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2007-07-19 07:01:20 CEST 2007-07-19 07:01:20 CEST REGULATED INFORMATION Huhtamäki Oyj - Quarterly reportInterim Report January 1 - June 30, 2007HUHTAMÄKI OYJ STOCK EXCHANGE RELEASE JULY 19, 2007 AT 8:00 Continued solid performance in Americas and Global Flexibles - as anticipated Group earnings down due to significantly lower royalty income in corporate net * In Europe robust sales growth in Flexibles, Molded Fiber and Foodservice; decline in profitability * In Americas strong result despite adverse currency translations impact supported by diligent price management and operational efficiency * In Oceania improved performance and in Asia favorable volume development * Group EBIT reflects reduction of corporate net due to lower royalty income particularly in the second quarter Key figures Q2 Q2 H1 H1 EUR million 2007 2006 2007 2006 2006 Net sales 606.1 594.1 1,170.8 1,156.2 2,275.6 EBIT before corporate items, 40.2 43.6 78.0 77.5 138.1 underlying Corporate net -4.5 9.6 -4.6 16.6 19.5 EBIT, underlying* 35.7 53.2 73.4 94.1 157.6 EBIT margin %, underlying 5.9 9.0 6.3 8.1 6.9 EBIT, reported 35.7 49.8 73.4 87.0 145.5 EPS, reported 0.19 0.33 0.43 0.57 0.94 * The underlying EBIT excludes restructuring charges Business review In the second quarter, market demand for consumer packaging continued stable in the mature markets and healthy in the emerging markets. While overall demand was on a similar level to last year, the increasing raw material prices require continuous efforts to pass the cost pressure upstream as well as improve productivity. The prices for the main raw materials remained on a high level during the quarter, showing a clear increase compared to the average level of the previous year. Price/mix changes had a positive impact (+3%), while volume development was moderate. These are not fully reflected in reported net sales of EUR 606.1 million (+2%) due to unfavorable movement in currency translations (-2%). For the first half of the year, net sales was EUR 1,170.8 million (+1%). The geographical distribution of sales was the following: Europe 53% (52%), Americas 30% (32%) and Asia-Oceania-Africa 17% (16%). Europe Q2 Q2 H1 H1 EUR million 2007 2006 2007 2006 2006 Net sales 320.3 311.2 625.2 603.8 1,188.7 EBIT, underlying* 14.7 19.8 28.3 33.8 52.1 EBIT margin %, underlying 4.6 6.4 4.5 5.6 4.4 EBIT, reported 14.7 16.4 28.3 26.7 40.3 RONA % underlying (12m roll.) - - 5.8 8.2 6.7 In Europe, sales growth within Consumer Goods segment was robust in the Flexibles and Molded Fiber businesses in the second quarter, while the Films business was impacted by the implementation of the new enterprise resource planning (ERP) platform. The sales performance in the Rigid business was varied with Germany and Eastern Europe at the top end, while the UK was at the low end. Within Foodservice segment, healthy sales growth was driven by success in Eastern Europe. For the quarter, the reported net sales was EUR 320.3 million (+3%) with a positive impact from price/mix changes (+3%) and a slight decline in volume (-1%). The region's underlying EBIT was EUR 14.7 million (-26%), corresponding to an EBIT margin of 4.6% (6.4%). This reflects margin pressure experienced by continued increase in raw material costs as well as temporarily weaker profitability of the Films business. The reported EBIT was EUR 14.7 million. In the previous year the reported EBIT of EUR 16.4 million included restructuring charges of EUR 3.5 million. For the first half of the year, net sales was EUR 625.2 million (+4%). The underlying EBIT of EUR 28.3 million (-16%) corresponded to an EBIT margin of 4.5% (5.6%). The reported EBIT was 28.3 million (EUR 26.7 million). Americas Q2 Q2 H1 H1 EUR million 2007 2006 2007 2006 2006 Net sales 185.2 191.1 348.9 367.4 711.5 EBIT, underlying* 20.2 19.7 38.7 33.4 61.3 EBIT margin %, underlying 10.9 10.3 11.1 9.1 8.6 EBIT, reported 20.2 19.7 38.7 33.4 61.3 RONA % underlying (12m roll.) - - 11.8 10.9 11.0 In the Americas, within Foodservice segment sales in Retail stabilized at a good level in the second quarter. The new product launches received a positive market reaction. Within Consumer Goods segment, sales in the Frozen desserts category accelerated during the quarter after a slower start to the year, while the reverse took place in the Flexibles business. In South America, sales growth picked up after a stable beginning of the year. For the quarter, the positive impact from price/mix changes (+4%) more than compensated for the slight decline in volume (-1%). The reported net sales of EUR 185.2 million (-3%) was depressed by currency translations (-6%). The region's underlying EBIT was EUR 20.2 million (+3%), corresponding to an EBIT margin of 10.9% (10.3%). This reflects diligent price management and continued improvement in operational efficiency. For the first half of the year, net sales was EUR 348.9 million (-5%). The underlying EBIT of EUR 38.7 million (+16%) corresponded to an EBIT margin of 11.1% (9.1%). Asia-Oceania-Africa Q2 Q2 H1 H1 EUR million 2007 2006 2007 2006 2006 Net sales 100.6 91.8 196.7 185.0 375.4 EBIT, underlying* 5.3 4.1 11.0 10.3 24.7 EBIT margin %, underlying 5.3 4.5 5.6 5.6 6.6 EBIT, reported 5.3 4.1 11.0 10.3 24.4 RONA % underlying (12m roll.) - - 7.9 7.7 8.1 In Asia-Oceania-Africa, sales performance within Consumer Goods and Foodservice segments was robust during the second quarter. In Oceania, sales growth was driven by the Rigid business where the improvement seen already in the beginning of the year accelerated during the second quarter. In Asia, volume growth remained favorable driven by the Flexibles businesses in India and Thailand. For the quarter, volume growth continued strong (+7%) and there was a positive impact from price/mix changes (+2%). The reported net sales of EUR 100.6 million (+10%) was boosted further by currency translations (+1%). The region's underlying EBIT was EUR 5.3 million (+29%), corresponding to an EBIT margin of 5.3% (4.5%). This reflects margin improvement in Oceania mitigated by start-up costs associated with investments in new capacity. For the first half of the year, net sales was EUR 196.7 million (+6%). The underlying EBIT of EUR 11.0 million (+7%) corresponded to an EBIT margin of 5.6% (unchanged). Financial review In the second quarter, the underlying EBIT before corporate items was EUR 40.2 million (-8%), corresponding to an EBIT margin of 6.6% (7.3%). Corporate net was EUR -4.5 million (EUR 9.6 million) reflecting the significant reduction in royalty income as well as higher corporate expenses. The underlying Group EBIT was EUR 35.7 million (EUR 53.2 million), corresponding to an EBIT margin of 5.9% (9.0%). The reported EBIT was EUR 35.7 million. In the previous year the reported EBIT of EUR 49.8 million included restructuring charges of EUR 3.4 million. At EUR -11.0 million (EUR -10.3 million), the increase in net financial items was mainly due to higher interest rates and debt level. The reported profit for the period was EUR 19.4 million (EUR 33.3 million), and EPS was EUR 0.19 (EUR 0.33). For the first half of the year, the Group's underlying EBIT was EUR 73.4 million (-22%), corresponding to an EBIT margin of 6.3% (8.1%). This reflects mainly a EUR 21.2 million reduction in corporate net. The reported EBIT was 73.4 million. In the previous year the reported EBIT of EUR 87.0 million included restructuring charges of EUR 7.1 million. Net financial items were EUR 20.2 million (EUR 18.4 million). The income tax expense was EUR 9.6 million (EUR 11.3 million), corresponding to a tax rate of 18.0% (16.4%). The reported profit for the period was EUR 43.8 million (EUR 57.5 million), and EPS was EUR 0.43 (EUR 0.57). The average number of outstanding shares used in the EPS calculation was 100,426,461 (98,810,850) excluding 5,061,089 (unchanged) company's own shares. On a rolling 12-month basis, the return on investment (ROI) was 9.1% (9.5%) and return on equity (ROE) was 9.6% (11.2%). Balance sheet and cash flow In the end of the second quarter, free cash flow of EUR -6.3 million (EUR 18.8 million) was impacted by an elevated level of working capital. In addition, capital expenditure increased to EUR 31.5 million (EUR 27.3 million). For the first half of the year, free cash flow was EUR -42.7 million (17.7 million) with capital expenditure of EUR 57.1 million (EUR 46.0 million). Net debt at the end of the second quarter was EUR 796.7 million (EUR 692.4 million), corresponding to a gearing ratio of 0.92 (0.85). Major change programs and investments Key priorities for this year include progress on earlier announced change programs and development of growth platforms. During the second quarter, it was decided that a new flexibles packaging facility will be built close to the existing facility in Bangkok, Thailand. The aim is to capture growth opportunities by supplying the local and multinational food and consumer goods industry with advanced flexibles packaging. According to the preliminary schedule production at the new site will commence around mid 2008. The value of the investment is approximately EUR 17 million. With reference to the earlier announced programs, the exit from the rigid packaging site in Göttingen, Germany, took place during the quarter. The capacity expansion in Foodservice hot beverage cups in several European units progressed and will be completed by year-end 2007. The new capacity added to the existing flexibles packaging facility in Malvern, USA, is scheduled to be operational during the second half of 2007. The relocation from Hong Kong, China, to the new rigid packaging facility in Guangzhou, China, is expected to be completed during the first quarter of 2008. Additionally, reduction of working capital and targeted allocation of capital expenditure will have a high priority during the second half of the year. Personnel The Group had 15,129 (15,004) employees on June 30, 2007. Changes in management Timo Salonen was appointed as Chief Financial Officer with effect from July 1, 2007. He succeeded Sakari Ahdekivi, who joins another company. Short-term risks and uncertainties Volatile raw material and energy prices as well as movements in currency translations are considered to be significant short-term business risks and uncertainties in the Group's operations. Outlook for 2007 A clear improvement is expected in the operational result, which should largely balance out the significant reduction in corporate net due to lower royalty income. The underlying EBIT for the full-year is estimated to be close to the level of 2006. Increase in net financial items and higher tax rate will have an impact on earnings. Capital expenditure is expected to be somewhat lower than in 2006 with emphasis on organic growth investments. This interim report is unaudited. Espoo, July 18, 2007 Huhtamäki Oyj Board of Directors The Q3 2007 interim report will be published on October 25, 2007. For further information, please contact: Mr. Heikki Takanen, CEO, tel. +358-10-686 7801 Mr. Timo Salonen, CFO, tel. +358-10-686 7880 Ms. Kia Aejmelaeus, Head of Investor Relations, tel. +358-10-686 7819 or mobile +358-40-765 4616 Ms. Taina Erkkilä, Group Vice President Communications, tel. +358-10-686 7876 or mobile +358-50-577 4059 At 11:00 Finnish time a conference for investors, analysts and media will be held in the head office, address Länsituulentie 7, Espoo. CEO Heikki Takanen and CFO Timo Salonen will present the results. At 15:00 Finnish / 13:00 London / 08:00 New York time a conference call for investors and analysts will start with a management presentation, followed by a question and answer session. Should you wish to participate, please dial one of the following numbers: * Number for participants from Finland: 0923 193 019 * Number for participants outside of Finland: +44 (0) 1452 542 300 * Conference ID: 6206111 All materials will be available on our website at www.huhtamaki.com. The results presentation slides will be online approximately at 11:00 Finnish time. A replay of the conference call in the form of an audio webcast will be available during the same evening. *************************** Group Income statement (IFRS) Unaudited H1 H1 Q2 Q2 Q1-Q4 EUR million 2007 2006 2007 2006 2006 Net sales 1,170.8 1,156.2 606.1 594.1 2,275.6 Cost of goods sold -989.8 -981.1 -510.7 -499.2 -1,946.4 Gross profit 181.0 175.1 95.4 94.9 329.2 Other operating income 13.4 29.6 3.4 13.5 56.2 Sales and marketing -41.4 -41.0 -21.4 -21.0 -82.8 Research and development -9.6 -10.3 -4.8 -4.9 -19.3 Administration costs -61.6 -63.1 -31.5 -31.6 -126.5 Other operating expenses -8.4 -3.3 -5.4 -1.1 -11.3 -107.6 -88.1 -59.7 -45.1 -183.7 Earnings before interest 73.4 87.0 35.7 49.8 145.5 and taxes Financial income 4.9 6.6 3.2 2.8 11.0 Financial expenses -25.1 -25.0 -14.3 -13.3 -47.8 Income of associated 0.2 0.2 0.1 0.2 0.5 companies Profit before taxes 53.4 68.8 24.7 39.5 109.2 Income tax expense -9.6 -11.3 -5.3 -6.2 -12.6 Profit for the period 43.8 57.5 19.4 33.3 96.6 Attributable to: Equity holders of the 42.8 56.2 19.0 32.9 93.3 parent company Minority interest 1.0 1.3 0.4 0.4 3.3 Basic earnings per share 0.43 0.57 0.19 0.33 0.94 (EUR) for the shareholders of parent company Diluted earnings per share 0.42 0.56 0.18 0.33 0.93 (EUR) for the shareholders of parent company Group balance sheet (IFRS) Unaudited Jun 30 Dec 31 Jun 30 EUR million 2007 2006 2006 ASSETS Non-current assets Goodwill 523.4 525.2 528.8 Other intangible assets 35.6 35.1 7.7 Tangible assets 853.1 840.1 808.5 Investments in associated companies 1.7 1.5 1.7 Available for sale investments 1.7 1.8 1.9 Interest bearing receivables 3.0 6.6 7.7 Deferred tax assets 17.5 14.1 14.2 Employee benefit assets 63.4 64.0 64.7 Other non-current assets 5.1 5.0 5.1 1,504.5 1,493.4 1,440.3 Current assets Inventory 374.9 341.8 327.2 Interest bearing receivables 8.4 0.5 14.6 Current tax assets 11.3 9.9 6.7 Trade and other current receivables 443.3 400.7 428.4 Cash and cash equivalents 25.9 22.3 34.7 863.8 775.2 811.6 Total assets 2,368.3 2,268.6 2,251.9 EQUITY AND LIABILITIES Share capital 358.7 358.7 354.3 Premium fund 104.7 104.7 98.4 Treasury shares -46.5 -46.5 -46.5 Translation differencies -106.7 -106.7 -102.4 Fair value and other reserves 2.0 2.1 4.3 Retained earnings 533.5 528.8 492.5 Total equity attributable to equity 845.6 841.1 800.5 holders of the parent company Minority interest 20.4 19.3 17.3 Total equity 866.0 860.4 817.8 Non-current liabilities Interest bearing liabilities 370.0 314.7 369.6 Deferred tax liabilities 63.6 62.9 78.7 Employee benefit liabilities 111.7 111.4 113.1 Provisions 50.9 46.8 52.0 Other non-current liabilities 3.9 3.9 4.2 600.1 539.7 617.6 Current liabilities Interest bearing liabilities - Current portion of long term loans 42.7 41.7 16.5 - Short term loans 421.3 383.7 363.2 Provisions 7.4 11.9 15.9 Current tax liabilities 19.4 19.7 9.5 Trade and other current liabilities 411.4 411.5 411.4 902.2 868.5 816.5 Total liabilities 1,502.3 1,408.2 1,434.1 Total equity and liabilities 2,368.3 2,268.6 2,251.9 Jun 30 Dec 31 Jun 30 2007 2006 2006 Net debt 796.7 710.7 692.4 Net debt to equity (gearing) 0.92 0.83 0.85 Changes in shareholders' equity Unaudited Attributable to equity holders of the parent company EUR Sha- Sha- Trea- Tran-slat- Fair Ret- Total Minority Total milllion re re sury ion value Ain- Equi- inte- capi- issue sha- diff. and ed ty rest tal premium res oth- earn- er ings res- erv- es Balance at 353.0 96.8 -46.5 -76.3 -0.2 475.2 802.0 18.4 820.4 Dec 31, 2005 Cash flow hedges Hedge result 4.2 4.2 4.2 deferred to equity Hedge result recognized in 2.0 2.0 2.0 income statement Translation -26.1 -26.1 -2.4 -28.5 differences Deferred -1.9 -1.9 -1.9 tax in equity Other -2.2 -2.2 -2.2 changes Net income recognized directly in -26.1 4.3 -2.2 -24.0 -2.4 -26.4 equity Net income 56.2 56.2 1.3 57.5 for the period Total recognized income and expense for -26.1 4.3 54.0 32.2 -1.1 31.1 the period Dividend -37.5 -37.5 -37.5 Share-based 0.8 0.8 0.8 payments Stock 1.3 1.6 0.2 3.1 3.1 options exercised Balance at 354.3 98.4 -46.5 -102.4 4.3 492.5 800.5 17.3 817.8 Jun 30, 2006 Balance at 358.7 104.7 -46.5 -106.7 2.1 528.8 841.1 19.3 860.4 Dec 31, 2006 Cash flow hedges Hedge result 1.4 1.4 1.4 deferred to equity Hedge result recognized in income -1.4 -1.4 -1.4 statement Translation 0.0 0.0 0.1 0.1 differences Deferred -0.1 -0.1 -0.1 tax in equity Other 3.3 3.3 3.3 changes Net income recognized directly in 0.0 -0.1 3.3 3.2 0.1 3.3 equity Net income 42.8 42.8 1.0 43.8 for the period Total recognized income and expense for 0.0 -0.1 46.2 46.1 1.1 47.1 the period Dividend -42.2 -42.2 -42.2 Share-based 0.7 0.7 0.7 payments Stock 0.0 0.0 0.0 0.0 0.0 options exercised Balance at 358.7 104.7 -46.5 -106.7 2.0 533.5 845.6 20.4 866.0 Jun 30, 2007 Group cash flow statement (IFRS) Unaudited H1 H1 Q2 Q2 Q1-Q4 EUR million 2007 2006 2007 2006 2006 Profit for the period* 43.8 57.5 19.4 33.3 96.6 Adjustments* 74.2 69.9 40.6 33.5 126.9 - Depreciation and 49.1 53.9 24.6 23.4 101.5 amortization* - Gain on equity of -0.2 -0.2 -0.1 -0.2 -0.5 minorities* - Gain/loss from 0.3 -0.5 0.1 -0.2 0.1 disposal of assets* - Financial 20.3 18.4 11.2 10.5 36.8 expense/-income* - Income tax expense* 9.6 11.3 5.2 6.1 12.6 - Other adjustments, -4.9 -13.0 -0.4 -6.1 -23.6 operational* Change in inventory* -31.0 -27.6 3.7 -4.9 -44.1 Change in non-interest -48.5 -58.5 -28.9 -57.2 -9.7 bearing receivables* Change in non-interest 1.1 44.4 3.0 53.0 19.3 bearing payables* Dividends received* 0.3 0.3 0.2 0.0 1.0 Interest received* 0.7 2.0 0.1 0.9 2.7 Interest paid* -20.6 -17.2 -8.4 -6.9 -38.0 Other financial expense 0.4 -0.5 0.6 -2.0 0.7 and income* Taxes paid* -7.6 -9.2 -5.6 -3.7 -16.3 Net cash flows from 12.8 61.1 24.7 46.0 139.1 operating activities Capital expenditure* -57,1 -46.0 -31.5 -27.3 -154.0 Proceeds from selling 1,6 2.6 0.5 0.1 6.5 fixed assets* Divested subsidiaries - 23.3 - 10.5 22.9 Proceeds from long-term 0,5 0.0 0.0 0.0 1.6 deposits Payment of long-term -1,5 -3.3 -1.5 -0.6 -3.9 deposits Proceeds from short-term 0,5 8.1 0.0 2.7 24.8 deposits Payment of short-term -3,9 -5.5 -3.8 0.0 -8.1 deposits Net cash flows from -59,9 -20.8 -36.3 -14.6 -110.2 investing Proceeds from long-term 240.2 230.1 75.4 23.1 409.0 borrowings Repayment of long-term -187.3 -262.6 -18.3 -41.5 -495.5 borrowings Proceeds from short-term 1,568.6 1,301.3 876.8 530.9 2,612.7 borrowings Repayment of short-term -1,528.7 -1,274.1 -879.3 -518.5 -2,543.6 borrowings Dividends paid -42.2 -37.5 -42.2 -37.5 -37.5 Proceeds from stock - 3.1 - 3.1 13.5 option exercises Net cash flows from 50.6 -39.7 12.4 -40.4 -41.4 financing Change in liquid assets 3.6 -2.9 0.7 -11.5 -15.3 Cash flow based 3.5 0.6 0.8 -9.0 -12.5 Translation difference 0.1 -3.5 -0.1 -2.5 -2.8 Liquid assets period 22.3 37.6 25.2 46.2 37.6 start Liquid assets period end 25.9 34.7 25.9 34.7 22.3 Free cash flow (including -42.7 17.7 -6.3 18.8 -8.4 figures marked with *) 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 2006. Interim report is unaudited. Changes in accounting principles The Group has adopted the following IFRS standards and interpretations considered applicable to Huhtamaki, with effect from January 1, 2007: IAS 1 Presentation of Financial statements: Capital disclosures: The Amendment to IAS 1 requires information about capital and capital management during the accounting period. IFRIC 8 Scope of IFRS 2 Share-Based Payments: The interpretation applies to share-based payments, where the received compensation is below the fair value of granted equity instrument. IFRIC 9 Reassessment of Embedded Derivatives: The interpretation requires the determination of whether the arrangement contains embedded derivatives, which have to be reported separately as derivative instruments. IFRIC 10 Interim Financial reporting and Impairment: IFRIC 10 denies to reverse the impairment charge reported in interim report at later closing dates. The effect of these newly adopted standards has not had a material impact on the reported results or disclosures. In 2006 in the Americas segment the price reduction type item has been transferred from sales and marketing costs to amend net sales. In the business segment the whole item fell on the Foodservice segment. The effect of this restatement on net sales was EUR -3.9 million in Q1, EUR -6.7 million in Q2 and EUR -3.2 million in Q3 of 2006. The restatement did not have material impact on net sales based key ratios. Regions Net sales Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4 EUR million 2007 2007 2007 2006 2006 2006 2006 2006 Europe 320.3 304.9 625.2 288.4 296.5 311.2 292.6 1,188.7 Americas 185.2 163.7 348.9 170.3 173.8 191.1 176.3 711.5 Asia-Oceania-Africa 100.6 96.1 196.7 98.5 91.9 91.8 93.2 375.4 Total 606.1 564.7 1,170.8 557.2 562.2 594.1 562.1 2,275.6 Interregional sales are not significant. EBIT Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4 EUR million 2007 2007 2007 2006 2006 2006 2006 2006 Europe 14.7 13.6 28.3 0.4 13.2 16.4 10.2 40.3 Americas 20.2 18.5 38.7 13.9 14.0 19.7 13.7 61.3 Asia-Oceania-Africa 5.3 5.7 11.0 6.6 7.5 4.1 6.3 24.4 EBIT before 40.2 37.8 78.0 20.9 34.7 40.2 30.2 126.0 corporate items Corporate net -4.5 -0.1 -4.6 -0.5 3.4 9.6 7.0 19.5 Total 35.7 37.7 73.4 20.4 38.1 49.8 37.2 145.5 Underlying EBIT Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4 EUR million 2007 2007 2007 2006 2006 2006 2006 2006 Europe 14.7 13.6 28.3 3.4 14.9 19.8 13.9 52.1 Americas 20.2 18.5 38.7 13.9 14.0 19.7 13.7 61.3 Asia-Oceania-Africa 5.3 5.7 11.0 6.9 7.5 4.1 6.3 24.7 EBIT before 40.2 37.8 78.0 24.2 36.4 43.6 33.9 138.1 corporate items Corporate net -4.5 -0.1 -4.6 -0.5 3.4 9.6 7.0 19.5 Total 35.7 37.7 73.4 23.7 39.8 53.2 40.9 157.6 Net assets and RONA % (12m roll.) Q2 Q1 Q4 Q3 Q2 Q1 EUR million 2007 2007 2006 2006 2006 2006 Europe 803.8 789.7 782.7 779.4 778.6 784.8 RONA-% underlying 5.8 % 6.6% 6.7% 7.8% 8.2% 8.7% RONA-% reported 5.2 % 5.5% 5.1% 6.1% 5.5% 0.1% Americas 565.0 566.2 558.1 564.5 565.9 573.4 RONA-% underlying 11.8 % 11.7% 11.0% 11.0% 10.9% 9.7% RONA-% reported 11.8 % 11.7% 11.0% 11.0% 10.9% 4.3% Asia-Oceania-Africa 319.0 303.4 301.0 295.8 292.2 293.9 RONA-% underlying 7.9 % 7.9% 8.1% 8.1% 7.7% 8.4% RONA-% reported 7.9 % 7.9% 8.1% 6.1% 5.6% 5.8% Business segments Net sales Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4 EUR million 2007 2007 2007 2006 2006 2006 2006 2006 Consumer 390.2 389.2 779.4 359.0 368.2 379.6 388.5 1,495.3 Goods Foodservice 215.9 175.5 391.4 198.2 194.0 214.5 173.6 780.3 Total 606.1 564.7 1,170.8 557.2 562.2 594.1 562.1 2,275.6 Intersegment sales are not significant. EBIT Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4 EUR million 2007 2007 2007 2006 2006 2006 2006 2006 Consumer 26.8 26.5 53.3 11.6 23.7 21.1 18.1 74.7 Goods Foodservice 13.4 11.3 24.7 9.3 11.0 19.1 12.1 51.3 EBIT before 40.2 37.8 78.0 20.9 34.7 40.2 30.2 126.0 corporate items Corporate -4.5 -0.1 -4.6 -0.5 3.4 9.6 7.0 19.5 net Total 35.7 37.7 73.4 20.4 38.1 49.8 37.2 145.5 Underlying EBIT Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4 EUR million 2007 2007 2007 2006 2006 2006 2006 2006 Consumer 26.8 26.5 53.3 14.5 25.2 23.5 20.9 84.1 Goods Foodservice 13.4 11.3 24.7 9.7 11.2 20.1 13.0 54.0 EBIT before 40.2 37.8 78.0 24.2 36.4 43.6 33.9 138.1 corporate items Corporate -4.5 -0.1 -4.6 -0.5 3.4 9.6 7.0 19.5 net Total 35.7 37.7 73.4 23.7 39.8 53.2 40.9 157.6 Other information H1 H1 Q1-Q4 EUR million 2007 2006 2006 Equity per share (EUR) 8.42 8.07 8.37 ROE, % 9.6 11.2 11.7 ROI, % 9.1 9.5 9.4 Capital expenditure 57.1 46.0 154.0 Personnel 15,129 15,004 14,792 Profit before taxes 94.0 107.9 109.2 (12m roll.) Depreciation 46.2 46.1 92.6 Amortization of other intangible assets 2.8 1.4 2.7 Share capital and shareholders At the end of the review period, the company's registered share capital was EUR 358,657,670.00 (354,306,472.40) corresponding to a total number of outstanding shares of 105,487,550 (104,207,786). This includes 5,061,089 (unchanged) company's own shares, which represent 4.8% of the total number of shares. The net figure of outstanding shares was 100,426,461 (99,146,697). At the end of June there were 21,025 (20,795) registered shareholders. Nominee registered shares including foreign ownership accounted for 27.3% (23.0%). Share developments Huhtamaki's share is quoted on the Helsinki Stock Exchange on the Nordic Large Cap list under the Materials sector. At the end of June, the company's market capitalization was EUR 1,310.2 million (EUR 1,447.4 million) and EUR 1,247.3 million (EUR 1,377.1 million) excluding company's own shares. With a closing price of EUR 12.42 (EUR 13.89) the share price decreased by 17% (0%) from the beginning of the year, while the OMX Helsinki CAP PI Index increased by 13% (+6%). In January-June, the volume weighted average price for the Huhtamaki share was EUR 13.14 (EUR 14.79). The highest price paid was EUR 15.89 on January 15, 2007 and the lowest price paid was EUR 12.01 on March 14, 2007. During the first six months, the cumulative value of the Huhtamaki share turnover was EUR 703.8 million (EUR 587.2 million). The trading volume of 53.6 million (39.7 million) shares equalled an average daily turnover of EUR 5.7 million (EUR 4.7 million) or, correspondingly 432,116 (320,005) shares. In total, turnover of the company's 2003 A, B and C option rights was EUR 2.7 million, corresponding to a trading volume of 586,355. Contingent liabilities Jun 30 Dec 31 Jun 30 2007 2006 2006 EUR million Mortgages 14.5 14.7 14.8 Guarantee obligations 4.8 3.8 3.8 Lease payments 57.3 59.3 63.1 Capital expenditure commitments 45.0 27.4 34.6 Nominal values of derivative instruments Jun 30 Dec 31 Jun 30 2007 2006 2006 EUR million Currency forwards, 58 54 79 transaction risk hedges Currency forwards, 110 112 63 translation risk hedges Currency swaps, 138 107 188 financing hedges Currency options 2 1 0 Interest rate swaps 131 139 224 Electricity forwards - 2 - The following EUR rates have been applied to GBP, INR, AUD and USD Q2/07 Q2/06 Income statement, average: GBP 1 = 1.482 1.455 INR 1 = 0.018 0.018 AUD 1 = 0.608 0.604 USD 1 = 0.752 0.813 Q2/07 Q2/06 Balance sheet, month end: GBP 1 = 1.484 1.445 INR 1 = 0.018 0.017 AUD 1 = 0.630 0.584 USD 1 = 0.740 0.787 Definitions for key indicators Earnings per share = Profit before taxes - minority interest - taxes / Average number of shares outstanding Earnings per share (diluted) = Diluted profit before taxes - minority interest - taxes / Average fully diluted number of shares outstanding Net debt to equity (gearing) = Interest bearing net debt / Equity + minority interest (average) RONA-% = 100 x Earnings before interest and taxes (12 m roll.) / Net assets (12 m roll.) Shareholders' equity per share = Equity / Issue-adjusted number of shares at period end Return on equity (ROE) = 100 x (Profit for the period) / Equity + minority interest (average) Return on investment (ROI) = 100 x (Profit before taxes + interest expenses + net other financial expenses) / Balance sheet total - Interest-free liabilities (average) |
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