Apetit Oyj - Company Announcement

Apetit lowers its estimate of net sales and operating profit excluding non-recurring items for 2014

Apetit Plc, Stock Exchange Release, 2 October 2014 at 8:30 a.m.

Apetit is amending its profit guidance for 2014 and lowering its estimate of
full-year net sales and operating profit excluding non-recurring items. 

The outlook of the associated company Sucros for the rest of the year has
deteriorated due to the still continuing decline in the market price of sugar.
The outlook of the Food Business is also adversely affected by the persistent
challenging market conditions combined with the poor profitability of fish
products continuing for longer than previously expected. The effects of the
profitability improvement programme for the fish product group in Finland,
which was begun this year, are not expected to be evident in the profit
performance until 2015. In Norway and Sweden, the price increases carried out
as a result of higher raw material costs will not have an impact on the profit
level until the end of 2014. 

Apetit will continue to implement the long-term profitability programmes
launched this year in its Food Business in Finland, affecting fresh products as
well as fish products. The programmes are expected to have a positive effect on
the profitability of the Food Business as of 2015. The expected financial
impact of these programmes will be presented later in the year. 

The reference in the profit guidance to the resolution of the shareholder
agreement dispute regarding Sucros was separately announced in the Stock
Exchange Release of 19 August 2014. 


New profit guidance for 2014:

The Apetit 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. As a result of the lower global market prices of grains,
the Group's net sales for this year are expected to decrease from the previous
year's level. 

The Group's full-year operating profit excluding non-recurring items is
expected to be down significantly from the previous year. In the Food Business,
the market conditions are expected to remain challenging and, furthermore, the
profitability of fish products will be lower in 2014 than previously estimated.
In comparison with the same period in 2013, the profitability of the Grains and
Oilseeds Business has been positively influenced by the volume growth in the
grain trade and in packaged vegetable oil products, and by the success in raw
material procurement. Lower market prices for sugar are expected to weaken the
result considerably for the associated company Sucros, which is in the Other
Operations segment. The Group's July-December operating profit excluding
non-recurring items is expected to fall short of the previous year's level. 

In addition, the 2014 operating profit will be affected by non-recurring
expenses in the form of Apetit's expert costs and the process costs ordered to
be paid by Apetit in relation to the shareholder agreement dispute regarding
Sucros. 


Previous profit guidance for 2014:

The Apetit 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. As a result of the lower global market prices of grains,
the Group's net sales for this year are expected to decrease or to be no higher
than the previous year's level. 

The Group's full-year operating profit excluding non-recurring items is
expected to fall short of the previous year's level. In the Food Business, the
market conditions are expected to continue to be challenging. In comparison
with the same period in 2013, the profitability of the Grains and Oilseeds
Business has been positively influenced by the volume growth in the grain trade
and in packaged vegetable oil products, and by the success in raw material
procurement. In the Other Operations segment, lower market prices for sugar are
expected to weaken the result for the associated company Sucros. The Group's
July-December operating profit excluding non-recurring items is expected to be
no higher than the previous year's level. 

In addition, the outcome of the shareholder agreement dispute concerning Sucros
may have a significant effect on the result for 2014. Apetit has received a
notification from the Arbitral Tribunal that the Arbitral Award regarding the
dispute is rendered to the Parties on Tuesday 19 August 2014, unless nothing
unexpected will take place. 


Apetit will publish its January-September Interim Report on 6 November 2014 at
8.30 am. 



APETIT PLC

Veijo Meriläinen
CEO




Further information:

Veijo Meriläinen, CEO, tel. +358 10 402 00



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