Apetit Plc's Financial Statements Release 1 January to 31 December 2022: Apetit’s Q4 result from continuing operations improved year-on-year

Apetit Plc's Financial Statements Release 1 January to 31 December 2022: Apetit’s Q4 result from continuing operations improved year-on-year

16.2.2023 08:30:00 EET | Apetit Oyj | Financial Statement Release

Apetit Plc, Financial Statements Review on 16 February 2023 at 08:30 a.m.

Apetit Plc's Financial Statements Release 1 January to 31 December 2022: Apetit’s Q4 result from continuing operations improved year-on-year

October–December 2022, continuing operations*

  • Net sales amounted to EUR 46.6 (40.3) million. EBITDA was EUR 4.5 (2.2) million. Operating profit was EUR 3.0 (0.7) million. Net sales increased due to an active increase in selling prices.
  • The net sales of Food Solutions were EUR 17.1 (15.6) million and operating profit EUR 1.8 (1.9) million. Price increases were introduced in retail primarily from the beginning of October, while cost inflation was reflected in higher production costs.
  • The net sales of Oilseed Products were EUR 29.7 (24.9) million and operating profit EUR 1.7 (-0.4) million. The result was improved by the increased selling prices and the good availability of raw material.

January–December 2022, continuing operations*

  • Net sales were EUR 181.7 (149.1) million. EBITDA was EUR 9.2 (11.1) million. Operating profit was EUR 3.5 (5.8) million. The result was negatively affected by higher raw material and energy costs.
  • The net sales of Food Solutions were EUR 64.2 (61.5) million and operating profit EUR 4.2 (5.9) million. The increased costs were passed on to selling prices with a delay. Sales volumes remained at the comparison year’s high level in retail and increased in the food service sector and exports.
  • The net sales of Oilseed Products were EUR 118.2 (88.1) million and operating profit EUR 1.5 (2.0) million. Selling prices increased along with market prices, which increased net sales in spite of the sales volume decreasing from the record-high level seen in the comparison year. The low availability of domestic raw material reduced profitability particularly in the first half of the year.

October–December 2022, Group, incl. discontinued operations**)

  • The Group’s comparable net sales decreased by 44 per cent to EUR 46.6 (83.0) million. EBITDA was EUR 4.4 (2.2) million. Operating profit was EUR 2.9 (0.5) million. The divestment of the Grain Trade business was completed in stages during the first half of the year.
  • The net sales of Grain Trade was EUR 0.0 (48.0) million and operating profit EUR -0.1 (-0.3) million.

January–December 2022, Group, incl. discontinued operations**)

  • The Group’s comparable net sales decreased by 18 per cent to EUR 231.8 (283.9) million. EBITDA was EUR 12.4 (9.2) million. Operating profit was EUR 6.2 (2.8) million.
  • The net sales of Grain Trade were EUR 67.2 (164.5) million and operating profit EUR 2.7 (-3.0) million. The divestment of the Grain Trade business was completed in stages during the first half of the year.
  • The Group’s liquidity was good, and its financial position was strong. The equity ratio was 81.8 (59.4) per cent and gearing was -13.2 (26.6) per cent. The Group’s cash flow from operating activities after interest and taxes was EUR 28.4 (5.0) million. The change was mainly attributable to the divestment of the Grain Trade business.

*) Apetit’s continuing operations are Food Solutions and Oilseed Products. In addition, Apetit reports Group Functions, consisting of the expenses related to Group management, strategic projects and listing on the stock exchange, that are not allocated to the business segments.

**) Grain Trade is reported as a discontinued operation starting from the Q1/2022 Business Review. The divestment of the Estonian grain trade business to Scandagra was completed on 10 March 2022, and the divestment of the Lithuanian business was completed on 31 March 2022. The divestment of the Finnish operations of the Grain Trade business to Berner Ltd was completed on 31 May 2022.

The figures for 2022 and 2021 have been audited. The quarterly and six-month figures are unaudited. The figures in brackets refer to the corresponding period in 2021, and the comparison period means the corresponding period in 2021, unless otherwise stated.

PROFIT GUIDANCE FOR 2023

The full-year operating profit from continuing operations is expected to improve year-on-year (EUR 3.5 million in 2022).

BOARD OF DIRECTORS’ DIVIDEND PROPOSAL

The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.50 per share be paid for the financial year 2022.

Esa Mäki, CEO:

“Apetit Group’s operating profit increased substantially year-on-year in the fourth quarter due to the positive profit performance of the Oilseed Products business. In Food Solutions, the result was largely on a par with the comparison year. The improved result of Oilseed Products was due to increased selling prices and the successful procurement of raw material. The result of Food Solutions was adversely affected by increased raw material costs. Net sales increased year-on-year in both businesses in the fourth quarter.

Apetit Group’s comparable full-year net sales increased substantially from the previous year. Higher costs being passed on to selling prices was a factor in the growth of net sales. In Food Solutions, sales volumes grew in the food service sector and exports, while retail volumes remained at the high level seen in the comparison period. In Oilseed Products, net sales were increased by the successful pricing and high market prices, in spite of the sales volume not reaching the record-high level of the comparison period due to a shortage of raw-material.

Full-year operating profit was lower than in the previous year. The Group’s result was negatively affected by higher raw material and energy costs. Increased costs could only be passed on to selling prices with a delay.

Inflation is reflected in food prices. According to Statistics Finland (consumer price index, 13 January 2023) food prices in December 2022 were 16 per cent higher than a year earlier. Prices have increased particularly for grain products, but also for fresh vegetables. Consumer caution and declining purchasing power may have a negative impact on consumption. Apetit’s brand and products have maintained a strong position in retail. Apetit is the only Finnish operator in the frozen vegetable business and the only Finnish company producing vegetable oils at the industrial scale. Apetit’s products correspond to the prevailing food trends and are competitively priced in the current circumstances, where a growing number of consumers are becoming more prudent with their spending.

A significant renewal effort was carried out at the Pudasjärvi frozen pizza plant in summer 2022. We began to challenge foreign competitors in the frozen pizza category by launching sourdough pizzas with high-quality ingredients. The new frozen pizzas have been available in shops since October. The new pizzas have been well received and the sales have been in line with our targets.

In the development of our rapeseed-based plant protein, BlackGrain, we focused on developing the production process. BlackGrain is a great example of the potential held by Finnish plant-based raw materials for promoting sustainable eating habits. In the Oilseed Products business, we aim to not only enhance the added value of our products but also increase the cultivation of oilseed plants in Finland to a sustainable level. According to Natural Resources Institute Finland, the domestic oilseed plant harvest was approximately one-third higher than the previous year.

In spring 2022, we announced that we will modernise the energy solution at our Säkylä plant. The new energy solution will significantly improve energy efficiency through heat recovery. The new energy solution will reduce the annual CO2 emissions of the Säkylä plant by up to 80 per cent. Together with the bioenergy plant at the Kantvik vegetable oil milling plant, the new energy solution in Säkylä will enable us to take significant leaps towards our target of reducing emissions by 75 per cent by 2025. At the end of 2022, we have already reduced our own direct emissions from the comparison year 2019 by more than 70 percent.

We will launch a strategically important ERP system renewal project in 2023. This renewal of the Group’s ERP system has been carefully prepared. The project is progressing in accordance with the project plan.

Apetit published its renewed strategy on 15 November 2022. The main message for the strategy period 2023–2025 is Growth from diverse plant-based food products. Our renewed strategy is a natural continuation of the past strategy period, during which we strengthened our core activities. We work in close collaboration with domestic primary production, and cooperation with domestic growers is the cornerstone of our business.”

KEY FIGURES

EUR million 10-12 10-12 1-12 1-12
2022 2021 2022 2021
Continuing operations
Net sales 46.6 40.3 15 % 181.7 149.1 22 %
EBITDA 4.5 2.2 9.2 11.1
Operating profit 3.0 0.7 3.5 5.8
Share of profit of associated company Sucros 1.1 0.9 0.5 0.4
Profit for the period 3.6 1.5 3.2 5.3
Earnings per share, EUR 0.57 0.24 0.51 0.85
Investments 5.0 6.6
Group (incl. discontinued operations)
Net sales 46.6 83.0 -44 % 231.8 283.9 -18 %
EBITDA 4.4 2.2 12.4 9.2
Operating profit 2.9 0.5 6.2 2.8
Profit for the period 3.5 1.2 5.2 2.4
Earnings per share, EUR 0.57 0.19 0.83 0.38
Equity per share, EUR 15.38 14.95
ROCE-% 5.7 2.4
Working capital, end of period 18.7 50.5
Net cash flow from operating activities 28.4 5.0
Equity ratio, % 81.8 59.4
Net gearing, % -13.2 26.6

WEBCAST

A news conference (in Finnish) will be held as a live webcast today on 16 February 2023 at 10:00 a.m. The news conference can be followed at apetit.fi/sijoittajille. The presentation material and a recording of the webcast will be available on the company’s website after the news conference.

Apetit Plc

Esa Mäki, CEO, Apetit Plc, tel. +358 10 402 2100

Apetit is a food industry company firmly rooted in Finnish primary production. Our operations are based on a unique and sustainable value chain: we create well-being with vegetables by offering tasty food solutions that make daily life easier and produce high-quality vegetable oils and rapeseed expellers for feeding stuff. Apetit Plc's shares are listed on Nasdaq Helsinki. In 2022, Apetit Group's net sales were EUR 182 million.

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