be left in equity. No significant changes have taken place in the financial standing of the company since the end of the financial year. The company’s liquidity is good, and the Board deems that the company’s solvency will not be jeopardised by the proposed distribution of dividends.
No dividend will be paid on shares held by the company.
ANNUAL GENERAL MEETING 2017
The Annual General Meeting will be held in Säkylä on Friday, 24 March 2017.
PUBLICATION OF ANNUAL REPORT AND Q1/2017 INTERIM REPORT
Apetit Plc’s Annual Report for 2016 – including the Board of Directors’ report, the financial statements for 2016 and a separate statement on Apetit Plc’s corporate governance – will be published in the week beginning on 27 February 2016 on the company’s website at www.apetitgroup.fi/en .
The company will publish its interim report for January–March 2017 on Friday, 5 May 2017 at 8.30 a.m.
Further information Juha Vanhainen, 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 Juha Vanhainen presents the financial statements bulletin for 2016 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
