Apetit lowers its estimate of operational EBIT for 2016
Apetit Plc, stock exchange release, 19 October 2016, 9.00 a.m. NEW PROFIT GUIDANCE FOR 2016 Apetit Plc, stock exchange release, 19 October 2016, 9.00 a.m.
NEW PROFIT GUIDANCE FOR 2016
The Group’s operational EBIT* for the full year is estimated to be positive but to fall short of the comparison year’s level (2015: EUR 2.6 million). Due to the seasonal nature of the Group’s operations, a high proportion of the annual profit is accrued in the second half of the year.
The new harvest season has clarified the Grain Trade segment’s outlook for the remaining part of the year. Supply is plentiful, which is expected to keep the price level and margins in international grain markets at a low level.
The profitability of the Food Solutions segment has not improved as expected. The outlook for the remainder of the year is weakened by lower-than-expected volume of fresh product sales to the professional food service sector.
The improved operating efficiency of the Seafood segment is estimated to continue to support the improvement of the segment’s profitability in the remaining part of 2016.
The Oilseed Products segment’s outlook for the rest of 2016 is estimated to be stable.
PREVIOUS PROFIT GUIDANCE FOR 2016
In Finland, the market situation in the retail sector is expected to remain challenging. The growth outlook of the Finnish economy is weak. Prices on the international grain market are anticipated to remain at a relatively low level due to ample grain stores, at least during the first part of the new harvest season.
The Group’s full-year operational EBIT *) is expected to improve year-on-year (2015: EUR 2.6 million). Due to the seasonal nature of the Group’s operations, a high proportion of the annual profit is accrued in the second half of the year. The improvement of the Seafood segment’s profitability supports the improvement of the Group’s operational EBIT in the comparison period.
Due to the significant 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.
*) Due to the new 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.
Apetit will publish it’s January-September interim report on 3 November 2016 at 8:30 a.m.
APETIT PLC
Juha Vanhainen
CEO
For more information: Eero Kinnunen, CFO, +358 10 402 00
Copies to: Nasdaq Helsinki, Main media, www.apetitgroup.fi
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