|
|||
2009-08-14 07:30:00 CEST 2009-08-14 07:30:03 CEST REGULATED INFORMATION Lännen Tehtaat - Interim report (Q1 and Q3)INTERIM REPORT 1 January - 30 June 2009LÄNNEN TEHTAAT PLC Interim report 14 August 2009 8.30 am INTERIM REPORT 1 January - 30 June 2009 April-June, continuing operations: - Consolidated net sales amounted to EUR 65.5 (101.0) million, a year-on-year drop of 35%. - Operating profit, excluding non-recurring items, came to EUR 1.6 (1.8) million; non-recurring items totalled EUR -0.5 (0.0) million. - Profit for the period came to EUR 0.8 (1.1) million, and earnings per share amounted to EUR 0.12 (0.18). January-June, continuing operations: - Net sales amounted to EUR 130.2 (191.9) million, a year-on-year drop of 32%. - Operating profit, excluding non-recurring items, came to EUR 0.9 (2.3) million; non-recurring items totalled EUR -0.5 (4.9) million. - Profit for the period came to EUR 0.5 (5.9) million, and earnings per share amounted to EUR 0.08 (0.92). The information in this interim report has not been audited. Matti Karppinen, CEO: “The Group's second-quarter operating profit from its continuing operations, excluding non-recurring items, was considerably better than in the first quarter and almost reached the level of a year ago. In all our operating segments the operating result was an improvement on the first-quarter figures. The year-on-year drop in consolidated net sales was mainly the result of the sharp fall in grain and oilseed market prices. ”The strategy for Seafood's Finnish-based operations was updated in late spring, and a review of the strategy for its foreign operations is in progress. ”The economic downturn has redirected demand for consumer products on the Finnish market towards basic products with a lower added value and a lower price. Sales of consumer-packaged fresh fillets of salmon and rainbow trout have increased considerably and, correspondingly, sales of higher priced cold-smoked and raw pickled products have fallen. In frozen food products, demand has risen for traditional mixed vegetables and root vegetables, and for soups. In Seafood's operations abroad, sales of the lower priced private label products have grown, and demand in the hotel, restaurant and catering sector has fallen. In the prevailing economic circumstances, it is reassuring that our product range also includes basic food products that are currently attracting a great many consumers. ”The company's balance sheet at the end of the second quarter showed a further improvement, and cash flow increased too, which means we are well placed for further development in line with the Group's strategy.” KEY FIGURES ILLUSTRATING PERFORMANCE Continuing operations EUR mill. Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec 2009 2008 2009 2008 2008 Net sales 65.5 101.0 130.2 191.9 349.1 Operating profit 1.1 1.8 0.4 7.2 13.9 Operating profit, excluding non-recurring items 1.6 1.8 0.9 2.3 5.4 Profit before taxes 1.0 1.4 0.6 6.1 10.7 Profit before taxes excluding non-recurring items 1.4 1.4 1.0 1.3 2.3 Profit for the period 0.8 1.1 0.5 5.9 10.0 Earnings per share, EUR 0.12 0.18 0.08 0.92 1.60 CHANGES IN GROUP STRUCTURE AND CORPORATE TRANSACTIONS Maritim Food AS, which is a Norwegian subsidiary of the Lännen Tehtaat Group, and Cinvest AS, which was the minority owner of fish-processing company Sandanger AS, agreed a deal at the end of June, under which Cinvest AS's 49% holding in Sandanger AS was transferred to the ownership of Maritim Food AS. The acquisition cost of these minority shares was approximately EUR 1.2 million. Following this, Maritim Food AS now owns the entire share capital of Sandanger AS. The new ownership arrangement allow Maritim Food to benefit more effectively from the synergies and to further develop the business as part of the Maritim Food group. NET SALES AND PROFIT April-June: Net sales from the continuing operations in April-June came to EUR 65.5 (101.0) million, a decrease of 35% on the same quarter in 2008. The year-on-year drop in second-quarter net sales was mainly the result of a drop in grain and oilseed market prices. The second-quarter operating profit from the continuing operations, excluding non-recurring items, was EUR 1.6 (1.8) million. In the Frozen Foods and Vegetable Oils businesses, the operating profit was up on the first-quarter figure and also improved year-on-year. In the Seafood business and in Grain Trading, the operating profit improved on the first quarter but was down year-on-year. In the Other Operations segment, the operating profit was about the same as a year earlier. January-June: Continuing operations Net sales from the continuing operations for January-June amounted to EUR 130.2 (191.9) million, a year-on-year drop of 32%. The January-June operating profit from the continuing operations, excluding non-recurring items, was EUR 0.9 (2.3) million. The operating profit includes the share of the profits of associated companies, which, excluding non-recurring items, totalled EUR 0.4 (0.5) million. Non-recurring items totalled EUR -0.5 (4.9) million and concerned the sale of the Seafood business's Kerava property in 2009. The non-recurring items for the same period in 2008 comprised EUR 4.9 million in EU sugar reform compensation recorded for the associated company Sucros Ltd. Financial income and expenses from the continuing operations totalled EUR +0.2 (-1.1) million. This figure includes valuation items of EUR +0.5 (+0.2) million with no cash flow implications. The financial expenses also include EUR -0.3 (-0.4) million as the share of Avena Nordic Grain's profit attributable to the Avena employee shareholders. Profit before taxes from the continuing operations was EUR 0.6 (6.1) million. Profit before taxes, excluding non-recurring items, was EUR 1.0 (1.3) million. The continuing operations' profit for the period came to EUR 0.5 (5.9) million, and the earnings per share amounted to EUR 0.08 (0.92). Discontinued operations The January-June 2008 income statement included the share of the profit of the associated company Suomen Rehu under discontinued operations. The non-current assets held for sale in the balance sheet figures for January-June 2009 include Seafood's Kerava property, while the figure for the same period in 2008 included the assets of Frozen Foods' jams and marmalades business. The profit for the period from discontinued operations came to EUR 0.0 (0.4) million. Profit for the period The profit for the period from both the continuing and discontinued operations came to a total of EUR 0.5 (6.3) million, and the earnings per share amounted to EUR 0.08 (0.98). The profit for the period from both the continuing and discontinued operations, excluding non-recurring items, came to a total of EUR 0.9 (1.4) million, and the earnings per share amounted to EUR 0.14 (0.21). FINANCING AND BALANCE SHEET The consolidated balance sheet continued to strengthen in the second quarter and the Group is now debt-free. Both the financing situation and liquidity are at a good level. The cash flow from operating activities in January-June after interest and taxes amounted to EUR 21.2 (17.5) million. The impact of the change in working capital was EUR 17.6 (14.6) million. The net cash flow from investing activities was EUR -11.1 (1.0) million, of which EUR -9.0 (4.0) million was the investment of liquid assets in short-term fixed income funds. The cash flow from financing activities came to EUR -11.9 (-16.5) million, and this included EUR -5.3 (-5.6) million in dividend payments. At the end of the period, the Group had EUR 10.1 (23.4) million in interest-bearing liabilities and EUR 21.0 (11.3) million in liquid assets. Net interest-bearing liabilities totalled EUR -10.9 (12.1) million. The consolidated balance sheet total stood at EUR 170.7 (183.9) million. At the end of June, equity totalled EUR 130.7 (128.3) million and the equity ratio was 76.7% (69.7%). Commercial papers issued for the Group's short-term financing stood at a total value of EUR 3.0 (18.0) million at the end of June. The Group's short-term liquidity over the next few years is secured with committed credit facilities; a total of EUR 25 (25) million was available in credit at the end of June. No credit facilities were used during the review period. INVESTMENT Gross investment in non-current assets in January-June came to EUR 1.5 (3.8) million. PERSONNEL The average number of personnel in the continuing operations during January-June was 655 (746). The number of personnel in Frozen Foods was 188 (229), in the Seafood business 396 (440), in Vegetable Oils 34 (35), in Grain Trading 29 (30) and in Other Operations 10 (13). The personnel at Apetit Suomi Oy have been divided between Frozen Foods and Seafood in proportion to the service fees. OVERVIEW OF OPERATING SEGMENTS Frozen Foods EUR mill. Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec 2009 2008 2009 2008 2008 Net sales 11.4 12.5 24.2 26.0 49.3 Operating profit, excluding non-recurring items 0.5 0.2 0.8 0.6 3.1 Like-for-like net sales in Frozen Foods, excluding the sale of jam and marmalade products, grew by 3% in the second quarter, compared with the previous year's figure. Sales were up substantially in the retail sector and in the hotel, restaurant and catering sector. Retail frozen food sales were up by about 6%. This growth was attributable to the increase in volume and average price. Among these retail product groups, sales of frozen vegetables and pizzas did extremely well, and growth was also good in frozen potato products. Sales in the hotel, restaurant and catering sector were up by almost 10%, while sales to the food industry and exports were down, year-on-year. Frozen Foods' operating profit improved on the previous year's figure as a result of higher productivity, centralisation of production and more efficient operations. Introduction of the new enterprise resource planning system in Frozen Foods at the start of May proceeded smoothly. Like-for-like net sales in Frozen Foods for January-June were up on the previous year by about 5%. Sales growth in retail frozen foods was approximately 8%. The good sales growth in frozen mixed vegetables and root vegetables for soups continued, and sales of the various new products increased. Examples of extremely successful recent product launches include potatoes and chopped vegetables for soups, a range of family soups, and lactose-free spinach soup. Sales in the hotel, restaurant and catering sector were up by about 7%, while sales to the food industry and exports were down, year-on-year. The January-June operating profit of Frozen Foods, excluding non-recurring items, was up on the previous year's figure, in line with expectations. The number of Frozen Foods personnel in January-June was 188 (229). The reduction in personnel was primarily a result of the sale of the jams and marmalades business in autumn 2008, the discontinuation of the Turku factory at the end of 2008, and the centralisation of functions at Säkylä. Investment during January-June totalled EUR 1.2 (2.6) million. This was mainly the completion of the investment arising from the centralisation of production at Säkylä and the renewal of the enterprise resource planning system and the contract grower data system. Seafood EUR mill. Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec 2009 2008 2009 2008 2008 Net sales 18.3 23.1 36.8 44.6 89.7 Operating profit, excluding non-recurring items -0.5 -0.1 -1.4 -0.6 -1.6 The second-quarter net sales of the Seafood business were down by 21% on the figure for the same quarter a year earlier. This drop in net sales occurred in both in Finland and in operations abroad. The second-quarter operating result, excluding non-recurring items, was up on the first-quarter figure but down year-on-year, and was recorded as a loss. In Seafood's foreign operations, the operating result was down year-on-year but improved considerably on the first-quarter figure. In Seafood's Finnish operations, the operating result was almost unchanged from a year earlier. Non-recurring items for January-June, totalling EUR -0.5 (0.0) million, were from the sale of the Kerava property. The drop in Seafood's net sales in Finland was a result of the reduction in Kalatori service counters, the focus of consumer demand on campaign-price products and lower added value fillet products, and also due to tougher competition in consumer-packaged retail products. The strategy for the Finnish-based Seafood operations was updated in the spring. One of the profit improvement measures decided during the second quarter was to improve the efficiency of logistics operations. In June, Apetit Kala Oy and Swanline Oy agreed on a transfer of business, whereby the picking and dispatch functions at Apetit Kala Oy's Kerava logistics centre were transferred to logistics service operator Swanline Oy. The transfer occurred on 13 July 2009, and as part of the business transfer 21 employees at Kerava also transferred to Swanline Oy. In the Finnish-based Seafood business the decision was also taken to sell the Kerava property. A deal was agreed by Apetit Kala Oy in June, under which the Kerava property would be sold to a Finnish industrial operator. The aim of the property sale and the transfer of the logistics functions is to achieve improved profits of around EUR 0.4 million annually. This figure is not expected to be achieved in full until 2010. The sale will also release a significant amount of tied-up capital. Non-recurring expenses of approximately EUR 0.5 million on the property sale were recognised in the second-quarter operating result of the Seafood business. In Seafood's foreign operations, the year-on-year decrease in second-quarter euro-denominated net sales was to a marked extent attributable to the weakening of the Norwegian and Swedish currencies. Calculated in local currencies, the net sales of Seafood's foreign operations were down by about 10%. This was a result of the reduced sales of fresh fish products and processed fish products. Shellfish sales continued to grow. At the end of June, Maritim Food AS agreed a deal with Cinvest AS, the minority owner of fish-processing company Sandanger AS, under which Cinvest AS's 49% holding in Sandanger AS has been transferred to the ownership of Maritim Food AS. The acquisition cost of these minority shares was approximately EUR 1.2 million. The new ownership arrangements will allow the Maritim Food group to benefit more effectively from the synergies and to further develop the business as part of the Maritim Food group. Seafood's net sales for January-June were down by 17% on the same quarter in 2008. Its operating result, excluding non-recurring items, was also down and was recorded as a loss. The number of personnel in the Seafood business totalled 396 (440). The reduction in personnel occurred mainly in Seafood's Finnish-based operations. To bring production and costs into line, both blue-collar and white-collar personnel at the Kuopio production plant were laid off for one to two weeks during the review period. As a result of renewing the management system in the Seafood business at the start of the year, the directors of the Finnish-based processed fish products business and concept business and the director of Seafood's business in Norway and Sweden have been reporting directly to the CEO, Matti Karppinen. With the transfer of Sandanger AS in full to Maritim Food AS, Jan Brevik was appointed Managing Director of Sandanger AS at the start of July. He also continues as Managing Director of Maritim Food AS and Maritim Food Sweden AB. Investment in the Seafood business totalled EUR 0.1 (1.0) million. Vegetable Oils EUR mill. Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec 2009 2008 2009 2008 2008 Net sales 12.2 15.9 24.9 30.1 62.0 Operating profit, excluding non-recurring items 0.7 0.1 1.0 0.2 -0.0 Second—quarter net sales in the Vegetable Oils business decreased by 24% on the same quarter in 2008. This drop in net sales was the result of significantly lower market prices and smaller delivery volumes than a year earlier. Delivery volumes fell both in sales of protein feeds and in vegetable oil exports. In Finland, vegetable oil sales continued to be stable. Operating profit in the Vegetable Oils business improved significantly year-on-year. The improved result was a consequence of success in managing changes in market prices and in developing processes, operating methods and the organisation in general, and the good oil yield. Net sales in January-June were down by 17% year-on-year, while operating profit improved significantly on the previous year's figure. In the current season the area of Finnish rapeseed under cultivation grew from 65,000 hectares to 80,000 hectares. With good growing conditions, the Finnish oilseed crop is expected to be significantly better than the previous season's crop. This will reduce the need to import oilseeds. The number of personnel in the Vegetable Oils business was 34 (35). To bring production and costs into line, the Vegetable Oils personnel were laid off for about one week during January-June. Investment in the Vegetable Oils business consisted of minor expenditure on replacements, totalling EUR 0.1 (0.1) million. Grain Trading EUR mill. Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec 2009 2008 2009 2008 2008 Net sales 23.8 49.6 44.5 91.7 148.5 Operating profit, excluding non-recurring items 1.5 2.3 2.2 4.0 5.5 Second-quarter net sales in Grain Trading were down by 52% year-on-year. This was a result of the significantly lower market prices and smaller sales volumes than a year earlier. Sales in Finland were up on the previous year's figure. Trade with third countries and the overall level of exports were down year-on-year. Despite the drop in net sales, the second-quarter operating profit reached a good level, improving significantly on the first-quarter figure. Net sales in January-June were down by 51% year-on-year, and the operating profit fell short of the record high of a year earlier. The internal efficiency of operations was improved, and fixed costs were below those for January-June 2008. In the season just ended there was a plentiful supply of grain on the world market as a result of the good crops and slightly lower demand, which meant that prices fell in comparison with a year earlier. The demand and supply situation for soybeans continued to be tight, and prices for the 2008 crop have remained high. The new grain crop is currently expected to be good in the most important production regions. With no major crop problems likely and with stocks having risen since 2008, the prices for the new crop have remained low. The number of personnel in the Grain Trading business totalled 29 (30). Investment in Grain Trading in January-June amounted to EUR 0.1 (0.0) million and was for the renewal of its enterprise resource planning system. This system was introduced during the second quarter. Other Operations EUR mill. Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec 2009 2008 2009 2008 2008 Net sales 0.4 0.4 0.8 1.4 3.0 Operating profit, excluding non-recurring items -0.6 -0.6 -1.6 -1.8 -1.6 Other Operations comprise the service company Apetit Suomi Oy, Group Administration, items not allocated under any of the business segments, and the associated companies Sucros Ltd and Ateriamestarit Oy. The cost impact of the services produced by Apetit Suomi Oy is an encumbrance on the operating result of the Group's businesses in proportion to the use of the services. In the second quarter, net sales from the sale of services were at the previous year's level. The reduction in January-June net sales was a result of the discontinuation of service fees for sales and product development when they were transferred from Apetit Suomi Oy to the business areas half way through the January-June period in 2008. The January-June operating profit, excluding non-recurring items, totalled EUR -1.6 (-1.8) million. This figure includes EUR +0.4 (+0.5) million as the share of the profits of associated companies. Investment in Other Operations totalled EUR 0.0 (0.1) million. DECISIONS OF THE ANNUAL GENERAL MEETING Lännen Tehtaat plc's Annual General Meeting of 2 April 2009 adopted the parent company's financial statements and the consolidated financial statements, and discharged the members of the Board of Directors and of the Supervisory Board and the Chief Executive Officer from liability for the financial year 2008. Dividend distribution The Annual General Meeting decided to pay a dividend of EUR 0.85 per share on the profit for the financial year 2008. The dividend was paid on 17 April 2009. Amendments to the Articles of Association The Annual General Meeting approved the Board's proposals for amending article 2 of the Articles of Association, on the company's sphere of operations, and article 10, paragraph 1, on the invitation to the AGM. Authorisations to issue shares The Annual General Meeting authorised the Board of Directors to decide on issuing new shares and on the transfer of Lännen Tehtaat plc shares held by the company, in one or more lots as a share issue of a total of no more than 761,757 shares. The share issue authorisation covers all of the Lännen Tehtaat plc shares already in the company's possession, i.e. 130,000 shares. The maximum number of new shares that can be issued is 631,757. The authorisation is valid until the next Annual General Meeting. The decisions of the Annual General Meeting are given in more detail in the stock exchange release dated 2 April 2009 and in the Interim Report published on 7 May 2009. USE OF THE AUTHORISATIONS GRANTED TO THE BOARD OF DIRECTORS Authorisations to issue shares The Board of Directors had not yet exercised the authorisation granted to it 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 the January-June was 692,388 (762,832), representing 11.0% (12.1%) of the total number of shares. The euro-denominated share turnover was EUR 8.4 (10.9) million. The highest share price quoted was EUR 14.43 (16.46) and the lowest EUR 11.90 (13.20). The average price of shares traded was EUR 12.17 (14.30). At the end of June, the market capitalisation totalled EUR 77.0 (94.8) million. FLAGGING ANNOUNCEMENTS On 28 May 2009, Nordea Investment Fund Company Finland Ltd announced that on 27 May 2009 the level of ownership in Lännen Tehtaat plc held by investment funds managed by Nordea Investment Fund Company Finland Ltd rose to over 5%; the proportion of the votes and share capital at the time of flagging was 5.46%, or 345,325 shares. SALE OF SHARES IN JOINT ACCOUNT On 23 February 2009, a total of 51,910 Lännen Tehtaat plc shares that were in the joint book-entry account were sold in trading on the NASDAQ OMX Helsinki Ltd exchange. The sale was based on the decision of the Lännen Tehtaat plc Annual General Meeting of 29 March 2007 to sell, on behalf of the respective holders, the company's shares held in the joint book-entry account and not transferred to the book-entry system. The assets from the sale, less the expenses of notification and selling, were deposited with the State Provincial Office of Western Finland. By presenting a share certificate to the State Provincial Office, holders of shares that were in the joint account, or other holders of the right, are entitled to a proportion of the income from the share sale that corresponds to the shares they held. The assets from the sale of the shares, less expenses, and the dividends for 2005-2007 come to EUR 15.69 per share. The assets are redeemable on or before 17 March 2019. GOVERNING BODIES At its organisational meeting on 17 April 2009, Lännen Tehtaat plc's Supervisory Board elected Helena Walldén as its chairman and Juha Nevavuori as its deputy chairman. The Supervisory Board elected the following as members of the company's Board of Directors: Harri Eela, Heikki Halkilahti, Aappo Kontu, Matti Lappalainen, Hannu Simula, Soili Suonoja and Tom v. Weymarn. Tom v. Weymarn was elected chairman of the Board of Directors and Matti Lappalainen was elected deputy chairman. 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, which means that the inventory volumes and their balance-sheet values are at their highest at the end of the year. Since the entry of the fixed production overheads included in the historical cost as an expense item is deferred until the time of sale, most of the Group's annual profit is accrued in the final quarter. The seasonal nature of operations is most marked in Frozen Foods and in the associated company Sucros, due to the link between production and the crop harvesting season. Apetit Kala's sales peak at weekends and on seasonal holidays. As Easter can take place in either the first or the second quarter, this can affect the comparability of Seafood's net sales and profit from one year to the next. A major proportion of the entire year's profit in the Seafood business depends on the success of Christmas sales. Net sales in Grain Trading vary from one year and quarter to the next, 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 are: the effects of the economic downturn on demand from consumers and customers; the solvency of customers and the delivery performance of suppliers; the quantity and quality of Finnish vegetable, grain and oilseed crops; the management of raw material price changes and currency risks; changes in the operating environments of the Group's businesses and in customerships; and corporate acquisitions and the subsequent integration processes. SIGNIFICANT EVENTS SINCE THE END OF THE REVIEW PERIOD Lännen Tehtaat has decided to combine the business operations of Avena Nordic Grain Oy and Mildola Oy. The aim of this is to combine the commodity market expertise of Avena Nordic Grain with Mildola's expertise in oil milling and to achieve synergy benefits in purchasing, sales, logistics and administration. This arrangement is explained in more detail in a separate stock exchange release. ASSESSMENT OF 2009 The net sales from Lännen Tehtaat's continuing operations will be affected particularly by changes in the price level of grains and oilseeds. Based on grain and oilseed prices in the first half of the year, the Group's net sales for the third quarter and for the entire year are expected to be below the corresponding figures for 2008. The focus of consumer demand on lower priced basic products as a result of the economic downturn is expected to have both negative and positive effects on the profitability of the Group's businesses. Thanks to the measures taken to develop the Group's different businesses, the third-quarter operating profit from the continuing operations, excluding non-recurring items, is estimated to be at about the same level as in 2008. On the basis of the profit performance for the first half-year, the full-year operating profit, excluding non-recurring items, from the Group's continuing operations is expected to be at around the previous year‘s level. Due to the seasonal nature of the Group's operations, a high proportion of the annual profit is accrued in the final quarter of the year. The need for investment in non-current assets is significantly less than in 2008. CONSOLIDATED INCOME STATEMENT EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/ 2009 2008 2009 2008 2008 Continuing operations Net sales 65.5 101.0 130.2 191.9 349.1 Other operating income 0.3 0.3 0.7 0.6 3.8 Operating expenses -63.8 -98.7 -128.2 -188.1 -342.8 Depreciation -1.4 -1.3 -2.6 -2.6 -5.1 Impairments 0.0 - 0.0 - -0.2 Share of profits of accociated companies 0.4 0.5 0.4 5.4 9.1 Operating profit 1.1 1.8 0.4 7.2 13.9 Financial income and expenses -0.1 -0.4 0.2 -1.1 -3.3 Profit before taxes 1.0 1.4 0.6 6.1 10,7 Income taxes -0.2 -0.3 -0.1 -0.3 -0.7 Profit for the period, continuing operations 0.8 1.1 0.5 5.9 10.0 Discontinued operations Profit for the period, discontinued operations - 0.1 - 0.4 7.1 Profit for the period 0.8 1.3 0.5 6.3 17.1 Attributable to Equity holders of the parent 0.7 1.3 0.5 6.2 17.0 Minority interests 0.1 0.0 - 0.1 0.1 Basic and diluted earnings per share, calculated of the profit attributable to the shareholders of the parent company, EUR Continuing operations 0.12 0.18 0.08 0.92 1.60 Discontinued operations - 0.02 - 0.07 1.13 Total 0.12 0.20 0.08 0.98 2.73 STATEMENT OF COMPREHENSIVE INCOME EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/ 2009 2008 2009 2008 2008 Profit for the period 0.8 1.3 0.5 6.3 17.1 Other comprehensive income Cash flow hedges -0.3 0.4 0.6 0.0 -1.6 Taxes related to cash flow hedges 0.1 -0.1 -0.2 0.0 0.4 Translation differences -0.1 0.0 0.6 -0.1 -2.1 Total comprehensive income 0.6 1.6 1.5 6.2 13.8 Attributable to Equity holders of the parent 0.5 1.6 1.5 6.1 13.8 Minority interests 0.1 0.0 - 0.1 0.0 CONSOLIDATED STATEMENT OF FINANCIAL POSITION EUR million 30 June 30 June 31 Dec 2009 2008 2008 ASSETS Non-current assets Intangible assets 6.1 5.5 5.3 Goodwill 6.4 7.1 5.9 Tangible assets 38.3 43.7 43.5 Investment in associated companies 25.4 45.2 25.0 Available-for-sale investments 0.1 0.1 0.1 Receivables 1.7 3.3 3.1 Deferred tax assets 1.5 1.2 1.4 Non-current assets total 79.4 106.1 84.3 Current assets Inventories 42.0 40.4 55.1 Receivables 24.4 25.3 38.7 Income tax receivable 0.3 0.1 0.7 Financial assets at fair value through profits 12.9 4.0 3.8 Cash and cash equivalents 8.1 7.2 9.9 Current assets total 87.7 77.1 108.0 Non-current assets classified as held for sale 3.6 0.8 - Total assets 170.7 183.9 192.3 EUR million 30 June 30 June 31 Dec 2009 2008 2008 EQUITY AND LIABILITIES Equity attributable to the equity holders of the parent company 130.7 127.7 135.1 Minority interest - 0.6 0.5 Total equity 130.7 128.3 135.6 Non-current liabilities Deferred tax liabilities 3.8 4.1 4.5 Long-term financial liabilities 3.7 4.9 4.5 Non-current provisions 0.1 0.1 0.1 Other non-current liabilities 0.1 - 0.2 Non-current liabilities total 7.7 9.1 9.3 Current liabilities Short-term financial liabilities 6.5 18.5 10.7 Income tax payable 1.1 1.3 0.7 Trade payables and other liabilities 24.7 26.8 36.1 Current liabilities total 32.3 46.5 47.4 Total liabilities 40.0 55.7 56.8 Liabilities directly associated with non-current assets classified as held for sale - 0.0 - Total equity and liabilities 170.7 183.9 192.3 CONSOLIDATED STATEMENT OF CASH FLOW EUR million 1-6/ 1-6/ 1-12/ 2009 2008 2008 Net profit for the period 0.5 6.3 17.1 Adjustments, total 4.1 -1.7 -8.5 Change in net working capital 17.6 14.6 -5.1 Interests paid -1.1 -1.2 -2.4 Interests received 0.4 0.3 0.4 Taxes paid -0.3 -0.9 -1.8 Net cash flow from operating activities 21.2 17.5 -0.4 Investments in tangible and intangible assets -1.5 -3.8 -8.1 Proceeds from sales of tangible and intangible assets 0.4 0.1 3.0 Acquisition of subsidiaries deducted by cash - -0.4 -0.4 Transactions with minority -1.2 1.5 1.5 Acquisition of associated companies - -0.4 -0.4 Proceeds from sales of associated companies - - 27.0 Purchases of other investments -9.0 - -14.0 Proceeds from sales of other investments - 4.0 18.1 Dividends received from investing activities 0.2 - 3.6 Net cash flow from investing activities -11.1 1.0 30.3 Repayments of short-term loans -6.5 -9.8 -18.4 Repayments of long-term loans -0.2 -0.5 -0.1 Payment of financial lease liabilities 0.0 -0.1 -0.1 Purchases of own shares - -0.4 -1.0 Dividends paid to minority - -0.3 -0.3 Dividends paid -5.3 -5.3 -5.3 Cash flows from financing activities -11.9 -16.5 -25.1 Net change in cash and cash equivalents -1.7 2.2 4.8 Cash and cash equivalents at the beginning of the the period 9.9 5.1 5.1 Cash and cash equivalents at the end of the period 8.1 7.2 9.9 STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY EUR million A = Share capital B = Share premium account C = Net unrealised gains D = Other reserves E = Own shares F = Translation differences G = Retained earnings H = Attributable to equity holders of the parent company I = Minority interest J = Shareholders' equity total A B C D E F G H I J Shareholders' equity at 1 Jan 2008 12.6 23.4 0.4 7.2 -0.8 0.1 84.5 127.3 0.7 128.0 Transactions with minority - - - - - - 0.4 0.4 - 0.4 Dividend distribution - - - - - - -5.3 -5.3 -0.3 -5.6 Other changes - - - - -0.4 - -0.4 -0.8 - -0.8 Total comprehensive income - - 0.0 - - -0.1 6.2 6.1 0.1 6.2 Shareholders' equity at 30 June 2008 12.6 23.4 0.4 7.2 -1.2 0.0 85.3 127.6 0.6 128.3 Shareholders' equity at 1 Jan 2009 12.6 23.4 -0.8 7.2 -1.8 -1.9 96.6 135.1 0.5 135.6 Transactions with minority - - - - - - -0.7 -0.7 -0.5 -1.2 Dividend distribution - - - - - - -5.3 -5.3 - -5.3 Total comprehensive income - - 0.4 - - 0.6 0.5 1.6 - 1.6 Shareholders' equity at 30 June 2009 12.6 23.4 -0.4 7.2 -1.8 -1.3 91.0 130.7 - 130.7 BASIS OF PREPARATION AND ACCOUNTING POLICIES The interim report has been prepared in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU. The accounting policies adopted are consistent with those of the Group's annual financial statements for the year ended 31 December 2008. The amendment of IFRS 8 will not change the information shown in these segments because the Group's earlier segment-based reporting was based on the Group's internal reporting structures. The amendment of IAS 1 has an impact on the presentation method of the profit and loss account and the changes in equity. SEGMENT INFORMATION A Frozen Foods B Seafood C Vegetable Oils D Grain Trading E Other Operations F Continuing operations total G Discontinued operations H Total Operating segments 1-6/2009 EUR million A B C D E F G H Total external sales 24.2 36.8 24.9 44.5 0.8 131.3 - 131.3 Intra-group sales 0.0 0.0 0.0 -0.4 -0.7 -1.1 - -1.1 Net sales 24.2 36.8 24.9 44.1 0.1 130.2 - 130.2 Share of profits of associated companies included in operating profit - - - - 0.4 0.4 - 0.4 Operating profit 0.8 -1.9 1.0 2.2 -1.6 0.4 - 0.4 Gross investments in non-current assets 1.2 0.2 0.1 0.1 - 1.5 - 1.5 Corporate acquisitions and other share purchases - 1.2 - - - 1.2 - 1.2 Depreciations 0.9 1.0 0.3 0.0 0.4 2.6 - 2.6 Impairments - 0.0 - - - 0.0 - 0.0 Personnel 188 396 34 29 10 655 - 655 Operating segments 1-6/2008 EUR million A B C D E F G H Total external sales 26.0 44.6 30.1 91.7 1.4 193,8 - 193.8 Intra-group sales -0.1 -0.1 0.0 -0.6 -1.1 -1.9 - -1.9 Net sales 25.9 44.5 30.1 91.1 0.3 191.9 - 191.9 Share of profits of associated companies included in operating profit - - - - 5.4 5.4 - 5.4 Operating profit 0.5 -0.6 0.2 4.0 3.1 7.2 - 7.2 Share of profits of associated companies - - - - - - 0.4 0.4 Gross investments in non-current assets 2.6 1.0 0.1 0.0 0.1 3.8 - 3.8 Corporate acquisitions and other share purchases - - - 0.4 - 0.4 - 0.4 Depreciations 0.7 1.1 0.3 0.0 0.5 2.6 - 2.6 Impairments - - - - - - - - Personnel 229 440 35 30 13 746 - 746 Operating segments 1-12/2008 EUR million A B C D E F G H Total external sales 49.3 89.7 62.0 148.5 3.0 352.4 - 352.4 Intra-group sales -0.1 0.0 0.0 -1.1 -2.1 -3.3 - -3.3 Net sales 49.2 89.7 62.0 147.4 0.9 349.1 - 349.1 Share of profits of associated companies included in operating profit - - - - 9.1 9.1 - 9.1 Operating profit 5.1 -2.4 -0.1 5.4 5.8 13.9 6.6 20.5 Share of profits of associated companies - - - - - - 0.5 0.5 Gross investments in non-current assets 6.0 1.5 0.2 0.3 0.2 8.1 - 8.1 Corporate acquisitions and other share purchases - 0.1 - 0.4 - 0.5 - 0.5 Depreciations 1.4 2.1 0.7 0.0 0.8 5.1 - 5.1 Impairments - 0.2 - - - 0.2 - 0.2 Personnel 237 441 35 30 12 755 - 755 Net sales by geographical segment Net sales EUR million 1-6/ 1-6/ 1-12/ 2009 2008 2008 Finland 93.5 100.3 209.9 Scandinavia 21.3 39.7 65.8 Baltic countries and Russia 1.8 3.7 7.6 Other countries 13.5 48.1 65.9 Discontinued operations total 130.2 191.9 349.1 DISCONTINUED OPERATIONS The sale of the majority holding of 51% in Suomen Rehu Ltd was completed at the start of June 2007, when Suomen Rehu and its subsidiaries were transferred to Hankkija-Maatalous Oy. Lännen Tehtaat plc and SOK subsidiary Hankkija-Maatalous Oy signed an agreement on 1 September 2008, transferring the remaining 49% of shares owned by Lännen Tehtaat in Suomen Rehu Ltd to Hankkija-Maatalous Oy. Lännen Tehtaat recognized a non-recurring tax-free profit of EUR 6.6 million for the sale of these minority shares in its financial performance for the 2008 third quarter. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE Non-current assets classified as held for sale in the reporting period belong to Apetit Kala Oy's logistics functions located in Kerava that will be sold during the fourth quarter in 2009. Non-current assets classified as held for sale in the comparison period belong to Apetit Pakaste Oy's jams and marmalades business that was sold to Saarioisten Säilyke Oy in autumn 2008. IMPAIRMENT TEST An impairment test has been performed in Seafood's domestic operations based on the updated strategy. The impairment test did not result in an impairment of assets. KEY INDICATORS 30 June 30 June 31 Dec 2009 2008 2008 Shareholders' equity per share, EUR 21.12 20.51 21.83 Equity ratio, % 76.7 69.7 70.5 Gearing, % -8.3 9.5 1.1 Gross investments in non-current assets, EUR million, continuing operations 1.5 3.8 8.1 Corporate acquisitions and other share purchases, EUR million, continuing operations 1.2 0.4 0.5 Average number of personnel, continuing operations 655 746 755 Average number of shares, 1 000 pcs 6 188 6 249 6 221 The key figures in this interim financial report are calculated with same accounting principles than presented in year 2008 annual financial statements. CONTINGENT LIABILITIES EUR million 30 June 30 June 31 Dec 2009 2008 2008 Mortgages given for debts Real estate mortgages 7.7 9.5 8.6 Corporate mortgages - 1.3 - Guarantees 10.0 10.1 10.8 Non-cancellable other leases, minimum lease payments Real estate leases 4.8 4.4 5.1 Other leases 0.7 0.7 0.9 DERIVATIVE INSTRUMENTS Outstanding nominal values of derivative instruments Forward currency contracts 3.8 5.0 6.3 Commodity derivative instruments 10.4 6.7 13.3 INVESTMENT COMMITMENTS Lännen Tehtaat has investment commitments in Frozen Foods a total of EUR 0.6 million as of 30 June 2009. CHANGES IN TANGIBLE ASSETS EUR million 1-6/ 1-6/ 1-12/ 2009 2008 2008 Book value at the beginning of the period 43.5 43.5 43.5 Acquisitions 0.8 2.9 5.9 Disposals and transfers to assets classified as held for sale -4.1 -0.2 -0.2 Depreciations and impairments -2.3 -2.4 -5.3 Other changes 0.4 -0.1 -0.5 Book value at the end of the period 38.3 43.7 43.5 TRANSACTIONS WITH ASSOCIATED COMPANIES AND JOINT VENTURES EUR million 1-6/ 1-6/ 1-12/ 2009 2008 2008 Sales to associated companies 0.2 8.8 13.4 Sales to joint ventures 3.9 4.0 8.5 Purchase from associated companies 1.3 0.3 0.7 Purchase from joint ventures 0.0 0.1 0.3 Long-term receivebles from associated companies 0.0 2.6 2.7 Trade receivables and other receivables from associated companies 1.5 2.7 1.6 Trade receivables and other receivables from joint ventures 0.6 0.8 0.6 Trade payables and other liabilities to associated companies 0.0 0.1 0.0 LÄNNEN TEHTAAT PLC Board of Directors Further information: CEO Matti Karppinen, tel. +358 10 402 4001 Copies to: NASDAQ OMX Helsinki Ltd Principal media www.lannen.fi |
|||
|