2011-02-17 07:30:00 CET
2011-02-17 07:30:24 CET
REGULATED INFORMATION
Lännen Tehtaat - Financial Statement Release
FINANCIAL STATEMENTS RELEASE 1 January - 31 December 2010
LÄNNEN TEHTAAT PLC Financial Statements Release 17 February 2011 at 8.30 a.m.
FINANCIAL STATEMENTS RELEASE 1 January - 31 December 2010
Fourth quarter (October-December):
- Consolidated net sales amounted to EUR 87.9 (71.7) million, which was a
year-on-year increase of 23%.
- Operating profit, excluding non-recurring items, was EUR 5.1 (5.4) million;
there were no non-recurring items.
- Profit for the period came to EUR 4.4 (4.2) million, and earnings per share
amounted to EUR 0.71 (0.67).
Financial year (January-December):
- Consolidated net sales amounted to EUR 308.7 (266.0) million, which was a
year-on-year increase of 16%.
- Operating profit, excluding non-recurring items, came to EUR 8.3 (7.7)
million; non-recurring items totalled EUR 0.0 (-0.8) million.
- Profit for the year came to EUR 6.5 (5.8) million, and earnings per share
amounted to EUR 1.04 (0.94).
The Board will propose a dividend of EUR 0.90 (0.76) per share to the Annual
General Meeting.
The information here has not been audited.
Matti Karppinen, CEO:
“The accrual of the Group's operating profit was, as expected, weighted heavily
towards the final quarter, and the full-year operating profit, excluding
non-recurring items, exceeded the previous year's level.
As a whole, the year was free of surprises, but the result varied among the
different businesses. Frozen Foods posted a good result, as in the previous
year. Grains and Oilseeds also reached the level achieved in 2009. The profit
of the Other Operations segment improved year-on-year as a result of the final
quarter performance, which was attributable to the improved result from the
associated company and lower Group Administration costs. The Seafood business
again posted a significant loss, although the Taimen ownership arrangement made
in the summer had a positive impact on the performance.
The Taimen arrangement was a step towards the revitalisation of the Seafood
business, but robust development measures are still essential for Seafood to
post a profit.”
KEY FIGURES
EUR million Q4/ Q4/ Q1-Q4/ Q1-Q4/
2010 2009 2010 2009
Net sales 87.9 71.7 308.7 266.0
Operating profit 5.1 5.4 8.3 6.8
Operating profit, excluding non-recurring items 5.1 5.4 8.3 7.7
Profit before taxes 5.1 5.2 8.4 7.3
Profit for the period 4.4 4.2 6.5 5.8
Earnings per share, EUR 0.71 0.67 1.04 0.94
NET SALES AND PROFIT
Fourth quarter (October-December):
Consolidated net sales in the fourth quarter amounted to EUR 87.9 (71.7)
million, an increase of 23% on the same quarter in 2009. This increase was
largely attributable to the Grains and Oilseeds business. Net sales of the
Seafood business were also up on the same quarter a year earlier.
The fourth-quarter operating profit, excluding non-recurring items, totalled
EUR 5.1 (5.4) million. There were no non-recurring items. The Other Operations
segment and Frozen Foods both improved their profit, year on year. The profit
for the Seafood business was almost unchanged. The Grains and Oilseeds result
was good, but fell short of the excellent figure of a year earlier.
Financial income and expenses in October-December came to EUR 0.0 (-0.2)
million. Profit before taxes was EUR 5.1 (5.2) million, and taxes on the profit
for the quarter came to EUR -0.7 (-1.1) million. Profit for the period came
to EUR 4.4 (4.2) million, and earnings per share amounted to EUR 0.71 (0.67).
Financial year (January-December):
Consolidated net sales in January-December amounted to EUR 308.7 (266.0)
million, up by 16 % on the previous year. Most of this growth was in the Grains
and Oilseeds business. Net sales of the Seafood business were also up. In
Frozen Foods, net sales were slightly below the previous year's total.
The operating profit, excluding non-recurring items, was EUR 8.3 (7.7) million.
The non-recurring items came to EUR 0.0 (-0.8) million. The operating profit
includes EUR 3.0 (2.0) million as the share of the profit of associated
companies. A total of EUR 0.6 (0.0) million of the associated company profits
concerns Seafood, and EUR 2.4 (2.0) Other Operations.
Financial income and expenses came to a total of EUR 0.1 (0.5) million. This
figure includes valuation items of EUR 0.9 (0.5) million with no cash flow
implications. Financial expenses also include EUR -0.8 (-0.7) million of Avena
Nordic Grain Group's profit as the share attributable to the Avena Nordic Grain
Oy employee shareholders.
Profit before taxes was EUR 8.4 (7.3) million. Taxes for the financial year
came to EUR -1.9 (-1.5) million. Profit for the period came to EUR 6.5 (5.8)
million, and earnings per share amounted to EUR 1.04 (0.94).
CASH FLOWS, FINANCING AND BALANCE SHEET
The Group's liquidity was good and its financial position is strong.
The cash flow from operating activities in the financial year after interest
and taxes amounted to EUR 0.6 (25.8) million. The impact of the change in
working capital was EUR -7.4 (14.9) million, most of this being in the Grains
and Oilseeds business.
The net cash flow from investing activities came to EUR 3.5 (-10.4) million.
Deposits and withdrawals of liquid assets into and from short-term fixed income
funds had an impact of EUR 10.1 (-13.0) million on the cash flow from investing
activities. The cash flow from financing activities came to EUR -4.4 (-17.5)
million, and this included EUR -4.7 (-5.3) million in dividend payments.
At the close of the financial year, the Group had EUR 4.0 (3.3) million in
interest-bearing liabilities and EUR 14.6 (25.0) million in liquid assets. Net
interest-bearing liabilities totalled EUR -10.7 (-21.7) million. The
consolidated balance sheet total stood at EUR 191.9 (176.1) million. At the end
of the year, equity totalled EUR 138.9 (137.3) million. The equity ratio was
72.4% (78.0%) and gearing was -7.7% (-15.8%). There were no issues made within
the framework of the commercial paper programme during the financial year. The
Group's liquidity is secured with committed credit facilities; a total of EUR
25.0 (25.0) million was available in credit at the end of the financial year.
No credit facilities were used during the financial year.
INVESTMENT
The Group's gross investment in non-current assets came to EUR 3.1 (2.7)
million.
Investment by Frozen Foods totalled EUR 1.2 (1.9) million, by Seafood EUR 1.1
(0.6) million, by Grains and Oilseeds EUR 0.7 (0.3) million and by Other
Operations EUR 0.2 (0.0) million.
Investment in shares during the financial year came to EUR 10.5 million. These
concerned the Seafood business, specifically the acquisition of shares of
Myrskylän Savustamo Oy and Taimen Oy.
PERSONNEL
The average number of personnel during the financial year was 621 (657). The
average number of personnel in Frozen Foods was 199 (205), in Seafood 351
(379), in Grains and Oilseeds 61 (62) and in Other Operations 10 (11).
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,
most of the Group's annual profit is accrued in 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'sprofit in the Seafood business depends on the success of Christmas sales. Due
to the growing season for fish, only a small amount of the profit accumulated
for the Taimen Group, which reports as an associated company, accrues during
the summer months. 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.
OVERVIEW OF OPERATING SEGMENTS
Frozen Foods
Q4/ Q4/ Q1-Q4/ Q1-Q4/
EUR million 2010 2009 2010 2009
Net sales 11.3 11.4 45.1 46.0
Operating profit 1.5 1.4 3.4 3.4
Operating profit, excluding non-recurring items 1.5 1.4 3.4 3.4
Fourth quarter (October-December):
Fourth-quarter net sales in Frozen Foods were at the level of a year earlier.
Sales to the retail sector and to the hotel, restaurant and catering sector
were up year on year, while sales to the food industry and exports decreased.
Sales of products sold under the Apetit brand grew significantly and the
proportion of manufacturing accounted for by retailers' private labels fell.
The drop in exports was a result of the autumn's smaller-than-normal pea crop,
which in turn reduced exports of peas.
The operating profit of Frozen Foods was a little better than in the same
quarter a year earlier. During the period, productivity continued to improve,
and sales focused on the more profitable products.
With weather conditions being favourable, the root vegetable and potato harvest
and processing went well, and the targeted volumes of good quality raw
materials were obtained for storage. Pea and spinach growth suffered from the
hot and dry summer, and the crops were smaller than usual.
Financial year (January-December):
Net sales in Frozen Foods fell by about 2% year on year. Sales under retailers'
private labels decreased, as did sales to the food industry and exports. Sales
to the hotel, restaurant and catering sector were at the level of 2009. Sales
of frozen foods to the retail sector under the Apetit brand were up. Frozen
vegetable sales were up by almost 10%, sales of frozen potato products by 10%
and Apetit soups by almost 20%. This positive trend was partly due to good
sales of the Apetit Kotimainen Finnish-grown products, the Apetit Muurikka
pan-fry vegetables and lactose-free Apetit soups. Sales of the new range of
fishburgers, fishballs and vegetable burgers and vegetable balls launched for
the hotel, restaurant and catering sector were also extremely good.
The operating profit of Frozen Foods for the full year was at the level of the
previous year. There were no non-recurring items. The improved productivity had
a positive effect on the result, as did the stronger sales focus on more
profitable products. The labour market disputes in the spring, however, had an
adverse impact on sales and also added to costs when empty stocks had to be
refilled after the disputes were over. Delivery reliability was not returned to
the pre-strike level until the summer.
During the year, the marketing of Apetit products has highlighted the naturally
good nutrition properties of the frozen products and has emphasised the Finnish
origin of the Apetit products. The theme of ‘locally produced food straight
from the freezer' is being continued in marketing during 2011.
The average number of personnel in Frozen Foods was 199 (205).
Investment in the Frozen Foods business totalled EUR 1.2 (1.9) million. Among
the investments, the most significant were the replacement investments in
crop-season production facilities and in the frozen ready meals factory, as
well as the enlargement of the despatch premises at the Pudasjärvi production
facility.
Seafood Q4/ Q4/ Q1-Q4/ Q1-Q4/
EUR million 2010 2009 2010 2009
Net sales 23.9 21.0 80.9 75.9
Operating profit 0.4 0.5 -1.8 -2.5
Operating profit, excluding non-recurring items 0.4 0.5 -1.8 -1.8
Fourth quarter (October-December):
The fourth-quarter net sales of the Seafood business were up by about 14%. The
growth occurred in the Finnish Seafood business.
The growth was a result of the increase in the average sales price and the
greater proportion of higher added value cold-smoked and raw pickled rainbow
trout products. The impact of Myrskylän Savustamo Oy on the year's sales was
approximately EUR 2.6 million. The Christmas sales period was successful.
In the foreign Seafood business, the drop in sales in Norway was partly a
result of discontinuing the sale of poorly profitable smoked salmon to the main
customer in September. Sales of higher added value meal components, on the
other hand, picked up at the end of the year, and canned products continued to
sell well. Final-quarter shellfish sales in Norway were weak. On the Swedish
market, sales of shellfish in brine were good, and exports to the Finnish
market continued to grow strongly.
The fourth-quarter operating profit, excluding non-recurring items, was almost
at the level of a year earlier. There were no non-recurring items. Both the
Finnish and foreign Seafood businesses saw a turnaround in their performance,
posting an operating profit for the quarter. Boosting the result in the Finnish
business was the summer acquisition of Myrskylän Savustamo Oy and associated
company Taimen Oy. In the foreign Seafood business, the positive result was
possible because of the higher sales of more profitable products and the
improvement in productivity and cost efficiency. The result was burdened by
higher raw material prices.
Financial year (January-December):
Full-year net sales in the Seafood business were up by about 7%. The majority
of the growth was in the Finnish Seafood business.
The growth was attributable to the higher average price of fish product sales
compared with a year earlier, the positive sales trend in higher added value
cold-smoked and raw-pickled products, and the addition of Myrskylän Savustamo
to the Group at the start of June.
Net sales in the foreign Seafood business in euros were up on the previous year
by about 1%. Measured in local currencies, net sales were down by about 10%.
Most of the decrease in net sales was on the Norwegian market. On the Swedish
market the trend in sales to the retail trade and to the hotel, restaurant and
catering sector was favourable, especially in the last quarter of the year.
Exports to Finland continued to be strong. By product group, the best sales
trend was in dressings, though shellfish sales also developed well.
Seafood's full-year operating result, excluding non-recurring items, was about
the same as a year earlier, and was a loss. Non-recurring items totalled EUR
0.0 (-0.7) million. The result deteriorated slightly in the Finnish Seafood
business, and correspondingly improved in the foreign Seafood business. The
operating result included EUR -0.1 (0.0) million as an unrealised change in the
fair value of currency hedges. The share in the profit of associated company
Taimen Oy in June-December was EUR 0.6 million.
Affecting profitability in the Finnish Seafood business was the substantial
rise in raw material prices for rainbow trout and Norwegian salmon, which began
in the first half of the year. The price level dropped a little in the early
autumn when supplies increased, but was still at an exceptionally high level.
Due to retailer pricing periods and the tight competition, significant price
rises for products that are priced by period will not be made until 2011.
The impact of the spring labour market disputes was felt in the Seafood
business until the summer. Due to the industrial action, sales fell short,
delivery reliability weakened and productivity suffered.
The process of integrating Apetit Kala Oy and Myrskylän Savustamo Oy, acquired
in June, and its subsidiary, Safu Oy, has proceeded according to plan. The
functions of Apetit Kala were reorganised, and the new personnel structure took
effect at the start of September. Erkki Lepistö relinquished his position as
Managing Director of Apetit Kala Oy for personal reasons, and on 14 October
2010 Matti Karppinen was appointed as his successor. Karppinen also continues
as CEO of Lännen Tehtaat plc.
To streamline the fresh fish supply chain and improve the service level, Apetit
Kala began fresh fish processing at the Kustavi production plant early in
November. This will increase processing capacity, reduce logistics costs and
shorten the time from sea to table.
In the foreign Seafood business the high raw material price of Norwegian salmon
adversely affected profit-earning capacity up to the early autumn. The
shellfish raw material price rose during the second half of the year, too. Due
to the retail trade's pricing periods, any price rises to compensate for a rise
in raw material prices is delayed. Productivity and operating efficiency have
been good. During the year, Maritim Food engaged strongly in product renewal,
in collaboration with the main customer. New kinds of products, redesigned and
with a higher store profile, were launched during 2010, both under the
retailer's private label and under the Maritim brand; these launches will
continue in 2011.
Maritim Food has three production sites in Norway and one in Sweden. In the
latter part of the year, the company launched a general review of the
development possibilities of the factory operations and of the scope for
concentration in production.
The average number of personnel in the Seafood business was 351 (379). The
reduction in average personnel was due in part to the smaller number of
Kalatori service counters in Finland, though personnel numbers were also
boosted by arrival of Myrskylän Savustamo Oy and Safu Oy, which joined the
Group at the start of June, and the launch of the Kustavi fish processing plant
at the beginning of November. The number of personnel in the foreign Seafood
business decreased due to the jobs lost in September as a result of the
adjustment measures in production.
Investment in the Seafood business totalled EUR 1.1 (0.6) million. Most of this
was in completing the productivity investment programme at the Kuopio
production plant.
Grains and Oilseeds
Q4/ Q4/ Q1-Q4/ Q1-Q4/
EUR million 2010 2009 2010 2009
Net sales 52.2 38.7 181.9 143.4
Operating profit 1.6 2.6 7.2 7.3
Operating profit, excluding non-recurring items 1.6 2.6 7.2 7.4
Fourth quarter (October-December):
Fourth-quarter net sales in the Grains and Oilseeds business were up by 35%
year on year. This was due to growth in delivery volumes of grains and
vegetable oils and the significant rise in market prices since the same quarter
in 2009.
The fourth-quarter operating profit, excluding non-recurring items, was down on
the excellent level of a year earlier.
Financial year (January-December):
Full-year net sales in the Grains and Oilseeds business were up by 27% year on
year. The increase in net sales was a consequence of higher volume in both
grain and vegetable oils sales.
The agricultural commodities markets saw significant changes during 2010. In
the first half of the year, prices were low, which was due to the large
harvests and greater stocks around the world in 2008 and 2009 and expectations
of a plentiful harvest to come.
The weather in summer 2010 led to major crop losses in Russia, Kazakhstan and
Ukraine. The combined grain production of the EU countries amounted to 274
million tonnes, which was about 20 million tonnes less than the previous year.
In Finland, the crop was 2.9 million tonnes, compared to 4.3 million tonnes in
2009. The reduced supply and strong demand caused prices to rise substantially
in the second half of the year in the EU and world markets.
The prices of soybeans and other oilseeds as well as vegetable oils and
expeller meal rose considerably in the second half of the year. In Finland, the
area under rapeseed grew and a record crop was obtained, almost 180,000 tonnes,
despite per-hectare yields being low.
For the Grains and Oilseeds business, the operating profit, excluding
non-recurring items, came to EUR 7.2 (7.4) million. The non-recurring items
totalled EUR 0.0 (-0.1) million.
In the first six months of the year, Avena achieved a good level of profit. In
the final six months, profit-earning was hampered temporarily by the
considerable increase in market prices that took place during the summer.
Mildola Oy's vegetable oils business, excluding its oil milling operation, was
transferred to Avena Nordic Grain Oy in an asset deal that took place at the
end of 2009, leaving Mildola Oy to continue its oil milling operation as a
production unit of Avena as of the start of 2010.
To expand local procurement and trading and to boost exports, Avena opened a
new office in Estonia and established a subsidiary, TOO Avena Astana, in
Kazakhstan, alongside the representative office there. The Kazakhstan
subsidiary will begin ordinary operations during 2011.
The Grains and Oilseeds business employed an average of 61 (62) people.
During the year, investment came to EUR 0.7 (0.3) million and focused on the
renewal of Avena's Internet marketplace (Avenakauppa) and the renewal of the
process automation system and other replacement investment for the Kirkkonummi
vegetable oil mill. At the end of the financial year, construction of a new
packaging department and canister filling line began at the oil mill.
Other Operations
Q4/ Q4/ Q1-Q4/ Q1-Q4/
EUR million 2010 2009 2010 2009
Net sales 1.2 1.1 2.6 2.4
Operating profit 1.5 0.8 -0.5 -1.3
Operating profit, excluding non-recurring items 1.5 0.8 -0.5 -1.3
The Other Operations segment comprises 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 impact
of the services produced by Apetit Suomi Oy is an encumbrance on the operating
result of the Group's businesses in proportion to their use of the services.
Fourth quarter (October-December):
Net sales from the sale of services in the Other Operations segment were up
slightly on the previous year's level.
The fourth-quarter operating result came to EUR 1.5 (0.8) million, which
includes EUR 1.8 (1.3) million as the share of the profits of associated
companies.
Financial year (January-December):
Net sales in Other Operations for the year amounted to EUR 2.6 (2.4) million.
The operating result was EUR -0.5 (-1.3) million. The operating result includes
EUR 2.4 (2.0) million as the share of the profits of associated companies. The
improved result is a consequence of the associated company Sucros's
year-on-year profit improvement and the lower costs of the Group Administration
and Apetit Suomi compared with the previous year.
CORPORATE ADMINISTRATION AND MANAGEMENT
At its organisational meeting on 13 April 2010, Lännen Tehtaat plc's
Supervisory Board elected Helena Walldén as its chairman and Juha Nevavuori as
its deputy chairman.
At the same meeting, the Supervisory Board elected the following as members of
the company's Board of Directors, as of 13 April 2010: Harri Eela, Heikki
Halkilahti, Aappo Kontu, Matti Lappalainen, Hannu Simula and Soili Suonoja. The
Supervisory Board elected Matti Lappalainen chairman of the Board of Directors
and Hannu Simula deputy chairman. Tom v. Weymarn was member and chairman of the
Board of Directors until 13 April 2010.
Matti Karppinen has served as CEO of Lännen Tehtaat plc since 1 September
2005. Eero Kinnunen, Chief Financial Officer (CFO) of the Lännen Tehtaat Group,
was appointed Deputy CEO as of 1 January 2008.
AUDITORS
Hannu Pellinen, APA and PricewaterhouseCoopers Oy Authorized Public
Accountants, with Tomi Moisio, APA, CPFA as responsible auditor, were appointed
as auditors for Lännen Tehtaat plc by the Annual General Meeting on 30 March
2010.
USE OF THE AUTHORISATIONS GRANTED TO THE BOARD OF DIRECTORS
By 16 February 2011, the company's Board of Directors had not exercised the
authorisations granted to it to issue new shares or to transfer Lännen Tehtaat
plc shares held by the company.
SHARE TURNOVER
The number of Lännen Tehtaat plc shares traded on the stock exchange during the
financial year was 1,035,276 (1,997,857), representing 16.4% (31.6%) of the
total number of shares. The highest share price quoted was EUR 20.00 (15.99)
and the lowest EUR 15.51 (11.90). The average price of shares traded was EUR
17.62 (13.71). The share turnover for the year was EUR 18.2 (27.4) million. The
year-end share price was EUR 17.50 (15.65), and the market capitalisation was
EUR 110.6 (98.9) million.
OWN SHARES
At the close of the financial year, the company had in its possession a total
of 130,000 of its own shares acquired during previous years, with a combined
nominal value of EUR 0.26 million. These shares represent 2.1% of the company's
total number of shares and of the total number of votes. The company's own
shares in its possession carry no voting or dividend rights.
FLAGGING ANNOUNCEMENTS
Lännen Tehtaat received three flagging announcements during the financial year.
On 7 May 2010, EM Group Oy announced that its holding in Lännen Tehtaat plc
had, on 6 May 2010, exceeded 5% of the total number of Lännen Tehtaat plc
shares and votes. At the time of the announcement, EM Group Oy owned 316,000
Lännen Tehtaat plc shares, equating to 5.002% of the total number of Lännen
Tehtaat plc shares and 5.107% of the votes.
On 15 September 2010, Valio Ltd announced that its holding in Lännen Tehtaat
plc had, on 14 September 2010, gone below the 5% flagging limit. Prior to the
share transactions of 14 September 2010, Valio Ltd's holding amounted to
327,912 shares and votes. Following the share transactions of 14 September
2010, Valio Ltd owns no Lännen Tehtaat plc shares.
On 15 September 2010, Valio Pension Fund announced that its holding in Lännen
Tehtaat plc had, on 14 September 2010, exceeded 5% of the total number of
Lännen Tehtaat plc shares and votes. Prior to the share transactions of 14
September 2010, the Valio Pension Fund held 86,478 Lännen Tehtaat plc shares
and votes. After the share transactions made on 14 September 2010, the Valio
Pension Fund owns 414,390 Lännen Tehtaat plc shares, which represents 6.5% of
the number of Lännen Tehtaat plc shares and votes.
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; a
rise in energy prices; availability of raw materials; the impact of fish price
rises on consumer demand; the solvency of customers and the delivery
performance of suppliers; changes in the Group's businesses and customerships;
and corporate acquisitions and the subsequent integration processes.
EVENTS SINCE THE END OF THE FINANCIAL YEAR
There have been no significant events since the close of the financial year.
ASSESSMENT OF PROBABLE FUTURE DEVELOPMENT
The Group's net sales will be affected particularly by the level of activity in
grain and oilseed markets and by changes in the price level of grains and
oilseeds. The Group's profit trend is expected to remain good in the first half of the
year. The profit performance in the second half of the year will be influenced
substantially by the extent of activity in the grain and oilseed markets, which
at this stage of the year is still difficult to assess. Thanks to the measures
taken to develop the Group's different businesses, and thanks to 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.
BOARD OF DIRECTORS' PROPOSALS FOR PROFIT MEASURES AND FOR DISTRIBUTION OF OTHER
UNRESTRICTED EQUITY
The aim of the Board of Directors of Lännen Tehtaat plc is that the company's
shares provide shareholders with a good return on investment and retain their
value. It is the company's policy to distribute in dividends at least 40% of
the profit for the financial year attributable to shareholders of the parent
company.
The parent company's distributable funds totalled EUR 84,512,088.26 on 31
December 2010, of which EUR 6,550,104.19 is profit for the financial year.
The Board proposes that a dividend of EUR 0.90 per share be distributed for
2010. The Board of Directors will propose that a total of EUR 5,568,818.40 be
distributed in dividends and that EUR 78,943,269.86 be left in equity. The
proposed dividend is 86.5% of the earnings per share.
No dividend will be paid on shares held by the company.
No significant changes have taken place in the financial standing of the
company since the end of the financial year. The company's liquidity is good,
and in the view of the Board of Directors this will not be jeopardized by the
proposed distribution of dividends.
CONSOLIDATED INCOME STATEMENT
EUR million Q4 / Q4 / Jan-De Jan-De
2010 2009 c 2010 c 2009
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Net sales 87.9 71.7 308.7 266.0
Other operating income 0.6 0.6 1.4 1.5
Operating expenses -84.2 -66.9 -299.4 -257.3
Depreciation -1.3 -1.3 -5.3 -5.3
Impairments -0.1 0.0 -0.1 -0.1
Share of profits of associated companies 2.2 1.3 3.0 2.0
Operating profit 5.1 5.4 8.3 6.8
Financial income and expenses 0.0 -0.2 0.1 0.5
Profit before taxes 5.1 5.2 8.4 7.3
Income taxes -0.7 -1.1 -1.9 -1.5
--------------------------------------------------------------------------------
Profit for the period 4.4 4.2 6.5 5.8
Attributable to
Equity holders of the parent 4.4 4.2 6.5 5.8
Non-controlling interests -- -- -- --
Basic and diluted earnings per share, calculated 0.71 0.67 1.0 0.94
of the profit attributable to the shareholders
of the parent company, EUR
STATEMENT OF COMPREHENSIVE INCOME
EUR million Q4 / Q4 / Jan-De Jan-De
2010 2009 c 2010 c 2009
--------------------------------------------------------------------------------
Profit for the period 4.4 4.2 6.5 5.8
Other comprehensive income
Cash flow hedges 1.7 1.0 1.1 1.1
Taxes related to cash flow hedges -0.4 -0.3 -0.3 -0.3
Translation differences 0.2 0.2 0.8 1.4
--------------------------------------------------------------------------------
Total comprehensive income 5.9 5.1 8.1 8.0
Attributable to
Equity holders of the parent 5.9 5.1 8.1 8.0
Non-controlling interests -- -- -- --
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 Dec 31 Dec
EUR million 2010 2009
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets 6.0 5.6
Goodwill 8.6 6.9
Tangible assets 37.0 37.9
Investment in associated companies 33.9 24.0
Available-for-sale investments 0.1 0.1
Receivables 0.7 1.8
Deferred tax assets 1.4 1.1
--------------------------------------------------------------------------------
Non-current assets total 87.5 77.4
Current assets
Inventories 55.0 48.1
Receivables 34.5 25.5
Income tax receivable 0.2 0.1
Financial assets at fair value through profits 7.1 17.2
Cash and cash equivalents 7.5 7.9
--------------------------------------------------------------------------------
Current assets total 104.4 98.7
Total assets 191.9 176.1
--------------------------------------------------------------------------------
31 Dec 31 Dec
EUR million 2010 2009
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity attributable to the equity holders of the parent 136.2 137.3
Non-controlling interests 2.7 --
--------------------------------------------------------------------------------
Total equity 138.9 137.3
Non-current liabilities
Deferred tax liabilities 4.4 4.1
Long-term financial liabilities 2.1 2.4
Non-current provisions 0.0 0.2
Other non-current liabilities 4.6 --
--------------------------------------------------------------------------------
Non-current liabilities total 11.1 6.6
Current liabilities
Short-term financial liabilities 1.8 0.9
Income tax payable 1.0 1.5
Trade payables and other liabilities 39.1 29.7
--------------------------------------------------------------------------------
Current liabilities total 41.9 32.1
Total liabilities 53.0 38.8
--------------------------------------------------------------------------------
Total equity and liabilities 191.9 176.1
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
Jan-Dec Jan-De
c
EUR million 2010 2009
--------------------------------------------------------------------------------
Net profit for the period 6.5 5.8
Adjustments, total 4.9 6.5
Change in net working capital -7.4 14.9
Interests paid -1.1 -1.8
Interests received 0.3 1.0
Taxes paid -2.6 -0.6
--------------------------------------------------------------------------------
Net cash flow from operating activities 0.6 25.8
Investments in tangible and intangible assets -3.1 -2.7
Proceeds from sales of tangible and intangible assets 0.5 3.2
Acquisition of associated companies -8.1 --
Transactions with non-controlling interests 2.7 -1.2
Purchases of other investments -32.9 -22.0
Proceeds from sales of other investments 43.0 9.0
Dividends received from investing activities 1.5 3.3
--------------------------------------------------------------------------------
Net cash flow from investing activities 3.5 -10.4
Repayments of short-term loans 0.6 -9.5
Repayments of long-term loans -0.3 -2.7
Payment of financial lease liabilities 0.0 0.0
Dividends paid -4.7 -5.3
--------------------------------------------------------------------------------
Cash flows from financing activities -4.4 -17.5
Net change in cash and cash equivalents -0.3 -2.0
Cash and cash equivalents at the beginning of the period 7.9 9.9
Cash and cash equivalents at the end of the period 7.5 7.9
Purchases of other investments and proceeds from sales of other investments are
cash flows related to short-term interest rate funds.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
A Share capital
B Share premium account
C Net unrealised gains
D Other reserves
E Own shares
F Translation
differences
G Retained
earnings
H Attributable to equity holders of the parent
total
EUR million A B C D E F G H
--------------------------------------------------------------------------------
Shareholders' equity at 1 Jan. 12.6 23.4 0.0 7.2 -1.8 -0.5 96.4 137.3
2010
Dividend distribution -- -- -- -- -- -- -4.7 -4.7
Transactions with NCI -- -- -- -- -- -- -2.9 -2.9
Other changes -- -- -- -- -- -- 0.1 0.1
Total comprehensive income -- -- -0.9 0.0 -- 0.8 6.5 6.5
--------------------------------------------------------------------------------
Shareholders' equity at 31 Dec. 12.6 23.4 -0.8 7.2 -1.8 0.3 95.3 136.2
2010
--------------------------------------------------------------------------------
Shareholders' equity at 1 Jan. 12.6 23.4 -0.8 7.2 -1.8 -1.9 96.6 135.1
2009
Dividend distribution -- -- -- -- -- -- -5.3 -5.3
Transactions with NCI -- -- -- -- -- -- -0.7 -0.7
Other changes -- -- -- -- -- -- 0.2 0.2
Total comprehensive income -- -- 0.8 -- -- 1.4 5.8 8.0
--------------------------------------------------------------------------------
Shareholders' equity at 31 Dec. 12.6 23.4 0.0 7.2 -1.8 -0.5 96.4 137.3
2009
--------------------------------------------------------------------------------
H Attributable to equity holders of the
parent
total
--------------------------------------------------------------------------------
I Non controlling interests (NCI)
--------------------------------------------------------------------------------
J Total equity
--------------------------------------------------------------------------------
EUR million H I J
Shareholders' equity at 1 Jan. 2010 137.3 -- 137.3
Dividend distribution -4.7 -- -4.7
Transactions with NCI -2.9 2.7 -0.2
Other changes 0.1 -- 0.1
Total comprehensive income 6.5 -- 6.5
Shareholders' equity at 31 Dec. 2010 136.2 2.7 138.9
Shareholders' equity at 1 Jan. 2009 135.1 0.5 135.6
Dividend distribution -5.3 -- -5.3
Transactions with NCI -0.7 -0.5 -1.2
Other changes 0.2 -- 0.2
Total comprehensive income 8.0 -- 8.0
Shareholders' equity at 31 Dec. 2009 137.3 -- 137.3
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The financial statements release 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 2009. New standards and interpretations adopted
in 2010 did not have any material effect to this financial statement bulletin.
SEGMENT INFORMATION
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KEY INDICATORS
31 Dec 31 Dec
2010 2009
--------------------------------------------------------------------------------
Shareholders' equity per share, EUR 22.01 22.19
Equity ratio, % 72.4 78.0
Gearing, % -7.7 -15.8
Gross investments in non-current assets, EUR million 3.1 2.7
Corporate acquisitions and other share purchases, EUR million 10.5 1.2
Average number of personnel 621 657
Average number of shares, 1.000 pcs 6 188 6 188
The key figures in this year-end report are calculated with same
accounting principles than presented in the 2009 annual
financial statements.
CONTINGENT LIABILITIES, CONTINGENT ASSETS AND OTHER COMMITMENTS
31 Dec 31 Dec
EUR million 2010 2009
--------------------------------------------------------------------------------
Mortgages given for debts
Real estate mortgages 2.8 2.0
Guarantees 12.1 11.1
Non-cancellable other leases, minimum lease payments
Real estate leases 5.9 4.3
Other leases 0.7 0.8
DERIVATIVE INSTRUMENTS
Outstanding nominal values of derivate instruments
Forward currency contracts 6.6 4.0
Commodity derivative instruments 13.9 9.2
CONTINGENT ASSETS
The present value of proceeds from the sale of shares in the 0.7 0.7
joint entry account
INVESTMENT COMMITMENTS
Lännen Tehtaat has no significant investment commitments on 31 December 2010.
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 will, on the basis of IAS 32, be
recognised under non-current liabilities. The receivable arising in connection
with this may not, under IFRS rules, be recognised.
CHANGES IN TANGIBLE ASSETS
31 Dec 31 Dec
EUR million 2010 2009
---------------------------------------------------------
Book value at the beginning of the period 37,9 43,5
Additions 2,6 2,0
0,7 -
Disposals -0,3 -4,0
-4,4 -4,5
0,5 0,9
------------------------------------------
Book value at the end of the period 37,0 37,9
---------------------------------------------------------
TRANSACTIONS WITH ASSOCIATED COMPANIES AND JOINT VENTURES
Jan-Dec Jan-Dec
2010 2009
---------------------------------------------------------------
Sales to associated companies 1,1 1,0
Sales to joint ventures 7,3 6,7
Purchases from associated companies 6,6 2,2
Long-term receivables from associated companies -- 1,3
Long-term receivables from joint ventures 0,1 0,1
Trade receivables and other receivables from associated 1,6 1,6
companies
Trade receivables and other receivables from joint ventures 0,7 0,7
Trade payables and other liabilities to associated companies 0,4 0,2
--------------------------------------------------------------------------------
Additions through acquisitions
Depreciations and impairments
Other changes
EUR million
LÄNNEN TEHTAAT PLC
Board of Directors
Further information: CEO Matti Karppinen, tel. +358 40 844 8692
Distribution:
NASDAQ OMX Helsinki Ltd
Principal media
www.lannen.fi
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