Apetit recognises an impairment loss in its 2018 financial statements

Apetit recognises an impairment loss in its 2018 financial statements

Apetit Plc, Stock Exchange Release, 30 January 2019 at 3:30 p.m.

Apetit Plc has completed the Group’s regular annual impairment tests and updated its estimate on the fair values of its balance sheet items.

As a result of the impairment test on the fresh products group, Apetit will make an impairment of EUR 4.7 million. The impact of the impairment on the net profit, the taxes considered, is EUR 3.8 million. Due to the impairment the balance sheet value of the fresh products group does not include the acquisition cost allocations made in conjunction with an acquisition in 2012. The impairment will be recognised in the operating profit of Apetit’s continuing operations as a non-recurring item. The future profit expectation of the fresh products group is estimated to fall short of that forecast earlier despite growth in the sales of added value products, increased employee efficiency and the adjustment measures made.

Apetit sold its Seafood business in 2017, but remains a minority shareholder of the seafood business in Finland, with a holding of less than 20 per cent. The estimated value of the holding has been recognised on the balance sheet as an earn-out receivable of EUR 1.0 million. The estimate has now been lowered by EUR 0.9 million. The impairment will be recognised in Apetit’s profit from discontinued operations.

The impairments have no cash flow implications.

Apetit will publish its Financial Statements Release 2018 on 20 February 2019.

Apetit Plc

For further information, please contact:

Juha Vanhainen, CEO, Apetit Plc, tel. +358 10 402 2100

Tero Heikkinen, CFO, Apetit Plc, tel. +358 10 402 2310

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 rapeseed expellers for feeding stuff, 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 312 million and it had an average 557 employees. Read more at apetitgroup.fi.