2011-11-02 07:30:00 CET
2011-11-02 07:30:08 CET
REGULATED INFORMATION
Lännen Tehtaat - Interim report (Q1 and Q3)
INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2011
LÄNNEN TEHTAAT PLC Interim Report 2 November 2011, 8.30 am
July-September:
- Consolidated net sales came to EUR 77.6 (65.9) million, up by 18%.
- Operating profit, excluding non-recurring items, was EUR 2.3 (1.3) million;
there were no non-recurring items.
- Profit for the period came to EUR 1.3 (0.7) million, and earnings per share
amounted to EUR 0.20 (0.10).
January-September:
- Net sales came to EUR 255.1 (220.8) million, up by 16%.
- Operating profit, excluding non-recurring items, was EUR 5.3 (3.2) million;
non-recurring items totalled EUR -1.7 (0.0) million.
- Profit for the period came to EUR 1.2 (2.1) million, and earnings per share
amounted to EUR 0.23 (0.34).
The assessment of profit performance for the full year is unchanged. Thanks to
the measures taken to develop the Group's different businesses and the
corporate acquisitions made in 2010, the full-year operating profit, excluding
non-recurring items, is expected to be better than the previous year's level.
The information in this Interim Report has not been audited.
Matti Karppinen, CEO:
“The Group's third-quarter net sales and profitability improved overall, as
forecast. Operating profit for the quarter was up by EUR 1 million year on
year, and net sales increased by 18%. Both the Frozen Foods and Seafood
businesses turned in a better result than a year earlier. The result for the
Grains and Oilseeds business was also slightly up on the previous year. The
poor result for the associated company Sucros was disappointing in view of
expectations and in comparison with the same period a year ago.
“The development of the Seafood business and improvements in its efficiency
continued according to plan in Finland and Norway. Apetit Kala strengthened its
position in the fresh fillet and fresh salmon market. In Norway, production at
Fredrikstad was concentrated at a single plant. In the Frozen Foods business,
marketing has been very successful. According to the latest Brandflow survey,
Apetit is by far the best known frozen foods brand and the Finnishness campaign
has increased sales of frozen vegetables and frozen potato products. The Grains
and Oilseeds business is currently completing its largest investment in years.
The new packaging plant will support sales growth in packaged oils.
“All of this provides a good basis from which we can now move forward.”
KEY FIGURES
EUR million Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
2011 2010 2011 2010 2010
Net sales 77.6 65.9 255.1 220.8 308.7
Operating profit, excluding non-recurring items 2.3 1.3 5.3 3.2 8.3
Operating profit 2.3 1.3 3.6 3.2 8.3
Profit before taxes 2.0 1.2 2.4 3.3 8.4
Profit for the period 1.3 0.7 1.2 2.1 6.5
Earnings per share, EUR 0.20 0.10 0.23 0.34 1.04
NET SALES AND PROFIT
July-September:
Consolidated net sales for the third quarter amounted to EUR 77.6 (65.9)
million, up by 18% on the previous year. Net sales were up in all businesses.
The Group's operating profit, excluding non-recurring items, was EUR 2.3 (1.3)
million. There were no non-recurring items. The operating profit includes EUR
-0.2 (0.6) million as the share of the profits of associated companies. The
quarter's operating profit was up year on year in all businesses with the
exception of the Other Operations segment, in which the share of the profits of
associated companies was below the previous year's figure.
January-September:
Consolidated net sales for January-September came to EUR 255.1 (220.8) million,
up by 16%.
The operating profit, excluding non-recurring items, was EUR 5.3 (3.2) million.
The operating profit includes EUR -0.1 (0.8) million as the share of the
profits of associated companies. Non-recurring items totalled EUR -1.7 (0.0)
million. The non-recurring items were related to the efficiency boosting
measures in the Seafood business.
The net figure for financial income and expenses was EUR -1.2 (0.1) million.
This includes valuation items of EUR -0.2 (0.8) million with no cash flow
implications. Financial expenses also include EUR -0.8 (-0.6) million as the
share of the Avena Nordic Grain Group's profit attributable to the employee
owners of Avena Nordic Grain Oy. Due to changes in ownership during the spring,
the employee owners' holding in Avena Nordic Grain Oy rose from 14.6% to 17.1%.
Profit before taxes was EUR 2.4 (3.3) million. The profit for the period was
EUR 1.2 (2.1) million, and earnings per share amounted to EUR 0.23 (0.34).
FINANCING AND BALANCE SHEET
The Group's liquidity was good and its financial position is strong.
The cash flow from operating activities in January-September after interest and
taxes amounted to EUR -3.3 (-3.1) million. The impact of the change in working
capital was EUR -6.1 (-7.3) million.
The net cash flow from investing activities was EUR 3.2 (6.9) million. Deposits
and withdrawals of cash assets invested in short-term fixed income funds had an
impact of EUR 7.1 (13.0) million on the net cash flow from investing
activities. The cash flow from financing activities was EUR -0.6 (-4.7)
million, including EUR 4.9 (0.4) million in loan withdrawals and repayments and
EUR -5.6 (-4.7) million in dividend payments. The net change in cash and cash
equivalents was EUR -0.7 (-0.8) million.
At the end of the period the Group had EUR 10.2 (3.5) million in
interest-bearing liabilities and EUR 6.8 (11.4) million in liquid assets. Net
interest-bearing liabilities totalled EUR 3.4 (-7.9) million. The consolidated
balance sheet total stood at EUR 187.9 (178.5) million. At the end of the
review period, equity totalled EUR 134.9 (134.8) million. The equity ratio was
71.8% (75.6%). The Group's liquidity is being secured with committed credit
facilities. EUR 17 (25) million was available in credit at the end of the
period. EUR 8.0 (0.0) million was drawn in credit to finance working capital.
INVESTMENT
Investment in non-current assets during January-September totalled EUR 4.6
(2.6) million.
PERSONNEL
The average number of personnel in the review period was 619 (615).
OVERVIEW OF OPERATING SEGMENTS
Frozen Foods
EUR million Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
2011 2010 2011 2010 2010
Net sales 10.4 10.0 34.2 33.8 45.1
Operating profit, excluding non-recurring items 1.5 1.3 1.8 1.9 3.4
Third-quarter net sales in the Frozen Foods business increased by 4% year on
year. Sales to the retail sector were at the same level as a year earlier.
Sales started to increase at the end of the period. Sales of products under
the Apetit brand performed better than retailers' private labels. Strong growth
continued in sales to the hotel, restaurant and catering sector, as a result of
new products. Exports of frozen peas were up year on year due to the good
domestic crop.
The third-quarter operating profit was better than in the same quarter the
previous year. This was attributable to the product mix in sales and the
earlier start to frozen vegetable production, focusing more on the third
quarter than in the previous year.
The net sales for January-September increased slightly year on year. Sales of
frozen vegetables performed well in both the retail sector and the hotel,
restaurant and catering sector. After the weak performance in the first half of
the year, sales of frozen potato products also started to increase. Sales of
the Kotimaiset (“Finnish grown”) range of frozen vegetables were very good,
improving further at the end of the period. Sales of frozen ready meals to the
hotel, restaurant and catering sector grew by more than a quarter. Sales of
frozen pizzas were down on the previous year.
Operating profit for January-September was at the level of the previous year.
Price rises carried out in the first half of the year only partially
compensated for the strong rises in raw material and energy prices. Due to cost
pressures, further price rises will be introduced during the last quarter of
the year.
Processing of the autumn's crops has proceeded well. The growing season weather
was favourable for the vegetables and root vegetables of Finnish contract
growers. In the summer, a high-quality and ample crop of spinach and peas was
harvested, and the volume of potatoes for freezing will be sufficient. The
rainy weather in late autumn has hampered the harvesting of root vegetables on
the contract farms, but despite the difficult harvesting conditions it appears
that a sufficient volume of good quality root vegetables will be obtained for
freezing.
The average number of personnel in Frozen Foods during January-September was
200 (191).
Investment totalled EUR 1.7 (1.1) million during the period. The most
significant items were replacement investments in frozen vegetable production
and investments in energy efficiency.
Seafood
EUR million Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
2011 2010 2011 2010 2010
Net sales 20.5 19.7 62.1 57.1 80.9
Operating profit, excluding non-recurring items 0.4 -1.1 -0.3 -2.2 -1.8
Operating profit 0.4 -1.1 -2.0 -2.2 -1.8
The third-quarter net sales of the Seafood business were up by 4% on the same
quarter a year earlier. This growth was attributable to the Finnish Seafood
business.
Net sales in the Finnish Seafood business were up by about 11% as a result of
increased volumes in the sales of fresh fillets and fresh salmon. Net sales
were adversely affected by the lower number of Kalatori service counters
compared with the previous year.
In the Norwegian and Swedish Seafood business, net sales fell by about 6% year
on year both in euro terms and in local currencies. The decrease in net sales
was due to discontinuing the sale of smoked fish products, the decline in the
sale of certain shellfish products due to raw material availability problems,
and lower sales of canned products compared with the previous year. Growth in
the sales of dressings and fishcakes and fishballs continued.
The Seafood business's third-quarter operating profit, excluding non-recurring
items, improved by EUR 1.5 million year on year. This profit improvement
occurred in the Seafood business in Finland and in Norway and Sweden. The
operating profit for the period included EUR 0.5 (-0.3) million as changes in
the fair value of currency hedges.
The Finnish Seafood business posted a year-on-year improvement in its
third-quarter operating profit, excluding non-recurring items, which was
attributable to sales growth, improved gross margin and decreased overhead
costs. The Taimen Group's impact on the quarterly profit was similar to the
previous year, at EUR 0.3 (0.4) million.
The improved third-quarter operating profit of the Norwegian and Swedish
Seafood business is a result of changes in fair value of currency hedges. Gross
margin was down year on year as a result of higher prices for key raw materials
and packaging materials than the year before. The increased sales prices that
will compensate for higher costs will come into effect during the final
quarter. Overhead costs were lower than in the same period the previous year.
Measures to improve productivity and cost-effectiveness, and thus boost
financial performance, continued in the Norwegian and Swedish units. The
closure of the Stabburveien plant and the associated measures required for
concentrating production proceeded according to plan during the period.
Seafood's net sales for January-September were up by 9% on the same period in
2010. Net sales of the Finnish Seafood business were up by 17%. However, net
sales of Seafood's Norwegian and Swedish operations in euros fell by 2%. The
decrease in net sales was entirely attributable to the discontinuing of smoked
fish sales.
The Seafood business's operating profit for January-September, excluding
non-recurring items, improved by EUR 1.9 million year on year. Non-recurring
items totalled EUR -1.7 (0.0) million. The share of the profit of associated
companies was EUR 0.4 (0.3) million. The improved profit for the review period
was mainly attributable to the Finnish Seafood business. The changes in the
fair value of currency hedges affected Seafood's operating profit during the
review period by EUR 0.4 (-0.3) million.
The number of personnel in the Seafood business averaged 348 (354).
Investment in the Seafood business totalled EUR 0.6 (0.8) million. The main
items during the review period were replacement investments at different
production plants in Finland, Norway and Sweden.
Grains and Oilseeds
EUR million Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
2011 2010 2011 2010 2010
Net sales 46.6 36.1 158.5 129.7 181.9
Operating profit, excluding non-recurring items 1.6 1.5 6.9 5.6 7.2
Third-quarter net sales in the Grains and Oilseeds business were up by 29% year
on year. This growth was attributable to higher market prices than the year
before. Delivery volumes fell short of the figures for the same quarter a year
earlier, although they did rise at the end of the period. Most of the net sales
growth originated from exports and trading outside Finland.
The operating profit in Grains and Oilseeds was at the level of a year earlier.
Net sales in January-September were up by 22% year on year due to higher market
prices. Operating profit was EUR 1.3 million better than a year earlier.
Due to the improved weather conditions at the end of the growing season and
during the harvesting season, the EU's grain crop increased to 279 (273)
million tonnes and the oilseeds crop came to 27.9 (28) million tonnes. However,
there is considerable variation in quality. In Russia, Ukraine and Kazakhstan,
harvests were significantly greater than in 2010, and the Black Sea region is
currently dominating the global wheat export market. Due to relatively low
stocks and continued good demand, prices on the global market have remained at
a historically very high level even during the new crop year.
An average grain crop was harvested in Finland, amounting to 3.5 million
tonnes; in 2010, the crop was only around 3 million tonnes. The bread grain
crop was larger than average and generally of a good quality. The Information
Centre of the Ministry of Agriculture and Forestry estimates that, due to
reduced areas under cultivation and low per-hectare yields, the rapeseed crop
will be no more than 130,000 tonnes, while in 2010 the crop was 180,000 tonnes.
Large variations in the quality of crops as well as varying yields in different
areas under cultivation will affect grain flows and the formation of supply and
demand in different markets, which will create plenty of trading opportunities
during the crop year.
The Grains and Oilseeds business employed an average of 60 (60) people in the
first nine months of the year.
Investment totalled EUR 2.2 (0.6) million in January-September and was mainly
on the packaging plant being constructed at the Kirkkonummi vegetable oil mill.
The packaging plant will be completed according to plan by the end of the year.
The packaging plant is at the trial operation phase, and customer deliveries
from the new packaging plant will commence by the end of the year. This
investment will boost Avena's competitiveness in the market for packaged
vegetable oil products.
Other Operations
EUR million Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
2011 2010 2011 2010 2010
Net sales 0.5 0.5 1.4 1.4 2.6
Operating profit, excluding non-recurring items -1.2 -0.4 -3.1 -2.0 -0.5
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 of services
produced by Apetit Suomi Oy is an encumbrance on the operating profit of the
Group's businesses in proportion to their use of the services.
Net sales from the sale of services were at the previous year's level.
The third-quarter operating profit fell short of the previous year due to the
fall in the share of profits of the associated company Sucros, which suffered
from the high cost of imported raw materials. The operating profit includes EUR
-0.5 (0.2) million as the share of the profits of associated companies.
The EUR -3.1 (-2.0) million operating profit for January-September includes EUR
-0.4 (0.5) million as the share of the profits of associated companies.
The segment's investment totalled EUR 0.1 (0.1) million.
USE OF THE AUTHORISATIONS GRANTED TO THE BOARD OF DIRECTORS
Authorisations to issue shares
The Board of Directors has not exercised the authorisation granted to it by the
Annual General Meeting on 31 March 2011 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
January-September was 528,445 (917,244), representing 8.4% (14.5%) of the total
number of shares. The euro-denominated share turnover was EUR 8.5 (16.1)
million. The highest share price quoted was EUR 18.80 (20.00) and the lowest
EUR 12.95 (15.51). The average price of shares traded was EUR 16.12 (17.60).
At the end of September, the market capitalisation totalled EUR 90.5 (116.6)
million.
At the end of the period, the company held 130,000 of its own shares, with a
combined nominal value of EUR 0.26 million. These treasury shares represent
2.1% of the company's total number of shares and total number of votes.
FLAGGING ANNOUNCEMENTS
No flagging announcements were made during January-September.
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 of the year, 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,
the accrual of the Group's annual profit is weighted towards 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.
In the Seafood business, the sales of Apetit Kala Oy and Myrskylän Savustamo Oy
peak at weekends and on holidays. A significant proportion of the entire year's
profit in the Seafood business depends on the success of the Christmas season.
The profit accumulated by the Taimen Group, which reports as an associated
company, is normally smaller during the summer months than at other times of
the year, due to the growing season for fish. Net sales in the Grains and
Oilseeds business vary from one year and quarter to the next to a greater
extent than in the other businesses, 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 concern the
following: the management of raw material price changes and currency risks;
availability of raw materials; the impact of the rise in energy prices; the
success of the Christmas season in the Seafood business; price competition in
the seafood market; the change in Seafood's production plant structure in
Norway; the solvency of customers and the delivery performance of suppliers and
service providers; changes within the Group's business sectors and customer
relationships; and the integration processes following the corporate
acquisitions made.
SIGNIFICANT EVENTS SINCE THE END OF THE REVIEW PERIOD
In October, Lännen Tehtaat decided to take the dispute between Lännen Tehtaat
and Nordic Sugar regarding breaches of the shareholder agreement to
arbitration.
Lännen Tehtaat and Nordic Sugar are now in a situation in the operations of
Sucros Ltd in which Lännen Tehtaat is of the opinion that its minority rights
have repeatedly been violated by the decision-making and actions of the
majority owner. In spite of several complaints, the majority owner has not
rectified the actions that are in breach of the shareholder agreement, and
therefore Lännen Tehtaat plc decided to take the issue to arbitration to be
resolved. In its rejoinder to Lännen Tehtaat, Nordic Sugar has denied the
breaches of shareholder agreement.
According to Lännen Tehtaat, Nordic Sugar has committed 3 breaches against the
agreement. According to the terms and conditions of the shareholder agreement,
one proven breach will incur a contractual penalty totalling EUR 8.9 million
per breach. Therefore the penalty could total a maximum of nearly EUR 27
million.
ASSESSMENT OF PROBABLE FUTURE DEVELOPMENT
The 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. Based on developments so far and on the current outlook, the Group's
full-year net sales are expected to be up on the 2010 figure.
Thanks to the measures taken to develop the Group's different businesses, and
the corporate acquisitions made in 2010, the full-year operating profit,
excluding non-recurring items, is expected to be better than the previous
year's level.
The profit for the financial year will be depressed by non-recurring costs
associated with the Seafood business's efficiency improvement measures reported
in the second quarter. There were no non-recurring costs in 2010.
CONSOLIDATED INCOME STATEMENT
EUR million Q3 Q3 Q1-Q3 Q1-Q3
Q1-Q4
2011 2011 2011 2010
2010
Net sales 77.6 65.9 255.1 220.8
308.7
Other operating income 0.7 0.2 1.1 0.8
1.4
Operating expenses -74.3 -64.1 -248.3 -215.2
-299.4
Depreciation -1.4 -1.4 -4.3 -4.0
-5.3
Impairments 0.0 0.0 0.0 0.0
-0.1
Share of profits of associated companies -0.2 0.6 -0.1 0.8
3.0
Operating profit 2.3 1.3 3.6 3.2
8.3
Financial income and expenses -0.3 0.0 -1.2 0.1
0.1
Profit before taxes 2.0 1.2 2.4 3.3
8.4
Income taxes -0.7 -0.5 -1.2 -1.2
-1.9
Profit for the period 1.3 0.7 1.2 2.1
6.5
Attributable to
Equity holders of the parent 1.2 0.7 1.4 2.1
6.5
Non-controlling interests 0.0 -0.2
Basic and diluted earnings per share,
calculated of the profit attributable to the
shareholders of the parent
company, EUR 0.20 0.10 0.23 0.34
1.04
STATEMENT OF COMPREHENSIVE
INCOME
EUR million Q3 Q3 Q1-Q3 Q1-Q3
Q1-Q4
2011 2010 2011 2010
2010
Profit for the period 1.3 0.7 1.2 2.1
6.5
Other comprehensive income
Cash flow hedges -0.4 0.1 1.0 -0.6
1.1
Taxes related to cash flow hedges 0.1 0.0 -0.3 0.2
-0.3
Translation differences -0.2 0.1 -0.2 0.6
0.8
Total comprehensive income 0.7 0.9 1.7 2.2
8.1
Attributable to
Equity holders of the parent 0.7 0.9 1.9 2.2
8.1
Non-controlling interests 0.0 -0.2
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
EUR million 30 Sept 30 Sept 31 Dec
2011 2010 2010
ASSETS
Non-current assets
Intangible assets 5.4 6.1 6.0
Goodwill 8.7 8.5 8.6
Tangible assets 37.6 37.7 37.0
Investment in associated companies 33.3 31.7 33.9
Available-for-sale investments 0.1 0.1 0.1
Receivables 0.4 0.5 0.7
Deferred tax assets 1.9 1.4 1.4
Non-current assets total 87.3 86.0 87.5
Current assets
Inventories 59.5 51.6 55.0
Receivables 34.0 29.5 34.5
Income tax receivable 0.3 0.2
Financial assets at fair value through profits 4.4 7.1
Cash and cash equivalents 6.8 7.0 7.5
Current assets total 100.6 92.5 104.4
Total assets 187.9 178.5 191.9
EUR million 30 Sept 30 Sept 31 Dec
2011 2010 2010
EQUITY AND LIABILITIES
Equity attributable to the equity
holders of the parent 132.4 131.9 136.2
Non-controlling interests 2.6 2.9 2.7
Total equity 134.9 134.8 138.9
Non-current liabilities
Deferred tax liabilities 3.9 3.9 4.4
Long-term financial liabilities 1.8 2.5 2.1
Non-current provisions 0.0
Other non-current liabilities 4.7 4.6 4.6
Non-current liabilities total 10.4 11.0 11.1
Current liabilities
Short-term financial liabilities 8.4 1.0 1.8
Income tax payable 1.0 1.0 1.0
Trade payables and other liabilities 33.1 30.7 39.1
Current liabilities total 42.6 32.7 41.9
Total liabilities 52.9 43.7 53.0
Total equity and liabilities 187.9 178.5 191.9
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million Q1-Q3 Q1-Q3 Q1-Q4 2011 2010 2010
Net profit for the period 1.2 2.1 6.5
Adjustments, total 5.5 5.2 4.9
Change in net working capital -6.1 -7.3 -7.4
Interests paid -1.6 -0.8 -1.1
Interests received 0.2 0.1 0.3
Taxes paid -2.6 -2.2 -2.6
Net cash flow from operating activities -3.3 -3.1 0.6
Investments in tangible and intangible assets -4.6 -2.6 -3.1
Proceeds from sales of tangible and intangible assets 0.0 0.5 0.5
Acquisition of associated companies -0.1 -8.1 -8.1
Proceeds from sales of associated companies 0.5
Transactions with non-controlling interests 2.7 2.7
Purchases of other investments -18.0 -26.8 -32.9
Proceeds from sales of other investments 25.1 39.8 43.0
Dividends received from investing activities 0.3 1.5 1.5
Net cash flow from investing activities 3.2 6.9 3.5
Proceeds from and repayments of short-term loans 4.9 0.4 0.6
Proceeds from and repayments of long-term loans 0.0 -0.4 -0.3
Dividends paid -5.6 -4.7 -4.7
Cash flows from financing activities -0.6 -4.7 -4.4
Net change in cash and cash equivalents -0.7 -0.8 -0.3
Cash and cash equivalents
at the beginning of the period 7.5 7.9 7.9
Cash and cash equivalents
at the end of the period 6.8 7.0 7.5
Purchases of other investments and proceeds from
sales of other investments are cash flows related
to short-term fixed income funds.
STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY
A = Shareholders' equity at 1 January
B = Dividend distribution
C = Transactions with NCI
D = Other changes
E = Total comprehensive income
F = Shareholders' equity at 30 Sept.
January - September 2011
EUR million A B C D E F
Share capital 12.6 12.6
Share premium account 23.4 23.4
Net unrealised gains -0.8 0.7 -0.1
Other reserves 7.2 7.2
Own shares -1.8 -1.8
Translation differences 0.3 -0.2 0.2
Retained earnings 95.3 -5.6 -0.2 -0.2 1.4 90.8
Attributable to equity
holders of the parent 136.2 -5.6 -0.2 -0.2 2.0 132.4
Non-controlling interests (NCI) 2.7 -0.2 2.6
Total equity 138.9 -5.6 -0.2 -0.2 1.8 134.9
January - September 2010
EUR million A B C D E F
Share capital 12.6 12.6
Share premium account 23.4 23.4
Net unrealised gains -0.4 -0.4
Other reserves 7.2 7.2
Own shares -1.8 -1.8
Translation differences -0.5 0.6 0.1
Retained earnings 96.4 -4.7 -2.9 0.0 2.1 90.8
Attributable to equity
holders of the parent 137.3 -4.7 -2.9 0.0 2.2 131.9
Non-controlling interests (NCI) 2.9 2.9
Total equity 137.3 -4.7 0.0 2.2 134.8
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 2010. New standards and interpretations
adopted in 2011 did not have any material effect to this Interim Report.
SEGMENT INFORMATION
EUR million
A = Frozen Foods
B = Seafood
C = Grains and Oilseeds
D = Other Operations
E = Total
Operating segments,
January - September 2011
EUR million
A B C D E
Total segment sales 34.2 62.1 158.5 1.4 256.3
Intra-group sales -1.2 -1.2
Net sales 34.2 62.1 158.5 0.2 255.1
Share of profits of associated
companies included in operating
profit 0.4 -0.4 -0.1
Operating profit 1.8 -2.0 6.9 -3.1 3.6
Gross investments in non-current
assets 1.7 0.6 2.2 0.1 4.6
Corporate acquisitions and other
share purchases 0.1 0.1
Depreciations 1.7 1.5 0.5 0.7 4.3
Impairments
Personnel 200 348 60 10 619
Operating segments,
January - September 2010
EUR million
A B C D E
Total segment sales 33.8 57.1 129.7 1.4 222.0
Intra-group sales -1.2 -1.2
Net sales 33.8 57.1 129.7 0.2 220.8
Share of profits of associated
companies included in operating
profit 0.3 0.5 0.8
Operating profit 1.9 -2.2 5.6 -2.0 3.2
Gross investments in non-current
assets 1.1 0.8 0.6 0.1 2.6
Corporate acquisitions and other
share purchases 10.5 10.5
Depreciations 1.6 1.4 0.5 0.5 4.0
Impairments
Personnel 191 354 60 10 615
Operating segments,
January - December 2010
EUR million A B C D E
Total segment sales 45.1 80.9 181.9 2.6 310.5
Intra-group sales 0.0 0.0 0.0 -1.7 -1.8
Net sales 45.1 80.9 181.9 0.9 308.7
Share of profits of associated
companies included in operating
profit 0.6 2.4 3.0
Operating profit 3.4 -1.8 7.2 -0.5 8.3
Gross investments in non-current
assets 1.2 1.1 0.7 0.2 3.1
Corporate acquisitions and other
share purchases 10.5 10.5
Depreciations 2.2 1.9 0.7 0.6 5.3
Impairments 0.1 0.1
Personnel 199 351 61 10 621
KEY INDICATORS
30 Sept 30 Sept 31 Dec
2011 2010 2010
Shareholders' equity per share, EUR 21.40 21.31 22.01
Equity ratio, % 71.8 75.6 72.4
Gearing, % 2.5 -5.9 -7.7
Gross investments in non-current assets,
EUR million 4.6 2.6 3.1
Corporate acquisitions and other share purchases,
EUR million 0.1 10.5 10.5
Average number of personnel 619 615 621
Average number of shares, 1,000 pcs 6188 6188 6188
The key figures in this interim report are
calculated with same accounting principles
than presented in the 2010 annual financial
statements.
CONTINGENT LIABILITIES, CONTINGENT ASSETS
AND OTHER COMMITMENTS
EUR million 30 Sept 30 Sept 31 Dec
2011 2010 2010
Mortgages given for debts
Real estate and corporate mortgages 2.7 2.8 2.8
Guarantees 11.5 13.7 12.1
Non-cancellable other leases,
minimum lease payments
Real estate leases 4.3 5.0 5.9
Other leases 0.6 0.8 0.7
DERIVATIVE INSTRUMENTS
Outstanding nominal values of derivate instruments
Forward currency contracts 15.0 8.0 6.6
Commodity derivative instruments 8.5 17.2 13.9
CONTINGENT ASSETS
The present value of proceeds from the sale of
shares in the joint entry account 0.7 0.7 0.7
INVESTMENT COMMITMENTS
Frozen Foods 0.1
Grains and Oilseeds 0.4
OTHER COMMITMENTS
Based on the shareholder agreements on the ownership arrangement between
Apetit Kala Oy and Taimen Oy, once certain terms and conditions are met the
contracting parties are entitled to terminate the cross ownership at fair
value.
The liability in any termination of ownership is, on the basis of IAS 32
recognised
under non-current liabilities. The receivable arising in connection with this
may
not, under IFRS rules, be recognised.
CHANGES IN TANGIBLE ASSETS
EUR million 30 Sept 30 June 31 Dec
2011 2010 2010
Book value at the beginning of the period 37.0 37.9 37.9
Additions 4.4 2.1 2.6
Additions through acquisitions 0.7 0.7
Disposals -0.3 -0.2 -0.3
Depreciations and impairments -3.5 -3.3 -4.4
Other changes 0.4 0.5
Book value at the end of the period 37.6 37.7 37.0
TRANSACTIONS WITH ASSOCIATED
COMPANIES AND JOINT VENTURES
EUR million Q1-Q3 Q1-Q3 Q1-Q4
2011 2010 2010
Sales to associated companies 0.3 0.3 1.1
Sales to joint ventures 6.2 5.5 7.3
Purchases from associated companies 9.0 1.6 6.6
Long-term receivables from joint ventures 0.0 0.1 0.1
Trade receivables and other receivables from
associated companies 0.0 1.5 1.6
Trade receivables and other receivables from
joint ventures 1.3 1.1 0.7
Trade payables and other liabilities to associated
companies 0.8 0.4
LÄNNEN TEHTAAT PLC
Board of Directors
Further information: Matti Karppinen, CEO, tel. +358 10 402 00
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