2010-10-21 07:30:00 CEST
2010-10-21 07:30:40 CEST
REGULATED INFORMATION
Huhtamäki Oyj - Interim report (Q1 and Q3)
Interim Report January 1-September 30, 2010: Continued earnings per share growth
STOCK EXCHANGE RELEASE HUHTAMÄKI OYJ 21.10.2010 AT 8:30
- Improved net sales due to favorable currency effect and volume growth
- Continued earnings per share (EPS) growth
- Solid cash flow and declining net debt
- Agreement to sell the majority of European Rigid Consumer Goods Plastics
operations
- Full year 2010 EPS expected to be higher than in 2009 before non-recurring
charges (EUR 0.74)
Key figures
EUR million Q1-Q3 2010 Q1-Q3 2009 Q3 2010 Q3 2009
Continuing operations
Net sales 1,470.0 1,399.2 499.8 459.9
EBIT* 106.6 98.5 33.4 34.4
EBIT margin % 7.3 7.0 6.7 7.5
EPS 0.70 0.52 0.23 0.19
Including discontinued operations
EPS 0.77 0.65 0.26 0.23
ROI % (12m roll.) 10.1 -2.5 - -
*Q1-Q3 2009 EBIT includes EUR 3.8 million non-recurring charges
Overview
Group net sales increased compared to the corresponding period in 2009 as a
result of a favorable currency translation effect and improved volumes. Volume
development was positive especially in the Flexible Packaging and Films
segments. In the reporting period all business segments were affected by
increasing raw material prices.
Operating earnings improved in the reporting period compared to corresponding
period in 2009. Third quarter operating earnings were slightly lower compared to
the corresponding period in 2009, mainly due to continued softness in North
American markets. Earnings per share (EPS) improved to EUR 0.77 (EUR 0.65),
already exceeding the full year 2009 level. EPS from continuing operations was
EUR 0.70 (EUR 0.52).
Cash flow generation strengthened further in the third quarter and Group free
cash flow in the reporting period was EUR 76 million (EUR 167 million). Gearing
reduced to 0.43 (0.58).
The ongoing strategic review of the Rigid Consumer Goods Plastics operations
progressed during the third quarter as the majority of the European Rigid
Consumer Goods Plastics operations was agreed to be sold. The operations to be
sold include manufacturing units in Finland, France, Poland and Turkey, as well
as sales units in Germany and Lithuania. The strategic review of the rigid
plastics business in Italy, currently reported under other activities, will
continue.
Business review by segment, continuing operations
The sales distribution by segment was following: Flexible Packaging 26% (25%),
Films 8% (8%), North America 28% (29%), Molded Fiber 12% (12%), Foodservice
Europe-Asia-Oceania 23% (23%) and Other activities 3% (3%).
Flexible Packaging
Flexibles are used for consumer packaging of a wide range including food, pet
food, hygiene and health care products. The segment serves global markets from
production units in Europe, Asia, Oceania and South America.
EUR million Q1-Q3 2010 Q1-Q3 2009 Q3 2010 Q3 2009
Net sales 390.5 354.1 133.3 114.8
EBIT 24.7 21.2 7.7 7.6
EBIT margin % 6.3 6.0 5.8 6.6
RONA % (12m roll.) 10.0 1.4 - -
The segment's net sales and volumes continued to develop positively during the
reporting period compared to the corresponding period in 2009. Sales growth
accelerated during the third quarter as the business in Asia continued its
strong performance and the European business returned to solid growth path.
Despite increasing raw material costs during the third quarter, especially in
Asia, the segment's earnings grew in the reporting period.
Films
Films are mainly used for technical applications in the label, adhesive tape,
hygiene and health care industries, as well as building and construction,
automotive, packaging and graphic arts industries. The segment serves global
markets from production units in Europe and North America.
EUR million Q1-Q3 2010 Q1-Q3 2009 Q3 2010 Q3 2009
Net sales 127.3 121.6 44.0 41.3
EBIT* 9.3 -1.4 3.0 1.5
EBIT margin % 7.3 -1.2 6.8 3.6
RONA % (12m roll.) 6.7 -1.0 - -
*Q1-Q3 2009 EBIT includes EUR 3.8 million non-recurring charges
Good momentum continued in the segment and sales increased during the reporting
period compared to the corresponding period in 2009.
Due to volume growth and lower cost base resulting from 2009 restructuring
activities, earnings continued to develop positively confirming return to
healthy margins.
North America
The North America segment serves local markets with Chinet® disposable tableware
products, ice-cream containers as well as other consumer goods and foodservice
products. The segment has production in North America and Mexico.
EUR million Q1-Q3 2010 Q1-Q3 2009 Q3 2010 Q3 2009
Net sales 407.8 411.5 136.4 129.3
EBIT 37.4 52.6 10.1 14.5
EBIT margin % 9.2 12.8 7.4 11.2
RONA % (12m roll.) 10.6 14.3 - -
Continued soft market conditions lowered sales and earnings during the reporting
period compared to the corresponding period in 2009. Sales continued to develop
positively within the Foodservice division, but were weak in the Retail and
Consumer Goods divisions.
Earnings comparisons to prior year continued to be negatively affected by high
raw material costs. Raw material costs were unusually low in 2009. Third quarter
earnings were further affected by lower volumes and increased discounting within
the Retail division.
Molded Fiber
Recycled molded fiber is used to make fresh product packaging, such as egg and
fruit packaging. The segment has production in Europe, Oceania, Africa and South
America.
EUR million Q1-Q3 2010 Q1-Q3 2009 Q3 2010 Q3 2009
Net sales 171.9 151.6 57.2 52.0
EBIT 15.7 12.8 5.4 4.7
EBIT margin % 9.1 8.4 9.4 9.0
RONA % (12m roll.) 12.0 6.8 - -
Steady development continued in the segment and net sales increased during the
reporting period compared to the corresponding period in 2009.
Growth in earnings was mainly based on good price and product mix management.
Foodservice Europe-Asia-Oceania
Foodservice paper and plastic disposable tableware, such as cups, is supplied to
foodservice operators and fast food restaurants. The segment has production in
Europe, Middle-East, Asia and Oceania.
EUR million Q1-Q3 2010 Q1-Q3 2009 Q3 2010 Q3 2009
Net sales 352.6 341.5 121.5 116.2
EBIT 20.4 15.6 8.7 6.8
EBIT margin % 5.8 4.6 7.2 5.9
RONA % (12m roll.) 9.1 0.2 - -
Soft market conditions continued and volume development remained negative during
the reporting period compared to the corresponding period in 2009.
Earnings continued at an improving trend, driven by good cost containment in
operations.
Relocation of the foodservice manufacturing unit in Poland was completed during
the third quarter. The new state-of-the-art unit is located in Czeladz, south of
Poland.
Discontinued operations
Rigid Consumer Goods Plastics operations have been under strategic review since
autumn 2008.
During the third quarter the majority of the European Rigid Consumer Goods
Plastics operations were agreed to be sold to Island Lux S.à r.l. & Partners
S.C.A., an affiliate of Sun European Partners, LLP, part of Sun Capital
Partners, Inc., a U.S. based private investment firm. The operations to be sold
include rigid consumer goods packaging manufacturing in Hämeenlinna, Finland;
Auneau, France; Siemianowice, Poland; and Istanbul, Turkey, as well as sales
units in Germany and Lithuania. The units to be sold serve multinational and
local customers with primarily dairy, edible fats, ready meal and ice cream
packaging.
The annual net sales of the operations to be sold are approximately EUR 160
million and it currently employs some 1,100 people. The agreed value for the
transaction is EUR 52 million. Closing of the transaction is subject to approval
by competition authorities.
Rigid Consumer Goods Plastics units in South America and Australia were sold in
2009. The strategic review of the rigid plastics business in Italy will
continue.
The units agreed to be sold in the third quarter are classified as assets held
for sale. The unit in Italy is reported under other activities. In this report
the result for the assets held for sale is presented as a separate line item
under "discontinued operations". Quarterly results for 2009 and 2010 have been
restated accordingly. Results of units sold during 2009 are also included in the"discontinued operations" for respective quarters.
The result for the reporting period from discontinued operations was EUR 7
million (EUR 13 million) and in the third quarter EUR 4 million (EUR 4 million).
Sales developed positively especially in the third quarter and cost control
actions mitigated the impact of higher raw material costs. The 2010 figures for
the reporting period include a non-recurring charge of EUR 2 million related to
the strategic review of the discontinued operations.
Assets and liabilities under the assets held for sale are reported separately
from continuing operations in the statement of financial position.
Financial review
The Group EBIT in the reporting period from continuing operations was EUR 107
million (EUR 99 million, including EUR 4 million non-recurring charges),
corresponding to an EBIT margin of 7.3% (7.0%). In the third quarter, the Group
EBIT from continuing operations was EUR 33 million (EUR 34 million),
corresponding to an EBIT margin of 6.7% (7.5%).
The net financial items for the reporting period were EUR -12 million (EUR -21
million) and for the third quarter EUR -3 million (EUR -6 million). Tax expense
for the reporting period was EUR 16 million (EUR 18 million) and for the third
quarter EUR 5 million (EUR 7 million). Corresponding tax rate for the reporting
period was 16% (20%).
The result for the reporting period from continuing operations was EUR 79
million (EUR 60 million) and EPS from continuing operations were EUR 0.70 (EUR
0.52). Correspondingly in the third quarter these were EUR 26 million (EUR 22
million) and EUR 0.23 (EUR 0.19). The average number of outstanding shares used
in the EPS calculations was 101,167,399 (100,426,461) excluding 4,826,089
(5,061,089) of the Company's own shares.
The result for the reporting period including discontinued operations was EUR
87 million (EUR 74 million) and the EPS were EUR 0.77 (EUR 0.65).
Correspondingly in the third quarter these were EUR 29 million (EUR 27 million)
and EUR 0.26 (EUR 0.23). The 2010 figures for the reporting period include a
non-recurring charge of EUR 2 million related to the strategic review of the
discontinued operations.
Statement of financial position and cash flow
Free cash flow in the reporting period was EUR 76 million (EUR 167 million) and
for the third quarter it was EUR 32 million (EUR 65 million). Capital
expenditure was EUR 48 million (EUR 32 million), correspondingly in the third
quarter it was EUR 23 million (EUR 14 million).
Net debt was EUR 345 million (EUR 424 million) at the end of September 2010.
This corresponds to a gearing ratio of 0.43 (0.58).
Total assets on the balance sheet were EUR 1,850 million (EUR 1,837 million).
Personnel
The Group had 12,839 (13,346) employees at the end of September 2010.
Short-term risks and uncertainties
Volatile raw material and energy prices as well as movements in currency rates
are considered to be relevant short-term business risks and uncertainties in the
Group's operations. General economic and financial market conditions can also
have an adverse effect on the implementation of the Group's strategy and on its
business performance and earnings.
Outlook for 2010
General economic and market conditions for the rest of 2010 remain uncertain.
However, based on the good result for the reporting period, it is expected that
the full year 2010 EPS will be higher than in 2009 before non-recurring charges
(EUR 0.74). The Group is in a good financial position to address growth
opportunities in stronghold segments when they arise. Capital expenditure is
expected to be higher than in 2009 but below EUR 100 million.
Financial reporting in 2011
The results 2010 will be published on February 11, 2011. Additionally, the
following interim reports will be published during the course of the year:
January 1 - March 31, 2011 on April 20, January 1 - June 30, 2011 on July 21 and
January 1 - September 30, 2011 on October 20. Huhtamäki Oyj's Annual General
Meeting is planned to be held on April 20, 2011.
Espoo, October 20, 2010
Huhtamäki Oyj
Board of Directors
For further information, please contact:
Mr. Jukka Moisio, CEO, tel. +358-10-686 7801
Mr. Timo Salonen, CFO, tel. +358-10-686 7880
Mrs. Kaisa Marttinen, Investor Relations Manager, tel. +358-10-686 7815
Mrs. Katariina Hietaranta, Head of Group Communications, tel. +358-10-686 7863
A news conference for analysts and media will be held at 11:00 Finnish time at
the head office, address Keilaranta 10, Espoo, Finland. CEO Jukka Moisio and CFO
Timo Salonen will present the results, after which a buffet lunch is served. A
conference call for analysts and investors will start at 14:00 Finnish / 12:00
UK / 07:00 New York time with a management presentation, followed by a question
and answer session. To participate, please dial one of the following numbers
5-10 minutes prior to the call start:
- Number for participants from Finland: 0800 112 363
- Number for participants outside of Finland: +44 (0) 1452 555 566
- Conference ID: 15646706
All results materials will be available at www.huhtamaki.com. The results
presentation slides will be online approximately at 11:00 Finnish time. The
conference call can be followed real-time from the website and a replay of the
call in the form of an audio webcast will be available during the same evening.
Huhtamäki Oyj
January 1 - September 30, 2010
Group income statement (IFRS)
Unaudited
Q1-Q3 Q1-Q3 Q3 Q3 Q1-Q4
EUR million 2010 2009 2010 2009 2009
Continuing operations
Net sales 1,470.0 1,399.2 499.8 459.9 1,831.8
Cost of goods sold -1,226.7 -1,160.5 -421.6 -380.6 -1,530.0
Gross profit 243.3 238.7 78.2 79.3 301.8
Other operating income 16.0 11.3 5.6 4.2 15.0
Sales and marketing -54.2 -53.0 -17.5 -17.0 -70.0
Research and development -12.1 -10.5 -4.4 -3.9 -14.7
Administration costs -80.2 -82.8 -26.6 -27.0 -111.3
Other operating expenses -6.2 -5.2 -1.9 -1.2 -8.9
-136.7 -140.2 -44.8 -44.9 -189.9
Earnings before interest and
taxes 106.6 98.5 33.4 34.4 111.9
Financial income 3.6 20.3 1.2 6.3 24.1
Financial expenses -15.2 -41.5 -4.6 -12.0 -49.9
Income of associated companies 0.5 0.5 0.2 0.2 0.6
Result before taxes 95.5 77.8 30.2 28.9 86.7
Income taxes -16.3 -17.5 -4.7 -6.6 -19.4
Result for the period from
continuing operations 79.2 60.3 25.5 22.3 67.3
Discontinued operations
Result from operations 9.3 13.3 3.8 4.2 6.2
Impairment loss recognised on
the remeasurement to fair value
less cost to sell -2.0 - - - -
Result for the period from
discontinued operations 7.3 13.3 3.8 4.2 6.2
Result for the period 86.5 73.6 29.3 26.5 73.5
Attributable to:
Equity holders of the parent
company
Result for the period from
continuing operations 76.7 58.3 24.7 21.7 64.9
Result for the period from
discontinued operations 7.3 13.3 3.8 4.2 6.2
Result for the period
attributable to owners of parent 84.0 71.6 28.5 25.9 71.1
Non-controlling interest
Result for the period from
continuing operations 2.5 2.0 0.8 0.6 2.4
Result for the period from
discontinued operations - - - - -
Result for the period
attributable to non-controlling
interest 2.5 2.0 0.8 0.6 2.4
EUR
EPS result for the period from
continuing operations 0.76 0.58 0.25 0.21 0.65
EPS attributable to hybrid bond
investors 0.06 0.06 0.02 0.02 0.08
EPS continuing operations 0.70 0.52 0.23 0.19 0.57
EPS result for the period from
discontinued operations 0.07 0.13 0.03 0.04 0.06
EPS attributable to equity holders
of the parent company 0.77 0.65 0.26 0.23 0.63
EPS result for the period 0.83 0.71 0.28 0.25 0.71
Diluted:
EPS result for the period from
continuing operations 0.76 0.58 0.25 0.21 0.65
EPS attributable to hybrid bond
investors 0.06 0.06 0.02 0.02 0.08
EPS continuing operations 0.70 0.52 0.23 0.19 0.57
EPS result for the period from
discontinued operations 0.07 0.13 0.03 0.04 0.06
EPS attributable to equity holders
of the parent company 0.77 0.65 0.26 0.23 0.63
EPS result for the period 0.83 0.71 0.28 0.25 0.71
Group statement of comprehensive income (IFRS)
Q1-Q3 Q1-Q3 Q3 Q3 Q1-Q4
EUR million 2010 2009 2010 2009 2009
Result for the period 86.5 73.6 29.3 26.5 73.5
Other comprehensive income:
Translation differences 26.4 -1.3 -33.0 -5.1 0.7
Fair value and other reserves -0.7 -1.4 1.2 -0.1 1.2
Income tax related to components
of other comprehensive
income 0.1 0.3 -0.3 0.2 -0.5
Other comprehensive income,
net of tax 25.8 -2.4 -32.1 -5.0 1.4
Total comprehensive income 112.3 71.2 -2.8 21.5 74.9
Attributable to:
Equity holders of the parent
company 109.8 69.1 -3.6 20.9 72.3
Non-controlling interest 2.5 2.1 0.8 0.6 2.6
Group statement of financial position (IFRS)
Unaudited
Sep 30 Dec 31 Sep 30
EUR million 2010 2009 2009
ASSETS
Non-current assets
Goodwill 399.0 394.8 393.6
Other intangible assets 28.6 32.7 31.4
Tangible assets 588.3 604.2 634.0
Investments in
associated companies 3.0 2.5 2.3
Available for sale investments 1.1 1.9 1.9
Interest bearing receivables 1.0 11.0 1.7
Deferred tax assets 13.1 16.5 15.2
Employee benefit assets 60.7 57.9 58.2
Other non-current assets 4.2 3.0 3.1
1,099.0 1,124.5 1,141.4
Current assets
Inventory 250.8 236.1 257.9
Interest bearing receivables 33.3 19.4 18.2
Current tax assets 3.9 9.1 8.7
Trade and other
current receivables 326.6 305.5 337.5
Cash and cash equivalents 56.0 64.0 73.4
670.6 634.1 695.7
Assets classified as held for sale 80.0 - -
Total assets 1,849.6 1,758.6 1,837.1
EQUITY AND LIABILITIES
Share capital 360.6 360.6 358.7
Premium fund 106.8 106.8 104.7
Treasury shares -44.4 -46.5 -46.5
Translation differencies -106.9 -130.0 -131.9
Fair value and other reserves -5.0 -4.3 -6.0
Retained earnings 393.5 354.8 359.8
Amounts recognized in other
comprehensive income and accumulated
in equity relating to non-current assets held
for sale 3.4 - -
Total equity attributable to equity holders of
the parent company 708.0 641.4 638.8
Non-controlling interest 23.3 20.2 19.0
Hybrid bond 75.0 75.0 75.0
Total equity 806.3 736.6 732.8
Non-current liabilities
Interest bearing liabilities 244.0 294.3 384.0
Deferred tax liabilities 49.9 42.5 41.2
Employee benefit liabilities 101.6 102.8 100.8
Provisions 50.6 55.9 57.5
Other non-current liabilities 5.2 5.4 4.9
451.3 500.9 588.4
Current liabilities
Interest bearing liabilities
- Current portion of long term loans 71.5 67.3 26.3
- Short term loans 120.0 101.1 107.0
Provisions 2.1 6.0 8.6
Current tax liabilities 9.8 10.9 6.8
Trade and other current liabilities 349.4 335.8 367.2
552.8 521.1 515.9
Liabilities directly associated with assets classified
as
held for sale 39.2 - -
Total liabilities 1,043.3 1,022.0 1,104.3
Total equity and liabilities 1,849.6 1,758.6 1,837.1
Sep 30 Dec 31 Sep 30
2010 2009 2009
Net debt 345.2 368.3 424.0
Net debt to equity (gearing) 0.43 0.50 0.58
Statement of changes in equity
Unaudited
Attributable Non- Hyb- T
to cont- rid ot
equity rol- bo- al
holders ling nd eq
of ui
the ty
parent
company
Sha- Sha- Trea- Trans- Fair Re- D To- in-
re re su la val tai is tal te
cap issue ry tion ue ned c rest
it pre- sha diff. and ear o
al mium res ot nin nt
her gs inue
re d
ser ope
ves ra
ti
ons
EUR million
Balance
at
Dec 31,
2008 358.7 104.7 -46.5 -130.5 -5.0 327.5 - 608.9 18.4 75.0 702.3
Di-
vi-
dend -34.1 -34.1 -34.1
Sha-
re-
based
pay-
men-
ts 2.2 2.2 2.2
Stock
op-
tions
exer-
cised 0.1 0.1 0.1
Inter
rest
on
Hybrid
Bo-
nd -6.7 -6.7 -6.7
Total
comp-
re-
hensive
income
for
the
ye-
ar -1.4 -1.1 71.6 69.1 2.1 71.2
Other
chan-
ges -0.7 -0.7 -1.5 -2.2
Balance
at
Sep 30,
2009 358.7 104.7 -46.5 -131.9 -6.0 359.8 - 638.8 19.0 75.0 732.8
Balance
at
Dec 31 360.6 106.8 -46.5 -130.0 -4.3 354.8 - 641.4 20.2 75.0 736.6
,2009
Di-
vi- -38.5 -38.5 -38.5
dend
Share-
based
pay-
men-
ts 2.1 -0.6 1.5 1.5
Inte-
rest
on
Hybrid
Bo-
nd -6.6 -6.6 -6.6
Total
compre
hensive
income for the
ye-
ar 26.4 -0.6 84.0 109.8 2.5 112.3
Dis
con
ti
nued
ope-
ra-
tions -3.3 -0.1 3.4 - -
Ot
her
chan
ges 0.4 0.4 0.6 1.0
Balance
at
Sep 30,
2010 360.6 106.8 -44.4 -106.9 -5.0 393.5 3.4 708.0 23.3 75.0 806.3
Group cash flow statement (IFRS)
Unaudited
Q1-Q3 Q1-Q3 Q3 Q3 Q1-Q4
EUR million 2010 2009 2010 2009 2009
Result for the period* 86.5 73.6 29.3 26.5 73.5
Adjustments* 78.6 103.6 27.0 35.5 134.2
- Depreciation, amortization
and impairment* 60.6 65.7 20.0 16.8 88.6
- Gain on equity of
minorities* -0.5 -0.5 -0.2 -0.2 -0.6
- Gain/loss from disposal of
assets* -3.0 0.4 -0.3 -0.3 5.7
- Financial expense/-
income* 11.6 21.1 3.4 5.6 25.8
- Income tax expense* 16.5 18.4 4.8 6.6 20.4
- Other adjustments,
operational* -6.6 -1.5 -0.7 7.0 -5.7
Change in inventory* -21.2 36.6 2.9 4.2 58.3
Change in non-interest
bearing receivables* -2.2 15.2 37.1 12.1 50.4
Change in non-interest
bearing payables* -11.9 -6.0 -32.7 10.5 -28.3
Dividends received* 0.3 0.3 0.2 0.2 0.5
Interest received* 3.1 1.5 1.0 0.5 2.2
Interest paid* -11.0 -18.4 -5.7 -8.4 -21.0
Other financial expense
and income* -1.2 -3.6 -2.0 -1.0 -2.3
Taxes paid* -3.7 -7.3 -2.9 -1.7 -12.5
Net cash flows from
operating activities 117.3 195.5 54.2 78.4 255.0
Capital expenditure* -47.7 -31.7 -23.4 -14.0 -52.9
Proceeds from selling fixed
assets* 6.6 3.5 1.1 0.5 5.9
Divested subsidiaries - 36.6 - 1.3 69.0
Proceeds from long-term
deposits 12.4 0.8 0.2 0.4 1.3
Payment of long-term
deposits -1.4 -2.5 -0.1 -1.8 -11.4
Proceeds from short-term
deposits 4.6 2.8 1.4 0.4 13.7
Payment of short-term
deposits -16.6 -17.6 -1.4 -5.6 -29.2
Net cash flows from
investing -42.1 -8.1 -22.2 -18.8 -3.6
Proceeds from long-term
borrowings 182.5 573.1 60.0 219.6 599.3
Repayment of long-term
borrowings -234.7 -668.2 -98.1 -302.8 -785.2
Proceeds from short-term
borrowings 858.4 224.1 442.3 100.6 333.8
Repayment of short-term
borrowings -853.8 -275.2 -460.0 -85.5 -363.3
Dividends paid -38.4 -34.1 - - -34.1
Hybrid bond interest - - - - -7.9
Proceeds from stock
options exercised - 0.1 - 0.1 4.1
Net cash flows from
financing -86.0 -180.2 -55.8 -68.0 -253.3
Change in liquid assets -8.0 5.6 -34.2 -11.4 -3.8
Cash flow based -10.8 7.2 -23.8 -8.4 -1.9
Translation difference 2.8 -1.6 -10.4 -3.0 -1.9
Liquid assets period start 64.0 67.8 90.2 84.8 67.8
Liquid assets period end 56.0 73.4 56.0 73.4 64.0
Free cash flow (including
figures marked with *) 76.2 167.3 31.9 64.9 208.0
NOTES FOR THE INTERIM REPORT
This interim report has been prepared in accordance with IAS 34 Interim
Financial Reporting. Except for accounting policy changes listed below, the same
accounting policies have been applied in the interim financial statements as in
annual financial statements for 2009.
Changes in accounting principles
The Group has adopted the following IFRS standards and interpretations
considered applicable to Huhtamaki, with effect from January 1, 2010:
- Revised IFRS 3 Business Combination.
- Amended IAS 27 Consolidated and Separate Financial Statements.
- Amended IAS 39 Financial Instruments: Recognition and Measurement - Eligible
Hedged Items.
- IFRIC 17 Distribution of Non-cash Assets to Owners.
- IFRIC 18 Transfers of Assets from Customers.
- Improvements to IFRSs (April 2009).
- IFRS 2 Share-based Payment: Group Cash-settled Share-based Payment
Transactions.
- Amendment IAS 32 Financial Instruments: Presentation - Classification of
Rights Issues.
These newly adopted standards have not had impact on the reported results.
Segments
Segment information is presented according to the IFRS standards. Items below
EBIT - financial items and taxes - are not allocated to the segments.
Net sales
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2010 2010 2010 2010 2009 2009 2009 2009 2009
Continuing operations
Flexible Packaging 132.9 129.9 126.4 389.2 109.5 114.0 118.2 119.7 461.4
- Intersegment net
sales 0.4 0.5 0.4 1.3 0.7 0.8 0.8 0.6 2.9
Films 42.9 41.0 40.0 123.9 32.1 40.4 38.3 40.0 150.8
- Intersegment net
sales 1.1 1.1 1.2 3.4 0.7 0.9 0.8 1.2 3.6
North America 135.5 156.9 112.8 405.2 116.5 128.3 152.1 128.1 525.0
- Intersegment net
sales 0.9 0.9 0.8 2.6 0.7 1.0 1.0 1.0 3.7
Molded Fiber 57.1 59.2 55.4 171.7 56.6 51.6 51.0 48.3 207.5
- Intersegment net
sales 0.1 0.0 0.1 0.2 -0.6 0.4 0.3 0.0 0.1
Foodservice Europe-
Asia-Oceania 116.6 119.9 100.7 337.2 103.8 111.2 117.8 97.1 429.9
- Intersegment net
sales 4.9 5.2 5.3 15.4 4.3 5.0 3.0 7.4 19.7
Other activities 14.8 15.4 12.6 42.8 14.1 14.4 15.3 13.4 57.2
- Intersegment net
sales 0.8 1.0 0.7 2.5 0.6 0.8 0.9 0.7 3.0
Elimination of
intersegment net sales -8.2 -8.7 -8.5 -25.4 -6.4 -8.9 -6.8 -10.9 -33.0
Total continuing
operations 499.8 522.3 447.9 1,470.0 432.6 459.9 492.7 446.6 1,831.8
Discontinued
operations
Rigid consumer goods
plastics units held
for
sale 40.3 40.2 37.1 117.6 43.6 47.2 55.1 60.0 205.9
- Intersegment net
sales 3.5 3.5 2.8 9.8 3.7 4.1 5.0 3.6 16.4
Elimination of
intersegment net sales -3.5 -3.5 -2.8 -9.8 -3.7 -4.1 -5.0 -3.6 -16.4
Total discontinued
operations 40.3 40.2 37.1 117.6 43.6 47.2 55.1 60.0 205.9
EBIT
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2010 2010 2010 2010 2009 2009 2009 2009 2009
Continuing operations
Flexible Packaging 7.7 7.1 9.9 24.7 7.2 7.6 4.8 8.8 28.4
Films 1) 3.0 3.8 2.5 9.3 -1.3 1.5 -3.4 0.5 -2.7
North America 10.1 18.9 8.4 37.4 2.9 14.5 23.6 14.5 55.5
Molded Fiber 5.4 5.7 4.6 15.7 4.8 4.7 4.3 3.8 17.6
Foodservice Europe-
Asia-Oceania 8.7 8.2 3.5 20.4 0.7 6.8 6.4 2.4 16.3
Other activities -1.5 0.6 0.0 -0.9 -0.7 -0.9 -1.1 -0.5 -3.2
Total continuing
operations (1 33.4 44.3 28.9 106.6 13.6 34.2 34.6 29.5 111.9
Discontinued operations
Rigid consumer goods
plastics units held for
sale (2 3.9 1.7 1.9 7.5 -7.1 4.4 4.4 5.5 7.2
1) Q2 and Q1-Q4 2009 includes non-recuring charges MEUR 3.8.
2) Q2 and H1 2010 includes non-recuring charges MEUR 2.0, Q4 and Q1-Q4 2009
includes non-recuring charges MEUR 10.1.
EBITDA Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2010 2010 2010 2010 2009 2009 2009 2009 2009
Continuing operations
Flexible Packaging 12.7 12.1 14.6 39.4 12.6 12.1 9.3 13.3 47.3
Films (1 4.5 5.3 3.9 13.7 0.3 3.0 -2.0 2.1 3.4
North America 14.9 23.8 12.9 51.6 7.7 20.4 29.4 19.8 77.3
Molded Fiber 8.5 8.7 7.6 24.8 8.6 7.5 7.0 6.5 29.6
Foodservice Europe-
Asia-Oceania 13.8 13.3 8.2 35.3 6.7 11.9 11.0 7.2 36.8
Other activities -1.0 1.0 0.5 0.5 -0.2 -0.5 -0.6 -0.1 -1.4
Total continuing
operations (1 53.4 64.2 47.7 165.3 35.7 54.4 54.1 48.8 193.0
Discontinued operations
Rigid consumer goods
plastics units held for
sale (2 3.9 2.6 2.9 9.4 -5.5 5.9 6.6 7.7 14.7
1) Q2 and Q1-Q4 2009 includes non-recuring charges MEUR 3.8.
2) Q2 and H1 2010 includes non-recuring charges MEUR 2.0, Q4 and Q1-Q4 2009
includes non-recuring charges MEUR 10.1.
Depreciation and amortization
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2010 2010 2010 2010 2009 2009 2009 2009 2009
Continuing operations
Flexible Packaging 5.0 5.0 4.7 14.7 5.4 4.5 4.5 4.5 18.9
Films 1.5 1.5 1.4 4.4 1.6 1.5 1.4 1.6 6.1
North America 4.8 4.9 4.5 14.2 4.8 5.9 5.8 5.3 21.8
Molded Fiber 3.1 3.0 3.0 9.1 3.8 2.8 2.7 2.7 12.0
Foodservice Europe-
Asia-Oceania 5.1 5.1 4.7 14.9 6.0 5.1 4.6 4.8 20.5
Other activities 0.5 0.4 0.5 1.4 0.5 0.4 0.5 0.4 1.8
Total continuing
operations 20.0 19.9 18.8 58.7 22.1 20.2 19.5 19.3 81.1
Discontinued operations
Rigid consumer goods
plastics units held for sale 0.0 0.9 1.0 1.9 1.6 1.5 2.2 2.2 7.5
Net assets allocated to the segments (3
Q3 Q2 Q1 Q4 Q3 Q2 Q1
EUR million 2010 2010 2010 2009 2009 2009 2009
Continuing operations
Flexible Packaging 325.6 328.6 320.4 305.5 311.5 325.8 342.2
Films 120.4 125.0 119.3 111.0 117.5 125.2 135.8
North America 376.0 411.2 385.1 364.8 365.8 370.8 393.9
Molded Fiber 172.1 176.0 174.2 166.0 167.1 169.9 170.4
Foodservice Europe-
Asia-Oceania 227.7 237.3 228.2 225.7 236.8 246.6 241.7
Discontinued operations
Rigid consumer goods
plastics units held for
sale 44.7 42.5 47.3 41.2 72.9 71.8 104.6
3) Following statement of financial position items are included in net assets:
intangible and tangible assets, other non-current assets, inventories, trade and
other current receivables (excluding accrued interest income), other non-current
liabilities and trade and other current liabilities (excluding accrued interest
expense).
Capital expenditure
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2010 2010 2010 2010 2009 2009 2009 2009 2009
Continuing operations
Flexible Packaging 3.6 1.5 2.2 7.3 3.3 2.3 3.2 2.1 10.9
Films 2.3 1.1 0.4 3.8 0.4 0.2 0.3 0.2 1.1
North America 7.1 5.6 2.9 15.6 6.5 6.5 2.8 1.0 16.8
Molded Fiber 4.9 0.8 1.2 6.9 3.7 0.7 0.8 1.6 6.8
Foodservice Europe-
Asia-Oceania 4.4 3.5 3.0 10.9 5.1 2.7 1.4 2.3 11.5
Other activities 0.2 1.0 0.2 1.4 0.7 0.4 0.4 0.1 1.6
Total continuing
operations 22.5 13.5 9.9 45.9 19.7 12.8 8.9 7.3 48.7
Discontinued operations
Rigid consumer goods
plastics units held for
sale 0.9 0.6 0.3 1.8 1.5 1.2 0.8 0.7 4.2
RONA, % (12m roll.)
Q3 Q2 Q1 Q4 Q3 Q2 Q1
2010 2010 2010 2009 2009 2009 2009
Continuing operations
Flexible Packaging 10.0% 10.0% 9.3% 8.8% 1.4% 0.3% 0.4%
Films 6.7% 5.5% -0.6% -2.2% -1.0% 0.7% 5.7%
North America 10.6% 11.7% 13.3% 14.8% 14.3% 13.0% 10.7%
Molded Fiber 12.0% 11.6% 10.9% 10.5% 6.8% 6.1% 5.3%
Foodservice Europe-
Asia-Oceania 9.1% 8.3% 7.4% 6.9% 0.2% -0.2% -0.6%
Discontinued operations
Rigid consumer goods
plastics units held for
sale 0.9% 1.9% 6.2% 9.6% -114.3% -82.3% -66.7%
Operating Cash Flow
Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2010 2010 2010 2010 2009 2009 2009 2009 2009
Continuing operations
Flexible Packaging 3.4 7.7 1.2 12.3 21.1 17.3 23.4 20.0 81.8
Films 5.2 -0.2 -4.8 0.2 5.0 8.4 8.2 1.9 23.5
North America 9.0 18.4 12.6 40.0 8.9 9.6 22.9 14.5 55.9
Molded Fiber 6.0 7.3 2.3 15.6 6.1 4.3 8.6 -0.6 18.4
Foodservice Europe-
Asia-Oceania 11.5 5.2 -0.3 16.4 9.6 18.3 7.1 -2.1 32.9
Discontinued operations
Rigid consumer goods
plastics units held for
sale 2.7 0.2 4.8 7.7 3.7 5.8 9.2 0.6 19.3
Reportable segments net sales and EBIT forms Groups' total net sales and EBIT,
so no reconciliations to corresponding amounts are presented.
Other information
Q1-Q3 Q1-Q3 Q1-Q4
EUR million 2010 2009 2009
Equity per share (EUR) 6.99 6.36 6.35
ROE, % (12m roll.) 11.3 -9.6 10.1
ROI, % (12m roll.) 10.1 -2.5 9.6
Personnel 12,839 13,346 12,900
Result before taxes (12m roll.) 104.9 -67.3 93.9
Depreciation 56.0 60.5 82.6
Amortization of other
intangible assets 4.6 4.4 5.9
Share capital and shareholders
At the end of September 2010, the Company's registered share capital was EUR
360,615,288.00 (358,657,670.00) corresponding to a total number of outstanding
shares of 106,063,320 (105,487,550) including 4,826,089 (5,061,089) Company's
own shares. The Company's own shares had the total accountable par value of EUR
16,408,702.60, representing 4.6% of the total number of shares and voting
rights. The amount of outstanding shares net of Company's own shares was
101,237,231 (100,426,461).
There were 26,104 (22,444) registered shareholders at the end of the reporting
period. Foreign ownership including nominee registered shares accounted for
25.5% (27.4%).
Share developments
The Company´s share is quoted on the NASDAQ OMX Helsinki Ltd on the Nordic Mid
Cap list under the Materials sector.
At the end of September 2010, the Company's market capitalization was EUR 999.1
million (EUR 917.7 million) and EUR 953.7 million (EUR 873.7 million) excluding
Company's own shares.
With a closing price of EUR 9.42 (EUR 8.70) the share price decreased by 3%
(increased 98%) from the beginning of the year, while the OMX Helsinki Cap PI
Index increased by 16% (31%) and the OMX Helsinki Materials PI Index increased
by 32% (15%). During the reporting period the volume weighted average price for
the Company's share was EUR 8.61 (EUR 6.75). The highest price paid was EUR
10.19 on January 11, 2010 and the lowest price paid was EUR 7.30 on July
1, 2010.
During the reporting period the cumulative value of the Company's share turnover
was EUR 585.2 million (EUR 389.9 million). The trading volume of 68.0 million
(58.2 million) shares equaled an average daily turnover of EUR 3.1 million (EUR
2.1 million) or, correspondingly 359,968 (309,502) shares.
In total, turnover of the Company's 2006 A and B option rights was EUR
236,843.99 corresponding to a trading volume of 217,644 shares.
Contingent liabilities
Sep 30 Dec 31 Sep 30
2010 2009 2009
EUR million
Mortgages 14.5 14.5 14.5
Guarantee obligations - 2.5 2.4
Lease payments 52.4 54.0 51.5
Capital expenditure commitments 30.5 10.2 22.3
Nominal values of derivative instruments
Sep 30 Dec 31 Sep 30
2010 2009 2009
EUR million
Currency forwards, transaction
risk hedges 52 25 26
Currency forwards, translation risk
hedges 46 29 28
Currency swaps, financing hedges 123 123 142
Currency options - 3 2
Interest rate swaps 150 167 158
Electricity forwards 1 1 4
The following EUR rates have been applied to GBP, INR, AUD and USD
Q1-Q3/10 Q1-Q3/09
Income statement, average: GBP 1 = 1.166 1.128
INR 1 = 0.017 0.015
AUD 1 = 0.682 0.548
USD 1 = 0.760 0.733
Q3/10 Q3/09
Statement of financial position, month end: GBP 1 = 1.163 1.100
INR 1 = 0.016 0.014
AUD 1 = 0.711 0.603
USD 1 = 0.733 0.683
Definitions for key indicators
EPS result for the period = Result for the period - non-controlling interest /
Average number of shares outstanding
EPS result for the period (diluted) = Diluted result for the period - non-
controlling interest / Average fully diluted number of shares outstanding
EPS attributable to hybrid bond investors = Hybrid bond interest / Average
number of shares outstanding
EPS attributable to hybrid bond investors (diluted) = Hybrid bond interest /
Average fully diluted number of shares outstanding
EPS attributable to equity holders of the parent company = Result for the period
- non-controlling interest - hybrid bond interest / Average number of shares
outstanding
EPS attributable to equity holders of the parent company (diluted) = Diluted
result for the period - non-controlling interest - hybrid bond interest /
Average fully diluted number of shares outstanding
Net debt to equity (gearing) = Interest bearing net debt / Equity + non-
controlling interest + hybrid bond
RONA, % = 100 x Earnings before interest and taxes (12 m roll.) / Net assets (12
m roll.)
Operating cash flow = Ebit + depreciation and amortization (including
impairment) - capital expenditures + disposals +/- change in inventories, trade
receivables and trade payables
Shareholders' equity per share = Total equity attributable to equity holders of
parent company / Issue-adjusted number of shares at period end
Return on equity (ROE) = 100 x (Result for the period ) (12 m roll.) / Equity +
non-controlling interest + hybrid bond (average)
Return on investment (ROI) = 100 x (Result before taxes + interest expenses +
net other financial expenses) (12 m roll.) / Statement of financial position
total - Interest-free liabilities (average)
[HUG#1453644]
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