Maritim Food AS, a Lännen Tehtaat plc subsidiary that makes minced fish products, dressings and smoked fish products, has decided to shut down its Stabburveien plant and concentrate the production of minced fish products and dressings at its Råbekksvingen plant in Fredrikstad, Norway. Shutting down the Stabburveien plant will also mark the discontinuation of smoked-fish production. The changes will take place in 2011.
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 15 April 2011 at 9.00 a.m.
The estimated annual performance improvement from concentrating production is some EUR 0.5 million, and this will begin to materialise in the third quarter of 2011. Non-recurring costs from the reorganisation of production and the shutdown of one production plant are estimated at about EUR 1.5 million and will be recognised in the second-quarter result of the Seafood business.
In addition to the plants in Fredrikstad, the Maritim Food Group has a plant in Gjerdsvika in western Norway that produces canned fish products, fishburgers and fishballs, and a plant in Dingle in southwest Sweden, which produces mainly shellfish in brine.
The Group companies' products are sold in Norway and Sweden under their own brands, namely Maritim, Fader Martin and Sunnmöre, and under retailers' private labels. Shellfish in brine are also imported to Finland and sold under the Apetit Maritim label.
The net sales of Maritim Food Group in 2010 totalled approximately EUR 32 million and it had a personnel of 110.
Lännen Tehtaat plc
Matti Karppinen
CEO
Further information: CEO Matti Karppinen, tel. +358 40 8448 692
Copies to:
NASDAQ OMX Helsinki Ltd
Main media
www.lannen.fi
The Supervisory Board of Lännen Tehtaat plc today elected Timo Miettinen as Chairman of the Supervisory Board and Marja-Liisa Mikola-Luoto as Deputy chairman of the Supervisory Board.
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 14 April 2011 at 16;45 p.m.
It was decided to elect 6 members to the Board of Directors. Heikki Halkilahti, Aappo Kontu, Matti Lappalainen, Hannu Simula, Jorma J. Takanen and Helena Walldén were elected as members of the Board. Matti Lappalainen was elected as Chairman of the Board and Hannu Simula as Deputy chairman of the Board.
It was decided that the monthly fee paid to the members of the Board is EUR 1,485, the monthly fee paid to the Deputy chairman is EUR 1,870 and the monthly fee paid to the Chairman of the Board is EUR 3,025. In addition, a meeting fee of EUR 500 is paid to the Chairman and EUR 250 to the members of the Board.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More details: Matti Karppinen, tel. +358 40 8448 692
Apetit Kala Oy, a subsidiary of Lännen Tehtaat plc, launched a cost-efficiency programme in its Finnish Seafood business in February. The aim of this programme is to make significant cuts in fixed costs.
APETIT KALA OY'S COST-EFFICIENCY PROGRAMME HAS REACHED THE IMPLEMENTATION STAGE
The reorganisation of white-collar positions in sales, financial administration and logistics related to the programme has reached the implementation stage. In order to make better use of Group synergies, Apetit Kala Oy's sales and financial administration functions will be concentrated in the Group's other units. The company's procurement, production and logistics functions will be centralised in Kuopio. The organisational changes will result in the loss of nine jobs in Kuopio and the creation of a total of three jobs in Espoo and Säkylä. These changes will take place by the end of May. Non-recurring costs of about EUR 0.1 million will be recognised in the second-quarter result as a result of the reorganisation of white-collar positions.
In connection with the cost-efficiency programme, a decision was also made not to fill four white-collar positions that have become vacant since the end of last year.
It is estimated that annual savings of about EUR 0.9 million will be achieved with these personnel solutions and by cutting IT, HR and marketing expenses. The impact of these cuts will be felt in full from the start of the second half of the year.
Apetit Kala Oy and its subsidiary, Myrskylän Savustamo Oy, produce, market and sell fresh fish products under the Apetit and Safu brands and under retailers' private labels. Apetit Kala also sells fish, fish products and other fresh products at Kalatori service counters. Taimen Oy, an associated company of Apetit Kala Oy, and its subsidiaries specialise in fish farming and fry and fingerling production. The Group companies form the most efficient fresh-supply chain for rainbow trout on the Finnish market.
Lännen Tehtaat plc
Matti Karppinen
CEO
Further information: CEO Matti Karppinen, tel. +358 40 8448 692
Copies to:
NASDAQ OMX Helsinki Ltd
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 31 March 2011 at 5;15 p.m.
The Annual General Meeting on 31 March 2011 approved the parent company's and consolidated financial statements for the financial year 1 January - 31 December 2010 and discharged the members of the Supervisory Board and the Board of Directors and the CEO from liability. The AGM decided to distribute a dividend of EUR 0.90 per share in accordance with the Board proposal. The Board of Directors' proposals were approved without changes.
DIVIDEND
The Annual General Meeting decided to distribute as dividend EUR 0.90 per share on the financial year 2010. The dividend will be paid on 12 April 2011 to shareholders registered on the company´s register of shareholders kept by Euroclear Finland Ltd on the record date 5 April 2011. No dividend will be paid on shares held by the company.
AUTHORISATION FOR SHARE ISSUE
The Annual General Meeting authorised the Board of Directors to decide on issuing new shares and on the transfer of Lännen Tehtaat shares held by the company (share issue). The authorisation covers a maximum total of 761,757 shares, and the maximum number of new shares is 631,757, and the number of Lännen Tehtaat shares held by the company 130,000.
The subscription price for each new share shall be at least the share's nominal value, or EUR 2. The transfer price for Lännen Tehtaat shares held by the company shall be at least the market value of the share at the time of transfer, which is determined by the price quoted in public trading on NASDAX OMX Helsinki Ltd. The Board of Directors will also have the right to issue shares against consideration other than cash. In the case of share-based incentive systems, shares could also be issued without consideration.
The authorisation includes the right
-to deviate from the shareholders' pre-emptive subscription right (targeted issue) if the company has an important financial reason to do so, such as development of the company's capital structure, financing and implementing corporate acquisitions or other arrangements, or implementing a share-based incentive system;
- to decide on the subscription price of the shares and other conditions and matters related to the share issue.
The authorisation is valid until the next AGM. The authorisation revoked the earlier authorisation to issue shares, given on 30 March 2010.
ELECTION OF THE MEMBERS OF THE SUPERVISORY BOARD, THE MEMBERS OF THE SUPERVISORY BOARD'S NOMINATION COMMITTEE AND THE AUDITORS
The AGM confirmed that the Supervisory Board will have 19 members elected by the AGM. Mika Leikkonen, Marja-Liisa Mikola-Luoto, Tuomo Raininko and Mauno Ylinen were re-elected to the Supervisory Board. Jaakko Halkilahti and Timo Miettinen were elected as new members.
Heikki Laurinen and Tauno Uitto were elected as the members of the Supervisory Board's Nomination Committee.
Hannu Pellinen, APA, and PricewaterCoopers Oy Authorised Public Accountants with Tomi Moisio, APA, CPFA as responsible auditor, were elected as auditors.
The Annual General Meeting decided that the yearly fee paid to the Supervisory Board's chairman is EUR 7,500, and to the deputy chairman EUR 5,000. The meeting allowance paid to the members of the Supervisory Board and the members of the Supervisory Board´s Nomination Committee is EUR 250. In addition, compensation for travelling expenses are paid in accordance with the general travel rules of Lännen Tehtaat plc. The auditors' fees are paid according to an invoice approved by the company.
The minutes of the Annual General Meeting will be available on the company's website, www.lannen.fi/en, as of 14 April 2011.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More details: Matti Karppinen, CEO, tel. +358 40 8448 692
Distribution:
NASDAQ OMX Helsinki Ltd
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC Stock exchange Release 9 March 2011 at 9;00 a.m.
LÄNNEN TEHTAAT PLC'S ANNUAL REPORT 2010, CORPORATE GOVERNANCE
STATEMENT AND SUMMARY OF 2010 STOCK EXCHANGE RELEASES PUBLISHED
Lännen Tehtaat plc's Annual Report 2010 is published today. The Annual
Report contains the Board of Directors' report, the parent company
financial statements and consolidated financial statements, the
auditor's report and the statement by the Supervisory Board.
It also includes Lännen Tehtaat plc's Corporate Governance Statement
and a summary of the stock exchange releases published in 2010.
The Annual Report, Corporate Governance Statement and the summary of
stock exchange releases can also be read on the company's website
at www.lannen.fi/en/investor_information.
The Annual Report will be mailed during the week beginning 21 March
to all shareholders owning 100 or more Lännen Tehtaat shares.
The Annual Report can also be ordered by phone +358 10 402 00
or by e-mail .
LÄNNEN TEHTAAT PLC
Riitta Jaakkola
Financial Manager
Further information: Riitta Jaakkola, tel. +358 10 402 4020
LÄNNEN TEHTAAT PLC Stock Exchange Release 8 March 2011 at 9.20 a.m.
INVITATION TO THE ANNUAL GENERAL MEETING OF LÄNNEN TEHTAAT PLC
Annual General Meeting on 31 March 2011
The company's shareholders are hereby invited to the Annual General Meeting, which will be held on Thursday 31 March 2011 at 2.00 p.m. in Lännen Tehtaat plc's ‘Myllynkivi' staff restaurant at Iso-Vimma, Säkylä. The reception of persons who have registered for the meeting and the distribution of voting tickets will commence at 12.00 noon.
A. The following agenda items will be dealt with at the meeting:
1. Opening of the meeting
2. Election of chairman of the meeting
3. Election of secretary of the meeting
4. Recording the legality and quoracy of the meeting
5. Election of minutes-checkers and vote counters
6. Approving the agenda and addressing the meeting
7. Recording the attendance at the meeting and adopting the voting list
8. Presentation of the financial statements and the Board of Directors' report for 2010
9. Presentation of the auditors' report
10. Presentation of the opinion of the Supervisory Board concerning the financial statements, the Board of Directors' report and the auditors' report
11. Adoption of the financial statements and consolidated financial statements
12. Use of the profit declared in the balance sheet and decision on dividend payment
The Board of Directors proposes that a dividend of EUR 0.90 per share be paid for the financial year 2010 on the basis of the adopted balance sheet. The dividend will be paid to shareholders who are registered in the company's shareholder register kept by Euroclear Finland Ltd on 5 April 2011, which is the record date for the dividend payment. The Board of Directors proposes to the Annual General Meeting that the dividend payment date be 12 April 2011.
13. Resolution on discharging the members of the Supervisory Board and of the Board of Directors and the CEO from liability
14. Decision on the number of Supervisory Board members and on their remuneration
15. Election of the members of the Supervisory Board
16. Election of the two members of the Supervisory Board's Nomination Committee
17. Decision on the number of auditors and on their remuneration
The Board of Directors proposes that two regular auditors be appointed for the company. The Board of Directors also proposes that the auditors' fee be paid in accordance with the auditing invoice approved by the company.
18. Appointment of auditors
The Board of Directors proposes that the company's present auditors, Hannu Pellinen, APA and PricewaterhouseCoopers Oy, Authorised Public Accountants with Tomi Moisio, APA, CPFA as the auditor with principal responsibility, be re-elected as auditors for the period ending with the close of the next Annual General Meeting.
19. Authorisation of the Board of Directors to decide on the issuing of new shares and on the transfer of Lännen Tehtaat shares held by the company (share issue)
The Board of Directors proposes that the Annual General Meeting give it authorisation to decide on issuing shares, which would include the right to issue new shares or transfer Lännen Tehtaat shares held by the company. The authorisation would cover a maximum total of 761,757 shares, and the maximum number of new shares would be 631,757, and the number of Lännen Tehtaat shares held by the company 130,000.
The subscription price for each new share would be at least the share's nominal value, or EUR 2. The transfer price for Lännen Tehtaat shares held by the company would be at least the market value of the share at the time of transfer, which is determined by the price quoted in public trading on NASDAX OMX Helsinki Ltd. The Board of Directors would also have the right to issue shares against consideration other than cash. In the case of share-based incentive systems, shares could also be issued without consideration.
The authorisation would include the right to deviate from the shareholders' pre-emptive subscription right (targeted issue) if the company has an important financial reason to do so, such as development of the company's capital structure, financing and implementing corporate acquisitions or other arrangements, or implementing a share-based incentive system. It is proposed that the authorisation would be valid until the next Annual General Meeting.
20. Closing of the meeting
B. Documents of the General Meeting
The proposals of the Board of Directors and the invitation to the meeting are available on Lännen Tehtaat's website at www.lannen.fi/en. The company's financial statements will be available on the above-mentioned website no later than 10 March 2011 onwards. Copies of these documents will be sent to shareholders upon request and they will also be available at the Annual General Meeting. The minutes of the Annual General Meeting will be available on the above-mentioned website as from 14 April 2011.
C. Instructions for participants in the Annual General Meeting
Right to participate and registration
Shareholders whose shares have been registered in the register of shareholders kept by Euroclear Finland Ltd not later than 21 March 2011 have the right to attend the Annual General Meeting.
Shareholders wishing to participate in the Annual General Meeting must notify the company of this no later than 4.00 p.m. on Monday 28 March 2011 either on the company web pages at www.lannen.fi/en, in writing to Lännen Tehtaat plc, P.O. Box 100, FI-27801 Säkylä, Finland, by fax +358 10 402 4022, by phone +358 10 402 4044/Maija Lipasti or by e-mail . If notice is given by letter, this must arrive before the expiry of the notification period. Any proxy documents should be delivered to the above-mentioned address before the expiry of notification period.
Pursuant to chapter 5, section 25 of the Limited Liability Companies Act, shareholders who are present at the Annual General Meeting have the right to request information on matters considered at the meeting.
Proxies and proxy documents
Shareholders may participate in and exercise their rights at the Annual General Meeting by means of proxy representation. A shareholder's proxy must produce a dated proxy document or must otherwise demonstrate reliably his/her right to represent the shareholder at the Annual General Meeting. If a shareholder participates in the meeting by means of several proxies, who represent the shareholder with shares in different book-entry accounts, the shares with which each proxy represents the shareholder must be notified in connection with the registration for the Annual General Meeting.
Any proxy documents should be delivered as originals to Lännen Tehtaat plc no later than the expiry of the notification period at 4.00 p.m. on 28 March 2011.
Holders of nominee registered shares
Holders of nominee registered shares are advised to request from their asset manager without delay the necessary instructions regarding registration in the company's shareholder register, the provision of proxy documents and registration for the Annual General Meeting. The asset manager's account management organisation will register a holder of nominee registered shares who wants to participate in the meeting, for temporary entry in the company's shareholder register no later than 10.00 a.m. on 28 March 2011.
Other instructions and information
On the date of this notice, Lännen Tehtaat plc's total number of shares and votes is 6,317,576.
The company's Annual Report, including the financial statements, the Board of Directors' report and the statement of the Supervisory Board, will be published on week 10 in Finnish and English on Lännen Tehtaat plc's website, at www.lannen.fi. The English version is a translation of the Finnish. A printed version of the Annual Report can be ordered during the week beginning 14 March 2011 by phoning +358 10 402 4044 on weekdays (9 a.m. - 5 p.m.), or by e-mail from . At the same time you can also ask to be put on the regular mailing list for annual reports.
Säkylä, 8 March 2011
LÄNNEN TEHTAAT PLC
Board of Directors
Distribution:
NASDAQ OMX Helsinki Ltd
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 17 February 2011, 09.00 A.M.
MARITIM FOOD AS PLANNING TO IMPROVE PRODUCTION EFFICIENCY IN NORWAY
Maritim Food AS, a Lännen Tehtaat Plc subsidiary, makes minced fish products, dressings and smoked fish products at two plants in Fredrikstad, Norway. The company is planning measures to improve its production efficiency and to concentrate all production at a single plant in Fredrikstad. With concentration of production, the Fredrikstad plant would produce minced fish products and dressings, while smoked fish production would be discontinued.
The annual performance improvement from concentrating production is estimated to be some EUR 0.5 million. Non-recurring costs from the reorganisation of production and the shutdown of one production plant are estimated at not more than about EUR 1.5 million. If Maritim Food goes ahead with its plan, the changes would take place during the year 2011.
In addition to the plants in Fredrikstad, the Maritim Food Group has a plant in Gjerdsvika in western Norway that produces canned products, fishcakes and fishballs, and a plant in Dingle in southwest Sweden, which produces shellfish in brine.
The Group companies' products are sold in Norway and Sweden under their own brands, namely Maritim, Fader Martin and Sunnmöre, and under retailers' private labels. Shellfish in brine are also imported to Finland and sold under the Apetit Maritim label.
The net sales of Maritim Food Group in 2010 totalled approximately EUR 32 million and it had a personnel of 110.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
Further information: CEO Matti Karppinen, tel. +358 40 8448 692
Distribution:
NASDAQ OMX Helsinki Ltd
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 17 FEBRUARY, 2011 AT 9.00 A.M.
APETIT KALA OY COMMENCES COST-EFFICIENCY PROGRAMME
Lännen Tehtaat plc's subsidiary Apetit Kala Oy will commence a cost-efficiency programme concerning the Finnish seafood business in order to improve profitability. With the objective of improving cost-efficiency, the company will simplify the seafood business management model, streamline production management, sales and marketing, and make better use of Group synergies. The target of the action programme is to cut fixed costs dramatically.
The company will commence co-determination talks with personnel regarding white-collar positions in sales, financial administration and logistics in Apetit Kala Oy.
Apetit Kala's aim is to increase its annual profit by approximately EUR 0.9 million through the planned action programme. The programme will take full effect at the beginning of the second half of the year.
Apetit Kala Oy and its subsidiary, Myrskylän Savustamo Oy, produce market and sell fresh fish products under the Apetit and Safu brands and under retailers' private labels. Apetit Kala also sells fish, fish products and other fresh products at Kalatori service counters. Taimen Oy, an associated company of Apetit Kala Oy, and its subsidiaries specialise in fish farming and fry and fingerling production. The Group companies form the most efficient fresh-supply chain for rainbow trout on the Finnish market.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
Further information: CEO Matti Karppinen, tel. +358 40 8448 692
LÄNNEN TEHTAAT PLC Stock Exchange Release 17 February 2011 at 8.30 a.m.
PROPOSALS OF THE BOARD OF DIRECTORS TO THE ANNUAL GENERAL MEETING OF LÄNNEN TEHTAAT PLC
I DIVIDEND
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.90 per share be paid on the financial year 2010.
II ELECTION OF THE AUDITOR AND FEES
The Board of Directors' proposes that the auditor's fee be reimbursed according to invoice approved by the company.
The Board of Directors proposes that Hannu Pellinen, APA, and PricewaterhouseCoopers Oy Authorized Public Accountants with Tomi Moisio, APA, CPFA as responsible auditor, be re-elected as the auditors to the close of the following Annual General Meeting.
III AUTHORIZATION FOR SHARE ISSUE AND FOR TRANSFER OF LÄNNEN TEHTAAT SHARES
The Board of Directors proposes that it be given authorization by the AGM to decide on the issuing of new shares and on the transfer of Lännen Tehtaat shares held by the company in one or more lots in a share issue, to a total of no more than 761,757 shares. The maximum number of new shares that can be issued is 631,757. The share issue authorization covers all the Lännen Tehtaat shares held by the company on the date of the Board proposal (130,000 shares). The subscription price for each of the new shares must be at least the nominal share value of EUR 2. The transfer price for Lännen Tehtaat shares held by the company must be at least the current value of the share at the time of transfer, which is determined by the price quoted in public trading on the NASDAX OMX Helsinki Ltd. However, in the case of share-based incentive systems, shares can be issued without remuneration.
The authorization includes the right
- to deviate from the shareholders' pre-emptive subscription right (targeted issue) if the company has a substantial financial reason to do so, such as development of the company's capital structure, financing and implementing corporate acquisitions or other arrangements, or implementing a share-based incentive system;
- to offer shares not only against money payment but also against capital consideration in kind or under other specified terms or by exercising right of set-off;
- to decide on the subscription price of shares and other conditions of and matters related to the share issue.
The authorization is valid until the next AGM. The authorization will revoke the earlier authorization to issue shares, given on 30 March 2010, and the authorization to transfer Lännen Tehtaat shares held by the company given on the same date.
LÄNNEN TEHTAAT PLC
Board of Directors
For more information, CEO Matti Karppinen, tel. +358 40 8448 692
LÄNNEN TEHTAAT PLC Financial Statements Release 17 February 2011 at 8.30 a.m.
FINANCIAL STATEMENTS RELEASE 1 January - 31 December 2010
Fourth quarter (October-December):
- Consolidated net sales amounted to EUR 87.9 (71.7) million, which was a year-on-year increase of 23%.
- Operating profit, excluding non-recurring items, was EUR 5.1 (5.4) million; there were no non-recurring items.
- Profit for the period came to EUR 4.4 (4.2) million, and earnings per share amounted to EUR 0.71 (0.67).
Financial year (January-December):
- Consolidated net sales amounted to EUR 308.7 (266.0) million, which was a year-on-year increase of 16%.
- Operating profit, excluding non-recurring items, came to EUR 8.3 (7.7) million; non-recurring items totalled EUR 0.0 (-0.8) million.
- Profit for the year came to EUR 6.5 (5.8) million, and earnings per share amounted to EUR 1.04 (0.94).
The Board will propose a dividend of EUR 0.90 (0.76) per share to the Annual General Meeting.
The information here has not been audited.
Matti Karppinen, CEO:
“The accrual of the Group's operating profit was, as expected, weighted heavily towards the final quarter, and the full-year operating profit, excluding non-recurring items, exceeded the previous year's level.
As a whole, the year was free of surprises, but the result varied among the different businesses. Frozen Foods posted a good result, as in the previous year. Grains and Oilseeds also reached the level achieved in 2009. The profit of the Other Operations segment improved year-on-year as a result of the final quarter performance, which was attributable to the improved result from the associated company and lower Group Administration costs. The Seafood business again posted a significant loss, although the Taimen ownership arrangement made in the summer had a positive impact on the performance.
The Taimen arrangement was a step towards the revitalisation of the Seafood business, but robust development measures are still essential for Seafood to post a profit.”
KEY FIGURES
EUR million Q4/ Q4/ Q1-Q4/ Q1-Q4/
2010 2009 2010 2009
Net sales 87.9 71.7 308.7 266.0
Operating profit 5.1 5.4 8.3 6.8
Operating profit, excluding non-recurring items 5.1 5.4 8.3 7.7
Profit before taxes 5.1 5.2 8.4 7.3
Profit for the period 4.4 4.2 6.5 5.8
Earnings per share, EUR 0.71 0.67 1.04 0.94
NET SALES AND PROFIT
Fourth quarter (October-December):
Consolidated net sales in the fourth quarter amounted to EUR 87.9 (71.7) million, an increase of 23% on the same quarter in 2009. This increase was largely attributable to the Grains and Oilseeds business. Net sales of the Seafood business were also up on the same quarter a year earlier.
The fourth-quarter operating profit, excluding non-recurring items, totalled EUR 5.1 (5.4) million. There were no non-recurring items. The Other Operations segment and Frozen Foods both improved their profit, year on year. The profit for the Seafood business was almost unchanged. The Grains and Oilseeds result was good, but fell short of the excellent figure of a year earlier.
Financial income and expenses in October-December came to EUR 0.0 (-0.2) million. Profit before taxes was EUR 5.1 (5.2) million, and taxes on the profit for the quarter came to EUR -0.7 (-1.1) million. Profit for the period came to EUR 4.4 (4.2) million, and earnings per share amounted to EUR 0.71 (0.67).
Financial year (January-December):
Consolidated net sales in January-December amounted to EUR 308.7 (266.0) million, up by 16 % on the previous year. Most of this growth was in the Grains and Oilseeds business. Net sales of the Seafood business were also up. In Frozen Foods, net sales were slightly below the previous year's total.
The operating profit, excluding non-recurring items, was EUR 8.3 (7.7) million. The non-recurring items came to EUR 0.0 (-0.8) million. The operating profit includes EUR 3.0 (2.0) million as the share of the profit of associated companies. A total of EUR 0.6 (0.0) million of the associated company profits concerns Seafood, and EUR 2.4 (2.0) Other Operations.
Financial income and expenses came to a total of EUR 0.1 (0.5) million. This figure includes valuation items of EUR 0.9 (0.5) million with no cash flow implications. Financial expenses also include EUR -0.8 (-0.7) million of Avena Nordic Grain Group's profit as the share attributable to the Avena Nordic Grain Oy employee shareholders.
Profit before taxes was EUR 8.4 (7.3) million. Taxes for the financial year came to EUR -1.9 (-1.5) million. Profit for the period came to EUR 6.5 (5.8) million, and earnings per share amounted to EUR 1.04 (0.94).
CASH FLOWS, FINANCING AND BALANCE SHEET
The Group's liquidity was good and its financial position is strong.
The cash flow from operating activities in the financial year after interest and taxes amounted to EUR 0.6 (25.8) million. The impact of the change in working capital was EUR -7.4 (14.9) million, most of this being in the Grains and Oilseeds business.
The net cash flow from investing activities came to EUR 3.5 (-10.4) million. Deposits and withdrawals of liquid assets into and from short-term fixed income funds had an impact of EUR 10.1 (-13.0) million on the cash flow from investing activities. The cash flow from financing activities came to EUR -4.4 (-17.5) million, and this included EUR -4.7 (-5.3) million in dividend payments.
At the close of the financial year, the Group had EUR 4.0 (3.3) million in interest-bearing liabilities and EUR 14.6 (25.0) million in liquid assets. Net interest-bearing liabilities totalled EUR -10.7 (-21.7) million. The consolidated balance sheet total stood at EUR 191.9 (176.1) million. At the end of the year, equity totalled EUR 138.9 (137.3) million. The equity ratio was 72.4% (78.0%) and gearing was -7.7% (-15.8%). There were no issues made within the framework of the commercial paper programme during the financial year. The Group's liquidity is secured with committed credit facilities; a total of EUR 25.0 (25.0) million was available in credit at the end of the financial year. No credit facilities were used during the financial year.
INVESTMENT
The Group's gross investment in non-current assets came to EUR 3.1 (2.7) million.
Investment by Frozen Foods totalled EUR 1.2 (1.9) million, by Seafood EUR 1.1 (0.6) million, by Grains and Oilseeds EUR 0.7 (0.3) million and by Other Operations EUR 0.2 (0.0) million.
Investment in shares during the financial year came to EUR 10.5 million. These concerned the Seafood business, specifically the acquisition of shares of Myrskylän Savustamo Oy and Taimen Oy.
PERSONNEL
The average number of personnel during the financial year was 621 (657). The average number of personnel in Frozen Foods was 199 (205), in Seafood 351 (379), in Grains and Oilseeds 61 (62) and in Other Operations 10 (11).
SEASONALITY OF OPERATIONS
In accordance with the IAS 2 standard, the historical cost of inventories includes a systematically allocated portion of the fixed production overheads. In production that focuses on seasonal crops, raw materials are processed into finished products mainly during the final quarter of the year, which means that the inventory volumes and their balance-sheet values are at their highest at the end of the year. Since the entry of the fixed production overheads included in the historical cost as an expense item is deferred until the time of sale, most of the Group's annual profit is accrued in the final quarter. The seasonal nature of operations is most marked in Frozen Foods and in the associated company Sucros, due to the link between production and the crop harvesting season.
In the Seafood business, the sales of Apetit Kala Oy and Myrskylän Savustamo Oy peak at weekends and on holidays. A significant proportion of the entire year's profit in the Seafood business depends on the success of Christmas sales. Due to the growing season for fish, only a small amount of the profit accumulated for the Taimen Group, which reports as an associated company, accrues during the summer months. Net sales in the Grains and Oilseeds business vary from one year and quarter to the next to a greater extent than in the other businesses, being dependent on the demand and supply situation and on the price levels domestically and on other markets.
OVERVIEW OF OPERATING SEGMENTS
Frozen Foods
Q4/ Q4/ Q1-Q4/ Q1-Q4/
EUR million 2010 2009 2010 2009
Fourth-quarter net sales in Frozen Foods were at the level of a year earlier. Sales to the retail sector and to the hotel, restaurant and catering sector were up year on year, while sales to the food industry and exports decreased. Sales of products sold under the Apetit brand grew significantly and the proportion of manufacturing accounted for by retailers' private labels fell. The drop in exports was a result of the autumn's smaller-than-normal pea crop, which in turn reduced exports of peas.
The operating profit of Frozen Foods was a little better than in the same quarter a year earlier. During the period, productivity continued to improve, and sales focused on the more profitable products.
With weather conditions being favourable, the root vegetable and potato harvest and processing went well, and the targeted volumes of good quality raw materials were obtained for storage. Pea and spinach growth suffered from the hot and dry summer, and the crops were smaller than usual.
Financial year (January-December):
Net sales in Frozen Foods fell by about 2% year on year. Sales under retailers' private labels decreased, as did sales to the food industry and exports. Sales to the hotel, restaurant and catering sector were at the level of 2009. Sales of frozen foods to the retail sector under the Apetit brand were up. Frozen vegetable sales were up by almost 10%, sales of frozen potato products by 10% and Apetit soups by almost 20%. This positive trend was partly due to good sales of the Apetit Kotimainen Finnish-grown products, the Apetit Muurikka pan-fry vegetables and lactose-free Apetit soups. Sales of the new range of fishburgers, fishballs and vegetable burgers and vegetable balls launched for the hotel, restaurant and catering sector were also extremely good.
The operating profit of Frozen Foods for the full year was at the level of the previous year. There were no non-recurring items. The improved productivity had a positive effect on the result, as did the stronger sales focus on more profitable products. The labour market disputes in the spring, however, had an adverse impact on sales and also added to costs when empty stocks had to be refilled after the disputes were over. Delivery reliability was not returned to the pre-strike level until the summer.
During the year, the marketing of Apetit products has highlighted the naturally good nutrition properties of the frozen products and has emphasised the Finnish origin of the Apetit products. The theme of ‘locally produced food straight from the freezer' is being continued in marketing during 2011.
The average number of personnel in Frozen Foods was 199 (205).
Investment in the Frozen Foods business totalled EUR 1.2 (1.9) million. Among the investments, the most significant were the replacement investments in crop-season production facilities and in the frozen ready meals factory, as well as the enlargement of the despatch premises at the Pudasjärvi production facility.
Seafood
Q4/ Q4/ Q1-Q4/ Q1-Q4/
EUR million 2010 2009 2010 2009
The fourth-quarter net sales of the Seafood business were up by about 14%. The growth occurred in the Finnish Seafood business.
The growth was a result of the increase in the average sales price and the greater proportion of higher added value cold-smoked and raw pickled rainbow trout products. The impact of Myrskylän Savustamo Oy on the year's sales was approximately EUR 2.6 million. The Christmas sales period was successful.
In the foreign Seafood business, the drop in sales in Norway was partly a result of discontinuing the sale of poorly profitable smoked salmon to the main customer in September. Sales of higher added value meal components, on the other hand, picked up at the end of the year, and canned products continued to sell well. Final-quarter shellfish sales in Norway were weak. On the Swedish market, sales of shellfish in brine were good, and exports to the Finnish market continued to grow strongly.
The fourth-quarter operating profit, excluding non-recurring items, was almost at the level of a year earlier. There were no non-recurring items. Both the Finnish and foreign Seafood businesses saw a turnaround in their performance, posting an operating profit for the quarter. Boosting the result in the Finnish business was the summer acquisition of Myrskylän Savustamo Oy and associated company Taimen Oy. In the foreign Seafood business, the positive result was possible because of the higher sales of more profitable products and the improvement in productivity and cost efficiency. The result was burdened by higher raw material prices.
Financial year (January-December):
Full-year net sales in the Seafood business were up by about 7%. The majority of the growth was in the Finnish Seafood business.
The growth was attributable to the higher average price of fish product sales compared with a year earlier, the positive sales trend in higher added value cold-smoked and raw-pickled products, and the addition of Myrskylän Savustamo to the Group at the start of June.
Net sales in the foreign Seafood business in euros were up on the previous year by about 1%. Measured in local currencies, net sales were down by about 10%. Most of the decrease in net sales was on the Norwegian market. On the Swedish market the trend in sales to the retail trade and to the hotel, restaurant and catering sector was favourable, especially in the last quarter of the year. Exports to Finland continued to be strong. By product group, the best sales trend was in dressings, though shellfish sales also developed well.
Seafood's full-year operating result, excluding non-recurring items, was about the same as a year earlier, and was a loss. Non-recurring items totalled EUR 0.0 (-0.7) million. The result deteriorated slightly in the Finnish Seafood business, and correspondingly improved in the foreign Seafood business. The operating result included EUR -0.1 (0.0) million as an unrealised change in the fair value of currency hedges. The share in the profit of associated company Taimen Oy in June-December was EUR 0.6 million.
Affecting profitability in the Finnish Seafood business was the substantial rise in raw material prices for rainbow trout and Norwegian salmon, which began in the first half of the year. The price level dropped a little in the early autumn when supplies increased, but was still at an exceptionally high level. Due to retailer pricing periods and the tight competition, significant price rises for products that are priced by period will not be made until 2011.
The impact of the spring labour market disputes was felt in the Seafood business until the summer. Due to the industrial action, sales fell short, delivery reliability weakened and productivity suffered.
The process of integrating Apetit Kala Oy and Myrskylän Savustamo Oy, acquired in June, and its subsidiary, Safu Oy, has proceeded according to plan. The functions of Apetit Kala were reorganised, and the new personnel structure took effect at the start of September. Erkki Lepistö relinquished his position as Managing Director of Apetit Kala Oy for personal reasons, and on 14 October 2010 Matti Karppinen was appointed as his successor. Karppinen also continues as CEO of Lännen Tehtaat plc.
To streamline the fresh fish supply chain and improve the service level, Apetit Kala began fresh fish processing at the Kustavi production plant early in November. This will increase processing capacity, reduce logistics costs and shorten the time from sea to table.
In the foreign Seafood business the high raw material price of Norwegian salmon adversely affected profit-earning capacity up to the early autumn. The shellfish raw material price rose during the second half of the year, too. Due to the retail trade's pricing periods, any price rises to compensate for a rise in raw material prices is delayed. Productivity and operating efficiency have been good. During the year, Maritim Food engaged strongly in product renewal, in collaboration with the main customer. New kinds of products, redesigned and with a higher store profile, were launched during 2010, both under the retailer's private label and under the Maritim brand; these launches will continue in 2011.
Maritim Food has three production sites in Norway and one in Sweden. In the latter part of the year, the company launched a general review of the development possibilities of the factory operations and of the scope for concentration in production.
The average number of personnel in the Seafood business was 351 (379). The reduction in average personnel was due in part to the smaller number of Kalatori service counters in Finland, though personnel numbers were also boosted by arrival of Myrskylän Savustamo Oy and Safu Oy, which joined the Group at the start of June, and the launch of the Kustavi fish processing plant at the beginning of November. The number of personnel in the foreign Seafood business decreased due to the jobs lost in September as a result of the adjustment measures in production.
Investment in the Seafood business totalled EUR 1.1 (0.6) million. Most of this was in completing the productivity investment programme at the Kuopio production plant.
Grains and Oilseeds
Q4/ Q4/ Q1-Q4/ Q1-Q4/
EUR million 2010 2009 2010 2009
Fourth-quarter net sales in the Grains and Oilseeds business were up by 35% year on year. This was due to growth in delivery volumes of grains and vegetable oils and the significant rise in market prices since the same quarter in 2009.
The fourth-quarter operating profit, excluding non-recurring items, was down on the excellent level of a year earlier.
Financial year (January-December):
Full-year net sales in the Grains and Oilseeds business were up by 27% year on year. The increase in net sales was a consequence of higher volume in both grain and vegetable oils sales.
The agricultural commodities markets saw significant changes during 2010. In the first half of the year, prices were low, which was due to the large harvests and greater stocks around the world in 2008 and 2009 and expectations of a plentiful harvest to come.
The weather in summer 2010 led to major crop losses in Russia, Kazakhstan and Ukraine. The combined grain production of the EU countries amounted to 274 million tonnes, which was about 20 million tonnes less than the previous year. In Finland, the crop was 2.9 million tonnes, compared to 4.3 million tonnes in 2009. The reduced supply and strong demand caused prices to rise substantially in the second half of the year in the EU and world markets.
The prices of soybeans and other oilseeds as well as vegetable oils and expeller meal rose considerably in the second half of the year. In Finland, the area under rapeseed grew and a record crop was obtained, almost 180,000 tonnes, despite per-hectare yields being low.
For the Grains and Oilseeds business, the operating profit, excluding non-recurring items, came to EUR 7.2 (7.4) million. The non-recurring items totalled EUR 0.0 (-0.1) million.
In the first six months of the year, Avena achieved a good level of profit. In the final six months, profit-earning was hampered temporarily by the considerable increase in market prices that took place during the summer.
Mildola Oy's vegetable oils business, excluding its oil milling operation, was transferred to Avena Nordic Grain Oy in an asset deal that took place at the end of 2009, leaving Mildola Oy to continue its oil milling operation as a production unit of Avena as of the start of 2010.
To expand local procurement and trading and to boost exports, Avena opened a new office in Estonia and established a subsidiary, TOO Avena Astana, in Kazakhstan, alongside the representative office there. The Kazakhstan subsidiary will begin ordinary operations during 2011.
The Grains and Oilseeds business employed an average of 61 (62) people.
During the year, investment came to EUR 0.7 (0.3) million and focused on the renewal of Avena's Internet marketplace (Avenakauppa) and the renewal of the process automation system and other replacement investment for the Kirkkonummi vegetable oil mill. At the end of the financial year, construction of a new packaging department and canister filling line began at the oil mill.
Other Operations
Q4/ Q4/ Q1-Q4/ Q1-Q4/
EUR million 2010 2009 2010 2009
The Other Operations segment comprises the service company Apetit Suomi Oy, Group Administration, items not allocated under any of the business segments, and the associated companies Sucros Ltd and Ateriamestarit Oy. The cost impact of the services produced by Apetit Suomi Oy is an encumbrance on the operating result of the Group's businesses in proportion to their use of the services.
Fourth quarter (October-December):
Net sales from the sale of services in the Other Operations segment were up slightly on the previous year's level.
The fourth-quarter operating result came to EUR 1.5 (0.8) million, which includes EUR 1.8 (1.3) million as the share of the profits of associated companies.
Financial year (January-December):
Net sales in Other Operations for the year amounted to EUR 2.6 (2.4) million.
The operating result was EUR -0.5 (-1.3) million. The operating result includes EUR 2.4 (2.0) million as the share of the profits of associated companies. The improved result is a consequence of the associated company Sucros's year-on-year profit improvement and the lower costs of the Group Administration and Apetit Suomi compared with the previous year.
CORPORATE ADMINISTRATION AND MANAGEMENT
At its organisational meeting on 13 April 2010, Lännen Tehtaat plc's Supervisory Board elected Helena Walldén as its chairman and Juha Nevavuori as its deputy chairman.
At the same meeting, the Supervisory Board elected the following as members of the company's Board of Directors, as of 13 April 2010: Harri Eela, Heikki Halkilahti, Aappo Kontu, Matti Lappalainen, Hannu Simula and Soili Suonoja. The Supervisory Board elected Matti Lappalainen chairman of the Board of Directors and Hannu Simula deputy chairman. Tom v. Weymarn was member and chairman of the Board of Directors until 13 April 2010.
Matti Karppinen has served as CEO of Lännen Tehtaat plc since 1 September 2005. Eero Kinnunen, Chief Financial Officer (CFO) of the Lännen Tehtaat Group, was appointed Deputy CEO as of 1 January 2008.
AUDITORS
Hannu Pellinen, APA and PricewaterhouseCoopers Oy Authorized Public Accountants, with Tomi Moisio, APA, CPFA as responsible auditor, were appointed as auditors for Lännen Tehtaat plc by the Annual General Meeting on 30 March 2010.
USE OF THE AUTHORISATIONS GRANTED TO THE BOARD OF DIRECTORS
By 16 February 2011, the company's Board of Directors had not exercised the authorisations granted to it to issue new shares or to transfer Lännen Tehtaat plc shares held by the company.
SHARE TURNOVER
The number of Lännen Tehtaat plc shares traded on the stock exchange during the financial year was 1,035,276 (1,997,857), representing 16.4% (31.6%) of the total number of shares. The highest share price quoted was EUR 20.00 (15.99) and the lowest EUR 15.51 (11.90). The average price of shares traded was EUR 17.62 (13.71). The share turnover for the year was EUR 18.2 (27.4) million. The year-end share price was EUR 17.50 (15.65), and the market capitalisation was EUR 110.6 (98.9) million.
OWN SHARES
At the close of the financial year, the company had in its possession a total of 130,000 of its own shares acquired during previous years, with a combined nominal value of EUR 0.26 million. These shares represent 2.1% of the company's total number of shares and of the total number of votes. The company's own shares in its possession carry no voting or dividend rights.
FLAGGING ANNOUNCEMENTS
Lännen Tehtaat received three flagging announcements during the financial year.
On 7 May 2010, EM Group Oy announced that its holding in Lännen Tehtaat plc had, on 6 May 2010, exceeded 5% of the total number of Lännen Tehtaat plc shares and votes. At the time of the announcement, EM Group Oy owned 316,000 Lännen Tehtaat plc shares, equating to 5.002% of the total number of Lännen Tehtaat plc shares and 5.107% of the votes.
On 15 September 2010, Valio Ltd announced that its holding in Lännen Tehtaat plc had, on 14 September 2010, gone below the 5% flagging limit. Prior to the share transactions of 14 September 2010, Valio Ltd's holding amounted to 327,912 shares and votes. Following the share transactions of 14 September 2010, Valio Ltd owns no Lännen Tehtaat plc shares.
On 15 September 2010, Valio Pension Fund announced that its holding in Lännen Tehtaat plc had, on 14 September 2010, exceeded 5% of the total number of Lännen Tehtaat plc shares and votes. Prior to the share transactions of 14 September 2010, the Valio Pension Fund held 86,478 Lännen Tehtaat plc shares and votes. After the share transactions made on 14 September 2010, the Valio Pension Fund owns 414,390 Lännen Tehtaat plc shares, which represents 6.5% of the number of Lännen Tehtaat plc shares and votes.
SHORT-TERM RISKS AND UNCERTAINTIES
The most significant short-term risks for the Lännen Tehtaat Group concern the following: the management of raw material price changes and currency risks; a rise in energy prices; availability of raw materials; the impact of fish price rises on consumer demand; the solvency of customers and the delivery performance of suppliers; changes in the Group's businesses and customerships; and corporate acquisitions and the subsequent integration processes.
EVENTS SINCE THE END OF THE FINANCIAL YEAR
There have been no significant events since the close of the financial year.
ASSESSMENT OF PROBABLE FUTURE DEVELOPMENT
The Group's net sales will be affected particularly by the level of activity in grain and oilseed markets and by changes in the price level of grains and oilseeds.
The Group's profit trend is expected to remain good in the first half of the year. The profit performance in the second half of the year will be influenced substantially by the extent of activity in the grain and oilseed markets, which at this stage of the year is still difficult to assess. Thanks to the measures taken to develop the Group's different businesses, and thanks to the corporate acquisitions made in 2010, the full-year operating profit, excluding non-recurring items, is expected to be better than the previous year's level.
BOARD OF DIRECTORS' PROPOSALS FOR PROFIT MEASURES AND FOR DISTRIBUTION OF OTHER UNRESTRICTED EQUITY
The aim of the Board of Directors of Lännen Tehtaat plc is that the company's shares provide shareholders with a good return on investment and retain their value. It is the company's policy to distribute in dividends at least 40% of the profit for the financial year attributable to shareholders of the parent company.
The parent company's distributable funds totalled EUR 84,512,088.26 on 31 December 2010, of which EUR 6,550,104.19 is profit for the financial year.
The Board proposes that a dividend of EUR 0.90 per share be distributed for 2010. The Board of Directors will propose that a total of EUR 5,568,818.40 be distributed in dividends and that EUR 78,943,269.86 be left in equity. The proposed dividend is 86.5% of the earnings per share.
No dividend will be paid on shares held by the company.
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 in the view of the Board of Directors this will not be jeopardized by the proposed distribution of dividends.
CONSOLIDATED INCOME STATEMENT
EUR million Q4 / Q4 / Jan-De Jan-De
2010 2009 c 2010 c 2009
--------------------------------------------------------------------------------
Net sales 87.9 71.7 308.7 266.0
Other operating income 0.6 0.6 1.4 1.5
Operating expenses -84.2 -66.9 -299.4 -257.3
Depreciation -1.3 -1.3 -5.3 -5.3
Impairments -0.1 0.0 -0.1 -0.1
Share of profits of associated companies 2.2 1.3 3.0 2.0
Operating profit 5.1 5.4 8.3 6.8
Financial income and expenses 0.0 -0.2 0.1 0.5
Profit before taxes 5.1 5.2 8.4 7.3
Income taxes -0.7 -1.1 -1.9 -1.5
--------------------------------------------------------------------------------
Profit for the period 4.4 4.2 6.5 5.8
Attributable to
Equity holders of the parent 4.4 4.2 6.5 5.8
Non-controlling interests -- -- -- --
Basic and diluted earnings per share, calculated 0.71 0.67 1.0 0.94
of the profit attributable to the shareholders
of the parent company, EUR
STATEMENT OF COMPREHENSIVE INCOME
EUR million Q4 / Q4 / Jan-De Jan-De
2010 2009 c 2010 c 2009
--------------------------------------------------------------------------------
Profit for the period 4.4 4.2 6.5 5.8
Other comprehensive income
Cash flow hedges 1.7 1.0 1.1 1.1
Taxes related to cash flow hedges -0.4 -0.3 -0.3 -0.3
Translation differences 0.2 0.2 0.8 1.4
--------------------------------------------------------------------------------
Total comprehensive income 5.9 5.1 8.1 8.0
Attributable to
Equity holders of the parent 5.9 5.1 8.1 8.0
Non-controlling interests -- -- -- --
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 Dec 31 Dec
EUR million 2010 2009
--------------------------------------------------------------------------------
Current assets
Inventories 55.0 48.1
Receivables 34.5 25.5
Income tax receivable 0.2 0.1
Financial assets at fair value through profits 7.1 17.2
Cash and cash equivalents 7.5 7.9
--------------------------------------------------------------------------------
Current assets total 104.4 98.7
Total assets 191.9 176.1
--------------------------------------------------------------------------------
31 Dec 31 Dec
EUR million 2010 2009
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity attributable to the equity holders of the parent 136.2 137.3
Current liabilities
Short-term financial liabilities 1.8 0.9
Income tax payable 1.0 1.5
Trade payables and other liabilities 39.1 29.7
--------------------------------------------------------------------------------
Current liabilities total 41.9 32.1
Total liabilities 53.0 38.8
--------------------------------------------------------------------------------
Total equity and liabilities 191.9 176.1
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
Jan-Dec Jan-De
c
EUR million 2010 2009
--------------------------------------------------------------------------------
Net profit for the period 6.5 5.8
Adjustments, total 4.9 6.5
Change in net working capital -7.4 14.9
Interests paid -1.1 -1.8
Interests received 0.3 1.0
Taxes paid -2.6 -0.6
--------------------------------------------------------------------------------
Net cash flow from operating activities 0.6 25.8
Investments in tangible and intangible assets -3.1 -2.7
Proceeds from sales of tangible and intangible assets 0.5 3.2
Acquisition of associated companies -8.1 --
Transactions with non-controlling interests 2.7 -1.2
Purchases of other investments -32.9 -22.0
Proceeds from sales of other investments 43.0 9.0
Dividends received from investing activities 1.5 3.3
--------------------------------------------------------------------------------
Net cash flow from investing activities 3.5 -10.4
Repayments of short-term loans 0.6 -9.5
Repayments of long-term loans -0.3 -2.7
Payment of financial lease liabilities 0.0 0.0
Dividends paid -4.7 -5.3
--------------------------------------------------------------------------------
Cash flows from financing activities -4.4 -17.5
Net change in cash and cash equivalents -0.3 -2.0
Cash and cash equivalents at the beginning of the period 7.9 9.9
Cash and cash equivalents at the end of the period 7.5 7.9
Purchases of other investments and proceeds from sales of other investments are
cash flows related to short-term interest rate funds.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
A Share capital
B Share premium account
C Net unrealised gains
D Other reserves
E Own shares
F Translation
differences
G Retained
earnings
H Attributable to equity holders of the parent
total
EUR million A B C D E F G H
--------------------------------------------------------------------------------
Shareholders' equity at 1 Jan. 12.6 23.4 0.0 7.2 -1.8 -0.5 96.4 137.3
2010
Dividend distribution -- -- -- -- -- -- -4.7 -4.7
Transactions with NCI -- -- -- -- -- -- -2.9 -2.9
Other changes -- -- -- -- -- -- 0.1 0.1
Total comprehensive income -- -- -0.9 0.0 -- 0.8 6.5 6.5
--------------------------------------------------------------------------------
Shareholders' equity at 31 Dec. 12.6 23.4 -0.8 7.2 -1.8 0.3 95.3 136.2
2010
--------------------------------------------------------------------------------
H Attributable to equity holders of the
parent
total
--------------------------------------------------------------------------------
I Non controlling interests (NCI)
--------------------------------------------------------------------------------
J Total equity
--------------------------------------------------------------------------------
EUR million H I J
Shareholders' equity at 1 Jan. 2010 137.3 -- 137.3
Dividend distribution -4.7 -- -4.7
Transactions with NCI -2.9 2.7 -0.2
Other changes 0.1 -- 0.1
Total comprehensive income 6.5 -- 6.5
Shareholders' equity at 31 Dec. 2010 136.2 2.7 138.9
Shareholders' equity at 1 Jan. 2009 135.1 0.5 135.6
Dividend distribution -5.3 -- -5.3
Transactions with NCI -0.7 -0.5 -1.2
Other changes 0.2 -- 0.2
Total comprehensive income 8.0 -- 8.0
Shareholders' equity at 31 Dec. 2009 137.3 -- 137.3
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The financial statements release has been prepared in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU. The accounting policies adopted are consistent with those of the Group's annual financial statements for the year ended 31 December 2009. New standards and interpretations adopted in 2010 did not have any material effect to this financial statement bulletin.
SEGMENT INFORMATION
Possible table in table detected.
Object reference not set to an instance of an object.
KEY INDICATORS
31 Dec 31 Dec
2010 2009
--------------------------------------------------------------------------------
Gross investments in non-current assets, EUR million 3.1 2.7
Corporate acquisitions and other share purchases, EUR million 10.5 1.2
Average number of personnel 621 657
Average number of shares, 1.000 pcs 6 188 6 188
The key figures in this year-end report are calculated with same
accounting principles than presented in the 2009 annual
financial statements.
CONTINGENT LIABILITIES, CONTINGENT ASSETS AND OTHER COMMITMENTS
31 Dec 31 Dec
EUR million 2010 2009
--------------------------------------------------------------------------------
Mortgages given for debts
Real estate mortgages 2.8 2.0
Guarantees 12.1 11.1
Non-cancellable other leases, minimum lease payments
Real estate leases 5.9 4.3
Other leases 0.7 0.8
CONTINGENT ASSETS
The present value of proceeds from the sale of shares in the 0.7 0.7
joint entry account
INVESTMENT COMMITMENTS
Lännen Tehtaat has no significant investment commitments on 31 December 2010.
OTHER COMMITMENTS
Based on the shareholder agreements on the ownership arrangement between Apetit
Kala Oy and Taimen Oy, once certain terms and conditions are met the contracting
parties are entitled to terminate the cross ownership at fair value. The
liability in any termination of ownership will, on the basis of IAS 32, be
recognised under non-current liabilities. The receivable arising in connection
with this may not, under IFRS rules, be recognised.
CHANGES IN TANGIBLE ASSETS
31 Dec 31 Dec
EUR million 2010 2009
---------------------------------------------------------
Book value at the beginning of the period 37,9 43,5
Additions 2,6 2,0
0,7 -
Disposals -0,3 -4,0
-4,4 -4,5
0,5 0,9
------------------------------------------
Book value at the end of the period 37,0 37,9
---------------------------------------------------------
TRANSACTIONS WITH ASSOCIATED COMPANIES AND JOINT VENTURES
Sales to associated companies 1,1 1,0
Sales to joint ventures 7,3 6,7
Purchases from associated companies 6,6 2,2
Long-term receivables from associated companies -- 1,3
Long-term receivables from joint ventures 0,1 0,1
Trade receivables and other receivables from associated 1,6 1,6
companies
Trade receivables and other receivables from joint ventures 0,7 0,7
Trade payables and other liabilities to associated companies 0,4 0,2
--------------------------------------------------------------------------------
Additions through acquisitions
Depreciations and impairments
Other changes
EUR million
LÄNNEN TEHTAAT PLC
Board of Directors
Further information: CEO Matti Karppinen, tel. +358 40 844 8692
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 20 December, 2010
LÄNNEN TEHTAAT'S FINANCIAL INFORMATION IN 2011
Lännen Tehtaat plc will publish the Financial Statements Bulletin for 2010 on Thursday 17 February, 2011. The Annual Report will be published on week 10.
Interim Reports in 2011 are published as follows:
Interim report for January-March Thursday 5 May, 2011 at 8.30 a.m.
Interim report for January-June Thursday 11 August, 2011 at 8.30 a.m.
Interim report for January-September Wednesday 2 November, 2011 at 8.30 a.m.
The Annual General Meeting of Lännen Tehtaat plc is scheduled for Thursday 31 March, 2011. The Board of Directors will give a separate invitation to the Annual General Meeting at a later date.
The financial reports are published in Finnish and English and are available on the company web pages at www.lannen.fi.
LÄNNEN TEHTAAT PLC
Eero Kinnunen
CFO
For additional information:
Lännen Tehtaat plc, Eero Kinnunen, tel +358 10 402 4025
LÄNNEN TEHTAAT PLC Interim Report 3 November 2010, 8.30 am
INTERIM REPORT 1 January - 30 September 2010
July-September (third quarter):
- Consolidated net sales came to EUR 65.9 (64.1) million, up 3%
- Operating profit, excluding non-recurring items, was EUR 1.3 (1.3) million;
non-recurring items totalled EUR 0.0 (-0.3) million
- Profit for the period came to EUR 0.7 (1.1) million, and earnings per share
amounted to EUR 0.10 (0.18).
January-September:
- Consolidated net sales came to EUR 220.8 (194.3) million, up 14%
- Operating profit, excluding non-recurring items, was EUR 3.2 (2.2) million;
non-recurring items totalled EUR 0.0 (-0.8) million
- Profit for the period came to EUR 2.1 (1.6) million, and earnings per share
amounted to EUR 0.34 (0.26).
In its second-quarter Interim Report, the company estimated that the
consolidated full-year operating profit, excluding non-recurring items, would be
at least at the level of 2009. The updated guidance for the full year is that
the consolidated operating profit, excluding non-recurring items, is expected to
exceed the level of 2009.
The information in this Interim Report has not been audited.
Matti Karppinen, CEO:
“Profit performance continued to be steady during the third quarter. For
July-September, the consolidated operating profit, excluding non-recurring
items, was about the same as a year ago. Both Frozen Foods and Other Operations
posted a year-on-year improvement in their profits. Grains and Oilseeds managed
the strong and rapid changes in market prices well, bringing the profit almost
to the previous year's level. In Seafood, the result was down on the previous
year's figure. The greatest operational challenges still lay with Seafood's
Finnish operations, where high raw material costs burdened the result until late
in the period. The profits of Myrskylän Savustamo Oy and the associated company
Taimen Oy, which were acquired in June, have been in line with expectations and
have had a positive impact on Seafood's result.
“The integration of the new companies into Apetit Kala's functions has proceeded
as planned, and Apetit Kala's reorganisation took effect at the beginning of
September. Following the Taimen arrangement, the streamlining of the fresh fish
supply chain has continued as planned. To improve the level of service, it was
decided at the end of the period to begin fish processing at the Kustavi
production plant.”
Net sales 65.9 64.1 220.8 194.3 266.0
Operating profit 1.3 1.0 3.2 1.4 6.8
Operating profit,
excluding non-recurring items 1.3 1.3 3.2 2.2 7.7
Profit before taxes 1.2 1.4 3.3 2.1 7.3
Profit for the period 0.7 1.1 2.1 1.6 5.8
Earnings per share, EUR 0.10 0.18 0.34 0.26 0.94
NET SALES AND PROFIT
July-September (third quarter):
Consolidated net sales for the third quarter amounted to EUR 65.9 (64.1)
million, an increase of 3% on the same quarter in 2009. The majority of the
growth was in the Seafood business.
The Group's third-quarter operating profit, excluding non-recurring items, was
EUR 1.3 (1.3) million. The non-recurring items totalled EUR 0.0 (-0.3) million.
The operating profit includes EUR 0.6 (0.3) million as the share of the profits
of associated companies. In the Frozen Foods and Other Operations segments the
operating profit, excluding non-recurring items, was better than the previous
year. In Seafood and the Grains and Oilseeds business, the profit was down year
on year.
January-September:
Consolidated net sales for January-September came to EUR 220.8 (194.3) million,
up by 14%.
The operating profit, excluding non-recurring items, was EUR 3.2 (2.2) million.
The non-recurring items came to EUR 0.0 (-0.8) million. A total of EUR -0.7
million of the non-recurring items in the comparison period was in the Seafood
business and EUR -0.1 million in the Grains and Oilseeds business. The operating
profit includes EUR 0.8 (0.7) million as the share of the profits of associated
companies.
Financial income and expenses came to a total of EUR 0.1 (0.7) million. This
figure includes valuation items of EUR 0.8 (0.6) million with no cash flow
implications. Financial expenses also include EUR -0.6 (-0.4) million of Avena
Nordic Grain Group's profit as the share attributable to the Avena Nordic Grain
Oy employee shareholders.
Profit before taxes was EUR 3.3 (2.1) million. Profit for the period came to EUR
2.1 (1.6) million, and earnings per share amounted to EUR 0.34 (0.26).
FINANCING AND BALANCE SHEET
The Group's liquidity was good and its financial position is strong.
The cash flow from operating activities in January-September after interest and
taxes amounted to EUR -3.1 (23.3) million. The impact of the change in working
capital was EUR -7.3 (18.1) million, most of this being in the Grains and
Oilseeds business. The net cash flow from investing activities came to EUR 6.9
(-11.5) million. Deposits and withdrawals of liquid assets into and from
short-term fixed income funds had an impact of EUR 13.0 (-12.0) million on
the cash flow from investing activities. The cash flow from financing activities
came to EUR -4.7 (-16.8) million, and this included EUR -4.7 (-5.3) million in
dividend payments.
At the end of the period the Group had EUR 3.5 (5.6) million in interest-bearing
liabilities and EUR 11.4 (20.9) million in liquid assets. Net interest-bearing
liabilities totalled EUR -7.9 (-15.4) million. The Group's liquidity over the
next few years is secured with committed credit facilities; a total of EUR 25
(25) million was available in credit at the end of September. No credit
facilities were used during the January-September period.
The consolidated balance sheet total stood at EUR 178.5 (172.7) million. At the
end of September, equity totalled EUR 134.8 (132.1) million. The equity ratio
was 75.6% (76.7%) and gearing was -5.9% (-11.6%).
INVESTMENT
Gross investment in non-current assets in January-September came to EUR 2.6
(2.0) million.
PERSONNEL
The average number of personnel during January-September was 624 (659). Most of
the reduction in personnel occurred in the Seafood business.
Third-quarter net sales were down by 3% year on year. The decrease was in sales
to the food industry and export sales. Sales of retail products and sales to the
hotel, restaurant and catering sector were favourable. The hot summer reduced
frozen foods consumption and monthly fluctuations were strong.
Apetit Pakaste launched several new products during the period. The most
significant new retail products were the Apetit Focaccia breads, comprising
three products, and the lactose-free Apetit soups (puréed potato and root
vegetable soup, salmon soup). The most important new items for the hotel,
restaurant and catering sector were carrot patties and whitefish fishcakes.
Third-quarter operating profit improved on the previous year's figure as a
result of the sales emphasis on more profitable products, higher productivity
and good management of overheads.
Net sales in Frozen Foods for January-September fell by 2% year on year. Sales
of retail products and sales to the hotel, restaurant and catering sector were
at the previous year's level, while sales to the food industry and exports were
down year on year. Within product groups, the good sales performance of frozen
vegetables, frozen potato products and frozen soups continued. Operating profit
for January-September was at the level of the previous year.
The number of personnel in Frozen Foods during January-September was 191 (199).
The most significant of the investments during the period, which totalled EUR
1.1 (1.4) million, were the replacements in crop-season production facilities
and in the frozen ready meals factory, and the enlargement of the dispatch area
at the Pudasjärvi production plant.
The third-quarter net sales of the Seafood business were up by about 9% on the
same quarter a year earlier. This growth was in the Finnish Seafood business.
The growth was attributable to the higher average price of fish product sales
compared with a year earlier, the positive sales trend in higher added value
cold-smoked and raw-pickled products, and the addition of Myrskylän Savustamo to
the Group at the start of June.
Net sales of Seafood's Norwegian and Swedish operations in euros were at about
the level of a year earlier. Measured in local currencies, net sales were down
by about 10%. Most of the decrease in net sales was on the Norwegian market. On
the Swedish market, retail sales performed favourably, whereas sales in the
hotel, restaurant and catering sector were slightly short of the previous year's
level.
Seafood's third-quarter operating profit, excluding non-recurring items, was
down a little, year on year. In the Finnish Seafood business the result
improved. The result in Seafood's Norwegian and Swedish operations was adversely
affected by unrealised changes in the fair value of currency hedges, for which
EUR -0.4 (-0.1) million was included in the operating result for the period. The
share of the third-quarter profit of the associated company Taimen Group
amounted to EUR 0.4 million.
The profitability of the Finnish Seafood business was affected by raw material
prices for rainbow trout and Norwegian salmon, which remained exceptionally
high. Due to the market environment and the retail trade's pricing periods, it
has so far only been possible to pass on a proportion of the higher raw material
costs to sales prices.
The operating efficiency of Seafood's Norwegian and Swedish operations has been
good. In Norway, the high raw material price for salmon also continued to have
an adverse impact on profit-earning capacity, as it was possible to introduce
only a proportion of the price rises that would have compensated for the
increased raw material prices, due to market circumstances.
Seafood's net sales for January-September were up by 4% on the same period in
2009. The operating profit, excluding non-recurring items, was up by EUR 0.2
million year on year, but was a loss overall. The operating profit included EUR
-0.3 (-0.1) million as unrealised changes in the fair value of currency hedges.
The share of the profit of the associated company Taimen Group, acquired in
June, amounted to EUR 0.3 million.
The process of integrating Apetit Kala and Myrskylän Savustamo Oy, acquired in
June, and its subsidiary, Safu Oy, has proceeded according to plan. The
functions of Apetit Kala were reorganised, and the new organisation took effect
at the start of September. To streamline the fresh fish supply chain and improve
the service level, Apetit Kala is to begin fresh fish processing at the Kustavi
production plant at the start of November. This will expand the fish processing
capacity, reduce logistics costs and shorten the time from sea to table.
The average number of personnel in the Seafood business totalled 363 (387).
Investment in the Seafood business in January-September amounted to EUR 0.8
(0.4) million. Most of this was in completing the productivity investment
programme at the Kuopio production plant.
Third-quarter net sales in the Grains and Oilseeds business were up by slightly
more than 1% year on year. This growth was attributable to a small increase in
deliveries and stronger prices.
The operating profit of Grains and Oilseeds, excluding non-recurring items, was
down slightly on the previous year's third-quarter figure.
As part of its growth strategy, Avena Nordic Grain Oy established a subsidiary
named TOO Avena Astana in Kazakhstan during the summer to strengthen its grain
purchasing and trading operations in the region.
January-September net sales in Grains and Oilseeds were up by 24% year on year,
thanks to a growth in volumes. Operating profit, excluding non-recurring items,
was up on the previous year's level.
Due to exceptional weather, this autumn's grain crop was below that of 2009 in a
number of key grain production regions, particularly in Russia, Ukraine and
Kazakhstan. The EU crop was down by 20 million tonnes year on year. As there was
no corresponding drop in world demand, market prices rose in late July to a
level significantly higher than a year earlier. At the end of harvesting, prices
came down on the world market but have since strengthened again.
The grain crop in Finland was the smallest for a decade, amounting to a quarter
less than the previous autumn's crop. The area under rapeseed doubled, but the
per-hectare crop was below average on account of the hot, dry summer.
Although the grain crop in Finland and many other countries was down year on
year, there is an abundance of trading opportunities in the crop season
currently under way, due to changes in grain flows, quality differences among
crops on different markets, and price fluctuations.
The Grains and Oilseeds business employed an average of 60 (62) people.
In January-September, investment came to EUR 0.6 (0.2) million and focused on
the renewal of Avena's Internet marketplace (Avenakauppa) and the renewal of the
process automation system and other replacement investment for the Kirkkonummi
vegetable oil mill.
Other Operations comprise the service company Apetit Suomi Oy, Group
Administration, items not allocated under any of the business segments, and the
associated companies Sucros Ltd and Ateriamestarit Oy. The cost impact of the
services produced by Apetit Suomi Oy is an encumbrance on the operating result
of the Group's businesses in proportion to their use of the services.
In the third quarter, net sales from the sale of services were at the previous
year's level.
The third-quarter operating profit came to EUR -0.4 (-0.5) million, which
includes EUR 0.2 (0.3) million as the share of the profits of associated
companies.
The January-September operating profit was EUR -2.0 (-2.1) million. This figure
includes EUR 0.5 (0.7) million as the share of the profits of associated
companies.
Investment in Other Operations totalled EUR 0.1 (0.0) million.
USE OF THE AUTHORISATIONS GRANTED TO THE BOARD OF DIRECTORS
Authorisations to issue shares
The company's Board of Directors has not exercised the authorisation granted to
it by the Annual General Meeting on 30 March 2010 to issue new shares or to
transfer Lännen Tehtaat plc shares held by the company.
SHARES AND TRADING
The number of Lännen Tehtaat plc shares traded on the stock exchange during
January-September was 917,244 (1,105,775), representing 14.5% (17.5%) of the
total number of shares. The euro-denominated share turnover was EUR 16.1 (14.0)
million. The highest share price quoted was EUR 20.00 (15.20) and the lowest EUR
15.51 (11.90). The average price of shares traded was EUR 17.60 (12.64).
At the end of September, the market capitalisation totalled EUR 116.6 (93.1)
million.
OWN SHARES
At the end of September, the company had in its possession a total of 130,000 of
its own shares, with a combined nominal value of EUR 0.26 million. These shares
represent 2.1% of the company's total number of shares and of the total number
of votes.
FLAGGING ANNOUNCEMENTS
Lännen Tehtaat received 3 flagging announcements in the period
January-September.
On 7 May 2010, EM Group Oy announced that its holding in Lännen Tehtaat plc had,
on 6 May 2010, exceeded 5% of the total number of Lännen Tehtaat plc shares and
votes. At the time of the announcement, EM Group Oy owned 316,000 Lännen Tehtaat
plc shares, equating to 5.002% of the total number of Lännen Tehtaat plc shares
and 5.107% of the votes.
On 15 September 2010, Valio Ltd announced that its holding of Lännen Tehtaat plc
shares had, on 14 September 2010, fallen below the 5% flagging level. Prior to
the share transactions of 14 September 2010, Valio Ltd's holding amounted to
327,912 shares and votes. Following the share transactions of 14 September 2010,
Valio Ltd owns no Lännen Tehtaat plc shares.
On 15 September 2010, the Valio Pension Fund announced that its holding of
Lännen Tehtaat plc shares and votes had, on 14 September 2010, exceeded 5%.
Prior to the share transactions of 14 September 2010, the Valio Pension Fund
held 86,478 Lännen Tehtaat plc shares and votes. Following the share
transactions of 14 September 2010, the Valio Pension Fund holds 414,390 Lännen
Tehtaat plc shares, which equates to 6.5% of the total of Lännen Tehtaat plc
shares and votes.
SEASONALITY OF OPERATIONS
In accordance with the IAS 2 standard, the historical cost of inventories
includes a systematically allocated portion of the fixed production overheads.
In production that focuses on seasonal crops, raw materials are processed into
finished products mainly during the final quarter of the year, which means that
the inventory volumes and their balance-sheet values are at their highest at the
end of the year. Since the entry of the fixed production overheads included in
the historical cost as an expense item is deferred until the time of sale, most
of the Group's annual profit is accrued in the final quarter. The seasonal
nature of operations is most marked in Frozen Foods and in the associated
company Sucros, due to the link between production and the crop harvesting
season.
In the Seafood business, the sales of Apetit Kala Oy and Myrskylän Savustamo Oy
peak at weekends and on holidays. A significant proportion of these companies'
profits depends on the success of Christmas season sales. The profit accrual of
the Taimen Group, which reports as an associated company, is weighted towards
the end of the year and the early months of the year.
Net sales in the Grains and Oilseeds business vary from one year and quarter to
the next to a greater extent than in the other businesses, being dependent on
the demand and supply situation and on the price levels domestically and on
other markets.
SHORT-TERM RISKS AND UNCERTAINTIES
The most significant short-term risks for the Lännen Tehtaat Group concern the
following: the management of raw material price changes and currency risks;
availability of raw materials; the impact of seafood price rises on consumer
demand; the success of Christmas season sales in the Seafood business; the
effects of a prolonged economic downturn on demand from consumers and customers;
the solvency of customers and the delivery performance of suppliers; changes in
the Group's businesses and customerships; introduction of a new enterprise
resource planning (ERP) system in Seafood's Norwegian and Swedish operations;
and corporate acquisitions and the subsequent integration processes.
SIGNIFICANT EVENTS SINCE THE END OF THE REVIEW PERIOD
Erkki Lepistö has relinquished his position as Managing Director of Apetit Kala
Oy for personal reasons, and on 14 October 2010 Matti Karppinen was appointed as
his successor. Karppinen also continues as CEO of Lännen Tehtaat plc.
OUTLOOK FOR THE FULL YEAR
The Group's net sales will be affected particularly by the level of activity in
grain and oilseed markets and by changes in the price level of grains and
oilseeds. Based on developments so far and on the current outlook, the Group's
full-year net sales are expected to be up on the 2009 figure.
As in 2009, a high proportion of the Group's annual profit will accrue in the
final quarter of the year, and so the consolidated operating profit for 2010,
excluding non-recurring items, is expected to exceed the level of 2009.
Current assets
Inventories 51.6 46.3 48.1
Receivables 29.5 24.6 25.5
Income tax receivable 0.0 0.0 0.1
Financial assets at fair value
through profits 4.4 16.1 17.2
Cash and cash equivalents 7.0 4.8 7.9
Current assets total 92.5 91.9 98.7
Non-current assets held for sale - 3.6 -
Total assets 178.5 172.7 176.1
EUR million 30 Sep 30 Sep 31 Dec
2010 2009 2009
EQUITY AND LIABILITIES
Equity attributable to the equity
holders of the parent 131.9 132.1 137.3
Non-controlling interests 2.9 - -
Total equity 134.8 132.1 137.3
Current liabilities
Short-term financial liabilities 1.0 1.9 0.9
Income tax payable 1.0 1.3 1.5
Trade payables and other liabilities 30.7 29.5 29.7
Current liabilities total 32.7 32.7 32.1
Total liabilities 43.7 40.6 38.8
Total equity and liabilities 178.5 172.7 176.1
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million Jan-Sep Jan-Sep Jan-Dec
2010 2009 2009
Net profit for the period 2.1 1.6 5.8
Adjustments, total 5.2 4.5 6.5
Change in net working capital -7.3 18.1 14.9
Interests paid -0.8 -1.2 -1.8
Interests received 0.1 1.0 1.0
Taxes paid -2.2 -0.8 -0.6
Net cash flow from operating activities -3.1 23.3 25.8
Investments in tangible and intangible assets -2.6 -2.0 -2.7
Proceeds from sales of tangible
and intangible assets 0.5 0.4 3.2
Acquisition of associated companies -8.1 - -
Transactions with non-controlling interests 2.7 -1.2 -1.2
Purchases of other investments -26.8 -15.0 -22.0
Proceeds from sales of other investments 39.8 3.0 9.0
Dividends received from investing activities 1.5 3.3 3.3
Net cash flow from investing activities 6.9 -11.5 -10.4
Repayments of short-term loans 0.4 -10.2 -9.5
Repayments of long-term loans -0.4 -1.4 -2.7
Payment of financial lease liabilities 0.0 0.0 0.0
Dividends paid -4.7 -5.3 -5.3
Cash flows from financing activities -4.7 -16.8 -17.5
Net change in cash and cash equivalents -0.8 -5.0 -2.0
Cash and cash equivalents at the
beginning of the period 7.9 9.9 9.9
Cash and cash equivalents at the
end of the period 7.0 4.8 7.9
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
EUR million
A = Share capital
B = Share premium account
C = Net unrealised gains
D = Other reserves
E = Own shares
F = Translation differences
G = Retained earnings
H = Attributable to equity holders of the parent, total
I = Non-controlling interests (NCI)
J = Total equity
A B C D E F G H I J
Shareholders'
equity at
1 Jan. 2010 12.6 23.4 0.0 7.2 -1.8 -0.5 96.4 137.3 - 137.3
Dividend
distribution - - - - - - -4.7 -4.7 - -4.7
Transactions
with NCI - - - - - - -2.9 -2.9 2.9 -
Other changes - - - - - - 0.0 0.0 - 0.0
Total comprehensive
income - - -0.4 0.0 - 0.6 2.1 2.2 - 2.2
Shareholders'
equity at
30 Sep. 2010 12.6 23.4 -0.4 7.2 -1.8 0.1 90.8 131.9 2.9 134.8
The interim report has been prepared in accordance with IAS 34, Interim
Financial Reporting, as adopted by the EU. The accounting policies adopted are
consistent with those of the Group's annual financial statements for the year
ended 31 December 2009.
SEGMENT INFORMATION
A Frozen Foods
B Seafood
C Grains and Oilseeds
D Other Operations
E Total
Shareholders' equity per share, EUR 21.31 21.36 22.19
Equity ratio, % 75.6 76.7 78.0
Gearing, % -5.9 -11.6 -15.8
Gross investments in non-current
assets, EUR million 2.6 2.0 2.7
Corporate acquisitions and other
share purchases, EUR million 10.5 1.2 1.2
Average number of personnel 624 659 657
Average number of shares, 1,000 pcs 6 188 6 188 6 188
The key figures in this interim financial report are calculated with same
accounting principles than presented in year 2009 annual financial statements.
CONTINGENT LIABILITIES, CONTINGENT ASSETS AND OTHER COMMITMENTS
EUR million 30 Sep 30 Sep 31 Dec
2010 2009 2009
Mortgages given for debts
Real estate mortgages 2.8 5.6 2.0
Guarantees 13.7 10.0 11.1
Non-cancellable other leases,
minimum lease payments
Real estate leases 5.0 4.7 4.3
Other leases 0.8 0.7 0.8
The present value of proceeds from the
sale of shares in the joint entry account 0.7 0.7 0.7
INVESTMENT COMMITMENTS
Lännen Tehtaat has no significant investment commitments at 30 September 2010.
OTHER COMMITMENTS
Based on the shareholder agreements on the ownership arrangement between Apetit
Kala Oy and Taimen Oy, once certain terms and conditions are met the contracting
parties are entitled to terminate the cross ownership at fair value. The
liability in any termination of ownership will, on the basis of IAS 32, be
recognised under non-current liabilities. The receivable arising in connection
with this may not, under IFRS rules, be recognised.
CHANGES IN TANGIBLE ASSETS
EUR million 30 Sep 30 Sep 31 Dec
2010 2009 2009
Book value at the beginning of the period 37.9 43.5 43.5
Additions 2.1 1.2 2.0
Additions through acquisitions 0.7 - -
Disposals -0.2 -4.0 -4.0
Depreciations and impairments -3.3 -3.4 -4.5
Other changes 0.4 0.8 0.9
Book value at the end of the period 37.7 38.1 37.9
TRANSACTIONS WITH ASSOCIATED COMPANIES AND JOINT VENTURES
EUR million Jan-Sep Jan-Sep Jan-Dec
2010 2009 2009
Sales to associated companies 0.3 0.3 1.0
Sales to joint ventures 5.5 5.1 6.7
Purchases from associated companies 1.6 1.4 2.2
Long-term receivables from associated companies - 1.5 1.3
Long-term receivables from joint ventures 0.1 0.1 0.1
Trade receivables and other
receivables from associated companies 1.5 1.6 1.6
Trade receivables and other
receivables from joint ventures 1.1 1.0 0.7
Trade payables and other liabilities
to associated companies 0.0 0.0 0.2
LÄNNEN TEHTAAT PLC
Board of Directors
Further information: Matti Karppinen, CEO, tel. +358 40 8448 692
Distribution:
NASDAQ OMX Helsinki Ltd
Principal media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 13 OCTOBER 2010, 2.30 P.M.
APETIT KALA OY'S MANAGING DIRECTOR TO CHANGE
Erkki Lepistö, Managing Director of Apetit Kala Oy, will withdraw from his post
for personal reasons. Matti Karppinen, CEO of Lännen Tehtaat, has been
appointed to the post. Karppinen has been the executive responsible for Lännen
Tehtaat Group's Seafood business since 2009. He will continue as Lännen Tehtaat
plc's chief executive officer.
Apetit Kala Oy and its subsidiary, Myrskylän Savustamo Oy, produce, market and
sell fresh fish products under the Apetit and Safu brands and under retailers'
private labels. Apetit Kala also sells fish, fish products and other fresh
products at Kalatori service counters. Taimen Oy, an associated company of
Apetit Kala Oy, and its subsidiaries specialise in fish farming and fry and
fingerling production. The Group companies form the most efficient fresh-supply
chain for rainbow trout on the Finnish market.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
Further information: CEO Matti Karppinen, tel. +358 40 8448 692
Copies to:
NASDAQ OMX Helsinki Ltd
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE ANNOUNCEMENT 15 SEPTEMBER 2010 AT 11:00 A.M.
ANNOUNCEMENT PURSUANT TO CHAPTER 2, SECTION 1O OF THE SECURITIES MARKETS ACT
Valio´s Pension Fund (business ID 0200012-7) has according to chapter 2, section
9, of the Securities Markets Act disclosed to Lännen Tehtaat plc (ISIN code
FI0009003503) that on 14 September 2010 Valio´s Pension Fund´s ownership in
Lännen Tehtaat plc has increased above 5% of the total number of shares and
voting rights.
Before transactions on 14 September Valio´s Pension Fund´s ownership in Lännen
Tehtaat plc was 86,478 shares and voting rights. After share purchases on 14
September 2010 Valio´s Pension Fund owns 414,390 Lännen Tehtaat plc´s shares
corresponding 6.5% of the total number of shares and voting rights in Lännen
Tehtaat plc.
LÄNNEN TEHTAAT PLC
Riitta Jaakkola
Financial Manager
For additional information:
Lännen Tehtaat plc, Matti Karppinen, CEO, tel. +358 10 402 00
Distribution:
NASDAQ OMX Helsinki Ltd
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE ANNOUNCEMENT 15 SEPTEMBER 2010 AT 11:00 A.M.
ANNOUNCEMENT PURSUANT TO CHAPTER 2, SECTION 1O OF THE SECURITIES MARKETS ACT
Valio Ltd (business ID 0116297-6) has according to chapter 2, section 9, of the
Securities Markets Act disclosed to Lännen Tehtaat plc that on 14 September 2010
Valio Ltd´s ownership in Lännen Tehtaat plc (ISIN code FI0009003503) has
decreased under 5% of the total number of shares and voting rights.
Before share transactions on 14 September Valio Ltd owned a total of 327,912
Lännen Tehtaat plc´s shares and voting rights. After share transactions on 14
September 2010 Valio Ltd owns no (0) Lännen Tehtaat plc´s shares.
LÄNNEN TEHTAAT PLC
Riitta Jaakkola
Financial Manager
For additional information:
Lännen Tehtaat plc, Matti Karppinen, CEO, tel. +358 10 402 00
Distribution:
NASDAQ OMX Helsinki Ltd
Main media
www.lannen.fi
