Apetit Plc’s Financial Statements Bulletin 1 January – 31 December 2017: A turnaround in Food Solutions – The weak harvest season was reflected in the results for Grain Trade and Oilseed Products
Apetit Plc’s Financial Statements Bulletin 1 January – 31 December 2017: A turnaround in Food Solutions – The weak harvest season was reflected in the results for Grain Trade and Oilseed Products
Apetit Plc, Financial Statements Bulletin on 1 March 2018 at 8:30 a.m.
October–December, continuing operations
• Net sales from continuing operations were EUR 87.1 (80.4) million
• Operational EBITDA was EUR 2.7 (2.0) million
• Operational EBIT was EUR 1.2 (0.6) million
• The profit for the period was EUR 2.3 (1.9) million, and earnings per share amounted to EUR 0.38 (0.31)
January–December, continuing operations
• Net sales from continuing operations were EUR 314.0 (312.0) million
• Operational EBITDA was EUR 6.8 (5.8) million
• Operational EBIT was EUR 1.3 (0.8) million
• Profit for the period came to EUR 2.9 (2.0) million, and earnings per share amounted to EUR 0.46 (0.33)
October–December, the Group, including discontinued operations*
• Consolidated net sales amounted to EUR 91.6 (100.1) million
• Operational EBIT was EUR 1.3 (1.6) million
• Profit for the period came to EUR 2.4 (2.4) million, and earnings per share amounted to EUR 0.38 (0.38).
January–December, the Group, including discontinued operations*
• Consolidated net sales amounted to EUR 368.1 (386.5) million
• Operational EBIT was EUR 1.7 (0.9) million
• Profit for the period came to EUR -0.6 (1.2) million, and earnings per share amounted to EUR -0.10 (0.19)
The Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.70 per share be paid.
* Discontinued operations: On 29 June 2017, Apetit Plc signed an agreement on selling its seafood business to the Norwegian Insula AS. The transaction was completed on 31 October 2017. In this financial statements bulletin, the transferred business is reported as a discontinued operation. Consolidated net sales and profit for 2017 include the seafood business from January to October.
The figures for 2017 and 2016 are audited. The quarterly figures are unaudited. The figures in parentheses are the equivalent figures for the same period in 2016, and the comparison period means the corresponding period in the previous year, unless otherwise stated.
Juha Vanhainen, CEO:
“In 2017, Apetit established its position as the leading Finnish brand in vegetable-based food solutions. Its improved awareness is supported by the fact that the company introduced new products at a record pace and expanded into new product groups. Sales of existing products also increased.
In 2017, the weather remained cool throughout the growing season. The end of the growing season was marked by exceptionally heavy rain, which delayed and hindered the harvesting of grains, oilseeds and root vegetables. The oilseed harvest in Finland was markedly smaller than in the previous year. The challenges of the harvest season also reduced grain trade export volumes significantly. The availability of Finnish field vegetables has been limited to some extent. As a result of this, it has been necessary to replace Finnish field vegetables with more expensive imported vegetables or limit the production of certain products, particularly products containing Finnish carrots.
Despite the difficult harvest season, Apetit was able to improve its operational EBIT and net sales in continuing operations. The turnaround in the Food Solutions business was particularly pleasing. It was supported mainly by the increased sales of frozen and fresh products. Exports also increased in comparison with the previous year, with growth in the total exports of Food Solutions. In December, Apetit announced that it would start exporting to Russia and deliver various frozen products to the St Petersburg region.
The successful work to improve the efficiency of working capital management continued in 2017. The Group’s working capital tied up in operations decreased by EUR 22.5 million during the financial year. As a result of the more efficient management of working capital and the divestment of the seafood business, the Group was debt-free at the end of the year. Its balance sheet structure creates favourable conditions for investments and potential business arrangements that are in line with its strategy.
Apetit’s strategy to specialise and lead the way in vegetable-based food solutions is also supported by the divestment of its fish processing business. The business was sold to Insula AS in Finland, Norway and Sweden. The transaction was completed at the end of October.
In 2018, we will continue to invest in sales and product development in line with our strategy. The prevailing food trends support our goals: consumers are increasingly appreciating well-being, good taste and ease of use. High vegetable content, organic products and Finnish origin are also primary considerations when consumers are making purchasing decisions.”
KEY FIGURES
| EUR million | 10-12 2017 | 10-12 2016 | Change | 1-12 2017 | 1-12 2016 | Change |
| Continuing operations | ||||||
| Net sales | 87.1 | 80.4 | 8 % | 314.0 | 312.0 | 1 % |
| Operational EBITDA | 2.7 | 2,0 | 6.8 | 5,8 | ||
| Operational EBIT | 1.2 | 0.6 | 1.3 | 0.8 | ||
| Operating profit | 1.2 | 0.6 | 1.1 | 0.8 | ||
| Share of profit of associated company Sucros | 1.4 | 1.5 | 1.0 | 0.7 | ||
| Profit for the period | 2.3 | 1.9 | 2.9 | 2.0 | ||
| Earnings per share, EUR | 0.38 | 0.31 | 0.46 | 0.33 | ||
| Working capital, at the end of the year | 30.0 | 52,9 | ||||
| Group (including discontinued operations) | ||||||
| Net sales | 91.6 | 100.1 | -8 % | 368.1 | 386.5 | -5 % |
| Operational EBIT | 1.3 | 1.6 | 1.7 | 0.9 | ||
| Operating profit | 1.2 | 1.2 | -2.5 | 0.6 | ||
| Profit for the period | 2.4 | 2.4 | -0.6 | 1.2 | ||
| Earnings per share, EUR | 0.38 | 0.38 | -0.10 | 0.19 | ||
| Equity per share, EUR | 18.10 | 19.00 | ||||
| Operational return on capital employed (ROCE), % | 2.4 % | 1.2 % | ||||
| Net cash flow from operating activities | 20.0 | 21.9 | ||||
| Equity ratio | 72.6 % | 64.1 % | ||||
| Gearing | -9.6 % | 12.4 % | ||||
| Investments | 5.9 | 9.7 |
PROFIT GUIDANCE FOR 2018
The Group’s full-year operational EBIT from continuing operations is expected to improve year-on-year (EUR 1.3 million in 2017). Due to the seasonal nature of the Group’s operations, most of the annual profit is accrued in the second half of the year. Sales volumes and the profit outlook for early 2018 are burdened by the weak harvest of 2017.
BOARD OF DIRECTORS’ DIVIDEND PROPOSAL
On 31 December 2017, the parent company’s distributable funds totalled EUR 62,596,445.91, of which EUR 838,688.75 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 of Directors will propose that a total of EUR 4,344,305.00 be distributed in dividends and that EUR 58,252,140.91 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
The Annual General Meeting will be held in Säkylä on Tuesday 27 March 2018.
PUBLISHING OF THE ANNUAL REPORT
Apetit Plc’s Annual Report for 2017 – including the Board of Directors’ report, the financial statements for 2017, a corporate responsibility report and a separate statement on Apetit Plc’s corporate governance – will be published in the week beginning 5 March 2018 on the company’s website at www.apetitgroup.fi.
INVITATION TO A BRIEFING
A briefing (in Finnish) for analysts and media will be held today at 10:00 a.m. in Hotel Scandic Simonkenttä, meeting room Espa (address: Simonkatu 9, Helsinki). In the briefing CEO Juha Vanhainen presents Financial Statements Bulletin. The presentation material will be also published on company web pages after the event.
Apetit Plc
Juha Vanhainen
For further information, please contact:
Juha Vanhainen, CEO, tel. +358 10 402 00
Apetit is number one in vegetables. It is a food industry company firmly rooted in Finnish primary production. We create well-being with vegetables by offering healthy and tasty food solutions that make daily life easier. We also produce high-quality vegetable oils and expeller meal from rapeseed, and trade grain on the international markets. Apetit seeks to lead the way in vegetable-based food solutions. Apetit Plc’s shares are listed on Nasdaq Helsinki. In 2017, the company’s net sales were EUR 314 million and it had 557 employees. Read more at apetitgroup.fi.
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