LÄNNEN TEHTAAT PLC Interim Report 12 August 2010, 8.30 am
INTERIM REPORT 1 January - 30 June 2010
April-June:
- Consolidated net sales amounted to EUR 80.0 (65.5) million,
up 22%
- Operating profit, excluding non-recurring items, came to EUR 1.0 (1.6)
million; non-recurring items totalled EUR 0.0 (-0.5) million
- Profit for the period came to EUR 0.6 (0.8) million, and earnings per share
amounted to EUR 0.10 (0.12)
January-June:
- Net sales amounted to EUR 154.9 (130.2) million, a year-on-year growth of 19%
- Operating profit, excluding non-recurring items, came to EUR 1.9 (0.9)
million; non-recurring items totalled EUR 0.0 (-0.5) million
- Profit for the period came to EUR 1.4 (0.5) million, and earnings per share
amounted to EUR 0.24 (0.08)
Assessment of profit performance for the full year is unchanged.
The information in this Interim Report has not been audited.
Matti Karppinen, CEO:
“Thanks to the good level of sales in Grains and Oilseeds, the Group's net sales
were up by more than 20% year on year. The second quarter was expected to be
more challenging than a year earlier, in terms of the profit outlook, and the
consolidated operating profit, excluding non-recurring items, was in fact down
year on year. The Group's profit was nevertheless at the same level as the first
quarter.
The labour market dispute in the food industry in Finland in the spring had a
disruptive impact on our Finnish business, and this continued to be felt until
June. The measures taken in the dispute affected our Frozen Foods, Seafood, and
Grains and Oilseeds businesses. The worst impact was in fresh fish production,
which has the fastest turnover of stocks.
In continuing to develop and strengthen the Finnish Seafood business in line
with our adopted strategy, the company agreed an ownership arrangement with
Taimen Oy in June. This integration with fish farming will allow us to create
the most efficient fresh-product supply chain for rainbow trout on the Finnish
market. The arrangement will also allow the introduction of new business
models.”
Net sales 80.0 65.5 154.9 130.2 266.0
Operating profit 1.0 1.1 1.9 0.4 6.8
Operating profit,
excluding non-recurring items 1.0 1.6 1.9 0.9 7.7
Profit before taxes 0.9 1.0 2.1 0.6 7.3
Profit for the period 0.6 0.8 1.4 0.5 5.8
Earnings per share, EUR 0.10 0.12 0.24 0.08 0.94
CHANGES IN GROUP STRUCTURE AND CORPORATE TRANSACTIONS
In June, Lännen Tehtaat plc and Taimen Oy entered into an arrangement whereby
the Lännen Tehtaat plc's subsidiary Apetit Kala Oy acquired a 30% holding in
Taimen Oy and Taimen Oy acquired a 30% holding in Apetit Kala Oy. As part of
this arrangement, Taimen Oy transferred to Apetit Kala Oy the share capital of
its fish-processing subsidiary Myrskylän Savustamo Oy and the share capital of
Myrskylän Savustamo Oy's subsidiary, Safu Oy. Lännen Tehtaat's share of the
Taimen Group's profits is reported in Lännen Tehtaat Group's segment reporting
as associated company profit for Seafood above the operating profit as from the
start of June.
The Taimen Group has a total of 28 fish farming units in Finland and Sweden and
also three gutting facilities. The company specialises in farming rainbow trout,
trout, whitefish and Saimaa Arctic char, as well as fry and fingerling
production. The Taimen Group's total annual production is approximately eight
million kilos, and its market share is about half of total rainbow trout
production in Finland. The Taimen Group's net sales in 2009 amounted to EUR 29.5
million, and its operating profit was EUR 4.4 million.
Myrskylän Savustamo Oy produces and markets fish products under the Safu brand.
Myrskylän Savustamo Oy's net sales in 2009 totalled EUR 3.8 million, and its
operating profit was EUR 0.3 million.
NET SALES AND PROFIT
April-June:
Consolidated net sales for the second quarter amounted to EUR 80.0 (65.5)
million, an increase of 22% on the same quarter in 2009. This increase was
principally due to the year-on-year growth in sales volumes in Grains and
Oilseeds.
The Group's second-quarter operating profit, excluding non-recurring items, was
EUR 1.0 (1.6) million. The non-recurring items totalled EUR 0.0 (-0.5) million.
The operating profit includes EUR 0.3 (0.4) million as the share of the profits
of associated companies. In Other Operations, the profit was up, while in Grains
and Oilseeds and in Frozen Foods the profit was at about the same level as the
previous year. In the Seafood business, the result, excluding non-recurring
items, was down year on year.
January-June:
Consolidated net sales for January-June came to EUR 154.9 (130.2) million, up by
19%.
The January-June operating profit, excluding non-recurring items, was EUR 1.9
(0.9) million. The operating profit includes EUR 0.2 (0.4) million as the share
of the profits of associated companies. The non-recurring items totalled EUR 0.0
(-0.5) million. The non-recurring items a year earlier were connected with the
Seafood business.
Financial income and expenses came to a total of EUR 0.1 (0.2) million. This
figure includes valuation items of EUR 0.7 (0.5) million with no cash flow
implications. Financial expenses also include EUR -0.5 (-0.3) 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 2.1 (0.6) million. Profit for the period came to EUR
1.4 (0.5) million, and earnings per share amounted to EUR 0.24 (0.08).
FINANCING AND BALANCE SHEET
The Group's liquidity was good and its financial position is strong.
The cash flow from operating activities in January-June after interest and taxes
amounted to EUR 8.6 (21.2) million. The impact of the change in working capital
was EUR 5.6 (17.6) million, most of this being in the Grains and Oilseeds
business. The net cash flow from investing activities came to EUR -7.3 (-11.1)
million. Deposits and withdrawals of liquid assets into and from short-term
fixed income funds had an impact of EUR -1.0 (-9.0) million on the cash flow
from investing activities. The cash flow from financing activities came to EUR
-5.3 (-11.9) million, and this included EUR -4.7 (-5.3) million in dividend
payments.
At the end of the period, the Group had EUR 2.7 (10.1) million in
interest-bearing liabilities and EUR 22.2 (21.0) million in liquid assets. Net
interest-bearing liabilities totalled EUR -19.4 (-10.9) million. The
consolidated balance sheet total stood at EUR 169.9 (170.7) million. At the end
of June, equity totalled EUR 134.0 (130.7) million. The equity ratio was 78.9%
(76.7%). Commercial papers issued for the Group's short-term financing stood at
a total value of EUR 0.0 (3.0) million at the end of the period. 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 June. No
credit facilities were used during the January-June period.
INVESTMENT
Gross investment in non-current assets in January-June came to EUR 1.7 (1.5)
million.
PERSONNEL
The average number of personnel during January-June was 610 (658). Most of the
reduction in personnel occurred in the Seafood business.
Second-quarter net sales in Frozen Foods were down by about 3% year on year.
This decrease was mainly a result of the undelivered retail products due to the
labour market dispute in the food industry. Hotel, restaurant and catering
sector sales, food industry sales and exports were all at the same level as a
year earlier.
Operating profit almost reached the level of the previous year. The labour
market dispute in the food industry had a negative impact on the quarterly
result. The dispute meant that production was at a standstill for eight days.
The disruptive effects of the dispute were seen in lost sales and increased
costs as depleted product stocks were refilled. Product shortages and problems
in production were resolved during June, when stocks returned to normal levels.
In January-June, net sales in Frozen Foods fell by about 2% overall. Sales of
retail products were favourable. Growth occurred in sales of basic products in
particular, such as frozen vegetable and potato products and soups sold under
the Apetit brand. Sales of new products also increased, including Finnish-grown
Apetit vegetables launched in the autumn under the ‘domestic content' theme, and
the Apetit Muurikka pan-fry vegetables launched in the spring. Sales of frozen
pizzas and private label products were down year on year. Sales to the hotel,
restaurant and catering sector fell slightly, as did export sales, while sales
to the food industry were at the level of the same period in 2009.
The operating profit for January-June was slightly below the figure of a year
earlier.
The average number of personnel in Frozen Foods during January-June was 181
(188).
The investment of EUR 0.6 (1.2) million made in the first six months of the year
consisted mainly of expenditure on replacements in crop-season production
facilities and in the frozen ready meals factory.
In June, Lännen Tehtaat entered into an ownership arrangement with Taimen Oy, in
line with the strategy for the Finnish Seafood business. The arrangement allows
the creation of the most efficient fresh-product supply chain for rainbow trout
on the Finnish market. It will also produce synergy benefits, for instance in
production, logistics and sales. The arrangement will, furthermore, open up
opportunities for introducing new business models.
The second-quarter net sales of the Seafood business were up by about 1% on the
figure for the same quarter in 2009.
Net sales in the Finnish Seafood business were at about the level of a year
earlier. Sales received a boost with the incorporation of Myrskylän Savustamo
into the Group at the start of June, and with the growth in service sales,
though sales also suffered the adverse effects of the labour market dispute in
the food industry and the consequent disruptions that occurred in deliveries of
fish products. The dispute meant that production of fish products was at a
standstill for ten days. With Easter sales occurring partly at the end of the
first quarter, in contrast to the previous year, the contribution of Easter to
second-quarter sales was correspondingly down in 2010.
In the foreign Seafood business, euro-denominated net sales were up slightly.
Measured in local currencies, net sales were down year on year by about 10%. In
Norway, the drop in sales was attributable mainly to the discontinuation of an
unprofitable product segment. Sales volumes of the Swedish unit were at the
level of a year earlier, but average prices were down year on year.
Seafood's second-quarter operating profit, excluding non-recurring items, was
below that of the same quarter in 2009.
The result for the Finnish Seafood business was down year on year. This was due
to the considerable increase in salmon and rainbow trout prices that began
during the winter and has since continued, keeping raw material costs at an
exceptionally high level. Due to the competitive environment and the retail
trade's pricing periods, it has only been possible to pass on a proportion of
the higher raw material costs to sales prices. The labour market dispute in the
food industry interfered with production efficiency and led to an increase in
wastage and a deterioration in delivery reliability. Production did not return
to normal until June.
In foreign operations the second-quarter result was at the level of a year
earlier. The result was boosted by the improvement in labour and raw material
productivity and in cost efficiency. On the negative side, the result was
affected by the considerable rise in the market price of salmon raw material in
Norway.
Net sales in January-June were up by about 2% year on year. Net sales of the
Finnish Seafood business were at about the level of a year earlier.
Euro-denominated net sales of the foreign Seafood business grew by about 4%.
Measured in local currencies, net sales fell by 10% as a result of the changes
made to the product range and the fall in average prices in certain product
groups. The favourable trend in dressings and shellfish products continued.
The January-June operating result, excluding non-recurring items, was slightly
up year on year, but was nevertheless a loss. The result for the Finnish Seafood
business was lower than a year earlier. The result for the foreign Seafood
business showed significant growth year on year.
The number of personnel in the Seafood business totalled 359 (398). The drop in
personnel numbers was mainly a consequence of the reduction in the number of
Kalatori service counters and the outsourcing of logistics functions that took
place in summer 2009 in the Finnish Seafood business.
Investment in the Seafood business totalled EUR 0.6 (0.2) million. Most of this
was in completing the productivity investment programme at the Kuopio production
plant.
Second-quarter net sales in the Grains and Oilseeds business were up by 41% year
on year. The increase in net sales was due to the growth in volumes.
The operating profit in Grains and Oilseeds was at the level of a year earlier.
The good result was a consequence of higher grain trade sales volumes and the
good oil-refining yield and high-quality Finnish rapeseed crop.
Net sales in January-June were up by 36% year on year as a result of volume
growth, and the operating profit was EUR 1.0 million greater than a year
earlier.
There was a plentiful supply of grain on the world market during the first six
months of the year. This was attributable not only to the good crop harvests
around the world but also the high level of stocks transferred from the previous
season, which together kept market prices low. The price of rapeseed in relation
to grain prices was attractive from the grower's viewpoint. The rapeseed price
level was maintained at the start of the period by the scarce supply of soybeans
and the price of mineral oil.
The July weather conditions were unfavourable in parts of Europe and in some
countries of the former Soviet Union, and this led to a downward revision of
crop forecasts and to rising prices. In Finland, too, grain crop expectations
are below those of 2009 as a result of the smaller areas under cultivation and
the drop in per-hectare yield forecasts. By contrast, areas under rapeseed have
almost doubled year on year.
The Grains and Oilseeds business employed an average of 60 (62) people in the
first six months of the year.
In January-June, investment came to EUR 0.4 (0.2) million and focused on the
renewal of Avena's Internet marketplace (Avenakauppa) and replacement equipment
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.
Net sales from the sale of services were at the previous year's level.
The second-quarter operating result totalled EUR -0.4 (-0.6) million, which
includes EUR 0.4 (0.4) million as the share of the profits of associated
companies.
The January-June operating profit, excluding non-recurring items, totalled EUR
-1.6 (-1.6) million. This figure includes EUR 0.3 (0.4) million as the share of
the profits of associated companies.
Investment in Other Operations totalled EUR 0.1 (0.0) million.
DECISIONS OF THE ANNUAL GENERAL MEETING
Dividend distribution
The Annual General Meeting resolved that a dividend of EUR 0.76 per share,
totalling EUR 4.7 million, be distributed from the profits of the financial year
2009, in accordance with the proposal of the Board of Directors. The dividend
was paid on 13 April 2010.
Other decisions of the Annual General Meeting are given in the stock exchange
release dated 30 March 2010 and in the Interim Report published on 6 May 2010.
USE OF THE AUTHORISATIONS GRANTED TO THE BOARD OF DIRECTORS
Authorisations to issue shares
The Board of Directors has not yet 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-June was 498,118 (692,388), representing 7.9% (11.0%) of the total
number of shares. The euro-denominated share turnover was EUR 8.6 (8.4) million.
The highest share price quoted was EUR 20.00 (14.43) and the lowest EUR 15.51
(11.90). The average price of shares traded was EUR 17.25 (12.17).
At the end of June, the market capitalisation totalled EUR 104.9 (77.0) million.
At the end of June the company possessed a total 130,000 of its own shares, with
a nominal value totalling EUR 0.26 million. The shares in the company's
possession represent 2.1% of the company's total number of shares and of the
total number of votes.
FLAGGING ANNOUNCEMENTS
On 7 May 2010, EM Group Oy announced that its holding of Lännen Tehtaat plc
shares 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.
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.
Apetit Kala's sales peak at weekends and on seasonal holidays. As Easter can
take place in either the first or the second quarter, this can affect the
comparability of Seafood's net sales and profit between different years. A
significant proportion of Apetit Kala's profit depends on the success of
Christmas sales.
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 effects of a prolonged economic downturn on demand from consumers
and customers; the solvency of customers and the delivery performance of
suppliers; availability of raw materials; the impact of seafood price rises on
consumer demand; the management of raw material price changes and currency
risks; changes in the Group's businesses and customerships; introduction of a
new enterprise resource planning (ERP) system in Seafood's foreign operations;
and corporate acquisitions and the subsequent integration processes.
SIGNIFICANT EVENTS SINCE THE END OF THE REVIEW PERIOD
There have been no significant events since the end of the review period.
FUTURE OUTLOOK
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 full-year operating profit, excluding non-recurring items, is
expected to be at least at the level of 2009. Profit accrual is expected to be
weighted heavily towards the last quarter of the year, as in 2009.
Raw material prices have risen considerably and the adverse impact of this on
the profit-earning capacity of the Seafood business is expected to continue in
the third quarter. The lower grain crop expectations than a year earlier and
abrupt price changes will mean a more challenging operating environment for
Grains and Oilseeds in the second half of the year than in 2009.
CONSOLIDATED INCOME STATEMENT
EUR million Q2 Q2 Jan-Jun Jan-Jun Jan-Dec
2010 2009 2010 2009 2009
Net sales 80.0 65.5 154.9 130.2 266.0
Other operating income 0.2 0.3 0.6 0.7 1.5
Operating expenses -78.2 -63.8 -151.0 -128.2 -257.3
Depreciation -1.3 -1.4 -2.6 -2.6 -5.3
Impairments 0.0 0.0 0.0 - -0.1
Share of profits of
accociated companies 0.3 0.4 0.2 0.4 2.0
Operating profit 1.0 1.1 1.9 0.4 6.8
Financial income and expenses -0.2 -0.1 0.1 0.2 0.5
Profit before taxes 0.9 1.0 2.1 0.6 7.3
Income taxes -0.3 -0.2 -0.7 -0.1 -1.5
Profit for the period 0.6 0.8 1.4 0.5 5.8
Attributable to
Equity holders of the parent 0.6 0.7 1.5 0.5 5.8
Non-controlling interests -0.1 0.1 -0.1 - -
Basic and diluted earnings per
share, calculated of the profit
attributable to the shareholders
of the parent company, EUR 0.10 0.12 0.24 0.08 0.94
STATEMENT OF COMPREHENSIVE INCOME
EUR million Q2 Q2 Jan-Jun Jan-Jun Jan-Dec
2010 2009 2010 2009 2009
Profit for the period 0.6 0.8 1.4 0.5 5.8
Other comprehensive income
Cash flow hedges -0.4 -0.3 -0.7 0.6 1.1
Taxes related to cash flow hedges 0.1 0.1 0.2 -0.2 -0.3
Translation differences 0.0 -0.1 0.5 0.6 1.4
Total comprehensive income 0.3 0.6 1.4 1.5 8.0
Attributable to
Equity holders of the parent 0.4 0.5 1.4 1.5 8.0
Non-controlling interests -0.1 0.1 -0.1 - -
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million 30 June 30 June 31 Dec
2010 2009 2009
ASSETS
Non-current assets
Intangible assets 6.3 6.1 5.6
Goodwill 8.5 6.4 6.9
Tangible assets 38.0 38.3 37.9
Investment in associated companies 32.3 25.4 24.0
Available-for-sale investments 0.1 0.1 0.1
Receivables 0.5 1.7 1.8
Deferred tax assets 1.2 1.5 1.1
Non-current assets total 87.0 79.4 77.4
Current assets
Inventories 30.7 42.0 48.1
Receivables 30.1 24.4 25.5
Income tax receivable 0.0 0.3 0.1
Financial assets at fair value
through profits 18.3 12.9 17.2
Cash and cash equivalents 3.9 8.1 7.9
Current assets total 83.0 87.7 98.7
Non-current assets held for sale - 3.6 -
Total assets 169.9 170.7 176.1
30 June 30 June 31 Dec
2010 2009 2009
EQUITY AND LIABILITIES
Equity attributable to the equity
holders of the parent 131.5 130.7 137.3
Non-controlling interests 2.6 - -
Total equity 134.0 130.7 137.3
Current liabilities
Short-term financial liabilities 0.2 6.5 0.9
Income tax payable 2.4 1.1 1.5
Trade payables and other liabilities 22.3 24.7 29.7
Current liabilities total 24.9 32.3 32.1
Total liabilities 35.9 40.0 38.8
Total equity and liabilities 169.9 170.7 176.1
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million Jan-Jun Jan-Jun Jan-Dec
2010 2009 2009
Net profit for the period 1.4 0.5 5.8
Adjustments, total 2.8 4.1 6.5
Change in net working capital 5.6 17.6 14.9
Interests paid -0.8 -1.1 -1.8
Interests received 0.1 0.4 1.0
Taxes paid -0.5 -0.3 -0.6
Net cash flow from operating activities 8.6 21.2 25.8
Investments in tangible and intangible assets -1.7 -1.5 -2.7
Proceeds from sales of tangible
and intangible assets 0.5 0.4 3.2
Acquisition of associated companies -8.0 - -
Transactions with non-controlling interests 2.7 -1.2 -1.2
Purchases of other investments -1.0 -9.0 -22.0
Proceeds from sales of other investments 0.0 - 9.0
Dividends received from investing activities 0.2 0.2 3.3
Net cash flow from investing activities -7.3 -11.1 -10.4
Repayments of short-term loans -0.2 -6.5 -9.5
Repayments of long-term loans -0.3 -0.2 -2.7
Payment of financial lease liabilities - 0.0 0.0
Dividends paid -4.7 -5.3 -5.3
Cash flows from financing activities -5.3 -11.9 -17.5
Net change in cash and cash equivalents -4.0 -1.7 -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 3.9 8.1 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 company, 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
Other changes - - - - - - -0.2 -0.2 - -0.2
Transaction
with NCI - - - - - - -2.3 -2.3 2.6 0.3
Total comprehensive
income - - -0.5 0.0 - 0.5 1.5 1.4 -0.1 1.4
Shareholders'
equity at
30 June 2010 12.6 23.4 -0.5 7.2 -1.8 0.0 90.6 131.5 2.6 134.0
Shareholders'
equity at
1 Jan 2009 12.6 23.4 -0.8 7.2 -1.8 -1.9 96.6 135.1 0.5 135.6
Dividend
distribution - - - - - - -5.3 -5.3 - -5.3
Transaction
with NCI - - - - - - -0.7 -0.7 -0.5 -1.2
Total comprehensive
income - - 0.4 - - 0.6 0.5 1.6 - 1.6
Shareholders'
equity at
30 June 2009 12.6 23.4 -0.4 7.2 -1.8 -1.3 91.0 130.7 - 130.7
BASIS OF PREPARATION AND ACCOUNTING POLICIES
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
On 7 June 2010, Apetit Kala Oy acquired the entire share capital of
fish-processing companies Myrskylän Savustamo Oy and Safu Oy from Taimen Oy. The
purchase price was EUR 2.5 million and was paid by transferring to Taimen Oy 58
new Apetit Kala Oy shares, representing 15% of the total number of shares and
voting interests in Apetit Kala Oy. The fair value of Apetit Kala Oy's shares at
the acquisition date was based on the fair value of the businesses of Myrskylän
Savustamo Oy and Safu Oy transferred to Apetit Kala Oy as capital contribution.
In connection with the deal, Taimen Oy acquired an additional 15% of Apetit Kala
Oy's shares from Lännen Tehtaat plc for a cash payment of EUR 2.5 million. At
the same time, Apetit Kala Oy acquired a 30% holding in Taimen Oy. Due to cross
ownership, both the non-controlling interests' share of Apetit Kala's profit and
balance sheet total and Apetit Kala Oy's share of associated company Taimen's
profits are consolidated on the basis of a 23% share.
The carrying amounts of the assets and liabilities acquired prior to the
amalgamation totalled EUR 0.7 million. EUR 0.8 million was recognised for
customer relationships and EUR 0.2 million recognised as deferred tax
liabilities. The amount of non-tax-deductible goodwill recognised on the
acquisition was EUR 1.3 million, which is based on synergy benefits in
production, logistics and sales. Transaction costs of the share transaction made
with the non-controlling interests, EUR 0.1 million was recognised directly in
equity. The Group's net sales would have been EUR 1.4 million greater and net
profit EUR 0.1 million smaller had the acquisition been consolidated from 1
January 2010. Net sales in June, after the acquisition, were EUR 0.5 million and
net profit EUR 0.0 million.
KEY INDICATORS
30 June 30 June 31 Dec
2010 2009 2009
Gross investments in non-current
assets, EUR million 1.7 1.5 2.7
Corporate acquisitions and other
share purchases, EUR million 10.5 1.2 1.2
Average number of personnel 610 658 657
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
30 June 30 June 31 Dec
EUR million 2010 2009 2009
Mortgages given for debts
Real estate mortgages 2.8 7.7 2.0
Guarantees 11.0 10.0 11.1
Non-cancellable other leases,
minimum lease payments
Real estate leases 5.3 4.8 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 June 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
30 June 30 June 31 Dec
EUR million 2010 2009 2009
Book value at the beginning of the period 37.9 43.5 43.5
Additions 1.4 0.8 2.0
Additions through acquisitions 0.7 - -
Disposals -0.2 -4.0 -4.0
Depreciations and impairments -2.2 -2.3 -4.5
Other changes 0.4 0.4 0.9
Book value at the end of the period 38.0 38.3 37.9
TRANSACTIONS WITH ASSOCIATED COMPANIES AND JOINT VENTURES
EUR million Jan-Jun Jan-Jun Jan-Dec
2010 2009 2009
Sales to associated companies 0.2 0.2 1.0
Sales to joint ventures 3.7 3.9 6.7
Purchases from associated companies 1.6 1.3 2.2
Long-term receivables from associated companies - 0.0 1.3
Long-term receivables from joint ventures 0.1 0.0 0.1
Trade receivables and other receivables
from associated companies 1.4 1.5 1.6
Trade receivables and other receivables
from joint ventures 0.8 0.6 0.7
Trade payables and other liabilities
to associated companies 0.1 0.0 0.2
LÄNNEN TEHTAAT PLC
Board of Directors
Further information: CEO Matti Karppinen, tel. +358 40 8448 692
Copies to:
NASDAQ OMX Helsinki Ltd
Principal media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE ANNOUNCEMENT7 MAY AT 12:30 P.M.
ANNOUNCEMENT PURSUANT TO CHAPTER 2, SECTION 1O OF THE SECURITIES MARKETS ACT
EM Group Oy (business ID 0854884-7) has according to chapter 2, section 9, of
the Securities Markets Act disclosed to the Financial Supervision Authority and
Lännen Tehtaat plc that on 6 May 2010 EM Group Oy´s ownership in Lännen Tehtaat
plc has risen above five percent of the total number of shares and voting
rights.
After share purchases yesterday, 6 May 2010, EM Group Oy owns 316,000 Lännen
Tehtaat plc´s shares corresponding 5.002% of the total number of shares and
5.107% of 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 Interim Report 6 May 2010, 8.30 am
INTERIM REPORT 1 January - 31 March 2010
- Consolidated net sales came to EUR 74.8 (64.7) million, up by 16%.
- Operating profit was EUR 0.9 (-0.7) million; there were no non-recurring
items.
- Profit before taxes totalled EUR 1.2 (-0.4) million.
- Profit for the period came to EUR 0.8 (-0.3) million, and earnings per share
amounted to EUR 0.13 (-0.04).
- The equity ratio was 77.0% (76.5%).
- Assessment of profit performance for the full year is unchanged.
The information in this Interim Report has not been audited.
Matti Karppinen, CEO:
“The year began significantly better than last year. Consolidated net sales were
up year-on-year thanks to growth in the Grains and Oilseeds business and the
Seafood business. The operating profit also showed a year-on-year improvement,
as expected.
“The improved operating profit was significant in both the Grains and Oilseeds
business and the Seafood business. In Frozen Foods and in Other Operations the
result was almost at the previous year's level.
“Market conditions have continued to be uncertain due to the weak economic
circumstances. In the second quarter, the industrial action and the substantial
price rises for salmon and rainbow trout are further challenges affecting our
profit-earning capacity.”
KEY FIGURES ILLUSTRATING PERFORMANCE
EUR million Q1/2010 Q1/2009
Net sales 74.8 64.7
Operating profit 0.9 -0.7
Profit before taxes 1.2 -0.4
Profit for the period 0.8 -0.3
Earnings per share, EUR 0.13 -0.04
NET SALES AND PROFIT
Consolidated net sales in January-March amounted to EUR 74.8 (64.7) million, up
by about 16% year-on-year. Most of this growth was in the Grains and Oilseeds
business.
Operating profit was EUR 0.9 (-0.7) million. There were no non-recurring items
in the first quarter of the year nor were there any in the same period the
previous year. The operating profit includes the share of the profits of
associated companies, which amounted to EUR -0.1 (0.0) million.
Financial income and expenses came to a total of EUR 0.3 (0.3) million. This
figure includes valuation gains of EUR 0.5 (0.1) million with no cash flow
implications. Financial expenses also include EUR -0.2 (-0.1) 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 1.2 (-0.4) million. Profit for the period came to
EUR 0.8 (-0.3) million, and earnings per share amounted to EUR 0.13 (-0.04).
FINANCING AND BALANCE SHEET
The Group's liquidity remained good and its financial position is strong.
The first-quarter cash flow from operating activities after interest and taxes
amounted to EUR -15.3 (8.1) million. The impact of the change in working capital
was EUR -15.3 (6.3) million. In the first quarter, working capital was tied up
in the Grains and Oilseeds business. The net cash flow from investing activities
came to EUR 11.9 (-0.5) million. Withdrawal of investments made in short-term
fixed income funds had an impact of EUR 12.0 (0.0) million on the net cash flow
from investing activities. The cash flow from financing activities came to EUR
-0.5 (-8.2) million, and this included EUR -0.2 (-8.1) million in repayments on
short-term loans. The net change in cash and cash equivalents was EUR -4.0
(-0.5) million.
At the end of the first quarter the Group had EUR 2.5 (8.6) million in
interest-bearing liabilities and EUR 9.2 (13.0) million in liquid assets. Net
interest-bearing liabilities totalled EUR -6.7 (-4.5) million. The consolidated
balance sheet total stood at EUR 173.2 (178.4) million and shareholders' equity
amounted to EUR 133.4 (136.5) million. The equity ratio was 77.0% (76.5%) and
gearing was -5.0% (-3.3%). Commercial papers issued for the Group's short-term
financing stood at a total value of EUR 0.0 (1.0) million at the end of the
quarter. 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 March. No credit facilities were used during the January-March period.
INVESTMENT
Investment in non-current assets during January-March totalled EUR 0.4 (0.5)
million.
PERSONNEL
The average number of personnel during the first quarter was 602 (652). The
reduction in personnel occurred mainly in the Finnish Seafood business.
Net sales in Frozen Foods were at the level of a year earlier. Sales of retail
products were up by over 2%, this growth being especially in basic products
under the Apetit brand, namely frozen vegetable and potato products and soups.
Growth was also boosted by new products, for instance the Apetit products
launched in autumn 2009 under the ‘domestic origin' theme. Sales to the hotel,
restaurant and catering sector fell slightly, as did export sales, while sales
to the food industry were at the level of the same quarter in 2009.
Operating profit in the Frozen Foods business was almost at the level of the
previous year. Relative profitability improved as a result of the product mix in
sales and the increase in productivity. Factors adversely affecting
profitability were the increase in depreciation and the growth in storage costs
as a result of the autumn's large home-grown crop.
Special themes in the marketing of Apetit products have been their domestic
origin and the positive properties of frozen products. In particular, attention
has focused on study results which show that the nutritional value of frozen
vegetables is comparable to that of fresh vegetables, as nutritional value is
retained extremely well in frozen vegetables.
The number of personnel in Frozen Foods during the first quarter was 172 (179).
Investment during January-March totalled EUR 0.0 (0.4) million.
Net sales of the Seafood business were up by about 3% on the figure for the same
quarter a year earlier. Operating profit improved by EUR 0.9 million. Profit
improved in both the Finnish and foreign operations of the Seafood business.
In the Finnish Seafood business, net sales were up year-on-year as a result of
the increase in average prices and because Easter sales were partially in the
first quarter, in contrast to the previous year.
Profitability improved year-on-year, with the first quarter figure almost
turning positive. This was due to good management of wastage, the continued high
level of delivery reliability, increased productivity in production and in
logistics operations, and the reduction in fixed costs as a consequence of the
structural changes and rigorous cost control. The relative profitability of
first-quarter sales was weakened by the substantial rise in the market price of
salmon and rainbow trout raw materials. The rise in market prices was triggered
by the drop in supply caused by the collapse in Chile's salmon production. This
market disturbance could mean that the price of Norwegian salmon and of rainbow
trout will remain unusually high for some time to come. The rise in raw material
prices will continue to create significant pressures for price increases.
The raw pickled and cold-smoked products that were redesigned at the start of
the year have been well received. April saw the launch of two new salmon
products, Apetit Lohichorizo and Apetit Lohiwursti, for the summer barbecue
season.
The productivity investment programme introduced at the Kuopio production plant
in autumn 2009 will be completed during the second quarter of 2010. The changes
will improve the efficiency of work procedures and processes and will further
enhance the quality of production.
In the foreign operations of the Seafood business, euro-denominated net sales
were up by about 5% year-on-year. Measured in local currencies, sales were down
by almost 5%. In Norway, the drop in sales was attributable to the
discontinuation of an unprofitable product segment. In other product segments
sales were at or above the previous year's level. There was particularly strong
growth in sales of dressings, shellfish and mackerel. In Sweden, shellfish sales
fell as a result of the drop in average prices. The entire Maritim Food Group is
going through a comprehensive, customer-driven product renewal process in order
to improve visibility in stores. The redesigned products will be launched during
the spring and summer.
The profitability of foreign operations was significantly better than a year
earlier, and the operating profit was slightly positive. The improved level of
profitability was due to the development measures taken in different parts of
the business and the greater attention given to working closely with customers.
The profitability of foreign operations was adversely affected by the
considerable rise in the raw material price of Norwegian salmon, which will lead
to pressures to increase product prices.
The number of personnel in the Seafood business totalled 360 (400). The
reduction in personnel occurred mainly in the Finnish Seafood business as a
result of the reduction in Kalatori service counters and the outsourcing of
logistics operations.
Erkki Lepistö was appointed Managing Director of Apetit Kala Oy at the start of
March. He will continue the implementation of the strategy for the Finnish
Seafood business at Apetit Kala Oy.
Investment in the Seafood business totalled EUR 0.3 (0.0) million. The
investment was mainly in developing the smoked fish packaging department at the
Kuopio production plant, as set out in the strategy.
Net sales in the Grains and Oilseeds business were up by 29% year-on-year,
mainly due to volume growth. The sales volume was significantly greater than a
year earlier due to the growth in trade within the EU.
There was a plentiful supply of grain on the world market during the first
quarter. This was attributable not only to the good crop harvests around the
world but also the high level of stocks transferred from the previous season,
which together kept market prices low. The price of rapeseed in relation to
grain prices was attractive from the grower's viewpoint. The rapeseed price
level was maintained by the tough supply situation for soybeans at the start of
the quarter and by the price of mineral oil. This ensured a busy market for
rapeseed.
The first-quarter operating profit in the Grains and Oilseeds business was up by
EUR 1.1 million on the previous year's first-quarter figure. The good result was
a consequence of sales volumes being greater than a year earlier and of the good
oil yield and high-quality Finnish rapeseed crop.
The total world supply of grain will continue to be plentiful in the near
future, due to the good crop obtained in the last season and the large stocks
from previous seasons around the world. In the second quarter, prices throughout
the world are starting to be affected to an increasing extent by the
overwintering of autumn grains and by the sowing area in the spring and the
outlook for the new crop. Autumn grains are currently thought to be in good
condition. However, the weather conditions in the growing and harvesting seasons
are of major importance for the grain markets. The prices of European rapeseed
are affected not only by weather conditions but also by the price of mineral
oil, the plentiful crop in South America, the growing demand for biodiesel in
Europe, and the area under cultivation, which is expected to rise in Finland and
elsewhere in northern Europe.
The Grains and Oilseeds business employed 59 (63) people. The drop in the number
of personnel was due to the combining and reorganisation of the operations of
Avena and Mildola in autumn 2009.
Investment in the Grains and Oilseeds business came to EUR 0.1 (0.1) million and
focused on the renewal of Avena's Internet marketplace (Avenakauppa) and
replacement equipment for the Kirkkonummi vegetable oil mill.
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.
Net sales from the sale of services in the Other Operations segment were at the
previous year's level. The operating profit includes EUR -0.1 (0.0) million as
the share of the profits of associated companies.
Investment in Other Operations totalled EUR 0.0 (0.0) million.
DECISIONS OF THE ANNUAL GENERAL MEETING
Lännen Tehtaat plc's Annual General Meeting was held at Säkylä on 30 March 2010.
The Annual General Meeting adopted the parent company's financial statements and
the consolidated financial statements and discharged the members of the Board of
Directors and of the Supervisory Board and the Chief Executive Officer from
liability for the financial year 2009.
Dividend distribution
The Annual General Meeting resolved that a dividend of EUR 0.76 per share be
distributed from the profits of the financial year 2009, in accordance with the
proposal of the Board of Directors. The dividend was paid on 13 April 2010.
Amendments to the Articles of Association
The Annual General Meeting approved the proposal of Lännen Tehtaat plc's Board
of Directors concerning the amendment of section 9, subsection 2, paragraph 3 of
the Articles of Association in regard to the tasks of the Supervisory Board. The
Annual General Meeting also approved Esko Eela's proposal for amending the
Articles of Association in respect of the tasks of the Supervisory Board and in
respect to the two members of the Supervisory Board's Nomination Committee to be
elected by the Annual General Meeting.
More information on the amendments to the Articles of Association was given in
the stock exchange release of 30 March 2010 concerning the decisions made by the
Annual General Meeting.
Authorisations to issue shares
The Board of Directors has been authorised by the Annual General Meeting to
decide on issuing new shares and transferring Lännen Tehtaat plc shares held by
the company, and to do this in one or more lots as a share issue with a total of
no more than 761,757 shares. The share issue authorisation covers all Lännen
Tehtaat plc shares in the company's possession, i.e. 130,000 shares. The maximum
number of new shares that can be issued is 631,757.
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 plc shares held by the
company must be at least the current value of the share at the time of transfer,
determined by the price quoted in public trading on the NASDAQ OMX Helsinki Ltd
exchange, but when implementing share-based incentive plans shares can also be
issued without consideration.
The authorisation concerns 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 developing the company's capital structure,
financing and implementing corporate acquisitions or other arrangements, or
implementing a share-based incentive plan. This authorisation also includes the
right to offer shares instead of money, also against capital consideration in
kind or otherwise under certain conditions or by using right of set-off; and the
right to decide on the share subscription price and other terms and
circumstances concerning the share issue.
The authorisation is valid until the next AGM. The authorisation revoked the
earlier authorisation to issue shares, given on 2 April 2009, and the
authorisation to transfer Lännen Tehtaat plc shares, given on the same date.
SHARES AND TRADING
The number of Lännen Tehtaat plc shares traded on the stock exchange during the
first quarter was 294,715 (156,317), representing 4.7% (2.5%) of the total
number of shares. The highest share price quoted was EUR 18.51 (14.43) and the
lowest EUR 15.51 (12.64). The average price of shares traded was EUR 17.23
(13.51). The share turnover was EUR 5.1 (2.1) million. At the end of March, the
market capitalisation totalled EUR 107.4 (81.8) million.
At the close of the first quarter, 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
No flagging announcements were made during the first quarter.
CORPORATE ADMINISTRATION AND AUDITORS
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: Harri Eela, Heikki Halkilahti, Aappo Kontu,
Matti Lappalainen, Hannu Simula and Soili Suonoja. Matti Lappalainen was elected
chairman of the Board of Directors and Hannu Simula was elected deputy chairman.
Hannu Pellinen, APA and PricewaterCoopers 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.
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.
Apetit Kala's sales peak at weekends and on seasonal holidays. As Easter can
take place in either the first or the second quarter, this can affect the
comparability of Seafood's net sales and profit between different years. A
significant proportion of the entire year's profit in the Seafood business
depends on the success of Christmas sales.
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: industrial action in the Finnish food industry; the effects of a
prolonged economic downturn on demand from consumers and customers; the solvency
of customers and the delivery performance of suppliers; the management of raw
material price changes and currency risks; changes in the Group's businesses and
customerships; introduction of a new enterprise resource planning (ERP) system
in Seafood's foreign operations; and corporate acquisitions and the subsequent
integration processes.
SIGNIFICANT EVENTS SINCE THE END OF THE REVIEW PERIOD
The collective agreement negotiations between the Finnish Food Workers' Union
(SEL) and food industry employers have become protracted and have led to
industrial action being taken. If the industrial action were to continue, this
would adversely affect the Group's businesses. So far, the impact of the
industrial action has been limited.
FUTURE OUTLOOK
The Group's net sales will be affected particularly by the market activity and
by changes in the price level of grains and oilseeds.
Thanks to the development measures undertaken in the Group's businesses, the
full-year operating profit, excluding non-recurring items, is expected to be at
least at the level of 2009. Profit accrual is expected to be weighted heavily
towards the latter part of the year, as in 2009. 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.
The profit outlook for the second quarter is more challenging than a year ago.
If the industrial action in the food industry were to be prolonged, this would
affect net sales and profits in all the Group's Finnish businesses. The profit
performance in the Seafood business will be affected by the sharp rise seen in
salmon and rainbow trout raw material costs and by the success with which these
higher costs can be transferred to sales prices.
CONSOLIDATED INCOME STATEMENT
EUR million Q1/2010 Q1/2009 2009
Net sales 74.8 64.7 266.0
Other operating income 0.4 0.3 1.5
Operating expenses -72.8 -64.4 -257.3
Depreciation -1.3 -1.3 -5.3
Impairments 0.0 - -0.1
Share of profits of associated companies -0.1 0.0 2.0
Operating profit 0.9 -0.7 6.8
Financial income and expenses 0.3 0.3 0.5
Profit before taxes 1.2 -0.4 7.3
Income taxes -0.4 0.1 -1.5
Profit for the period 0,8 -0.3 5.8
Attributable to
Equity holders of the parent 0.8 -0.2 5.8
Non-controlling interests - -0.1 -
Basic and diluted earnings per share,
calculated of the profit attributable
to the shareholders of the parent
company, EUR 0.13 -0.04 0.94
STATEMENT OF COMPREHENSIVE INCOME
EUR million Q1/2010 Q1/2009 2009
Profit for the period 0.8 -0.3 5.8
Other comprehensive income
Cash flow hedges -0.3 0.9 1.1
Taxes related to cash flow hedges 0.1 -0.3 -0.3
Translation differences 0.5 0.7 1.4
Total comprehensive income 1.1 1.0 8.0
Attributable to
Equity holders of the parent 1.1 1.0 8.0
Non-controlling interests - 0.0 -
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million 31 March 31 March 31 Dec
2010 2009 2009
ASSETS
Non-current assets
Intangible assets 5.6 5.8 5.6
Goodwill 7.1 6.4 6.9
Tangible assets 37.4 43.0 37.9
Investment in associated companies 24.0 25.1 24.0
Available-for-sale investments 0.1 0.1 0.1
Receivables 1.9 3.1 1.8
Deferred tax assets 0.9 1.2 1.1
Non-current assets total 76.9 84.6 77.4
Current assets
Inventories 40.8 49.4 48.1
Receivables 46.3 31.1 25.5
Income tax receivable 0.1 0.2 0.1
Financial assets at fair value
through profits 5.3 3.7 17.2
Cash and cash equivalents 3.9 9.3 7.9
Current assets total 96.3 93.7 98.7
Total assets 173.2 178.4 176.1
EUR million 31 March 31 March 31 Dec
2010 2009 2009
EQUITY AND LIABILITIES
Equity attributable to the equity
holders of the parent 133.4 136.1 137.3
Non-controlling interests - 0.4 -
Total equity 133.4 136.5 137.3
Current liabilities
Short-term financial liabilities 0.4 4.0 0.9
Income tax payable 1.9 1.0 1.5
Trade payables and other liabilities 31.6 27.9 29.7
Current liabilities total 33.9 32.8 32.1
Total liabilities 39.9 41.8 38.8
Total equity and liabilities 173.2 178.4 176.1
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million Q1/2010 Q1/2009 2009
Net profit for the period 0.8 -0.3 5.8
Adjustments, total -0.1 1.5 6.5
Change in net working capital -15.3 6.3 14.9
Financial expenses paid -0.7 -0.2 -1.8
Interests received 0.1 0.3 1.0
Taxes paid -0.1 0.4 -0.6
Net cash flow from operating activities -15.3 8.1 25.8
Investments in tangible and intangible assets -0.4 -0.5 -2.7
Proceeds from sales of tangible
and intangible assets 0.4 0.0 3.2
Transactions with non-controlling interests - - -1.2
Purchases of other investments - - -22.0
Proceeds from sales of other investments 12.0 - 9.0
Dividends received from investing activities - - 3.3
Net cash flow from investing activities 11.9 -0.5 -10.4
Repayments of short-term loans -0.2 -8.1 -9.5
Repayments of long-term loans -0.3 -0.1 -2.7
Payment of financial lease liabilities - 0.0 0.0
Dividends paid - - -5.3
Cash flows from financing activities -0.5 -8.2 -17.5
Net change in cash and cash equivalents -4.0 -0.5 -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 3.9 9.3 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 company total
I = Non-controlling interests
J = Shareholders' equity total
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 96.5 137.3 - 137.3
Dividend
distribution - - - - - - -4.7 -4.7 - -4.7
Other changes - - - - - - -0.2 -0.2 - -0.2
Total comprehensive
income - - -0.2 0.0 - 0.5 0.8 1.1 - 1.1
Shareholders'
equity at
31 March 2010 12.6 23.4 -0.2 7.2 -1.8 0.0 92.1 133.4 - 133.4
Shareholders'
equity at
1 Jan 2009 12.6 23.4 -0.8 7.2 -1.8 -1.9 96.6 135.1 0.5 135.6
Total comprehensive
income - - - 0.6 - 0.7 -0.2 1.0 -0.1 1.0
Shareholders'
equity at
31 March 2009 12.6 23.4 -0.8 7.8 -1.8 -1.2 96.3 136.1 0.4 136.5
BASIS OF PREPARATION AND ACCOUNTING POLICIES
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
KEY INDICATORS
31 March 31 March 31 Dec
2010 2009 2009
Shareholders' equity per share, EUR 21.56 21.99 22.19
Equity ratio, % 77.0 76.5 78.0
Gearing, % -5.0 -3.3 -15.8
Gross investments in non-
current assets, EUR million 0.4 0.5 2.7
Corporate acquisitions and other
share purchases, EUR million - - 1.2
Average number of personnel 602 652 657
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
EUR million 31 March 31 March 31 Dec
2010 2009 2009
Mortgages given for debts
Real estate mortgages 2.3 8.8 2.0
Guarantees 6.1 10.4 11.1
Non-cancellable other leases,
minimum lease payments
Real estate leases 4.5 4.8 4.3
Other leases 0.8 0.8 0.8
CONTINGENT ASSETS
The present value of proceeds from
the sale of shares in the joint
entry account 0.7 - 0.7
INVESTMENT COMMITMENTS
Lännen Tehtaat does not have any significant investment commitments on 31 March
2010.
CHANGES IN TANGIBLE ASSETS
EUR million Q1/2010 Q1/2009 2009
Book value at the beginning of the period 37.9 43.5 43.5
Acquisitions 0.3 0.2 2.0
Disposals 0.0 0.0 -4.0
Depreciations and impairments -1.1 -1.2 -4.5
Other changes 0.3 0.5 0.9
Book value at the end of the period 37.4 43.0 37.9
TRANSACTIONS WITH ASSOCIATED COMPANIES AND JOINT VENTURES
EUR million Q1/2010 Q1/2009 2009
Sales to associated companies 0.1 0.1 1.0
Sales to joint ventures 2.2 2.0 6.7
Purchases from associated companies 0.6 0.4 2.2
Long-term receivables from associated
companies 1.5 2.7 1.3
Long-term receivables from joint ventures 0.1 0.0 0.1
Trade receivables and other
receivables from associated companies 1.5 1.5 1.6
Trade receivables and other
receivables from joint ventures 0.9 0.9 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 10 402 4001
Copies to:
NASDAQ OMX Helsinki Ltd
Principal media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 13 April 2010 at 4:00 p.m.
ORGANIZATION OF THE SUPERVISORY BOARD AND ELECTION OF THE BOARD OF DIRECTORS
The Supervisory Board of Lännen Tehtaat plc today elected Helena Walldén as
Chairman of the Supervisory Board and Juha Nevavuori as Deputy chairman of the
Supervisory Board.
As members of the Board of Directors were re-elected Harri Eela, Heikki
Halkilahti, Aappo Kontu, Matti Lappalainen, Hannu Simula and Soili Suonoja.
Matti Lappalainen was elected as Chairman of the Board and Hannu Simula as
Deputy chairman of the Board.
It was decided that the monthly remuneration paid to the members of the Board is
EUR 1,485, the monthly remuneration paid to the Deputy chairman is EUR 1,870 and
the monthly remuneration paid to the Chairman of the Board is EUR 3,025
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More details: Matti Karppinen, tel. +358 10 402 00
Distribution:
NASDAQ OMX Helsinki Ltd
Main media
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LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 30 March 2010 at 18:15 p.m.
DECISIONS BY THE ANNUAL GENERAL MEETING OF LÄNNEN TEHTAAT PLC, 30 MARCH 2010
The Annual General Meeting on 30 March 2010 approved the parent company's and
consolidated financial statements for the financial year 1 January - 31 December
2009, 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 0.76
per share in accordance with a Board proposal. The Board of Directors' proposals
were approved without changes. The AGM approved Esko Eela's proposals for
amending the Articles of Association. Scanfil plc withdrew its proposals for
amending the Articles of Association.
DIVIDEND
The Annual General Meeting decided to distribute as dividend EUR 0.76 per share
on the financial year 2009. The dividend will be paid on 13 April 2010 to
shareholders registered on the company´s register of shareholders kept by
Euroclear Finland Ltd on the record date 6 April 2010. No dividend will be paid
on shares held by the company.
AMENDING THE ARTICLES OF ASSOCIATION
The Annual General Meeting approved the Board of Directors' proposal section 9,
subsection 2, paragraph 3 of the company's Articles of Association, in regard to
the the duties of the Supervisory Board, be amended as follows:
New section 9, subsection 2, paragraph 3 of the Articles of Association:
In addition, the Supervisory Board shall:
3. issue an opinion on the financial statements, auditors' report and Board of
Directors' report.
The Annual General Meeting approved Esko Eela's proposals for amending the
Articles of Association concerning the tasks of the Supervisory Board and the
two members of the Supervisory Board's Nomination Committee to be elected by the
Annual General Meeting.
New section 9, subsection 2, paragraphs 1 and 2 of the Articles of Association:
In addition, the Supervisory Board shall:
1. decide, in accordance with the proposals of the Nomination Committee, on the
number of members of the Board of Directors, elect the members of the Board and
fix the fees and other remunerations payable to the members of the Board,
2. elect, in accordance with the proposals of the Nomination Committee, a
chairman and a deputy chairman from among the members of the Board,
New section 11, subsection 2, paragraphs 9 - 12 of the Articles of Association:
At the Annual General Meeting, the following shall be
elected
9. the members of the Supervisory Board,
10. two members of the Supervisory Board's Nomination Committee preparing the
selection of members to the Board of Directors, with the Committee also
including the Supervisory Board's chairman and deputy chairman and the chairman
of the Board of Directors,
11. the auditors,
dealt with
12. any other matters mentioned in the invitation to the meeting.
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 2 April 2009.
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 20 members elected by the
AGM. Heikki Aaltonen, Jussi Hantula, Börje Helenelund, Risto Korpela, Mikko
Kurittu, Samu Pere and Esa Ruohola were re-elected to the Supervisory Board.
Timo Miettinen and Antti Rauhamaa 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. 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, as of 13 April 2010.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More details: Matti Karppinen, CEO, tel. +358 10 402 4001
Distribution:
NASDAQ OMX Helsinki Ltd
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 9 March 2010, 8.30 a.m.
LÄNNEN TEHTAAT PLC'S ANNUAL REPORT 2009, CORPORATE GOVERNANCE STATEMENT AND
SUMMARY OF 2009 STOCK EXCHANGE RELEASES PUBLISHED
Lännen Tehtaat plc's Annual Report 2009 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, which is separate from the Board of Directors' report, and
a summary of the stock exchange releases published in 2009.
The Annual Report, Corporate Governance Statement and the summary of stock
exchange releases in 2009 form an attachment to this release and 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 15 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
Eero Kinnunen
CFO
Further information: Eero Kinnunen, CFO, tel. +358 10 402 40
Copies to:
NASDAQ OMX Helsinki Ltd
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 6 March 2010
INVITATION TO THE ANNUAL GENERAL MEETING OF LÄNNEN TEHTAAT PLC
Lännen Tehtaat plc's Annual General Meeting on 30 March 2010
The company's shareholders are hereby invited to the Annual General Meeting,
which will be held on Tuesday 30 March 2010 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 for 2009
9. Presentation of the auditors' report
10. Presentation of the opinion of the Supervisory Board concerning the
financial statements 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 0.76 per share be paid
for the financial year 2009 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 6 April 2010, 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 13 April 2010.
13. Resolution on discharging the members of the Supervisory Board and of the
Board of Directors and the CEO from liability
14. Proposal by Scanfil plc, which holds 8.6% of the shares and 8.8% of the
votes, for amending the Articles of Association such that the Annual General
Meeting would elect the Board of Directors
15. Scanfil plc's proposal for amending the Articles of Association such that
anyone who is 65 years of age or older may not be elected as a member of the
Board of Directors or the Supervisory Board
16. Scanfil plc's proposal for amending the Articles of Association such that
the members of the Supervisory Board elected by the General Meeting would number
10-15
17. Proposals by Esko Eela, who holds 6.2% of the shares and 6.3% of the votes,
1) for amending the Articles of Association concerning the tasks of the
Supervisory Board such that the Supervisory Board would decide, in accordance
with the proposals of the Nomination Committee, on the number of members of the
Board of Directors, elect the members of the Board and fix the fees and other
remunerations payable to the members of the Board, and elect a chairman and a
deputy chairman, and 2) concerning the two members of the Nomination Committee
elected at the Annual General Meeting, and the members' election
18. Proposal by Lännen Tehtaat plc's Board of Directors for amending the
company's Articles of Association in regard to the duties of the Supervisory
Board such that the Supervisory Board shall issue an opinion not only on the
financial statements and auditors' report but also on the Board of Directors'
report.
19. Decision on the number of Supervisory Board members and on their
remuneration
20. Election of the members of the Supervisory Board
21. 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.
22. Appointment of auditors
The Board of Directors proposes that the company's present auditors, Hannu
Pellinen, APA and PricewaterhouseCoopers Oy, Authorized 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.
23. 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.
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 9 March 2010 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 13 April 2010.
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 18 March 2010 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 Friday 26 March 2010 either in
writing (address: Lännen Tehtaat plc, PO Box 100, FI-27801 Säkylä, Finland), by
fax (+358 10 402 4022), by phone (+358 10 402 4002/Arja Antikainen) 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 26 March 2010.
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 25 March 2010.
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 will be published on 9 March 2010 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 15 March 2010 by phoning +358 10 402 4002 on
weekdays (8 a.m.-4 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, 5 March 2010
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 2 March 2010, 9:30 a.m.
ERKKI LEPISTÖ APPOINTED MANAGING DIRECTOR OF APETIT KALA OY
Erkki Lepistö has today been appointed Director of the Lännen Tehtaat Group's
Finnish Seafood business and Managing Director of Apetit Kala Oy. He will
continue implementing the Finnish Seafood business's strategy. Lepistö has
previously served in a number of management positions within the Lännen Tehtaat
Group, most recently as Managing Director of Mildola Oy.
Jarno Järvinen takes up responsibility at Lännen Tehtaat for acquisitions and
other corporate transactions in the seafood sector.
Apetit Kala Oy is a wholly owned subsidiary of Lännen Tehtaat plc. It develops,
produces and sells fish products under the Apetit brand and retailers' private
labels, and sells fish products and other fresh food at its shop-in-shop service
counters operating under the Kalatori brand.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
Further information: Matti Karppinen, CEO, tel. +358 10 402 4001
Copies to:
NASDAQ OMX Helsinki Ltd
Main media
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LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 25 FEBRUARY 2010, 3.30 P.M.
ANNUAL REPORT TO BE PUBLISHED EARLIER THAN PREVIOUSLY NOTIFIED
Lännen Tehtaat plc's Annual Report will be published on Tuesday 9 March 2010,
which is earlier than previously notified.
On the date in question, the Annual Report, which includes the Board of
Directors' report and the financial statements, will be available for viewing on
Lännen Tehtaat plc's website (www.lannen.fi).
A printed version of the Annual Report will be mailed during the week beginning
15 March to all shareholders owning 100 or more shares. Copies of the Annual
Report can also be ordered by phone (+358 10 402 00) or by e-mail
().
LÄNNEN TEHTAAT PLC
Eero Kinnunen
Chief Financial Officer
Further information: Eero Kinnunen, CFO, tel. +358 10 402 00
Copies to:
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Main media
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LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 17 February 2010 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 0.76 per share be paid on the financial year 2009.
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 PricewaterCoopers
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 to 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 2 April 2009, 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 10 402 4001
Distribution:
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LÄNNEN TEHTAAT PLC Financial Statements Release 17 February 2010 at 8.30 a.m.
FINANCIAL STATEMENTS RELEASE 1 January - 31 December 2009
Fourth quarter (October-December), continuing operations:
- Consolidated net sales amounted to EUR 71.7 million (Q4 2008: EUR 80.9
million), which was a year-on-year drop of 11%.
- Operating profit, excluding non-recurring items, came to EUR 5.4 (2.8)
million; non-recurring items totalled EUR 0.0 (1.2) million.
- Profit for the period came to EUR 4.2 (2.5) million, and earnings per share
amounted to EUR 0.67 (0.41).
Financial year (January-December), continuing operations:
- Consolidated net sales amounted to EUR 266.0 (349.1) million, which was a
year-on-year drop of 24%.
- Operating profit, excluding non-recurring items, amounted to EUR 7.7 (5.4)
million; non-recurring items totalled EUR -0.8 (+8.5) million.
- The profit for the year came to EUR 5.8 (10.0) million, and the earnings per
share amounted to EUR 0.94 (1.60).
The Board will propose a dividend of EUR 0.76 (0.85) per share to the Annual
General Meeting.
The information in this bulletin has not been audited.
Matti Karppinen, CEO:
”The performance of our businesses improved towards the end of the year, and
thanks to this fourth-quarter surge the full-year operating profit, excluding
non-recurring items, was considerably up on the previous year's figure.
The profitability trend in the Lännen Tehtaat Group's business operations was
favourable, and the operating profit, excluding non-recurring items, rose to
2.9% of net sales. This was a positive development and was satisfactory in view
of the circumstances, even though there is still some way to go to achieve our
long-term profitability target. It was especially gratifying to see a turnaround
in the profitability of the Seafood business during the final quarter of the
year, and a significantly stronger and robust level of profitability in the
Grains and Oilseeds business. The development measures taken in the Frozen Foods
business also improved the segment's earnings. The year therefore saw an
improvement in the ability of all our businesses to perform well. The profit for
the financial year was nevertheless short of the previous year's level as a
consequence of the inclusion of a number of sizeable, positive non-recurring
items in the 2008 result.”
Profit for the period 4.2 2.5 5.8 17.1
Earnings per share, EUR 0.67 0.41 0.94 2.73
NET SALES AND PROFIT
Fourth quarter (October-December):
The net sales from continuing operations in October-December totalled EUR 71.7
(80.9) million, a decrease of 11% on the same quarter in 2008. This decrease was
largely attributable to the Grains and Oilseeds business.
The continuing operations' fourth-quarter operating profit, excluding
non-recurring items, was EUR 5.4 (2.8) million. The non-recurring items totalled
EUR 0.0 (1.2) million. The result for the Seafood business and for the Grains
and Oilseeds business was up from the fourth-quarter figures of a year earlier.
In Frozen Foods, the profit was slightly down year-on-year, while in the Other
Operations segment, the profit was about the same as a year earlier.
Financial income and expenses in October-December came to EUR -0.2 (-1.6)
million. Profit before taxes was EUR 5.2 (2.4) million, and taxes on the profit
for the quarter came to EUR -1.1 (+0.2) million. The profit from continuing
operations was EUR 4.2 (2.5) million, and the earnings per share amounted to EUR
0.67 (0.41).
Financial year (January-December):
Continuing operations
Consolidated net sales in January-December amounted to EUR 266.0 (349.1)
million, a decrease of EUR 83.1 million, or 24%, on the previous year. Most of
this decrease was from the Grains and Oilseeds business, where market prices
were at a significantly lower level than a year earlier.
The operating profit, excluding non-recurring items, was EUR 7.7 (5.4) million.
The non-recurring items totalled EUR -0.8 (+8.5) million, of which EUR -0.7
million was in the Seafood business and EUR -0.1 million in the Grains and
Oilseeds business. The most significant non-recurring items in the previous
year, 2008, concerned the business activities of the associated company Sucros
Ltd and the sale of the jams and marmalades business. The operating profit
includes the share of the profits of associated companies, which, excluding
non-recurring items, totalled EUR 2.0 (1.6) million.
Financial income and expenses came to EUR +0.5 (-3.3) million. This figure
includes valuation items of EUR +0.5 (-1.0) million with no cash flow
implications. The financial expenses also include EUR -0.7 (-0.5) million as the
share of the profit of Avena Nordic Grain Oy and Mildola Oy attributable to the
employee shareholders of Avena Nordic Grain Oy.
Profit before taxes from the continuing operations was EUR 7.3 (10.7) million.
This includes EUR -0.8 (+8.5) million as the effect of non-recurring items.
Taxes for the financial year came to EUR -1.5 (-0.7) million. The continuing
operations' profit for the year came to EUR 5.8 (10.0) million, and the earnings
per share amounted to EUR 0.94 (1.60). The effect of non-recurring items on the
earnings per share was EUR -0.10 (+1.32).
Discontinued operations
No business transfers reportable as discontinued operations took place during
the financial year. In 2008, the share of the profit of the associated company
Suomen Rehu and the profit from the sale of the minority holding in Suomen Rehu
were both included under discontinued operations. The profit from discontinued
operations came to EUR 0.0 (7.1) million, and the earnings per share amounted to
EUR 0.00 (1.13).
Profit for the year
The profit for the financial year from the continuing and discontinued
operations together came to a total of EUR 5.8 (17.1) million, and the earnings
per share amounted to EUR 0.94 (2.73). The effect of non-recurring items on the
earnings per share was EUR -0.10 (+2.37).
FINANCING AND BALANCE SHEET
The Group's financial position strengthened and its liquidity improved further.
The cash flow from operating activities in the financial year after interest and
taxes amounted to EUR +25.8 (-0.4) million. The impact of the change in working
capital was EUR +14.9 (-5.1) million. The cash flow from investing activities
came to EUR -10.4 (+30.3) million. The impact of liquid asset investments in
short-term fixed income funds on the cash flow from investing activities was, in
terms of net value, EUR -13.0 (+4.1) million. The cash flow from financing
activities came to EUR -17.5 (-25.1) million, and included EUR -5.3 (-5.6)
million in dividend payments. The net change in cash and cash equivalents was
EUR -2.0 (+4.8) million.
At the end of the financial year, the Group had EUR 3.3 (15.2) million in
interest-bearing liabilities and EUR 25.0 (13.7) million in liquid assets. Net
interest-bearing liabilities totalled EUR -21.7 (+1.5) million. The consolidated
balance sheet total stood at EUR 176.1 (192.3) million. Equity totalled EUR
137.3 (135.6) million at the end of the financial year, and the equity ratio was
78.0% (70.5%). Commercial papers issued for the Group's short-term financing
stood at a total value of EUR 0.0 (9.0) million at the end of the year. The
Group's short-term liquidity over the next few years 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
Gross investment in non-current assets excluding corporate acquisitions came to
EUR 2.7 (8.1) million. Investment by Frozen Foods totalled EUR 1.9 (6.0)
million, by Seafood EUR 0.6 (1.5) million, by Grains and Oilseeds EUR 0.3 (0.5)
million and by Other Operations EUR 0.0 (0.2) million.
Investments in shares during the financial year totalled EUR 1.2 (0.5) million
and concerned the purchase of Sandanger AS shares.
PERSONNEL
The average number of personnel in the continuing operations during the
financial year was 657 (755). The average number of personnel in Frozen Foods
was 205 (237), in Seafood 379 (441), in Grains and Oilseeds 62 (65) and in Other
Operations 11 (12).
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, the
accumulation of consolidated profit occurs especially in the final quarter of
the year. 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.
Apetit Kala's sales peak at weekends and on seasonal holidays. A major
proportion of the entire year's profit in the Seafood business depends on the
success of Christmas sales.
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.
The fourth-quarter net sales of Frozen Foods, adjusted for the effects of the
sale of the jams and marmalades business, were about the same as the
like-for-like figure for the same quarter in 2008. Sales of retail products were
up by about 2% and were highest in December. Demand focused to a greater extent
than before on basic food products. The most positive trend was in sales of
frozen potato products and frozen pizzas. Sales to the hotel, restaurant and
catering sector and the food industry were at the level of the last quarter of
2008. Export sales fell as a result of the good crop in central Europe in 2009.
Frozen Foods' fourth-quarter profit, excluding non-recurring items, fell
slightly short of the previous year's figure. The non-recurring items totalled
EUR 0.0 (-0.5) million.
With weather conditions being favourable, the autumn harvest and processing went
well, and the targeted volumes of good quality raw materials were obtained for
storage. Due to the large volume of Finnish—grown raw materials, there was more
capital tied up in storage than a year earlier.
Financial year (January-December):
Like-for-like net sales in the Frozen Foods business were up by about 3% for the
full financial year, adjusted for the effects of the sale of the jams and
marmalades business. This growth came from retail frozen foods. Sales to the
hotel, restaurant and catering sector were at the level of 2008, while sales to
the food industry and export sales were down, year-on-year. In retailing, active
marketing campaigns and new product launches boosted sales of Apetit products.
The biggest sales growth was in frozen pizzas. There was also above-average
growth in sales of frozen ready meals sold under the Apetit brand. Apetit
Pakaste launched a number of new frozen products on the retail market during the
year. In the spring, the new product launches included Apetit spring vegetables
and Apetit summer carrots. Autumn launches included Apetit domestic onions. The
domestic origin of raw materials was emphasised in the marketing, including the
renaming of Apetit peas as Apetit domestic peas. New varieties were added to the
Quick&Tasty range, and several new products were added to the frozen soups,
including a completely new range of family soups. Two products launched in 2008,
namely lactose-free spinach soup and Apetit potato & chopped vegetables for
soups, proved very successful and generated sales growth for the company.
Frozen Foods' full-year operating profit, excluding non-recurring items,
improved on the previous year's figure as a result of higher productivity,
centralisation of production and more efficient operations. The improved profit
was also in part attributable to the price increases introduced to compensate
for higher costs, though there was a time lag before these were visible in the
profit performance.
Refurbishment of the production facilities and investment in machinery and
equipment were continued at the Säkylä plant during the year. The soups and
frozen ready meals departments were reorganised during the year. The aim of
these investment projects was to improve productivity and ensure product
quality. In the spring, Apetit Pakaste began using the new enterprise resource
planning (ERP) system. The system covers the broad range of Apetit Pakaste's
functions, including its financial management. During the summer, the contract
grower data system developed for Apetit Pakaste was linked up to the ERP system,
thereby adding contract growing functions to the system, from growing contracts
to raw material accounting.
The number of personnel in Frozen Foods was an average of 205 (237). The
reduction in personnel from the previous year's figure was a result of the sale
of the jams and marmalades business in early autumn 2008 and the discontinuation
of the Turku factory and centralisation of functions at Säkylä at the end of
2008.
Investment in the Frozen Foods business totalled EUR 1.9 (6.0) million. This
investment was mainly in information systems, reorganisation of the ready meals
and soups departments and completion of the investment at Säkylä following the
transfer of production from the Turku plant.
The fourth-quarter net sales of the Seafood business were down by 11%. The drop
in sales occurred in both the Finnish and foreign operations of the Seafood
business.
In the Finnish Seafood business the drop in sales was due to the contraction in
the network of Kalatori service counters, the decrease in sales to the hotel,
restaurant and catering sector, and the strong emphasis on low priced, lower
added value salmon and rainbow trout products in the latter part of the year.
Christmas sales went well, with the exception of a few small delivery problems.
In the foreign Seafood business, Maritim Food's withdrawal from Christmas sales
of unprofitable smoked fish contributed to the drop in sales in Norway, though
the sales growth for shellfish in brine products and for dressings continued. In
Sweden, retail sales of shellfish were up, but sales to the hotel, restaurant
and catering sector were down, year-on-year. The export of products to the
Finnish market was up substantially.
With a successful Christmas season, the fourth-quarter profit, excluding
non-recurring items, was significantly higher than the figure of a year earlier.
Both the Finnish and foreign operations of the Seafood business saw a turnaround
in their performance, posting an operating profit for the quarter. The
non-recurring items totalled EUR 0.0 (-0.7) million.
Financial year (January-December):
The net sales of the Seafood business were down by 15%, year-on-year. This drop
in net sales occurred in both the Finnish and foreign operations.
In Finland, price competition in consumer-packaged retail products was
unhealthily intense, with retailers focusing on lower added value fillets of
salmon and rainbow trout, which kept prices low. A further factor adversely
affecting net sales in the Finnish Seafood business was the fewer number of
Kalatori service counters than in 2008. With salmon and rainbow trout fillets
being used by retailers as special offer products, the market of these products
grew.
Calculated in local currencies, the like-for-like net sales of Seafood's foreign
operations were down by about 6%. This was due to the discontinuation of
unprofitable products and the lower sales of fresh fish products and minced fish
products compared with a year earlier. The strong sales growth for shellfish in
brine on the Norwegian market continued during the year. There was also
considerable growth in the redesigned range of dressings. The growth in retail
sector sales compensated for the drop in sales to the hotel, restaurant and
catering sector, and on the Swedish market shellfish sales as a whole were
almost at the level of the previous year. Export sales to the Finnish market
were up substantially.
The full-year operating result, excluding non-recurring items, for the Seafood
business was slightly down year-on-year, and was posted as an operating loss.
The non-recurring items totalled EUR -0.7 (-0.8) million. These items concerned
the sale of Apetit Kala's Kerava property in June, and the organisational
changes following the acquisition of the minority holding in Sandanger AS.
In the Finnish Seafood business, the result was up on the previous year's
figure, but it still recorded a loss. The retail trade continued its aggressive
campaigning based on low priced, low added value salmon and rainbow trout
fillets, which steered demand towards these products, weakening the
profitability of Seafood's consumer-packaged fillet products and the Kalatori
sales points. The prices of salmon and Finnish rainbow trout rose as a result of
the reduction in the supply of Chilean salmon, and were on average 10% higher in
2009 than the previous year. The tough competition made it impossible to
transfer these price rises in full to the sales prices.
Updating of the strategy for the Finnish Seafood business in the spring 2009
highlighted the key importance of working more closely with customers and
revitalising the present operations by increasing efficiency. As part of the
efficiency improvements, the decision was taken in June to outsource the
logistics functions to SwanLine Oy and to sell the Kerava-based logistics
centre. The property deal took effect at the end of November, releasing a
considerable amount of capital. The aim of the property sale and the outsourcing
of the logistics functions was to achieve improved profits of around EUR 0.4
million annually. This figure will be achieved in full from 2010. Productivity
investments in line with the Group's strategic plans were undertaken at the
Kuopio production plant during the summer. The investment programme includes a
new layout for the packaging, filleting and trimming departments and investment
in the packaging line to allow redesign of consumer packages. These investments
will also enable a further improvement in production quality. All the main
supplier contracts were put out to tender in 2009, and the benefits achieved
with the new contracts will materialise during 2010.
In the foreign operations, the result improved towards the end of the year, but
the full-year result was a loss, due to the weak performance in the early months
of 2009. The performance in the first months of the year was adversely affected
by the rise in raw material prices for shellfish products caused by
exchange-rate fluctuations, and the sales emphasis on lower margin products. The
situation improved from the end of the first quarter, when the pressure on raw
material prices began to ease, and it was possible to raise sales prices to
compensate for the increase in the price of raw materials.
The number of personnel in the Seafood business was an average of 379 (441). The
reduction in personnel was a result of the outsourcing of functions in the
Finnish Seafood business and the contraction in the network of Kalatori service
counters. Organisational and personnel development continued in both the Finnish
and foreign operations of the Seafood business.
Investment in the Seafood business during the financial year totalled EUR 0.6
(1.5) million. In the Finnish Seafood business, the investment was mainly in the
enterprise resource planning system and packaging machinery, while in Seafood's
foreign operations it was in the redesign of the dressings department and
cooling equipment to ensure product quality.
Fourth-quarter net sales in the Grains and Oilseeds business were down by 14%
year-on-year, due to the lower sales prices, though delivery volumes were up.
One third of net sales was from retail sales abroad, as this trade was very
brisk in comparison with previous quarters.
Fourth-quarter operating profit, excluding non-recurring items, was
significantly above the previous year's level. The non-recurring items totalled
EUR 0.0 (-0.1) million. This good result was due to the successful grain
trading, especially between third countries, and the good refining margin in
oilseed operations.
Financial year (January-December):
Full-year net sales were down by 31% year-on-year, as a result of considerably
lower market prices for grains and oilseeds than a year earlier and smaller
volumes in both grain sales and vegetable oil exports.
In the 2008/2009 crop year, the total global crop, at 1,763 million tonnes,
exceeded expectations. Combined with the 353 million tonnes in storage at the
start of the season, this led to plentiful supplies on the market, pushing down
world market prices significantly in comparison with the level of the previous
crop year. For example, the average price of European wheat on the MATIF futures
market was EUR 135 per tonne, compared with about EUR 200 per tonne in 2008.
Finland's grain crop in the autumn was also significantly above average for the
third year in a row.
The amount of rapeseed harvested across the EU in 2009 was 21.2 million tonnes,
an increase of about 10% on the previous year. In Finland the area of rapeseed
under cultivation was up by 27%. Thanks to this, and coupled with high
per-hectare yields, the rapeseed crop totalled 140,000 (86,000) tonnes, which
was 60% more than in the previous year. Rapeseed prices during the year were
affected mainly by prices for soybeans. In 2009, the average price of European
rapeseed on the MATIF futures market was EUR 282 per tonne, down from EUR 400
per tonne in 2008. The market prices of rapeseed oil and expeller meal followed
the changes in raw material prices and were around the long-term average.
In the Grains and Oilseeds business the operating profit, excluding
non-recurring items, amounted to EUR 7.4 (5.4) million. The non-recurring items
for the year totalled EUR -0.1 (-0.1) million and arose from the reorganisation
of Avena's and Mildola's procurement, administration and sales functions and the
integration of operations. The improved result was a consequence of success in
managing changes in market prices and in developing processes, operating methods
and the organisation in general, and the good oil-refining yield.
In an intra-Group ownership arrangement by the Lännen Tehtaat Group on 13 August
2009, Lännen Tehtaat plc sold the entire share capital of its vegetable oils
company, Mildola Oy, to Avena Nordic Grain Oy, which is a grains, oilseeds and
animal feedstuffs trader. The aim of this arrangement was to combine the
commodity market expertise of Avena with Mildola's expertise in oil milling and
to achieve synergy benefits from combining these operations. The new ownership
arrangement was introduced in two stages. At the first stage, in early
September, the administration, purchasing, sales and logistics functions of
Mildola Oy were transferred to Avena Nordic Grain Oy. This outsourcing of
Mildola's functions entailed the transfer of nine of its employees to Avena. The
second stage of the arrangement was the asset deal that took place at the end of
the year, when Mildola Oy's vegetable oils business, excluding its oil milling
operation, was transferred to Avena Nordic Grain Oy. Mildola Oy will continue
its oil milling operations as a production unit of Avena. The Grains and
Oilseeds business is the responsibility of Avena Nordic Grain Oy's Managing
Director, Kaija Viljanen, who, since 14 August 2009, has also been Managing
Director of Mildola Oy.
To improve the efficiency of grains and oilseeds procurement, Avena set up a
subsidiary company, OÜ Avena Nordic Grain, at Türi in Estonia during the summer.
In Finland, a new branch office was established at Porvoo to serve the region's
growers.
The average number of personnel employed was 62 (65). The figure was boosted by
the establishment of the Estonian subsidiary. The integration of Avena's and
Mildola's operations resulted in five fewer jobs.
Investment in the Grains and Oilseeds business totalled EUR 0.3 (0.5) million.
This concerned the renewal of the enterprise resource planning system and of
Avena's on-line marketplace (Avenakauppa) and minor investment in replacements
at Mildola. The aim of this investment was to take advantage of the benefits of
integration and to improve the operating processes and the management of these
processes.
Fourth-quarter net sales from the sale of services were at almost the previous
year's level.
The operating profit, excluding non-recurring items, included EUR 1.3 (0.9)
million as the share in the profits of associated companies. The non-recurring
items totalled EUR 0.0 (2.5) million.
Financial year (January-December):
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. The
net sales in this segment were down year-on-year as a result of the decrease in
Apetit Suomi Oy's service sales due to the transfer of sales and product
development personnel to the Frozen Foods and Seafood businesses at the start of
April 2008, and the decrease in environmental management invoicing.
The full-year operating profit, excluding non-recurring items, totalled EUR -1.3
(-1.6) million. This figure includes EUR 2.0 (1.6) million as the share of the
profits of associated companies. The non-recurring items for the year totalled
EUR 0.0 (7.4) million. EUR 0.0 (7.5) million in non-recurring items is reported
under the profit of associated companies.
Investment in Other Operations totalled EUR 0.0 (0.2) million.
AUTHORISATIONS GRANTED TO THE BOARD OF DIRECTORS
The Lännen Tehtaat plc Annual General Meeting of 2 April 2009 authorised the
Board of Directors to decide on issuing new shares and on the transfer of Lännen
Tehtaat plc shares held by the company, in one or more lots, as a share issue of
a total of no more than 761,757 shares. The share issue authorisation covers all
Lännen Tehtaat plc shares in the company's possession, i.e. 130,000 shares. The
maximum number of new shares that can be issued is 631,757.
The authorisation is valid until the next Annual General Meeting.
The decisions of the Annual General Meeting are given in more detail in the
stock exchange release dated 2 April 2009 and in the Interim Report published on
7 May 2009.
USE OF THE AUTHORISATIONS GRANTED TO THE BOARD OF DIRECTORS
Authorisations to issue shares
By 16 February 2010, the 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.
SALE OF SHARES IN JOINT ACCOUNT
Lännen Tehtaat plc shares that were in the joint book-entry account and not
transferred to the book-entry system were sold on behalf of the respective
holders on 23 February 2009 in trading on the NASDAQ OMX Helsinki Ltd exchange.
The assets from the sale, less the expenses of notification and selling, were
deposited with the State Provincial Office of Western Finland. The assets are
redeemable on or before 17 March 2019. At the end of the year, the unredeemed
assets totalled EUR 0.8 million.
SHARES AND TRADING
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 represented 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.
The number of Lännen Tehtaat plc shares traded on the stock exchange during the
financial year was 1,997,857 (962,862), representing 31.6% (15.2%) of the total
number of shares. The highest share price quoted was EUR 15.99 (17.00) and the
lowest EUR 11.90 (13.00). The average price of shares traded was EUR 13.71
(14.49). The share turnover was EUR 27.4 (14.0) million. The year-end share
price was EUR 15.65 (13.49), and the market capitalisation was EUR 98.9 (85.2)
million.
FLAGGING ANNOUNCEMENTS
On 28 May 2009, Nordea Investment Fund Company Finland Ltd announced that on 27
May 2009 the level of ownership in Lännen Tehtaat plc held by investment funds
managed by Nordea Investment Fund Company Finland Ltd rose to over 5%; the
proportion of the votes and share capital at the time of flagging was 5.46%, or
345,325 shares.
The investment funds managed by ODIN Forvaltning AS announced on 27 November
2009 that they had sold 100,000 Lännen Tehtaat plc shares and that their level
of ownership in Lännen Tehtaat plc had consequently dropped to below 5%, to a
total of 264,909 Lännen Tehtaat plc shares; this corresponded to 4.19% of the
share capital and votes.
On 1 December 2009, Scanfil plc announced that, following share trading on 1
December 2009, its level of ownership exceeded one twentieth of the total number
of Lännen Tehtaat plc shares and of the total number of votes. At the time of
flagging, Scanfil plc held 495,687 Lännen Tehtaat plc shares, corresponding to
7.85% of the total number of Lännen Tehtaat plc shares and votes.
CORPORATE ADMINISTRATION AND MANAGEMENT
At its organisational meeting on 9 April 2009, Lännen Tehtaat plc's Supervisory
Board elected Helena Walldén as its chairman and Juha Nevavuori as its deputy
chairman.
The company's Board of Directors elected by the Supervisory Board on 9 April
2009 comprises Harri Eela, Heikki Halkilahti, Aappo Kontu, Matti Lappalainen,
Hannu Simula, Soili Suonoja and Tom v. Weymarn. Tom v. Weymarn was elected
chairman of the Board of Directors and Matti Lappalainen was elected deputy
chairman.
Matti Karppinen has served as CEO of Lännen Tehtaat plc since 1 September 2005.
Eero Kinnunen, Chief Financial Officer of the Lännen Tehtaat Group, was
appointed Deputy CEO as of 1 January 2008.
SHORT-TERM RISKS AND UNCERTAINTIES
The most significant short-term risks for the Lännen Tehtaat Group are: the
effects of a prolonged economic downturn on demand from consumers and customers;
the solvency of customers and the delivery performance of suppliers; the
management of raw material price changes and currency risks; changes in the
Group's businesses and customerships; and corporate acquisitions and the
subsequent integration processes.
In many sectors the collective agreements have either expired or will expire in
the near future. Any industrial action taken in the transportation sector, the
food industry or the retail sector will have an immediate effect on net sales
and profits in Lännen Tehtaat's businesses.
EVENTS SINCE THE END OF THE FINANCIAL YEAR
Lännen Tehtaat has revised its mission statement and specified its long-term
growth target. The Group's mission is to offer consumers food products that are
healthy, flavoursome and based on locally sourced raw materials, and to produce
added value for its shareholders on a long-term basis. The long-term target is
purposeful and profitable growth in the Group's business. The other targets - an
operating profit of at least 5% of net sales, an equity ratio of at least 40%,
and a return on equity (ROE) of at least 12% - remain unchanged.
OUTLOOK FOR 2010
A prolonged economic downturn and rise in unemployment could affect Lännen
Tehtaat's businesses during the year. Consumer demand for food products is
increasingly being channelled towards basic foodstuffs and low added value
products.
The net sales from Lännen Tehtaat's continuing operations will be affected
particularly by the market activity and by changes in the price level of grains
and oilseeds.
The Group's profit outlook for the first few months is better than it was a year
ago. The profit performance in the second half of the year will depend
particularly on the market activity on the grains and oilseeds markets, which is
difficult to estimate at this early stage of the year. Thanks to the development
measures undertaken in the Group's businesses, the full-year operating profit,
excluding non-recurring items, is expected to be at least at the level of 2009.
PROPOSED DIVIDEND
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 82,664,541.83 on 31
December 2009, of which EUR 9,035,217.05 is profit for the financial year.
The Board of Directors will propose to the Annual General Meeting that EUR 0.38
per share be distributed for 2009 as a dividend in accordance with the dividend
policy, plus an additional dividend of EUR 0.38 per share, bringing the total
dividend to EUR 0.76 per share. The Board of Directors will propose that a total
of EUR 4,702,557.76 be distributed in dividends and that EUR 77,961,984.07 be
left in its equity. The proposed dividend is 80.9% of the earnings per share.
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.
EUR million Q4/ Q4/ Jan-Dec/ Jan-Dec/
2009 2008 2009 2008
Profit for the period 4.2 2.5 5.8 17.1
Other comprehensive income
Cash flow hedges 1.0 -0.2 1.1 -1.6
Taxes related to cash flow hedges -0.3 0.1 -0.3 0.4
Translation differences 0.2 -1.6 1.4 -2.1
Total comprehensive income 5.1 0.8 8.0 13.8
Attributable to
Equity holders of the parent 5.1 0.8 8.0 13.8
Minority interests - 0.0 - 0.0
Current assets
Inventories 48.1 55.1
Receivables 25.5 38.7
Income tax receivable 0.1 0.7
Financial assets at fair value through profits 17.2 3.8
Cash and cash equivalents 7.9 9.9
Current assets total 98.7 108.0
Total assets 176.1 192.3
EUR million 31 Dec 2009 31 Dec 2008
EQUITY AND LIABILITIES
Equity attributable to the equity
holders of the parent 137.3 135.1
Minority interest - 0.5
Total equity 137.3 135.6
Current liabilities
Short-term financial liabilities 0.9 10.7
Income tax payable 1.5 0.7
Trade payables and other liabilities 29.7 36.1
Current liabilities total 32.1 47.4
Total liabilities 38.8 56.8
Total equity and liabilities 176.1 192.3
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million Jan-Dec/2009 Jan-Dec/2008
Net profit for the period 5.8 17.1
Adjustments, total 6.5 -8.5
Change in working capital 14.9 -5.1
Interests paid -1.8 -2.4
Interests received 1.0 0.4
Taxes paid -0.6 -1.8
Net cash flow from operating activities 25.8 -0.4
Investments in tangible and intangible assets -2.7 -8.1
Proceeds from sales of tangible
and intangible assets 3.2 3.0
Acquisition of subsidiaries deducted by cash - -0.4
Transactions with minority -1.2 1.5
Acquisition of associated companies - -0.4
Proceeds from sales of associated companies - 27.0
Purchases of other investments -22.0 -14.0
Proceeds from sales of other investments 9.0 18.1
Dividends received from investing activities 3.3 3.6
Net cash flow from investing activities -10.4 30.3
Repayments of short-term loans -9.5 -18.4
Repayments of long-term loans -2.7 -0.1
Payment of financial lease liabilities 0.0 -0.1
Purchase of own shares - -1.0
Dividends paid to minority - -0.3
Dividends paid -5.3 -5.3
Cash flows from financing activities -17.5 -25.1
Net change in cash and cash equivalents -2.0 4.8
Cash and cash equivalents at the beginning
of the period 9.9 5.1
Cash and cash equivalents at the
end of the period 7.9 9.9
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 = Minority interest
J = Total equity
A B C D E F G H I J
Shareholders'
equity at
1 Jan 2008 12.6 23.4 0.4 7.2 -0.8 0.1 84.5 127.3 0.7 128.0
Transactions
with minority - - - - - - 0.4 0.4 - 0.4
Dividend
distribution - - - - - - -5.3 -5.3 -0.3 -5.6
Other changes - - - - -1.0 - -0.1 -1.1 - -1.1
Total comprehensive
income - - -1.2 - - -2.1 17.0 13.7 0.0 13.8
Shareholders'
equity at
31 Dec 2008 12.6 23.4 -0.8 7.2 -1.8 -1.9 96.6 135.1 0.5 135.6
Shareholders'
equity at
1 Jan 2009 12.6 23.4 -0.8 7.2 -1.8 -1.9 96.6 135.1 0.5 135.6
Transactions
with minority - - - - - - -0.7 -0.7 -0.5 -1.2
Dividend
distribution - - - - - - -5.3 -5.3 - -5.3
Other changes - - - - - - 0.2 0.2 - 0.2
Total comrehensive
income - - 0.8 - - 1.4 5.8 8.0 - 8.0
Shareholders'
equity at
31 Dec 2009 12.6 23.4 0.0 7.2 -1.8 -0.5 96.4 137.3 - 137.3
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The year-end 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 2008.
At the beginning of the year the new IFRS 8 did not change the information shown
in these segments because the Group's earlier segment-based reporting was based
on the Group's internal reporting structures. In August 2009 the Group decided
on a new intra-group ownership arrangement, whereby the vegetable oils business
including administration, purchasing, sales and logistics functions, but
excluding oil milling operations, would be transferred to Avena Nordic Grain Oy.
Since the vegetable oils business will no longer form a separate entity for
monitoring purposes, the former Grain Trading and Vegetable Oils segments are
reported under a new segment name, Grains and Oilseeds.
The amendment of IAS 1 has an impact on the presentation method of the profit
and loss account and the changes in equity.
SEGMENT INFORMATION
A Frozen Foods
B Seafood
C Grains and Oilseeds
D Other Operations
E Continuing operations total
F Discontinued operations
G Total
Finland 187.3 209.9
Scandinavia 43.3 65.8
Baltic countries and Russia 3.9 7.6
Other countries 31.6 65.9
Continuing operations total 266.0 349.1
DISCONTINUED OPERATIONS
The sale of the majority holding of 51% in Suomen Rehu Ltd was completed at the
start of June 2007, when Suomen Rehu and its subsidiaries were transferred to
Hankkija-Maatalous Oy. Lännen Tehtaat plc and SOK subsidiary Hankkija-Maatalous
Oy signed an agreement on 1 September 2008, transferring the remaining 49% of
shares owned by Lännen Tehtaat in Suomen Rehu Ltd to Hankkija-Maatalous Oy.
Lännen Tehtaat recognized a non-recurring tax-free profit of EUR 6.6 million for
the sale of these minority shares in its financial performance for the 2008
third quarter.
Gross investments in non-current assets,
EUR million, continuing operations 2.7 8.1
Corporate acquisitions and other share
purchases, EUR million, continuing operations 1.2 0.5
Average number of personnel,
continuing operations 657 755
Average number of shares, 1 000 pcs 6 188 6 221
The key figures in this year-end report are calculated using the same
accounting principles as those presented in the 2008 annual financial
statements.
CONTINGENT LIABILITIES
EUR million 31 Dec 2009 31 Dec 2008
Mortgages given for debts
Real estate mortgages 2.0 8.6
Guarantees 11.1 10.8
Non-cancellable other leases,
minimum lease payments
Real estate leases 4.3 5.0
Other leases 0.8 0.9
CONTINGENT ASSETS
Proceeds from the sale of shares in the
joint book-entry account 0.8 -
INVESTMENT COMMITMENTS
Lännen Tehtaat has no material investment commitments as of 31 December 2009.
CHANGES IN TANGIBLE ASSETS
EUR million Jan-Dec/2009 Jan-Dec/2008
Book value at the beginning of the period 43.5 43.5
Acquisitions 2.0 5.9
Disposals and transfers to assets
classified as held for sale -4.0 -0.2
Depreciations and impairments -4.5 -4.8
Other changes 0.9 -1.0
Book value at the end of the period 37.9 43.5
TRANSACTIONS WITH ASSOCIATED COMPANIES AND JOINT VENTURES
EUR million Jan-Dec/2009 Jan-Dec/2008
Sales to associated companies 1.0 13.4
Sales to joint ventures 6.7 8.2
Purchase from associated companies 2.2 0.7
Purchase from joint ventures 0.0 0.0
Long-term receivables from associated companies 1.3 2.7
Long-term receivables from joint ventures 0.1 -
Trade receivables and other
receivables from associated companies 1.6 1.6
Trade receivables and other
receivables from joint ventures 0.7 0.6
Trade payables and other liabilities
to associated companies 0.2 0.0
Trade payables and other liabilities
to joint ventures 0.0 0.0
LÄNNEN TEHTAAT PLC
Board of Directors
Further information: CEO Matti Karppinen, tel. +358 10 402 4001
Copies to:
NASDAQ OMX Helsinki Ltd
Principal media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 18 January 2010, 12;45 PM
2009 OPERATING PROFIT, EXCLUDING NON-RECURRING ITEMS, UP ON PREVIOUS YEAR'S
LEVEL
In its third-quarter interim report, Lännen Tehtaat stated that thanks to the
measures taken to develop the Group's different businesses, the fourth-quarter
operating profit, excluding non-recurring items, was expected to show a
year-on-year improvement, and the full-year operating profit, excluding
non-recurring items, was expected to be around the same level as in 2008.
Preliminary figures indicate that the fourth-quarter operating profit, excluding
non-recurring items, was significantly better than expected and also
significantly better than the previous year's final quarter figure, rising to
more than EUR 5 million (Q4/2008: EUR 2.8 million).
The improvement in the Group's businesses continued during the final quarter of
2009, strengthening towards the end of the year. The better than expected result
was attributable to the success of the Christmas season in the Seafood business
and the success of the Grains and Oilseeds business especially in trading
between third countries towards the end of the year. The share of the profit of
the associated company Sucros also exceeded expectations.
Thanks to the better than expected final quarter, the full-year operating profit
of the continuing operations, excluding non-recurring items, represented a
year-on-year improvement, deviating from the estimate presented in the interim
report. The continuing operations' operating profit for 2009, excluding
non-recurring items, is expected to be over EUR 7 million (2008: EUR 5.4
million).
The preliminary figures are unaudited and are not based on financial statements
approved by the Board of Directors. Lännen Tehtaat's financial statements
bulletin for the financial year 1 January - 31 December 2009 will be published
at 8.30 am on 17 February 2010.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
Further information: Matti Karppinen, CEO, tel. +358 10 402 4001
Copies to:
NASDAQ OMX Helsinki Ltd
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE ANNOUNCEMENT 17 December, 2009
LÄNNEN TEHTAAT PLC'S FINANCIAL INFORMATION IN 2010
Lännen Tehtaat plc will publish during the year 2010 the following financial
reports:
Financial statement bulletin 2009 February 17, 2010
Annual Report 2009 in week 11, 2010
Interim report for January-March May 6, 2010
Interim report for January-June August 12, 2010
Interim report for January-September November 3, 2010
The financial reports are published in Finnish and English.
The Annual General Meeting of Lännen Tehtaat plc is scheduled for Tuesday, 30
March 2010. The Board of Directors of the company will decide on the summoning
of the meeting at a later date.
The financial information is also 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
Distribution:
NASDAQ OMX Helsinki Ltd
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE ANNOUNCEMENT 2 December 2009 8.30 a.m.
ANNOUNCEMENT PURSUANT TO CHAPTER 2, SECTION 1O OF THE SECURITIES MARKETS ACT
Scanfil plc (business ID 0190457-0) has according to chapter 2, section 9, of
the Securities Markets Act disclosed to the Financial Supervision Authority and
Lännen Tehtaat plc (business ID 0197395-5) that on 1 December Scanfil plc´s
ownership in Lännen Tehtaat plc has risen above one-twentieth (1/20) of Lännen
Tehtaat plc´s shares and voting rights. The share of ownership was changed due
to share purchases on 1 December.
Scanfil plc´s ownership in Lännen Tehtaat plc is 495,687 shares corresponding
7.85% of the total number (6,317,576) of the 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 30 November 2009 at 8:30 am
ANNOUNCEMENT PURSUANT TO CHAPTER 2, SECTION 10 OF THE SECURITIES MARKETS ACT
Funds managed by ODIN Forvaltning AS have notified that they on November 27,
sold 100,000 shares in Lännen Tehtaat, and total ownership have thus decreased
under 5% of the company´s total share capital.
After the share transaction made on November 27, funds managed by ODIN
Forvaltning AS own a total of 264,909 shares. This represents 4.19% of the
outstanding share capital and voting rights.
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
