Apetit Oyj - Half Year financial report

Apetit's comparable profitability was lower than last year - net sales grew, the sharp increase in costs posed challenges

Apetit Plc, Half-Year Report on 18 August 2022 at 08:30 a.m.

Apetit Plc's Half-Year Report 1 January-30 June 2022

Apetit's comparable profitability was lower than last year - net sales grew, the
sharp increase in costs posed challenges

April-June 2022, continuing operations*)

  · In continuing operations, comparable net sales increased by 40 per cent to
EUR 47.3 (33.8) million. EBITDA was EUR 0.4 (1.7) million. Operating profit was
EUR -1.0 (0.4) million. The sharp increase in the prices of production inputs
could not be fully transferred to sales prices.
  · The net sales of Food Solutions were EUR 14.7 (14.0) million and operating
profit EUR -0.4 (-0.1) million. Net sales increased especially in the food
service channel.
  · The net sales of Oilseed Products were EUR 32.8 (19.9) million and operating
profit EUR -0.2 (0.9) million. Net sales were boosted by the significantly
increased sales prices due to the higher price of the oilseed raw material.

January-June 2022, continuing operations*)

  · In continuing operations, comparable net sales increased by 27 per cent to
EUR 89.9 (70.9) million. EBITDA was EUR 1.5 (5.4) million. Operating profit was
EUR -1.2 (2.8) million.
  · The net sales of Food Solutions were EUR 31.9 (30.7) million and operating
profit EUR 0.7 (1.5) million.
  · The net sales of Oilseed Products were EUR 58.2 (40.4) million and operating
profit EUR -0.8 (2.2) million. Sales volumes remained on a par with the
comparison period.

April-June 2022, Group, incl. discontinued operations**)

  · Net sales decreased by -5 per cent to EUR 64.9 (68.7) million. EBITDA was
EUR 2.8 (0.3) million. Operating profit was EUR 1.2 (-1.2) million.
  · The net sales of Grain Trade were EUR 21.9 (40.3) million and operating
profit EUR 2.2 (-1.6) million.

January-June 2022, Group, incl. discontinued operations**)

  · Net sales increased by 2 per cent to EUR 139.7 (136.4) million. EBITDA was
EUR 4.6 (2.8) million. Operating profit was EUR 1.4 (-0.3) million.
  · The net sales of Grain Trade were EUR 64.0 (76.2) million and operating
profit EUR 2.6 (-3.1) million.

*) Apetit's continuing operations are Food Solutions and Oilseed Products. In
addition, Apetit reports Group Functions, consisting of the expenses related to
Group management, strategic projects and listing on the stock exchange, that are
not allocated to the business segments.

**) Grain Trade is reported as a discontinued operation starting from the
Q1/2022 Business Review. The divestment of the Estonian grain trade business to
Scandagra was completed on 10 March 2022, and the divestment of the Lithuanian
business was completed on 31 March 2022. The divestment of the Finnish
operations of the Grain Trade business to Berner Ltd was completed on 31 May
2022.

The information in this report is unaudited. The figures in brackets refer to
the corresponding period in 2021, and the comparison period means the
corresponding period in the previous year, unless otherwise stated.

PROFIT GUIDANCE FOR 2022 UNCHANGED

The full-year operating profit from continuing operations is expected to
decrease year-on-year (EUR 5.8 million in 2021).

KEY FIGURES

EUR million              4-6    4-6          1-6    1-6         1-12
                        2022   2021         2022   2021         2021
Continuing operations
Net sales               47.3   33.8  40 %   89.9   70.9  27 %  149.1
EBITDA                   0.4    1.7          1.5    5.4         11.1
Operating profit        -1.0    0.4         -1.2    2.8          5.8
Share of profit of      -0.1   -0.2         -0.4   -0.6          0.4
associated company
Sucros
Profit for the period   -0.9    0.2         -1.4    1.8          5.3
Earnings per share,    -0.14   0.04        -0.22   0.28         0.85
EUR
Investments                                  3.0    3.3          6.6
Group (incl.
discontinued
operations)
Net sales               64.9   68.7  -5 %  139.7  136.4   2 %  283.9
EBITDA                   2.8    0.3          4.6    2.8          9.2
Operating profit         1.2   -1.2          1.4   -0.3          2.8
Profit for the period    0.9   -1.2          0.6   -1.1          2.4
Earnings per share,     0.14  -0.19         0.09  -0.17         0.38
EUR
Equity per share, EUR                      14.68  14.48        14.95
ROCE-%                                       3.8    2.9          2.4
Working capital, end                        22.1   25.5         50.5
of period
Net cash flow from                          17.8   24.4          5.0
operating activities
Equity ratio, %                             82.7   76.3         59.4
Net gearing, %                              -4.8    3.1         26.6

Esa Mäki, CEO:

“The net sales of Apetit Group's continuing operations increased significantly,
but profitability was lower than in the comparison period. In Food Solutions,
the main challenge from profitability's perspective was inflation that affects
production inputs. In Oilseed Products, significantly increased raw material and
logistics costs reduced profitability. However, demand for products in both
businesses remained high.

The increase in costs continued during the second quarter, and the sales price
increases to be made are a response to cost inflation that has already been
realised. In Food Solutions, customer price increases will enter into force
gradually in late summer and in the autumn.

In Oilseed Products, the introduction of higher sales prices will be slower due
to agreement structures and the more extensive customer base. There is very good
demand for domestic rapeseed oil in all sales channels. The successfulness of
the current cultivation when it comes to the availability and price of oilseed
plant raw material is significant for our profitability.

According to recent surveys, an increasing number of consumers has changed their
purchasing behaviour as the price of food has increased. Apetit's products have
a strong position in retail trade as the only Finnish option and market leader
of frozen vegetable products, which contributes to safeguarding demand for our
products also in the changed circumstances. Apetit's products are of high
quality and have competitive prices. They are also a good match with the
prevailing food trends of easier daily life, domestic origin, well-being, plant
-based food, and sustainability.

The construction of the pizza production line in Pudasjärvi started in May and
proceeded as planned during the summer. The approximately EUR 2 million
investment was completed in July, and commercial production on the new line
started at the beginning of August. New pizzas will be available in shops'
frozen food sections in October. Our goal is to challenge our foreign
competitors by baking pizzas with sourdough, using domestic raw materials as
much as possible and ensuring the deliciousness with stonebaking.

In Säkylä, we have continued investments in production efficiency improvements.
The reception of peas at the start of the production line started during the
summer. For its part, this eliminates production bottlenecks and improves our
opportunities to increase pea production capacity in the future.

The harvest expectations for field vegetables are hopeful. The hot weather in
early summer did not continue too long for plants, and rainfall has been mainly
even throughout the growing season in our cultivation areas. After a couple of
weaker years, the pea harvest is also expected to be good. Cooler weather has
also contributed to the more even development of peas, which is good for pea
quality and the smoothness of production.

For oilseed plants, the conditions during the summer growing season have been
generally favourable so far. In the Baltic countries, harvesting started on
time, and in Finland, main harvesting will probably begin in September a little
later than normally. The total cultivation area of rapeseed in Finland increased
by approximately 12,000 hectares from the previous year, which contributes to
improving the harvest volume forecast.

The divestment of Apetit's Grain Trade business to Berner was completed at the
end of May, and it allows us to focus on growing and developing our processing
businesses, meaning the Food Solutions and Oilseed Products businesses. Apetit
will continue to cooperate intensively with Berner in purchasing oilseed plant
raw material and in increasing the oilseed plant cultivation area and harvest
level together with farmers.

Apetit's products promote sustainable eating in many ways. Baltic Sea Fish
Patties, to be launched to professional kitchens in August, complement our local
fish product selection. Like Baltic Sea Fish Fingers, the product is made of
Finnish skinless Baltic herring fillet. The fishing of Baltic herring removes
eutrophicating nutrients and algae from waterways. Sustainable food choices do
matter!”

WEBCAST

A news conference (in Finnish) will be held as a live webcast today on 18 August
2022 at 10:00. The news conference can be followed at apetit.fi/for-investors.
The presentation material and a recording of the webcast will be available on
the company's website after the news conference.

Apetit Plc

Esa Mäki, CEO, Apetit Plc, tel. +358 10 402 2100

Apetit is a food industry company firmly rooted in Finnish primary production.
Our operations are based on a unique and sustainable value chain: we create well
-being with vegetables by offering tasty food solutions that make daily life
easier. We also produce high-quality vegetable oils and rapeseed expellers for
feeding stuff, and trade grain on the international markets. Apetit Plc's shares
are listed on Nasdaq Helsinki. In 2021, Apetit Group's net sales were EUR 284
million.

Attachments:

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