| 19.02.2009 |
PROPOSALS OF THE BOARD OF DIRECTORS TO THE ANNUAL GENERAL MEETING OF LÄNNEN TEHTAAT PLC
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 19 February 2009 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 0.85 per share be paid on the financial year 2008.
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 ACQUIRING LÄNNEN TEHTAAT SHARES
The Board of Directors proposes that it be given authorization by the AGM to
decide on the acquisition of Lännen Tehtaat shares for the company using untied
equity, under the following conditions:
Shares may be acquired for the purpose of developing the company's capital
structure, financing or implementing corporate acquisitions or other
arrangements, implementing share-based incentive systems, or for onward transfer
or annulment.
Shares may be acquired in one or more lots, to a maximum total of 185,878
shares. The combined number of Lännen Tehtaat shares held by the company
following this acquisition must not, however, exceed five (5) per cent of the
total number of Lännen Tehtaat shares. The Board is entitled to decide on how to
proceed in acquiring shares.
The authorization covers acquisition of shares in public trade in NASDAQ OMX
Helsinki Ltd and also outside of the public trade. The compensation paid for the
acquired shares shall be based on the market value. The authorization entitles
the Board of Directors to decide on acquisition otherwise than in proportion to
the holdings of the shareholders (targeted acquisition) as provided in the law.
The share acquisition will decrease the company's distributable untied equity.
The Board will decide on any other terms and conditions related to the company's
acquisition of its own shares. The authorization is valid until the next AGM.
IV AUTHORIZATION FOR SHARE ISSUE AND FOR TRANSFER OF LÄNNEN TEHTAAT SHARES
The Board of Directors proposes that it be given authorization by the AGM to
decide on the issuing of new shares and on the transfer of Lännen Tehtaat shares
held by the company in one or more lots in a share issue, to a total of no more
than 947,635 shares. 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 authorization further covers all the Lännen Tehtaat shares to be acquired by
the Board for the company under the authorization to acquire Lännen Tehtaat
shares to be proposed to the AGM on 2 April 2009. The maximum number of Lännen
Tehtaat shares that may be acquired under this authorization is 185,878.
The maximum number of new shares that can be issued is 631,757, and the maximum
number of Lännen Tehtaat shares held by the company that can be transferred is
315,878.
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 2008, and the
authorization to transfer Lännen Tehtaat shares held by the company given on the
same date.
V AMENDING THE ARTICLES OF ASSOCIATION
The Board of Directors proposes to the AGM that section 2 of the company's
articles of association, concerning the sphere of operation, and section 10
paragraph 1, concerning the summons to a shareholders' meeting, be amended as
follows:
Present section 2
The Company engages in commercial activities concerning food, animal feed and
seedling technology and other related activities in Finland and abroad either
directly or through subsidiaries or associated companies. The Company may own
and manage real estate and shares and other securities and engage in trade in
them.
New section 2
The Company engages in commercial activities concerning food and other related
activities in Finland and abroad either directly or through subsidiaries or
associated companies. The Company may own and manage real estate and shares and
other securities and engage in trade in them.
Present section 10 paragraph 1
The summons to a shareholders' meeting shall be published in at least two
national newspapers determined by the Board of Directors, at the earliest two
months and at the latest 17 days before the shareholders' meeting and one week
before the prior registration date specified in the summons.
New section 10 paragraph 1
The summons to the shareholders' meeting shall be published on the company's web
pages and, if so decided by the Board of Directors, in at least one national
newspaper determined by the Board of Directors, at the earliest two months and
at the latest 21 days before the shareholders' meeting.
LÄNNEN TEHTAAT PLC
Board of Directors
For more information, CEO Matti Karppinen, tel. +358 10 402 4001
Distribution:
NASDAQ OMX Helsinki Ltd
Main media
www.lannen.fi
|
| 30.12.2008 |
EFFICIENCY IMPROVEMENTS IN LÄNNEN TEHTAAT'S FISH PRODUCTS BUSINESS AND GROUP MANAGEMENT
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 30 DECEMBER 2008 AT 9.30 AM
EFFICIENCY IMPROVEMENTS IN LÄNNEN TEHTAAT'S FISH PRODUCTS BUSINESS AND GROUP
MANAGEMENT
The Lännen Tehtaat Group is making its Fish Products Business more efficient by
streamlining the organizational structure. The head of Apetit Kala, the head of
retail concept sales and the head of the Maritim Food Group, who are responsible
for the different units of the Group's Fish Products Business, will from now on
report directly to the CEO of the Lännen Tehtaat Group. The posts of the
director of the Fish Products Business, the sales director for Maritim Food
Sweden, the project manager for the Fish Products Business and the project
manager working at Lännen Tehtaat group management will also be abolished.
As a result of the streamlining measures, Lännen Tehtaat will during the final
quarter recognize non-recurring expenses of about EUR 0.5 million directed
mainly at the Fish Products Business. The costs savings are estimated to improve
the Group's operating profit by around EUR 0.6 million per year starting in
2009.
The Lännen Tehtaat's Fish Products Business is made up of Apetit Kala Oy,
operating in Finland, and the Maritim Food Group, which operates in Norway and
Sweden. Apetit Kala produces, markets and sells processed fish products under
the Apetit brand and private labels and sells fish, fish products and other
fresh products at its Kalatori-service counters. The companies belonging to the
Maritim Food Group produce and sell fish, processed fish and shellfish products
in Norway and Sweden under private labels and under their own Maritim and
Sunnmöre brands.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
For more information, please contact CEO Matti Karppinen, tel. +358 10 402 4001
Distribution:
NASDAQ OMX Helsinki Ltd
Main media
www.lannen.fi
|
| 16.12.2008 |
LÄNNEN TEHTAAT PLC'S FINANCIAL INFORMATION IN 2009
LÄNNEN TEHTAAT PLC STOCK EXCHANGE ANNOUNCEMENT December 16, 2009 at 1.00 pm
LÄNNEN TEHTAAT PLC'S FINANCIAL INFORMATION IN 2009
Lännen Tehtaat plc will publish during the year 2009 the following financial
reports:
Financial statement bulletin 2008 February 19, 2009
Annual Report 2008 in week 12, 2009
Interim report for January-March May 7, 2009
Interim report for January-June August 14, 2009
Interim report for January-September November 6, 2009
The financial reports are published in Finnish and English.
The Annual General Meeting of Lännen Tehtaat plc is scheduled for Thursday,
April 2, 2009. 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
|
| 16.12.2008 |
LÄNNEN TEHTAAT'S CONSOLIDATED OPERATING PROFIT
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 16 December 2008 at 9.00 a.m.
LÄNNEN TEHTAAT'S CONSOLIDATED OPERATING PROFIT OF THE CONTINUING OPERATIONS FOR
THE WHOLE YEAR WITHOUT NON-RECURRING ITEMS LOWER THAN EXPECTED - THE OVERALL
PROFIT FOR THE FINANCIAL YEAR SUBSTANTIALLY BETTER THAN IN THE COMPARISON PERIOD
In its previous releases Lännen Tehtaat estimated that the operating profit of
the continuing operations excluding non-recurring items would be better than in
the comparison year thanks to a good performance by Grain Trading and improved
profitability in the Fish Products Business.
Because of a poorer than expected performance in the final months of the year,
Lännen Tehtaat expects the operating profit of the continuing operations for the
whole year without non-recurring items to be, at best, at the comparison year's
level.
Expectations have fallen in the Fish Products and the Vegetable Oils businesses.
Prospects for the Frozen Foods business, Grain Trading and Other Operations
remain unchanged.
Sales in the Fish Products business in Finland in the final months of the year
have been below their targets with the focus on less-processed products.
Profitability in the Fish Products business in Sweden and Norway in the final
months of the year has been affected negatively by a rise in the price of the
main raw material, which was caused by a marked deterioration in the exchange
rates of the Swedish and Norwegian currencies. The financial performance of the
Fish Products business excluding non-recurring items is expected to produce a
loss and be worse than in the comparison year, contrary to what was said
earlier.
The contraction in a pre-agreed major export transaction because of the
customer's financial difficulties and plummeting oil prices have contributed to
the poorer than expected financial performance by the Vegetable Oils business at
the end of the year. Contrary to what was said before, its financial performance
for the whole year excluding non-recurring items is expected to turn into a
loss.
The overall profit for the financial year will be much better than in the
comparison period. The positive non-recurring items in the associated company
Sucros Oy, the profit on the sale of the jams business and the profit on the
sale of the minority shareholding in Suomen Rehu will have a positive effect on
the financial performance.
A bulletin about Lännen Tehtaat's financial statements will be released on 19
February 2009.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
Further information is available from CEO Matti Karppinen, tel + 358 10 402 4001
Distribution:
NASDAQ OMX Helsinki Ltd
Main media
www.lannen.fi
|
| 04.11.2008 |
INTERIM REPORT 1 January - 30 September 2008
LÄNNEN TEHTAAT PLC Interim report 4 November 2008 at 8.30 am
INTERIM REPORT 1 January - 30 September 2008
January-September:
- Profit for the period EUR 14.5 (9.4) million.
- Earnings per share EUR 2.31 (1.51).
- Net sales of continuing operations EUR 268.2 (213.1) million, or growth of
26%.
- Continuing operations showed an operating profit of EUR 2.7 (0.3) million
(excluding non-recurring items); non-recurring items amounted to EUR 7.3 (0.7)
million.
- Profit from continuing operations EUR 7.5 (1.0) million.
July - September:
- Profit for the period EUR 8.3 (3.1) million.
- Earnings per share EUR 1.33 (0.49).
- Net sales of continuing operations EUR 76.3 (73.6) million, or growth of 4%.
- Operating profit (excluding non-recurring items) EUR 0.3 (0.6) million;
non-recurring items amounted to EUR 2.5 (0.5) million.
The figures in this interim report have not been audited.
Matti Karppinen, CEO:
”During the period July - September Lännen Tehtaat carried out two important
strategic restructurings. We sold our remaining Suomen Rehu shares to
Hankkija-Maatalous, which marked the conclusion of Lännen Tehtaat's withdrawal
from the feed business. We also sold our jams business to Saarioisten Säilyke,
which will enable Apetit Pakaste to focus on the development and expansion of
frozen foods. These transactions, which are in line with our strategy, will
strengthen Lännen Tehtaat's financial standing and give it more freedom of
action on the corporate acquisition market. As a result of the recent turbulence
on the financial markets, there are now more companies on sale and valuations
are also at more attractive levels.”
KEY INDICATORS
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2008 2007 2008 2007 2007
Continuing operations
Net sales 76.3 73.6 268.2 213.1 309.6
Operating profit 2.7 1.2 10.0 0.9 5.3
Operating profit
(excluding non-recurring items) 0.3 0.6 2.7 0.3 4.9
Profit before taxes 2.2 1.1 8.3 0.9 4.6
Profit for the period 1.6 1.2 7.5 1.0 4.2
Earnings per share, EUR 0.26 0.18 1.18 0.16 0.66
Discontinued operations
Profit for the period 6.6 1.9 7.1 8.4 9.2
Earnings per share, EUR 1.07 0.31 1.13 1.35 1.48
CHANGES IN GROUP STRUCTURE AND CORPORATE ACQUISITIONS
With a transaction concluded in early September Lännen Tehtaat plc sold its
remaining holding of 49% in Suomen Rehu Ltd to Hankkija-Maatalous Oy. The
transaction was a continuation of a transaction concluded in June 2007 under
which Suomen Rehu and its subsidiaries became part of the Hankkija-Maatalous
Group. As a result of the second transaction in September, Lännen Tehtaat has
now completely withdrawn from the feed business, and the move is also in
accordance with its strategy. The price paid by Hankkija-Maatalous for the
minority holding was EUR 27 million. The transaction generated a tax-free sales
profit of EUR 6.6 million which has been recognized in the discontinued
operations' profits during the third quarter. In the profit and loss account for
the period under review and the comparison period, Suomen Rehu is shown as a
discontinued operation.
With a transaction closed in September, Apetit Pakaste Oy, a Lännen subsidiary,
sold its jams business (including the Dronningholm brand) to Saarioisten Säilyke
Oy. The transaction generated a taxable sales profit of EUR 2.5 million which
has been recognized in the third-quarter profit of the Frozen Foods Business as
a non-recurring item.
The ownership changes in Avena Nordic Grain Oy put into effect at the start of
the period under review have been covered in the interim report for the first
quarter.
CHANGES IN REPORTING PRACTICES
Starting on 1 January 2008, Lännen Tehtaat revised the way its share of
associated companies' profits is reported. The share of profits of associated
companies in the food business is included in the operating profit, while the
share of other associated companies' profits is shown below the operating
profit. The figures for the comparison year have been adjusted to correspond to
the new practice.
The share of the profits of the associated companies' Sucros Ltd and
Ateriamestarit Oy are included in the operating profits of Other Operations. The
share of the associated company Sandanger AS' profits for the period 1 March and
31 August 2007 is included in the operating profit of the Fish Products Business
during the comparison year.
DISCONTINUED OPERATIONS
Because of the transaction involving the minority holding in Suomen Rehu, Lännen
Tehtaat's share of the profits of the associated company Suomen Rehu is
presented in the profit and loss account of the period under review and the
comparison period under discontinued operations. Profits for discontinued
operations during the period under review also include the profit from the sale
of the minority holding in Suomen Rehu.
The profits generated by discontinued operations during the comparison period
includes the January-May profit of the Suomen Rehu group, profit from the sale
of the majority holding and the 49%-share of Suomen Rehu's profit for
June-September.
NET SALES AND PROFIT
January-September:
The profit for the period amounted to EUR 14.5 (9.4) million and earnings per
share EUR 2.31 (1.51).
Continuing operations
The net sales of continuing operations came to EUR 268.2 (213.1) million, an
increase of 26%.
The operating profit for the period amounted to EUR 10.0 (0.9) million. The
operating profit without non-recurring items was EUR 2.7 (0.3) million.
Non-recurring items totalled EUR 7.3 (0.7) million. Associated companies
accounted for EUR 5.6 (0.8) million of the operating profit including
non-recurring items of EUR 5.0 (0.7) million generated in connection with the EU
sugar reform.
The net financing expenses of continuing operations amounted to EUR 1.6 (0.1)
million. These include the right to a dividend (EUR 0.4 million) of the employee
shareholders of Avena Nordic Grain Oy, which is based on the profits generated
by the Avena Nordic Grain group during the period. Expenses generated by net
interest-bearing liabilities were at the same level as in the comparison period.
Financing items in the comparison period included positive exchange rate
differences and positive effects of interest rate hedges.
The profit before taxes amounted to EUR 8.3 (0.9) million and the profit for the
period was EUR 7.5 (1.0) million.
Discontinued operations
Suomen Rehu was included in discontinued operations during the period under
review and the comparison period. The net sales of discontinued operations in
the comparison period amounted to EUR 78.8 million.
The profit of the discontinued operations amounted to EUR 7.1 (8.4) million. The
figure includes a profit of EUR 6.6 million from the sale of the minority
holding in Suomen Rehu and a share of EUR 0.5 million of the associated company
Suomen Rehu's profit for January-August. The figure for the comparison period
includes the Suomen Rehu Group's profit of EUR 2.3 million for January-May, a
profit of EUR 5.6 million from the sale of the majority shareholding and a share
of EUR 0.5 million of the associated company Suomen Rehu's profits for
June-September.
July-September:
The net sales of the continuing operations totalled EUR 76.3 (73.6) million,
which was 4% higher than in the comparison period. Except for Grain Trading,
there was growth in all business segments.
The operating profit of continuing operations (excluding non-recurring items)
for July-September amounted to EUR 0.3 (0.6) million. Fish Products and
Vegetable Oils posted higher profits than in the comparison period. Frozen Foods
remained at the same level as in the comparison period and Grain Trading and
Other Operations were lower than in the comparison period.
FINANCING AND CASH FLOW
The sale of Suomen Rehu's shares improved the Group's financial position and
liquidity. The cash flow from operations (after interest and taxes) for
January-September amounted to EUR 4.5 (4.6) million. The change in working
capital had an impact of EUR 2.6 (-4.7) million. The net cash flow from
investments totalled EUR 18.7 (18.6) million, while the cash flows from loans
amounted to EUR -15.3 (-21.7) million. A total of EUR 5.3 (5.3) million was paid
in dividends. The cash flows of discontinued operations are included in the cash
flows of the comparison period. The change in cash and cash equivalents amounted
to EUR 1.3 (-3.8) million.
At the end of the period under review, interest-bearing liabilities totalled EUR
17.3 (36.8) million and liquid assets EUR 24.3 (18.7) million. Net
interest-bearing liabilities amounted to EUR -7.0 (18.1) million. The
consolidated balance sheet total stood at EUR 200.7 (204.6) million. The equity
ratio was 67.1 (60.9)%. At the end of the period under review, issued commercial
papers used by the Group for short-term financing amounted to EUR 12.0 (27.0)
million. The counterparty risk in connection with the company's liquid cash and
cash equivalents is considered very low and the company does not see any
material risk materializing in the forthcoming future. The liquidity is secured
with committed credit facilities, and the credit facilities available totalled
EUR 25 (23) million at the end of the period under review.
INVESTMENT
In continuing operations, gross investment in non-current assets during the
period under review amounted to EUR 5.7 (3.5) million. Investment in the Frozen
Foods Business totalled EUR 3.9 (1.6) million, Fish Products Business EUR 1.2
(1.5) million, Vegetable Oils Business EUR 0.1 (0.3) million, Grain Trading EUR
0.1 (0.0) million and Other Operations EUR 0.2 (0.1) million.
PERSONNEL
The average number of personnel in continuing operations during the period under
review totalled 778 (676). The figure for the Frozen Foods Business was 231
(242), Fish Products Business 468 (358), Vegetable Oils Business 35 (36), Grain
Trading 30 (29) and Other Operations 12 (11). The figure for Apetit Suomi Oy is
divided between Frozen Foods and Fish Products in relation to the services
charged. The increase in the number of Fish Products personnel is mainly due to
the acquisition of the Maritim Food Group during the comparison period and the
growth in the number of Kalatori service counter staff. The Kalatori service
counters, which were previously operated on a franchise basis, were converted
into outlets managed by own personnel.
BUSINESS SEGMENTS
Frozen Foods Business
EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2008 2007 2008 2007 2007
Net sales 11.7 11.0 37.7 36.1 49.3
Operating profit
(excluding non-recurring items) 0.9 1.0 1.5 1.8 3.5
Operating profit 3.4 0.8 4.0 1.6 3.3
Net sales of the Frozen Foods Business for July-September were 6% higher than in
the comparison period. Sales increased in all distribution channels, except for
exports. Sales of retail products grew by about 4%, HoReCa sales by 8% and sales
of bakery products by more than 30%. Export sales dropped by almost one third
from the comparison period, when some of the good pea harvest was exported to
Central Europe.
Focusing sales on high-margin products and successful cost control meant that
the drop in the operating profit (excluding non-recurring items) for
July-September was less than forecast.
The process of moving the production of the Turku plant to Säkylä continued
during the period under review. The work on the extension of the production and
packaging facilities and the renovation of the premises formerly used by the
jams business for the use of frozen ready meals moving from Turku have
progressed according to schedule. Following the end of jam production in
September, Lännen Tehtaat started conversion training in which jam-production
staff will be familiarized with frozen food production. Most of the
non-recurring costs of EUR 0.5 million resulting from the move will occur during
the last quarter. The positive effects of the move will be felt from the first
quarter of 2009 onwards.
The purchasing of raw materials from domestic contract farmers was as planned
during the summer and early autumn. Heavy rains that started in October have,
however, made the harvesting of the remaining vegetable crops more difficult and
the final harvest depends on the harvesting and storage conditions during the
next few weeks.
Net sales for January-September increased by 4% and sales were up in all
distribution channels. The strongest-growing Apetit product groups were frozen
berries, and frozen potato and frozen ready-meals. The frozen vegetable and
potato products introduced in the first half of the year did particularly well.
Price increases aimed at compensating for higher raw material, energy and
personnel costs have been implemented as planned during the year in review.
The operating profit for the period under review (excluding non-recurring items)
was somewhat higher than expected and almost at the same level as in the
comparison period.
Investment in the Frozen Foods Business in January-September amounted to EUR 3.9
(1.6) million, comprising the investment at Säkylä made necessary by the move of
production from Turku and the introduction of the enterprise resource planning
system (ERP). It has been decided to postpone the launching of the system to
2009.
Fish Products Business
EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2008 2007 2008 2007 2007
Net sales 21.3 19.8 65.9 56.7 81.7
Operating profit
(excluding non-recurring items) -0.7 -0.8 -1.3 -2.0 -1.5
Operating profit -0.7 -0.8 -1.3 -2.0 -1.7
Net sales of the Fish Products Business in July-September were 8% higher than in
the comparison period. Net sales were up in all market areas, and business
operations in Norway and Sweden accounted for most of the growth.
The Fish Products Business posted a loss even though the performance of the
segment improved slightly. Domestic operations showed better results than in the
comparison period, while there was a slight weakening of the performance of
foreign operations.
The profitability of the domestic operations have been boosted considerably by
improvements in labour and raw-material productivity and more reliable
deliveries. Retailers have continued aggressive marketing of salmon and rainbow
trout fillets. The fact that consumers prefer low-priced salmon and rainbow
trout fillets with low added value has weakened the profitability of
consumer-packaged fillet products and Kalatori service counters.
The profitability of foreign operations has been adversely affected by rising
prices of shellfish raw materials. Because of long contract periods it has
proved impossible to pass the increases to the sale prices. The financial
performance has also been affected by lower labour and raw-material productivity
in the Swedish operations. The responsibilities for production management were
given a clearer definition at the end of the period under review.
In domestic service sales contractual practices will be renewed, the structure
of the sales network will be made more efficient and the product range will be
developed in order to improve profitability. In units outside Finland, measures
aimed at improving productivity and efficiency will continue.
In summer, the EU Council repealed the regulations on anti-dumping duties on
Norwegian-bred salmon and large-size rainbow trout. After the revoking of the
regulations there have been no significant changes in import prices.
Apetit Kala Oy and Saarioinen Oy launched HoReCa-cooperation in early September.
Under the agreement concluded in spring, Saarioinen will sell and market
products made by Apetit Kala and Maritim Food on the Finnish HoReCa market. The
aim is to increase significantly the sales of fish and shellfish products in the
HoReCa sector.
Net sales of the Fish Products Business increased by 16% in January-September,
the growth coming from foreign operations. Maritim Food and Sandanger, which
were incorporated into the Group in March 2007 and early September 2007
respectively, accounted for about EUR 11 million of the growth.
The financial performance for January-September was better than in the
comparison period but the segment nevertheless posted a loss.
Mr. Jarno Järvinen began as managing director of Apetit Kala Oy at the start of
September. Mr. Jan Brevik was appointed managing director of Maritim Food Sweden
AB and he will also continue as managing director of Maritim Food AS.
The investment by the Fish Products Business in January-September totalled EUR
1.2 (1.5) million. Most of the investment in Finland was directed at renewing
Apetit Kala's ERP system. The new system was introduced at the start of October
and the process went smoothly. In the foreign units the focus was on machinery
and equipment that will improve productivity. The most important of these
investments was the packaging line for HoReCa segment started in Sweden.
Vegetable Oils Business
EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2008 2007 2008 2007 2007
Net sales 15.5 10.6 45.6 31.3 46.0
Operating profit
(excluding non-recurring items) -0.1 -0.2 0.1 0.7 0.8
Operating profit -0.1 -0.2 0.1 0.7 0.9
The July-September net sales of the Vegetable Oils Business grew by 46% over the
comparison period. The growth was mainly a result of rapid rises in prices of
oils and crushed rapeseed and soya products. Demand for rapeseed oils remained
good and volumes were higher than in the previous year. The amounts of crushed
rapeseed were at the same level as in the comparison period. Deliveries of soya
oil and crushed soya dropped from the comparison period. Prices for vegetable
oil raw materials were substantially higher than in the comparison period.
Because the autumn started late, the domestic harvest intake in September was
lower than planned.
The financial performance of the segment was slightly better than in the
comparison period, even though it posted a loss. Energy costs were higher than
during the comparison period. Furthermore, because of the low availability of
domestic raw material most of the raw materials used at the end of the
harvesting season had to be imported, and the freight costs of imports had a
negative impact on profitability. Because Mildola's delivery contracts are on a
long-term basis, it was impossible to pass rising costs to the sale prices to
the extent required.
The raw-material market for vegetable oils remains volatile because prices are
not only affected by the harvest outlook and demand in the food industry but
also by the prices of biofuels and crude oil and price speculation. Because of
the downturn in the global economy, there were sharp falls in the prices of raw
materials and end products at the end of the period. Because the products and
raw materials of the Vegetable Oils Business are priced in advance, the falls
will not have any immediate impact on net sales.
Net sales for January-September were 46% higher than in the comparison period.
The growth was the result of increases in raw material and sales prices during
the past year and higher volumes.
The financial performance of the Vegetable Oils Business was weaker than in the
comparison period.
New operating approaches on the end-product and raw-material markets will
improve the profitability of the Vegetable Oils Business.
The area used in Finland for rapeseed cultivation during the current harvesting
season decreased from 90,000 to 65,000 hectares, which means that the proportion
of domestic raw material will also shrink during the season. Increased use of
imported rapeseed will also push up freight costs.
Mr. Erkki Lepistö started as the director responsible for the Vegetable Oils
Business and as managing director of Mildola Oy at the beginning of July.
The investment of EUR 0.1 (0.3) million in the Vegetable Oils Business was in
small-scale replacements.
Grain Trading
EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2008 2007 2008 2007 2007
Net sales 27.8 32.1 119.5 89.3 132.8
Operating profit
(excluding non-recurring items) 0.7 0.9 4.6 2.6 3.9
Operating profit 0.7 0.9 4.6 2.6 3.9
Net sales of Grain Trading went down by 13% during the third quarter from the
comparison period. The drop was due to the fact that prices and volumes were
lower than in the comparison period. The volume of domestic sales was higher and
that of exports and trade between third countries lower than in the comparison
period.
Trading in grain was at normal levels during the harvesting season. A sharp fall
in prices after the harvesting season has made EU farmers reluctant to sell any
grain. End users in the EU and elsewhere have met most of their short-term needs
well, and in a situation characterized by good harvests and falling prices, they
make new purchasing decisions on a short-term basis. This has resulted in a
substantial drop in grain trading activity during the third quarter.
The operating profit for July-September was slightly lower than in the
comparison period.
Net sales grew by 34% in the period January-September. The operating profit for
the period was, as a result of good performance during the first half of the
year 2008, substantially higher than in the comparison period.
Encouraged by high prices during the last harvesting season, farmers in all
important production areas of the world increased areas under cultivation. The
weather was favourable and the harvests were good. The EU grain harvest was 307
(254) million tonnes and that of Ukraine and Russia 45 (29) million tonnes and
more than 100 (82) million tonnes respectively. The Finnish grain harvest was
also better and of higher quality than expected. Prices have declined
substantially since spring, a result of plentiful global supply and withdrawal
of large funds from commodity exchanges. Prices during the ongoing harvesting
season will be affected by such factors as autumn sowing decisions by farmers
and the size of the areas under sowing.
Investment in Grain Trading, amounting to EUR 0.1 (0.0) million, was directed at
the new ERP system.
Other Operations
EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2008 2007 2008 2007 2007
Net sales 0.5 1.0 1.8 2.9 4.4
Operating profit
(excluding non-recurring items) -0.6 -0.3 -2.4 -2.9 -1.8
Operating profit -0.6 0.4 2.6 -2.1 -0.9
The Other Operations segment is made up of the service company Apetit Suomi Oy,
Group administration, various items that do not come under any particular
segment and the associated companies Sucros Ltd and Ateriamestarit Oy. The cost
effect of the services produced by Apetit Suomi Oy is an encumbrance on the
financial performance of the business units in proportion to the use of the
services.
The decline in the net sales of the segment in July-September is the result of
the end of sales and product development service obligations as these operations
were transferred from Apetit Suomi Oy to individual business units. The
operating profit of EUR -0.6 (-0.3) for the period (excluding non-recurring
items) includes EUR 0.2 (0.3) million as the share of associated companies'
profits.
The operating profit of EUR 2.6 (-2.1) million for January-September includes a
share of EUR 5.6 (0.7) million of associated companies' profits.
Investment in the segment totalled EUR 0.2 (0.1) million. The most important
investment was directed at renewing ERP and reporting systems and at
environmental management at the Säkylä industrial estate. The new ERP system was
introduced at the parent company and Apetit Suomi Oy at the start of September.
The process went smoothly.
DECISONS OF THE ANNUAL GENERAL MEETING
The Annual General Meeting of Lännen Tehtaat plc was held on 2 April 2008. The
Meeting approved the financial statements of the parent company and the Group
and discharged the members of the Board of Directors and the Supervisory Board
and the CEO from liability for the 2007 financial year.
Distribution of dividends
The Annual General Meeting decided that a dividend of EUR 0.85 per share would
be paid from the profit for the 2007 financial year. It was decided that the
dividend would be paid on 15 April 2008.
Changes in the Articles of Association
The Annual General Meeting approved the Board of Directors proposal about
raising the maximum age at which a person can be elected to the Board of
Directors and the Supervisory Board.
AUTHORIZATIONS OF THE ANNUAL GENERAL MEETING
Authorization to purchase own shares
The Annual General Meeting authorized the Board of Directors to decide on the
acquisition of a maximum total of 250,878 of Lännen Tehtaat's own shares using
the company's untied equity.
The authorization will be valid until the next Annual General Meeting.
Authorization to issue shares
The Annual General Meeting authorized the Board to decide on a new share issue
and to sell the company's own shares held by the company either together or in
several lots. The maximum number of new shares that can be issued is 947,635.
The authorization covers the 65,000 Lännen Tehtaat shares held by the company at
the time of the authorization and the maximum of 250,878 shares to be purchased
under the authorization of 2 April 2008.
The authorization will be in force until the next Annual General Meeting. It
revokes the share issue authorization granted on 29 March 2007 and the
authorization to transfer the company's own shares granted on the same date.
More detailed information on the decisions of the Annual General Meeting is
contained in the stock exchange release of 2 April 2008 and the interim report
published on 8 May 2008.
USE OF THE AUTHORIZATION
Share issue authorizations
The Board has not, as yet, exercised the share issue authorization or the
authorization to transfer company's own shares granted by the Annual General
Meeting.
Purchase of own shares
The purchasing of the company's own shares, which began during the second
quarter, continued in July-August. Under the authorization granted by the Annual
General Meeting, a total of 65,000 company's own shares were purchased in the
trading organized by NASDAQ OMX Helsinki Ltd. A total of EUR 1.0 million was
spent on the purchases and the average price for the shares was EUR 15.25 per
share. The highest price was EUR 15.89 and the lowest price EUR 14.35.
At the end of the period under review, the company had a total of 130,000 own
shares, which have been purchased during and before the period under review.
Their nominal value is EUR 0.26 million and they represent 2.1% of the shares
and votes of the company.
SALE OF SHARES ON THE JOINT BOOK-ENTRY ACCOUNT
The Annual General Meeting of Lännen Tehtaat plc held on 29 March 2007 decided
on the sale of the company's shares kept on the joint book-entry account that
have not been transferred to the book-entry system. The sale is in accordance
with chapter 3a, section 3a of the Companies Act (734/1978) and section 8 of the
Implementing Act of the new Companies Act (624/2006) and will be on behalf of
the owners of the shares.
Trading started in September and the shares to be traded are those kept on
Lännen Tehtaat plc's joint book-entry account. They total 52,115 and represent
about 0.8% of Lännen Tehtaat plc's shares and votes.
SHARES AND TRADING
During the period under review, 900,875 (739,417) of the company's shares were
traded on the stock exchange, which was 14.3 (11.7) % of Lännen Tehtaat's share
stock. The highest share price was EUR 17.00 (24.50) and the lowest EUR 13.20
(17.65). Share trading during the period totalled EUR 13.1 (16.2) million. At
the end of the period, the market value of the share stock was EUR 97.6 (114.3)
million.
FLAGGING ANNOUNCEMENTS
No flagging announcements were made in the period under review.
GOVERNANCE
The Supervisory Board of Lännen Tehtaat plc elected in its constituent meeting
on 7 April 2008 Helena Walldén as Chairwoman and Juha Nevavuori as Deputy
Chairman of the Supervisory Board.
The Board of Directors elected by the Supervisory Board on 7 April 2008 has the
following members: Harri Eela, Heikki Halkilahti, Aappo Kontu, Matti
Lappalainen, Hannu Simula, Soili Suonoja and Tom v. Weymarn. Tom v. Weymarn will
act as the Chairman and Hannu Simula as the Deputy Chairman of the Board of
Directors.
SEASONAL NATURE 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, which means that the
inventory volumes and their balance-sheet values peak at the end of the year.
Since the recognition 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.
Apetit Kala's sales peak during weekends and seasonal holidays. A large
proportion of the profits of the Fish Products Business accumulate during
Christmas sales.
The net sales of Grain Trading vary both annually and quarterly, depending on
supply and demand and on prices in Finland and on other markets.
SHORT-TERM RISKS AND UNCERTAINTIES
The major risks for the Lännen Tehtaat Group are connected with the volume and
quality of the domestic harvest, control of fluctuations in raw-material prices,
changes in customerships, transfer of production from the Turku plant,
introduction of the ERP systems, corporate acquisitions and takeovers.
IMPORTANT OCCURRENCES AFTER THE END OF THE PERIOD UNDER REVIEW
Suomen Sokeri Oy, a subsidiary of Lännen Tehtaat plc's associated company Sucros
Ltd, has sold its beta-amylase enzyme business to Genencor International Oy. The
transaction, which includes the production facility and industrial property in
Jokioinen, was concluded at the end of October.
Following the transaction, Lännen Tehtaat will recognize a non-recurring profit
of approximately EUR 2 million as the share of associated companies's profits
for the final quarter.
OUTLOOK FOR 2008
Net sales of continuing operations are expected to rise above 2007 levels
because of the growth in Grain Trading, Vegetable Oils and Fish Products.
A good performance by Grain Trading and improved profitability in the Fish
Products Business are expected to push the operating profit of the continuing
operations (excluding non-recurring items) above the figures of the comparison
year.
Contrary to previous forecasts, the Fish Products Business is expected to remain
in loss in 2008, but still improve from the comparative year. The operating
profit of the Vegetable Oils Business is expected to be positive but lower than
in 2007.
The profit for the financial year will be substantially higher than in the
comparison period, a result of improvements in the operating performance of the
continuing operations, the positive non-recurring items of the associated
company Sucros Ltd, the profit from the sale of the jams business and the profit
resulting from the sale of the minority holding in Suomen Rehu.
CONSOLIDATED INCOME STATEMENT
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2008 2007 2008 2007 2007
3 mths 3 mths 9 mths 9 mths 12 mths
Continuing operations
Net sales 76.3 73.6 268.2 213.1 309.6
Other operating income 2.8 0.3 3.5 0.9 1.4
Operating expenses -75.4 -72.3 -263.5 -210.1 -302.3
Depreciation -1.2 -1.3 -3.8 -3.6 -5.0
Impairments - -0.2 - -0.2 -0.5
Share of profit/loss of
accociated companies 0.2 1.1 5.6 0.8 2.1
Operating profit 2.7 1.2 10.0 0.9 5.3
Financial income and expenses -0.5 0.0 -1.6 -0.1 -0.8
Profit before taxes 2.2 1.1 8.3 0.9 4.6
Income taxes -0.6 0.0 -0.8 0.1 -0.4
Profit for the period,
continuing operations 1.6 1.2 7.5 1.0 4.2
Discontinued operations
Profit for the period,
discontinued operations 6.6 1.9 7.1 8.4 9.2
Profit for the period 8.3 3.1 14.5 9.4 13.4
Attributable to:
Equity holders of the parent 8.3 3.1 14.4 9.4 13.3
Minority interests 0.0 0.0 0.1 0.0 0.1
Earnings per share, calculated of
the profit attributable to the
shareholders of the parent company
Basic and diluted earnings per
share, EUR, total 1.33 0.49 2.31 1.51 2.13
Basic and diluted earnings per
share, EUR, continuing operations 0.26 0.18 1.18 0.16 0.66
Basic and diluted earnings per
share, EUR, discontinued operations 1.07 0.31 1.13 1.35 1.48
CONSOLIDATED BALANCE SHEET
EUR million
30 Sep 30 Sep 31 Dec
2008 2007 2007
ASSETS
Non-current assets
Intangible assets 5.6 3.6 4.7
Goodwill 6.8 7.5 7.0
Tangible assets 43.6 42.5 43.5
Investment in associated companies 21.5 37.0 39.2
Available-for-sale investments 0.1 0.1 0.1
Receivables 3.3 4.5 4.6
Deferred tax assets 1.7 1.4 0.3
Non-current assets total 82.8 96.4 99.4
Current assets
Inventories 60.1 58.4 64.4
Receivables 33.4 30.3 28.6
Income tax receivable 0.1 0.9 0.4
Financial assets at fair value
through profit and loss 18.0 15.0 8.1
Cash and cash equivalents 6.3 3.7 5.1
Current assets total 117.9 108.2 106.6
Total assets 200.7 204.6 205.9
EQUITY AND LIABILITIES
Equity attributable to the equity
holders of the parent company 134.0 123.9 127.3
Minority interest 0.6 0.8 0.7
Total equity 134.6 124.6 128.0
Non-current liabilities
Deferred tax liabilities 4.2 4.5 4.8
Long-term financial liabilities 4.9 6.0 5.3
Non-current provisions 0.1 0.1 0.1
Non-current liabilities total 9.2 10.6 10.2
Current liabilities
Short-term financial liabilities 12.5 30.9 28.2
Income tax payable 1.8 1.5 0.7
Trade payables and other liabilities 42.6 37.0 38.7
Current liabilities total 56.9 69.4 67.6
Total liabilities 66.1 80.0 77.9
Total equity and liabilities 200.7 204.6 205.9
CONSOLIDATED CASH FLOW STATEMENT
EUR million
1-9/ 1-9/ 1-12/
2008 2007 2007
9 mths 9 mths 12 mths
Net profit for the period 14.5 9.4 13.4
Adjustments, total -9.9 1.4 -1.5
Change in net working capital 2.6 -4.7 -3.3
Interests paid from
operating activities -1.8 -2.2 -2.8
Interests received from
operating activities 0.5 0.9 0.7
Taxes paid -1.3 -0.3 -1.2
Net cash flow from operating activities 4.5 4.6 5.3
Investments in tangible and intangible assets -5.7 -4.1 -7.6
Proceeds from sales of tangible
and intangible assets 3.0 0.1 0.2
Acquisition of subsidiaries deducted by cash -0.4 -9.9 -9.9
Proceeds from sales of subsidiaries - 41.7 42.0
Transactions with minority 1.5 - -
Acquisition of associated companies -0.4 - -
Proceeds from sales of associated companies 27.0 0.6 0.6
Purchases of other investments -14.0 -35.0 -35.1
Proceeds from sales of other investments 4.1 20.0 27.0
Dividends received from investing activities 3.6 5.3 5.3
Net cash flow from investing activities 18.7 18.6 22.5
Repayments of short-term loans -14.7 -14.4 -16.7
Repayments of long-term loans -0.5 -7.3 -8.1
Payment of financial lease liabilities -0.1 -0.1 -0.1
Purchases of own shares -1.0 - -
Dividends paid to minority -0.3 - -
Dividends paid -5.3 -5.3 -5.3
Cash flows from financing activities -21.9 -27.0 -30.2
Net change in cash and cash equivalents 1.3 -3.8 -2.4
Cash and cash equivalents at the
beginning of the the period 5.1 7.5 7.5
Cash and cash equivalents at the
end of the period 6.3 3.7 5.1
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
I = Minority interest
J = Shareholders' equity total
A B C D E F G H I J
Shareholders'
equity at
1 Jan 2007 12.6 23.4 0.4 7.3 -0.8 -0.2 76.5 119.2 0.0 119.2
Cash flow hedges:
gains/losses
recorded in equity - - 0.0 - - - - 0.0 - 0.0
Taxes related to
items entered into
equity and removed
from equity - - 0.0 - - - - 0.0 - 0.0
Increase/decrease
in subsidiary - - - - - 0.2 - 0.2 0.8 1.0
Translation
differences - - - - - 0.5 - 0.5 - 0.5
Other changes - - - -0.1 - - -0.1 -0.2 - -0.2
Profit for the period - - - - - - 9.4 9.4 - 9.4
Total recognized
income and
expenses - - 0.0 -0.1 - 0.7 9.3 9.9 0.8 10.7
Dividend
distribution - - - - - - -5.3 -5.3 - -5.3
Shareholders'
equity at
30 Sep 2007 12.6 23.4 0.4 7.2 -0.8 0.5 80.5 123.8 0.8 124.6
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
Cash flow hedges:
gains recorded
in equity - - -1.4 - - - - -1.4 - -1.4
Taxes related to
items entered into
equity and removed
from equity - - 0.4 - - - - 0,4 - 0,4
Increase/decrease
in subsidiary - - - - - - 0.4 0.4 - 0.4
Translation
differences - - - - - -0.5 - -0.5 - -0.5
Other changes - - - - - - -0.4 -0.4 - -0.4
Profit for the
period - - - - - - 14.5 14.5 0.1 14.6
Total recognized
income and
expenses - - -1.1 - - -0.5 14.5 12.9 0.1 13.1
Purchase of own
shares - - - - -1.0 - - -1.0 - -1.0
Dividend
distribution - - - - - - -5.3 -5.3 -0.3 -5.6
Shareholders'
equity at
30 Sep 2008 12.6 23.4 -0.7 7.2 -1.8 -0.4 93.7 134.0 0.6 134.6
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 2007. In addition, the IFRIC has published IFRIC 15,
'Agreements for the Construction of Real Estate' and IFRIC 16, 'Hedges of a Net
Investment in a Foreign Operation'. These interpretations do not have material
effect to the Lännen Tehtaat's financial statements.
SEGMENT INFORMATION
A Frozen Foods
B Fish
C Vegetable Oils
D Grain Trading
E Other Operations
F Continuing operations total
G Discontinued operations
H Total
Business segments 1-9/2008
EUR million A B C D E F G H
Total external sales 37.7 65.9 45.6 119.5 1.8 270.5 - 270.5
Intra-group sales -0.1 -0.1 0.0 -0.7 -1.5 -2.3 - -2.3
Net sales 37.6 65.8 45.6 118.8 0.3 268.2 - 268.2
Share of profit/loss
of associated companies
included in operating
profit/loss - - - - 5.6 5.6 - 5.6
Operating profit/loss 4.0 -1.3 0.1 4.6 2.6 10.0 6.6 16.6
Share of profit/loss
of associated companies - - - - - - 0.5 0.5
Gross investments in
non-current assets 3.9 1.2 0.1 0.1 0.2 5.7 - 5.7
Corporate acquisitions
and other share
purchases - - - 0.4 - 0.4 - 0.4
Depreciations 1.0 1.7 0.5 0.0 0.6 3.8 - 3.8
Impairments - - - - - - - -
Personnel 231 468 35 30 12 778 - 778
Business segments 1-9/2007
EUR million A B C D E F G H
Total external sales 36.1 56.7 31.3 89.3 2.9 216.3 78.8 295.1
Intra-group sales -0.1 -0.1 0.0 -0.7 -2.4 -3.2 -11.6 -14.8
Net sales 36.0 56.6 31.3 88.6 0.5 213.1 67.2 280.3
Share of profit/loss
of associated companies
included in operating
profit/loss - 0.1 - - 0.7 0.8 - 0.8
Operating profit/loss 1.6 -2.0 0.7 2.6 -2.1 0.9 9.2 10.1
Share of profit/loss of
associated companies - - - - - - 0.6 0.6
Gross investments in
non-current assets 1.6 1.5 0.3 - 0.1 3.5 0.6 4.1
Corporate acquisitions
and other share
purchases - 11.3 - - - 11.3 - 11.3
Depreciations 1.3 0.9 0.5 0.1 0.7 3.6 0.2 3.8
Impairments 0.2 - - - - 0.2 - 0.2
Personnel 242 358 36 29 11 676 164 840
Business segments 1-12/2007
EUR million A B C D E F G H
Total external sales 49.3 81.7 46.0 132.8 4.4 314.2 78.8 393.0
Intra-group sales -0.1 -0.1 0.0 -1.2 -3.2 -4.6 -11.6 -16.2
Net sales 49.2 81.6 46.0 131.6 1.2 309.6 67.2 376.8
Share of profit/loss
of associated companies
included in operating
profit/loss - 0.1 - - 2.1 2.1 - 2.1
Operating profit/loss 3.3 -1.7 0.9 3.9 -0.9 5.3 9.1 14.5
Share of profit/loss of
associated companies - - - - - - 1.5 1.5
Gross investments in
non-current assets 1.6 4.1 0.4 - 0.8 6.9 0.6 7.5
Corporate acquisitions
and other share
purchases - 11.6 - - - 11.6 - 11.6
Depreciations 1.7 1.6 0.6 0.1 1.0 5.0 0.2 5.2
Impairments 0.2 0.3 - - - 0.5 - 0.5
Personnel 248 379 36 29 11 705 123 827
Geographical Segments
Net sales
EUR million
1-9/ 1-9/ 1-12/
2008 2007 2007
9 mths 9 mths 12 mths
Finland 155.1 134.6 189.2
Scandinavia 53.5 29.4 45.8
Baltic states and Russia 4.1 7.3 10.0
Other countries 55.5 41.8 64.6
Continuing operations total 268.2 213.1 309.6
Discontinued operations - 67.2 67.2
Total 268.2 280.3 376.8
DISCONTINUED OPERATIONS
The sale of the majority holding in Suomen Rehu Ltd was completed at the start
of June 2007, when Suomen Rehu and its subsidiaries were transferred to
Hankkija-Maatalous Oy. In 2007 the net profit from discontinued operations
includes a sale profit related to the sold 51% share ownerhip totalling EUR 5.6
million. Lännen Tehtaat plc and SOK subsidiary Hankkija-Maatalous Oy signed an
agreement on 1 September 2008, transferring the remaining shares owned by Lännen
Tehtaat in Suomen Rehu Ltd to Hankkija-Maatalous Oy. The transaction price for
the 49% shareholding was some EUR 27 million. Lännen Tehtaat recognized a
non-recurring tax-free profit of approximately EUR 6.6 million for the sale of
these minority shares in its financial performance for the third quarter.
Because to the transaction, the profit of the associated company Suomen Rehu Ltd
is presented differently in the consolidated income statement. Previously shown
beneath the operating profit, the share of profit of associated company Ruomen
Rehu for a the period 1 January - 31 August 2008 will be presented under
discontinued operations. The information for the comparative year for the period
subsequent to the sale of the majority shareholding, 1 June - 31 December 2007
will be adjusted accordingly.
KEY INDICATORS
30 Sep 30 Sep 31 Dec
2008 2007 2007
Shareholders' equity per share, EUR 21.65 19.81 20.36
Equity ratio, % 67.1 60.9 62.1
Gearing, % -5.2 14.3 16.0
Gross investments in non-current
assets, EUR million,
continuing operations 5.7 3.5 6.9
Corporate acquisitions and other
share purchases, EUR million,
continuing operations 0.4 11.3 11.6
Average number of personnel,
continuing operations 778 676 705
Average number of shares, 1 000 pcs 6 232 6 253 6 253
The key figures in this interim financial report are calculated with same
accounting principles than presented in year 2007 annual financial statements.
CONTINGENT LIABILITIES
EUR million
30 Sep 30 Sep 31 Dec
2008 2007 2007
Mortgages given for debts
Real estate mortgages 8.9 33.4 7.3
Corporate mortgages 1.3 31.4 1.3
Shares pledged - 9.4 -
Other quarantees 4.9 - 7.7
Guarantees 4.9 0.0 5.1
Additional purchase price, estimate - 0.0-1.3 -
Non-cancellable other leases,
minimum lease payments
Real estate leases 4.2 5.6 5.3
Other leases 0.8 0.8 0.8
DERIVATIVE INSTRUMENTS
Outstanding nominal values of
derivative instruments
Forward currency contracts 0.1 4.4 5.0
Commodity derivative instruments 13.8 6.4 2.6
Interest rate swaps - 25.0 25.0
INVESTMENT COMMITMENTS
Lännen Tehtaat had investment commitments in Frozen Foods segment a total of EUR
2.0 million as of 30 September 2008.
CHANGES IN TANGIBLE ASSETS
EUR million
1-9/ 1-9/ 1-12/
2008 2007 2007
9 mths 9 mths 12 mths
Book value at the beginning of the period 43.5 67.4 67.4
Acquisitions 4.1 3.7 6.5
Acquisitions of operations - 7.5 7.6
Disposals -0.2 0.0 -0.2
Disposals of operations - -32.6 -32.6
Depreciations and impairments -3.5 -3.6 -5.1
Other changes -0.2 0.1 -0.1
Book value at the end of the period 43.6 42.5 43.5
TRANSACTIONS WITH ASSOCIATED COMPANIES AND JOINT VENTURES
EUR million
1-9/ 1-9/ 1-12/
2008 2007 2007
9 mths 9 mths 12 mths
Sales to associated companies 12.8 9.6 14.3
Sales to joint ventures 5.6 6.2 8.1
Purchase from associated companies 0.7 7.1 12.0
Purchase from joint ventures 0.2 0.1 0.1
Long-term receivebles from associated
companies 2.6 3.9 3.9
Trade receivables and other
receivables from associated companies 1.5 2.8 3.1
Trade receivables and other
receivables from joint ventures 1.0 1.1 0.8
Trade payables and other liabilities
to associated companies 0.0 0.6 0.0
The sale of goods and services to the associated companies and joint ventures
are based on valid price catalogues of the Group.
LÄNNEN TEHTAAT PLC
Board of Directors
Further information: CEO Matti Karppinen, tel. +358 10 402 4001
Distribution:
NASDAQ OMX Helsinki Ltd
Principal media
www.lannen.fi
|
| 30.09.2008 |
ENTRY OF NON-RECURRING PROFIT FROM ASSOCIATED COMPANY DELAYED UNTIL FOURTH QUARTER
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 30 September, 2008 at 9;30 a.m.
ENTRY OF NON-RECURRING PROFIT FROM ASSOCIATED COMPANY DELAYED UNTIL FOURTH
QUARTER
On 5 September 2008, Lännen Tehtaat issued a stock exchange release announcing
that Suomen Sokeri Oy, a subsidiary of Lännen Tehtaat plc's associated company
Sucros Ltd, has agreed to sell its beta-amylase enzyme business to Genencor
International Oy. The parties have now postponed the date on which the
transaction will take effect, announcing that it will be during the fourth
quarter. Consequently, Lännen Tehtaat will recognize a non-recurring profit of
approximately EUR 2 million under proceeds from associated companies for the
fourth quarter.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More information: CEO Matti Karppinen, tel. +358 (0)10 402 4001
Distribution:
OMX Nordic Exchange Helsinki
Principal media
www.lannen.fi
|
| 05.09.2008 |
SIGNIFICANT NON-RECURRING PROFIT FROM ASSOCIATED COMPANY IN THIRD QUARTER
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 5 September, 2008 at 1;30 p.m.
SIGNIFICANT NON-RECURRING PROFIT FROM ASSOCIATED COMPANY IN THIRD QUARTER
Suomen Sokeri Oy, a subsidiary of Lännen Tehtaat plc's associated company Sucros
Ltd, has agreed on the sale of its beta-amylase enzyme business to Genencor
International Oy. The transaction, which includes the production facility and
industrial property in Jokioinen, will be concluded at the end of September.
Following this transaction, Lännen Tehtaat will recognize a non-recurring profit
of approximately EUR 2 million under proceeds from associated companies in its
financial result for the third quarter.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More information: CEO Matti Karppinen, tel. +358 (0)10 402 4001
Distribution:
OMX Nordic Exchange Helsinki
Principal media
www.lannen.fi
|
| 01.09.2008 |
LÄNNEN TEHTAAT SOLD ITS REMAINING HOLDING IN SUOMEN REHU TO HANKKIJA-MAATALOUS
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 1 September, 2008 at 9;15 a.m.
LÄNNEN TEHTAAT SOLD ITS REMAINING HOLDING IN SUOMEN REHU TO HANKKIJA-MAATALOUS
OY
Lännen Tehtaat plc and SOK subsidiary Hankkija-Maatalous Oy signed an agreement
today, transferring the remaining shares owned by Lännen Tehtaat in Suomen Rehu
Ltd to Hankkija-Maatalous Oy. The transaction price for the 49% shareholding was
some EUR 27 million. Lännen Tehtaat will record a non-recurring tax-free profit
of approximately EUR 6.5 million for the sale of these minority shares in its
financial performance for the third quarter.
Lännen Tehtaat plc has selected food as its core business, the aim being to
double the core business's net sales in three years. The current transaction is
a continuation of the sale of the majority of shares in Suomen Rehu, which was
carried out in June 2007, when Suomen Rehu and its subsidiaries were transferred
to the Hankkija-Maatalous Group. With today's transaction Lännen Tehtaat has
withdrawn from the feed business completely, in line with its strategy.
The profit arising on the transaction will be reported in the income statement
under discontinued operations. Because of the transaction, the profit of the
associated company Suomen Rehu will be presented differently in the consolidated
income statement. Previously shown beneath the operating profit, the share of
profit of associated company Suomen Rehu for the period 1 January - 31 August
2008 will be presented under discontinued operations. The information for the
comparative year for the period subsequent to the sale of the majority
shareholding, 1 June - 31 December 2007, will be adjusted accordingly.
Lännen Tehtaat is a food company whose continuing operations are the Frozen
Foods, Fish, Vegetable Oils and Grain Trading and Other Operations. In addition
to activities common to the Group and items unallocated to a particular segment,
the Group's Other Operations comprise a 20% holding in Sucros Oy, which is
engaged in sugar refining and trading, and a 50% holding in Ateriamestarit Oy,
which sells and markets products for the hotel, catering and restaurant
business. The Group's most important brands in Finland are Apetit, Avenakauppa
and Neito, and in Norway and Sweden Maritim, Fader Martin and Sunnmöre.
The net sales of the Group's continuing operations in 2007 amounted to about EUR
310 million, and the profit was EUR 13.4 million. The Group employed an average
of 705 people.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More information: CEO Matti Karppinen, tel. +358 (0)10 402 4001
Distribution:
OMX Nordic Exchange Helsinki
Principal media
www.lannen.fi
|
| 21.08.2008 |
JARNO JÄRVINEN APPOINTED MANAGING DIRECTOR OF APETIT KALA OY
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE 21 August 2008 1:00 pm
JARNO JÄRVINEN APPOINTED MANAGING DIRECTOR OF APETIT KALA OY
Jarno Järvinen, age 49, is to be the Managing Director of Apetit Kala Oy as of 1
September 2008.
Järvinen has considerable experience of the retail trade and the food industry.
Within the Lännen Tehtaat Group he has occupied managerial positions in frozen
food and fish sales and in marketing since 1996. From 1995 until 2004 he was
also Managing Director of Tresko Fish Oy and responsible for Lännen Tehtaat's
fish business.
Järvinen will report to Sami Haapasalmi, head of Lännen Tehtaat's Fish business.
The drive to improve internal efficiency and to develop core processes at Apetit
Kala, begun last autumn, has proceeded as planned. Labour and raw material
productivity have improved, and the targets for delivery reliability in Apetit
Kala's production have been achieved. In the future, the focus will be on
further developing the customer and consumer-orientation of the operations,
expanding the fish product business and improving profitability.
Apetit Kala Oy is a subsidiary of Lännen Tehtaat plc. It produces, markets and
sells processed fish products under both the Apetit brand and private labels,
and sells fresh fish, fish products and other fresh products at its Kalatori
service counters. Apetit Kala's operations are based at Kuopio and Kerava. In
2007, its net sales amounted to approximately EUR 56 million, and the company
employed an average of 290 people.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More information: CEO Matti Karppinen, tel. +358 (0)10 402 4001
Distribution:
OMX Nordic Exchange Helsinki
Principal media
www.lannen.fi
|
| 20.08.2008 |
ACQUISITIONS OF OWN SHARES
Lännen Tehtaat Plc
STOCK EXCHANGE ANNOUNCEMENT
20 August 2008
ACQUISITIONS OF OWN SHARES
Date: 20.08.08
Exchange transaction: Buy
Share class: LTE1S
Amount: 939
Average price /share: 15.52690 EUR
Highest price /share: 15.53 EUR
Lowest price /share: 15.52 EUR
Total price: 14579.76 EUR
The shares held by Lännen Tehtaat Plc on 20 August 2008
LTE1S 130000
LÄNNEN TEHTAAT PLC
On behalf of Lännen Tehtaat Plc
Teemu Koivisto
EVLI BANK PLC
|
| 19.08.2008 |
ACQUISITIONS OF OWN SHARES
Lännen Tehtaat Plc
STOCK EXCHANGE ANNOUNCEMENT
19 August 2008
ACQUISITIONS OF OWN SHARES
Date: 19.08.08
Exchange transaction: Buy
Share class: LTE1S
Amount: 1000
Average price /share: 15.69600 EUR
Highest price /share: 15.70 EUR
Lowest price /share: 15.60 EUR
Total price: 15696.00 EUR
The shares held by Lännen Tehtaat Plc on 19 August 2008
LTE1S 129061
LÄNNEN TEHTAAT PLC
On behalf of Lännen Tehtaat Plc
Teemu Koivisto
EVLI BANK PLC
|
| 18.08.2008 |
ACQUISITIONS OF OWN SHARES
Lännen Tehtaat Plc
STOCK EXCHANGE ANNOUNCEMENT
18 August 2008
ACQUISITIONS OF OWN SHARES
Date: 18.08.08
Exchange transaction: Buy
Share class: LTE1S
Amount: 1000
Average price /share: 15.67339 EUR
Highest price /share: 15.73 EUR
Lowest price /share: 15.50 EUR
Total price: 15673.39 EUR
The shares held by Lännen Tehtaat Plc on 18 August 2008
LTE1S 128061
LÄNNEN TEHTAAT PLC
On behalf of Lännen Tehtaat Plc
Teemu Koivisto
EVLI BANK PLC
|
| 15.08.2008 |
ACQUISITIONS OF OWN SHARES
Lännen Tehtaat Plc
STOCK EXCHANGE ANNOUNCEMENT
15 August 2008
ACQUISITIONS OF OWN SHARES
Date: 15.08.08
Exchange transaction: Buy
Share class: LTE1S
Amount: 1044
Average price /share: 15.59368 EUR
Highest price /share: 15.60 EUR
Lowest price /share: 15.40 EUR
Total price: 16279.80 EUR
The shares held by Lännen Tehtaat Plc on 15 August 2008
LTE1S 127061
LÄNNEN TEHTAAT PLC
On behalf of Lännen Tehtaat Plc
Teemu Koivisto
EVLI BANK PLC
|
| 14.08.2008 |
ACQUISITIONS OF OWN SHARES
Lännen Tehtaat Plc
STOCK EXCHANGE ANNOUNCEMENT
14 August 2008
ACQUISITIONS OF OWN SHARES
Date: 14.08.08
Exchange transaction: Buy
Share class: LTE1S
Amount: 1260
Average price /share: 15.60517 EUR
Highest price /share: 15.61 EUR
Lowest price /share: 15.59 EUR
Total price: 19662.51 EUR
The shares held by Lännen Tehtaat Plc on 14 August 2008
LTE1S 126017
LÄNNEN TEHTAAT PLC
On behalf of Lännen Tehtaat Plc
Teemu Koivisto
EVLI BANK PLC
|
| 13.08.2008 |
Changes in company's own shares
Lännen Tehtaat Plc
STOCK EXCHANGE ANNOUNCEMENT
13 August 2008
ACQUISITIONS OF OWN SHARES
Date: 13.8.2008
Exchange transaction: Buy
Share class: LTE1S
Amount: 1100
Average price /share: 15,64818 EUR
Highest price /share: 15,69 EUR
Lowest price /share: 15,60 EUR
Total price: 17213,00 EUR
The shares held by Lännen Tehtaat Plc on 13 August 2008
LTE1S 124757
LÄNNEN TEHTAAT PLC
On behalf of Lännen Tehtaat Plc
Jaakko Salomaa
EVLI BANK PLC
|
