2011-08-11 07:30:00 CEST
2011-08-11 07:30:08 CEST
REGULATED INFORMATION
Lännen Tehtaat - Interim report (Q1 and Q3)
INTERIM REPORT, 1 JANUARY - 30 JUNE 2011
LÄNNEN TEHTAAT PLC Interim Report 11 August 2011, 8.30 am
April-June:
- Consolidated net sales amounted to EUR 93.5 (80.0) million, up by 17%
- Operating profit, excluding non-recurring items, was EUR 2.1 (1.0) million
- EUR 1.7 million in non-recurring expenses related to cost-efficiency
improvement measures in the Seafood business were recognised for the second
quarter
- Net sales in the Grains and Oilseeds business and in the Seafood business
grew substantially
- The second-quarter profit for the Grains and Oilseeds business was excellent
January-June:
- Consolidated net sales amounted to EUR 177.5 (154.9) million, up by 15%
- Operating profit, excluding non-recurring items, was EUR 3.0 (1.9) million;
non-recurring items totalled EUR -1.7 (0.0) million
The assessment of profit performance for the full year is unchanged.
The information in this Interim Report has not been audited.
Matti Karppinen, CEO:
“The Group's business and profitability improved as forecast. Due to the best
quarterly result in the history of the Grains and Oilseeds business and the
improved performance of the Seafood business, the second-quarter operating
profit, excluding non-recurring items, was better than the same quarter a year
ago and better than the first quarter of this year, as had been expected.
Consolidated net sales were up 17% year on year. Net sales increased
substantially not only in the Grains and Oilseeds business, but also in the
Seafood business.
As a result of the decisions made in April to improve the efficiency of the
Seafood business in Finland and Norway, non-recurring expenses of EUR 1.7
million were recognised in the second-quarter profit. The efficiency
improvement measures aim at an annual profit increase of approximately EUR 1.4
million starting from the third quarter.
By improving our efficiency and concentrating our operations, and by
strengthening our position in the fresh fish trade in Finland and carrying out
essential price rises, we believe we will make our Seafood business
profitable.”
KEY FIGURES
EUR million Q2 Q2 Q1-Q2 Q1-Q2
Q1-Q4
2011 2010 2011 2010
2010
Net sales 93.5 80.0 177.5 154.9
308.7
Operating profit, excluding non-recurring items 2.1 1.0 3.0 1.9
8.3
Operating profit 0.4 1.0 1.3 1.9
8.3
Profit before taxes -0.1 0.9 0.4 2.1
8.4
Profit for the period -0.2 0.6 0.0 1.4
6.5
Earnings per share, EUR -0.02 0.10 0.03 0.24
1.04
NET SALES AND PROFIT
April-June:
Consolidated net sales in the second quarter amounted to EUR 93.5 (80.0)
million, an increase of 17% on the same quarter in 2010. This was a result of
net sales increases in both the Grains and Oilseeds business and the Seafood
business.
The Group´s operating profit, excluding non-recurring items, was EUR 2.1 (1.0)
million. Non-recurring items totalled EUR -1.7 (0.0) million. The operating
profit includes EUR 0.3 (0.3) million as the share of the profits of associated
companies. The profit, excluding non-recurring items, for both the Seafood
business and the Grains and Oilseeds business was up on the second-quarter
figures of a year earlier. The corresponding figures for the Frozen Foods
business and Other Operations segment were slightly down year on year.
January-June:
Consolidated net sales in January-June amounted to EUR 177.5 (154.9) million,
up by 15%.
The operating profit, excluding non-recurring items, was EUR 3.0 (1.9) million.
The operating profit includes EUR 0.1 (0.2) million as the share of the profits
of associated companies. Non-recurring items totalled EUR -1.7 (0.0) million.
The non-recurring items for the review period were related to the Seafood
business.
Net financial income and expenses were EUR -0.9 (0.1) million. This figure
includes valuation items of EUR -0.1 (0.7) million with no cash flow
implications. Financial expenses also include EUR -0.6 (-0.5) million as the
share of the Avena Nordic Grain Group's profit attributable to the employee
owners of Avena Nordic Grain Oy. Due to changes in ownership during the review
period, the employee owners' holding in Avena Nordic Grain Oy rose from 14.6%
to 17.1%.
Profit before taxes was EUR 0.4 (2.1) million. The profit for the period was
EUR 0.0 (1.4) million, and earnings per share amounted to EUR 0.03 (0.24).
FINANCING AND BALANCE SHEET
The Group's liquidity was good and its financial position is strong.
The cash flow from operating activities after interest and taxes amounted to
EUR 15.5 (8.6) million in January-June. The impact of the change in working
capital was EUR 14.2 (5.6) million. Working capital was released mainly from
the Grains and Oilseeds business.
The net cash flow from investing activities was EUR -7.9 (-7.3) million.
Deposits and withdrawals of cash assets invested in short-term fixed income
funds had an impact of EUR -6.0 (-1.0) million. The cash flow from financing
activities was EUR -8.1 (-5.3) million, including EUR -2.6 (-0.5) million in
loan withdrawals and repayments and EUR -5.6 (-4.7) million in dividend
payments. The net change in cash and cash equivalents was EUR -0.6 (-4.0)
million.
At the end of the period, the Group had EUR 2.8 (2.7) million in
interest-bearing liabilities and EUR 20.1 (22.2) million in liquid assets. Net
interest-bearing liabilities totalled EUR -17.3 (-19.4) million. The
consolidated balance sheet total stood at EUR 172.1 (169.9) million. At the end
of the review period, equity totalled EUR 134.2 (134.0) million. The equity
ratio was 78.0% (78.9%). The Group's liquidity is secured with committed credit
facilities allowing withdrawals of up to EUR 25 (25) million. The credit and
commercial papers raised during the period to finance working capital had been
repaid by the end of the period.
INVESTMENT
Investment in non-current assets during the review period was EUR 2.7 (1.7)
million.
PERSONNEL
The average number of personnel in the review period was 607 (603).
OVERVIEW OF OPERATING SEGMENTS
Frozen Foods
EUR million Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
2011 2010 2011 2010 2010
Net sales 11.2 11.0 23.8 23.8 45.1
Operating profit, excluding non-recurring items 0.0 0.3 0.3 0.6 3.4
Second-quarter net sales in the Frozen Foods business were slightly up on the
figure for the same quarter of 2010. Sales were up in all distribution channels
with the exception of retail sector sales, which were slightly lower than in
the comparison period. Owing to new products, the best sales performance was in
frozen ready meals and frozen vegetables and berries to the hotel, restaurant
and catering sector.
The second-quarter operating profit was down year on year due to the product
mix in sales and a significant rise in the raw material and energy prices,
which had only been partly compensated by price rises carried out early in the
year. Due to increased costs, there are still pressures for price increases.
Second-quarter overhead costs were increased by marketing inputs in the Apetit
Finnishness campaign.
Net sales in January-June were on a par with the same period in 2010. Sales of
frozen vegetables and berries were up year on year. Due to decreased sales of
frozen potato products and frozen pizza, retail trade product sales were down
on the previous year's figure. Strong growth continued in the hotel, restaurant
and catering sector.
The operating profit for January-June was slightly below the figure of a year
earlier.
Due to the favourable weather conditions of the growing season, the harvest
outlooks of Finnish contract farms look good at the moment. The first spinach
crop harvested at the end of June was excellent. Pea threshing and processing
is in progress, and the targeted quantity of good-quality peas will be
deep-frozen. The potato and root crop growing season is continuing in Finland.
The exceptionally warm and dry weather of the spring and early summer caused
losses in several vegetable crops in parts of Europe. Due to high demand, the
market prices of, for instance, sweet peppers and maize have risen
significantly. In Europe, the coming root crop is forecast to correspond to
demand.
The average number of personnel in Frozen Foods during January-June was 193
(181).
Investment totalled EUR 1.3 (0.6) million during the period. The most
significant items were replacement investments in frozen vegetable production
and energy efficiency improvements.
Seafood
EUR million Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
2011 2010 2011 2010 2010
Net sales 22.3 18.4 41.6 37.4 80.9
Operating profit, excluding non-recurring items -0.2 -1.1 -0.7 -1.1 -1.8
The second-quarter net sales of the Seafood business were up by 21% on the
figure for the same quarter in 2010. Net sales were up in the Finnish,
Norwegian and Swedish Seafood businesses.
The approximate 35% increase in the net sales of the Finnish Seafood business
was a result of increased volumes, price increases and the integration of
Myrskylän Savustamo into the Group at the start of June 2010. Unlike the
previous year, Easter sales occurred in the second quarter. Net sales were
reduced by the lower number of Kalatori service counters compared with the
previous year.
In the Norwegian and Swedish Seafood businesses, net sales were up slightly
both in euro terms and measured in local currencies. The removal of the
unprofitable smoked fish product segment was compensated by 8-12% growth in
other product groups. Sales of dressings grew by over 30%, an exception among
the product groups.
Due to the improved performance of the Finnish Seafood business, the Seafood
business's second-quarter operating result, excluding non-recurring items, was
up by EUR 0.9 million year on year. However, the Seafood business's result,
excluding non-recurring items, was a loss of EUR -0.2 million.
The Finnish Seafood business's second-quarter operating profit, excluding
non-recurring items, improved year on year as a result of an increased gross
margin and decreased overhead costs. The Taimen Group's effect on the quarterly
result was minor. The Finnish Seafood business's profit performance was
adversely affected by the poor availability and high price of rainbow trout raw
materials at the start of the period, and the price of Norwegian salmon, which
fluctuated substantially during the spring and summer. The bankruptcy of a
company that provided logistics services led to a temporary deterioration in
delivery reliability in May-June. Delivery performance returned to normal at
the end of the review period.
The Norwegian and Swedish Seafood's second-quarter operating profit, excluding
non-recurring items, was at the level of the same quarter in 2010. A decrease
in overhead costs compensated for the weakening in gross margin that resulted
from higher raw material and packaging material prices than the year before.
For the time being, increased costs have been only partially offset by
increased sales prices. Product redesigns and measures to improve profitability
and cost-effectiveness are continuing in the Norwegian and Swedish units.
The second-quarter non-recurring items totalled EUR -1.7 (0.0) million. A
cost-efficiency programme was implemented at Apetit Kala Oy to cut overheads.
Maritim Food AS decided to concentrate Norwegian production at one plant in
Fredrikstad. These measures aim at achieving annual savings of about EUR 1.4
million, starting from the third quarter. The Seafood business's efficiency
improvement measures are described in greater detail in the stock exchange
releases dated 6 April 2011 and 15 April 2011 and in the Interim Report
published on 5 May 2011.
Seafood's net sales for January-June were up by 11% on the same period in 2010.
Net sales of the Finnish Seafood business were up by 20%. Net sales of
Seafood's Norwegian and Swedish operations in euros were at about the level of
a year earlier. Measured in local currencies, net sales were down due to the
removal of smoked fish products from the product selection. Due to product
redesigns, good performance continued in the other product groups.
Seafood's January-June operating result, excluding non-recurring items, was up
on the previous year's level, but loss-making. The Finnish Seafood business
improved its result, year on year. The share of the profit of associated
companies was EUR 0.1 (-0.1) million. The January-June operating profit of the
Norwegian and Swedish Seafood businesses, excluding non-recurring items, was
lower than in the previous year due to the poor first quarter.
The number of personnel in the Seafood business averaged 346 (352).
Investment in the Seafood business totalled EUR 0.4 (0.6) million. The main
items during the period were replacement investments at different production
plants in Finland, Norway and Sweden.
Grains and Oilseeds
EUR million Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
2011 2010 2011 2010 2010
Net sales 60.0 50.5 111.9 93.5 181.9
Operating profit, excluding non-recurring items 2.8 2.2 5.3 4.1 7.2
Second-quarter net sales in the Grains and Oilseeds business were up by 19%
year on year. This growth was attributable to large deliveries and higher
market prices than the year before. The majority of the net sales originated
from exports and trading outside Finland.
The second-quarter operating profit of the Grains and Oilseeds business was
better than a year before and the best of all time. The good result was
attributable to the large deliveries and the realisation of synergy benefits
from combining the Grains and Vegetable Oil businesses.
The net sales in January-June were up by 20% year on year due to increased
market prices. Operating profit was EUR 1.2 million better than a year earlier.
During the review period, Avena Nordic Grain Oy decided to expand its area of
supply by establishing a subsidiary in Ukraine. The aim is to increase Avena's
trading opportunities by expanding the acquisition of grains and oilseeds from
the Ukrainian market. Avena already has subsidiaries in Estonia, Lithuania,
Russia and Kazakhstan.
In the early summer, the prices of grains and oilseeds decreased substantially
compared with the spring. The reason for this is more favourable weather
conditions as the growing season progressed, and especially the activation of
the Black Sea export market after Russia removed the export ban that had been
in force during the last crop year, and after Ukraine had replaced export
quotas with export duties. The EU's grain crop is anticipated to be at last
year's level, but the oilseed crop is expected to decline by 1.5 million tonnes
from last year, and to remain at 26.5 million tonnes. In Finland, the growing
season has, on average, been favourable, and grains' crop outlooks are
generally good. The oilseeds crop is estimated to decline in Finland by 30%
from the record-breaking previous year. Hardly any surplus grains and oilseeds
are on sale anymore. The new crop is expected to bring plenty of trading
opportunities as available production quantities and qualities vary in the
different market areas.
The Grains and Oilseeds business employed an average of 58 (60) people in the
first six months of the year.
Investment totalled EUR 1.0 (0.4) million in January-June and focused on the
packaging plant being constructed at the Kirkkonummi vegetable oil mill.
Other Operations
EUR million Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
2011 2010 2011 2010 2010
Net sales 0.4 0.5 0.9 0.9 2.6
Operating profit, excluding non-recurring items -0.5 -0.4 -2.0 -1.6 -0.5
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 of
services produced by Apetit Suomi Oy is an encumbrance on the operating profit
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 EUR -0.5 (-0.4) million operating profit for April-June includes EUR 0.3
(0.4) million as the share of the profits of associated companies.
The EUR -2.0 (-1.6) million operating profit for January-June includes EUR 0.1
(0.3) million as the share of the profits of associated companies.
The segment's investment totalled EUR 0.0 (0.1) million.
DECISIONS OF THE ANNUAL GENERAL MEETING
Dividend distribution
The Annual General Meeting of Lännen Tehtaat plc held on 31 March 2011 resolved
that a dividend of EUR 0.90 per share be distributed from the profits of the
financial year 2010, in accordance with the proposal of the Board of Directors.
EUR 5.6 million was paid out in dividends on 12 April 2011.
More detailed information on the decisions of the Annual General Meeting and
the share issue authorisations granted to the Board of Directors are given in
the stock exchange release dated 31 March 2011 and in the Interim Report
published on 5 May 2011.
USE OF THE AUTHORISATIONS GRANTED TO THE BOARD OF DIRECTORS
Authorisations to issue shares
The company's Board of Directors has not exercised the authorisation granted to
it by the Annual General Meeting on 31 March 2011 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 348,359 (498,118), representing 5.5% (7.9%) of the total
number of shares. The euro-denominated share turnover was EUR 5.9 (8.6)
million. The highest share price quoted was EUR 18.80 (20.00) and the lowest
EUR 14.75 (15.51). The average price of shares traded was EUR 16.90 (17.25).
At the end of June, the market capitalisation totalled EUR 95.3 (104.9) million.
At the end of June, the company held 130,000 of its own shares, with a combined
nominal value of EUR 0.26 million. These treasury 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 January-June.
CORPORATE ADMINISTRATION AND AUDITORS
At its organisational meeting on 14 April 2011, Lännen Tehtaat plc's
Supervisory Board elected Timo Miettinen as Chairman of the Supervisory Board
and Marja-Liisa Mikola-Luoto as Deputy Chairman.
The Supervisory Board elected the following as members of the company's Board
of Directors: Heikki Halkilahti, Aappo Kontu, Matti Lappalainen, Hannu Simula,
Jorma J. Takanen and Helena Walldén. Matti Lappalainen was elected as Chairman
of the Board of Directors and Hannu Simula was elected as Deputy Chairman.
Hannu Pellinen, APA, and PricewaterhouseCoopers Oy Authorized Public
Accountants, with Tomi Moisio, APA, CPFA as responsible auditor, were appointed
as auditors for Lännen Tehtaat plc by the Annual General Meeting on 31 March
2011.
SEASONALITY OF OPERATIONS
In accordance with the IAS 2 standard, the historical cost of inventories
includes a systematically allocated portion of the fixed production overheads.
In production that focuses on seasonal crops, raw materials are processed into
finished products mainly during the final quarter of the year, which means that
the inventory volumes and their balance-sheet values are at their highest at
the end of the year. Since the entry of the fixed production overheads included
in the historical cost as an expense item is deferred until the time of sale,
most of the Group's annual profit is accrued in the final quarter. The seasonal
nature of operations is most marked in Frozen Foods and in the associated
company Sucros, due to the link between production and the crop harvesting
season.
In the Seafood business, the sales of Apetit Kala Oy and Myrskylän Savustamo Oy
peak at weekends and on holidays. A significant proportion of the entire year's
profit in the Seafood business depends on the success of the Christmas season.
Due to the growing season for fish, only a small amount of the profit
accumulated for the Taimen Group, which reports as an associated company,
normally accrues during the summer months. As Easter can take place in either
the first or the second quarter, this can affect the comparability of net sales
and profit in the Frozen Foods and Seafood businesses between different years.
Net sales in the Grains and Oilseeds business vary from one year and quarter to
the next to a greater extent than in the other businesses, being dependent on
the demand and supply situation and on the price levels domestically and on
other markets.
SHORT-TERM RISKS AND UNCERTAINTIES
The most significant short-term risks for the Lännen Tehtaat Group concern the
following: the management of raw material price changes and currency risks;
availability of raw materials; the impact of the rise in energy prices; the
price competition of the seafood market; the change in the production plant
structure of the Norwegian company; the solvency of customers and the delivery
performance of suppliers and service providers; changes in the Group's business
sectors and customer relationships; 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.
ASSESSMENT OF PROBABLE FUTURE DEVELOPMENT
The Group's net sales will be affected particularly by the level of activity in
the grain and oilseed markets and by changes in the price level of grains and
oilseeds.
Thanks to the measures taken to develop the Group's different businesses, and
thanks to the corporate acquisitions made in 2010, the full-year operating
profit, excluding non-recurring items, is expected to be better than the
previous year's level. Profit accrual is expected to be weighted heavily
towards the last quarter of the year, as in 2010.
The profit for the financial year will be depressed by non-recurring costs
associated with the Seafood business's efficiency improvement measures reported
in the second quarter. There were no non-recurring costs in 2010.
CONSOLIDATED INCOME STATEMENT
EUR million Q2 Q2 Q1-Q2 Q1-Q2
Q1-Q4
2011 2011 2011 2010
2010
Net sales 93.5 80.0 177.5 154.9
308.7
Other operating income 0.2 0.2 0.4 0.6
1.4
Operating expenses -92.2 -78.2 -173.9 -151.0
-299.4
Depreciation -1.4 -1.3 -2.9 -2.6
-5.3
Impairments 0.0 0.0 0.0 0.0
-0.1
Share of profits of associated companies 0.3 0.3 0.1 0.2
3.0
Operating profit 0.4 1.0 1.3 1.9
8.3
Financial income and expenses -0.5 -0.2 -0.9 0.1
0.1
Profit before taxes -0.1 0.9 0.4 2.1
8.4
Income taxes -0.1 -0.3 -0.4 -0.7
-1.9
Profit for the period -0.2 0.6 0.0 1.4
6.5
Attributable to
Equity holders of the parent -0.1 0.6 0.2 1.5
6.5
Non-controlling interests -0.1 -0.1 -0.2 -0.1
Basic and diluted earnings per share,
calculated of the profit attributable to the
shareholders of the parent company, EUR -0.02 0.10 0.03 0.24
1.04
STATEMENT OF COMPREHENSIVE
INCOME
EUR million Q2 Q2 Q1-Q2 Q1-Q2
Q1-Q4
2011 2010 2011 2010
2010
Profit for the period -0.2 0.6 0.0 1.4
6.5
Other comprehensive income
Cash flow hedges 0.4 -0.4 1.4 -0.7
1.1
Taxes related to cash flow hedges -0.1 0.1 -0.4 0.2
-0.3
Translation differences 0.0 0.0 0.0 0.5
0.8
Total comprehensive income 0.1 0.3 1.0 1.4
8.1
Attributable to
Equity holders of the parent 0.2 0.4 1.2 1.4
8.1
Non-controlling interests -0.1 -0.1 -0.2 -0.1
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
EUR million 30 June 30 June 31
Dec
2011 2010
2010
ASSETS
Non-current assets
Intangible assets 5.7 6.3
6.0
Goodwill 8.7 8.5
8.6
Tangible assets 37.1 38.0
37.0
Investment in associated companies 33.7 32.3
33.9
Available-for-sale investments 0.1 0.1
0.1
Receivables 0.5 0.5
0.7
Deferred tax assets 1.6 1.2
1.4
Non-current assets total 87.2 87.0
87.5
Current assets
Inventories 39.2 30.7
55.0
Receivables 25.6 30.1
34.5
Income tax receivable 0.1 0.0
0.2
Financial assets at fair value through profits 13.1 18.3
7.1
Cash and cash equivalents 7.0 3.9
7.5
Current assets total 84.9 83.0
104.4
Total assets 172.1 169.9
191.9
EUR million 30 June 30 June 31
Dec 2011 2010
2010
EQUITY AND LIABILITIES
Equity attributable to the equity holders of the parent 131.7 131.5
136.2
Non-controlling interests 2.5 2.6
2.7
Total equity 134.2 134.0
138.9
Non-current liabilities
Deferred tax liabilities 3.7 3.7
4.4
Long-term financial liabilities 2.0 2.6
2.1
Non-current provisions 0.0 0.2
0.0
Other non-current liabilities 4.6 4.5
4.6
Non-current liabilities total 10.3 11.0
11.1
Current liabilities
Short-term financial liabilities 0.8 0.2
1.8
Income tax payable 1.0 2.4
1.0
Trade payables and other liabilities 25.8 22.3
39.1
Current liabilities total 27.6 24.9
41.9
Total liabilities 37.9 35.9
53.0
Total equity and liabilities 172.1 169.9
191.9
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million Q1-Q2 Q1-Q2 Q1-Q4
2011 2010 2010
Net profit for the period 0.0 1.4 6.5
Adjustments, total 4.2 2.8 4.9
Change in net working capital 14.2 5.6 -7.4
Interests paid -1.4 -0.8 -1.1
Interests received 0.1 0.1 0.3
Taxes paid -1.5 -0.5 -2.6
Net cash flow from operating activities 15.5 8.6 0.6
Investments in tangible and intangible assets -2.7 -1.7 -3.1
Proceeds from sales of tangible and intangible assets 0.0 0.5 0.5
Acquisition of associated companies -0.1 -8.0 -8.1
Proceeds from sales of associated companies 0.5
Transactions with non-controlling interests 2.7 2.7
Purchases of other investments -13.0 -1.0 -32.9
Proceeds from sales of other investments 7.0 0.0 43.0
Dividends received from investing activities 0.3 0.2 1.5
Net cash flow from investing activities -7.9 -7.3 3.5
Proceeds from and repayments of short-term loans -2.6 -0.2 0.6
Proceeds from and repayments of long-term loans 0.0 -0.3 -0.3
Dividends paid -5.6 -4.7 -4.7
Cash flows from financing activities -8.1 -5.3 -4.4
Net change in cash and cash equivalents -0.6 -4.0 -0.3
Cash and cash equivalents at the beginning of the period 7.5 7.9 7.9
Cash and cash equivalents at the end of the period 7.0 3.9 7.5
Purchases of other investments and proceeds from
sales of other investments are cash flows related
to short-term fixed income funds.
STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY
A = Shareholders' equity at 1 January
B = Dividend distribution
C = Transactions with NCI
D = Other changes
E = Total comprehensive income
F = Shareholders' equity at 30 June
January - June 2011
EUR million A B C D E
F
Share capital 12.6
12.6
Share premium account 23.4
23.4
Net unrealised gains -0.8 1.0
0.2
Other reserves 7.2
7.2
Own shares -1.8
-1.8
Translation differences 0.3 0.0
0.3
Retained earnings 95.3 -5.6 -0.2 0.0 0.2
89.6
Attributable to equity holders of the parent 136.2 -5.6 -0.2 0.0 1.2
131.7
Non-controlling interests (NCI) 2.7 -0.2
2.5
Total equity 138.9 -5.6 -0.2 0.0 1.0
134.2
January - June 2010
EUR million A B C D E
F
Share capital 12.6
12.6
Share premium account 23.4
23.4
Net unrealised gains 0.0 -0.5
-0.5
Other reserves 7.2 0.0
7.2
Own shares -1.8
-1.8
Translation differences -0.5 0.5
0.0
Retained earnings 96.4 -4.7 -2.3 -0.2 1.5
90.6
Attributable to equity holders of the parent 137.3 -4.7 -2.3 -0.2 1.4
131.5
Non-controlling interests (NCI) 2.6 -0.1
2.6
Total equity 137.3 -4.7 0.3 -0.2 1.4
134.0
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 2010. New standards and interpretations adopted in 2011 did not
have
any material effect to this Interim Report.
SEGMENT INFORMATION
EUR million
A = Frozen Foods
B = Seafood
C = Grains and Oilseeds
D = Other Operations
E = Total
January - June 2011
EUR million
A B C D E
Total segment sales 23.8 41.6 111.9 0.9 178.2
Intra-group sales 0.0 0.0 0.0 -0.7 -0.7
Net sales 23.8 41.6 111.9 0.2 177.5
Share of profits of associated
companies included in operating
profit 0.1 0.1 0.1
Operating profit 0.3 -2.4 5.3 -2.0 1.3
Gross investments in non-current
assets 1.3 0.4 1.0 0.0 2.7
Corporate acquisitions and other
share purchases 0.1 0.1
Depreciations 1.1 1.0 0.4 0.5 2.9
Impairments 0.0 0.0
Personnel 193 346 58 11 607
Operating segments,
January - June 2010
EUR million
A B C D E
Total segment sales 23.8 37.4 93.5 0.9 155.6
Intra-group sales 0.0 0.0 0.0 -0.7 -0.7
Net sales 23.8 37.4 93.5 0.2 154.9
Share of profits of associated
companies included in operating
profit -0.1 0.3 0.2
Operating profit 0.6 -1.1 4.1 -1.6 1.9
Gross investments in non-current
assets 0.6 0.6 0.4 0.1 1.7
Corporate acquisitions and other
share purchases 10.5 10.5
Depreciations 1.1 0.9 0.3 0.3 2.6
Impairments 0.0 0.0
Personnel 181 352 60 10 603
Operating segments,
January - December 2010
EUR million
A B C D E
Total segment sales 45.1 80.9 181.9 2.6 310.5
Intra-group sales 0.0 0.0 0.0 -1.7 -1.8
Net sales 45.1 80.9 181.9 0.9 308.7
Share of profits of associated
companies included in operating
profit 0.6 2.4 3.0
Operating profit 3.4 -1.8 7.2 -0.5 8.3
Gross investments in non-current
assets 1.2 1.1 0.7 0.2 3.1
Corporate acquisitions and other
share purchases 10.5 10.5
Depreciations 2.2 1.9 0.7 0.6 5.3
Impairments 0.1 0.1
Personnel 199 351 61 10 621
KEY INDICATORS
30 June 30 June 31 Dec
2011 2010 2010
Shareholders' equity per share, EUR 21.3 21.3 22.0
Equity ratio. % 78.0 78.9 72.4
Gearing, % -12.9 -14.5 -7.7
Gross investments in non-current assets, EUR million 2.7 1.7 3.1
Corporate acquisitions and other share purchases,
EUR million 0.1 10.5 10.5
Average number of personnel 607 603 621
Average number of shares, 1,000 pcs 6,188 6,188 6,188
The key figures in this interim report are
calculated with same accounting principles than
presented in the 2010 annual financial statements.
CONTINGENT LIABILITIES, CONTINGENT ASSETS
AND OTHER COMMITMENTS
EUR million 30 June 30 June
31 Dec
2011 2010
2010
Mortgages given for debts
Real estate mortgages 2.7 2.8
2.8
Guarantees 11.4 11.0
12.1
Non-cancellable other leases, minimum lease payments
Real estate leases 4.4 5.3
5.9
Other leases 0.6 0.8
0.7
DERIVATIVE INSTRUMENTS
Outstanding nominal values of derivate instruments
Forward currency contracts 8.4 3.3
6.6
Commodity derivative instruments 7.0 9.4
13.9
CONTINGENT ASSETS
The present value of proceeds from the sale of
shares in the joint entry account 0.7 0.7
0.7
INVESTMENT COMMITMENTS
Frozen Foods 0.4
Grains and Oilseeds 1.3
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 is, on the
basis of IAS 32, recognised under non-current liabilities.
The receivable arising in connection with this may not,
under IFRS rules, be recognised.
CHANGES IN TANGIBLE ASSETS
EUR million 30 June 30 June 31 Dec
2011 2010 2010
Book value at the beginning of the period 37.0 37.9 37.9
Additions 2.4 1.4 2.6
Additions through acquisitions 0.7 0.7
Disposals 0.0 -0.2 -0.3
Depreciations and impairments -2.3 -2.2 -4.4
Other changes 0.0 0.4 0.5
Book value at the end of the period 37.1 38.0 37.0
TRANSACTIONS WITH ASSOCIATED COMPANIES
AND JOINT VENTURES
EUR million Q1-Q2 Q1-Q2 Q1-Q4
2011 2010 2010
Sales to associated companies 0.2 0.2 1.1
Sales to joint ventures 4.0 3.7 7.3
Purchases from associated companies 5.5 1.6 6.6
Long-term receivables from joint ventures 0.1 0.1
Trade receivables and other receivables from
associated companies 0.7 1.4 1.6
Trade receivables and other receivables from
joint ventures 0.5 0.8 0.7Trade payables and other liabilities to associated
companies 0.0 0.1 0.4
LÄNNEN TEHTAAT PLC
Board of Directors
Further information: CEO Matti Karppinen, tel. +358 40 8448 692
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