2016-06-20 08:00:48 CEST
2016-06-20 08:00:48 CEST
REGULATED INFORMATION
Kotipizza Group Oyj - Interim report (Q1 and Q3)
Kotipizza Group Oyj: EXTREMELY STRONG FIRST QUARTER, 18% NET SALES GROWTH AND 52% COMPARABLE EBITDA GROWTH COMPARED TO THE PREVIOUS YEAR
KOTIPIZZA GROUP OYJ INTERIM REPORT 1 FEBRUARY 2016 - 30 APRIL 2016
EXTREMELY STRONG FIRST QUARTER, 18% NET SALES
GROWTH AND 52% COMPARABLE EBITDA GROWTH COMPARED TO THE PREVIOUS YEAR
February-April 2016 (2-4/2015)
* Chain-based net sales grew 18.3% (4.7%)
* Comparable net sales were 15.4 MEUR (13.1). Growth was 17.7%
* Comparable EBITDA was 1.29 MEUR (0.85). EBITDA growth was 52.0%
* Comparable EBIT was 1.05 MEUR (0.71)
* Net gearing was 29.2 percent (770.3%)
* Equity ratio was 52.0 percent (10.5%)
Guidance for the fiscal year 2017 unchanged
The Group estimates for the full financial year that the chain-based net sales
will grow by over 5 percent as compared to the previous fiscal year and that
comparable EBITDA will grow as compared to the previous year.
KEY FIGURES, EUR THOUSAND
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2-4/16 2-4/15 2/15-1/16
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Comparable figures
Comparable net sales 15 387 13 071 56 370
Comparable EBITDA 1 286 846 5 026
Comparable EBITDA of
8.4% 6.5% 8.9%
net sales, %
Comparable EBIT 1 045 714 4 274
net sales, % 6.8% 5.5% 7.6%
Reported figures
Chain-based net sales 20 407 17 243 77 266
Reported net sales 15 387 13 071 56 370
Reported EBITDA 1 286 236 4 187
Reported EBITDA of
8.4% 1.8% 7.4%
net sales, %
Reported EBIT 1 045 104 3 435
net sales, % 6.8% 0.8% 6.1%
Earnings per share 0.10 0.00 0.05
Net cash flows from operating activities 1 442 -1 539 -671
Net cash used in investment activities -117 -81 -1 770
Net gearing, % 29.2 % 770.3 % 31.8
Equity ratio, % 52.0 % 10.5 % 51.8
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Tommi Tervanen, CEO of Kotipizza Group
"The first quarter of the year opened the first year which Kotipizza Group will
spend fully as a listed company on the OMX Nasdaq Helsinki main list. The chain-
based net sales growth also continued its almost historical pace during the
quarter, as it did during the previous fiscal year. In April, the Kotipizza
restaurant chain reached the highest monthly sales in its 29-year history. The
chain-based net sales were 7.14 MEUR in April as the previous all record 7.07
MEUR was from July 2015. The Kotipizza chain's net sales continued on a good
level both in same-store sales and in number of customers. The number of
customers increased 12.2% and the average purchase 6.1% in the brick-and-mortar
restaurants. At the end of the review period, orders made through the online
store amounted to nearly a tenth of the net sales in brick-and-mortar
restaurants. The chain-based net sales growth was 18.3 percent in February-
April, being clearly above the average growth in the Finnish fast food market.
The growth in net sales is particularly significant considering that the net
amount of Kotipizza restaurants continued to decrease during the review period.
At the end of the period, the number of Kotipizza restaurants was 254 (263). The
decrease in the number of restaurants is due to the consistent closing of non-
profitable restaurants. At the same time, the chain also invests in the opening
of new brick-and-mortar restaurants, so it can be estimated that the number of
restaurants will start growing again during 2016.
One of the main reasons for chain-based net sales growth is Kotipizza's brand
and concept renewal, which was started at full speed at the beginning of 2015.
The renewal will be finalized by the end of this year. We expect that chain-
based net sales will continue to develop favorably. Achieving similar relative
growth figures will however become more challenging month after month as
comparison months from the previous year are getting tougher.
The Group has consistently developed the Kotipizza chain in the spirit of the
fast casual phenomenon, that is, emphasizing the freshness, authenticity and
sustainability of the food. Part of the same emphasis is the Mexican-style
Chalupa chain started in September 2015. Chalupa started to expand outside the
Helsinki region during the quarter. At the end of the review period, three
brick-and-mortar Chalupa restaurants were operating in Helsinki, one in
Kauniainen and one in Tampere. In addition, Chalupa products were available in
one Kotipizza lunch restaurant. It is notable that out of the three opened
restaurants during the review period two are franchised.
Group net sales grew 17.7% in the first quarter of the year and were 15.4 MEUR
(13.1). Comparable EBITDA was 1.29 MEUR (0.85) in the first quarter, a growth of
52.0%. Previous year's EBITDA was still burdened by two administrative costs as
company's previous headquarter in Vaasa was closed at the end of May 2015. We
were however on pace with our medium-term financial goals, both in terms of the
development of chain-based sales as well as that of EBITDA. The financial
standing of the Group is also on a solid ground, net gearing was 29 percent and
equity ratio 52 percent at the end of the quarter.
There have not been any material changes in the market development after our
financial year close at the end of January. We don't expect any material changes
to the chained fast food market this year compared to the previous year. The
economic growth in Finland is expected to be slow and to underperform Eurozone.
The development of the national economy has a direct impact to consumer demand
and to demand for chained fast food. However, according to the statistics demand
growth for fast food has been stable, surely following the overall economic
development, during the past 15 years in Finland.
The growth of our chain-based net sales exceeded the market growth for chained
fast food in year 2015 based on the ongoing concept renewal in Kotipizza,
efficient marketing activities, innovative R&D and sustainable procurement. We
don't see any such structural changes in the market place that we would not
expect our chain based net sales to grow in line with the fast food market
growth in Finland or even to exceed the market growth in 2016.
We therefore estimate the group's chain-based net sales will during the present
financial year grow by over 5% as compared to the previous financial year, and
the comparable gross margin/EBITDA will grow as compared to the previous
financial year."
GROUP NET SALES
February-April 2016
Chain-based net sales grew 18.3% (4.7%) year on year in the first quarter of the
fiscal year and were 20.4 MEUR (17.2). The chain-based net sales growth was
based on both an increase in the average purchase and an increase in the number
of customers. Kotipizza's concept renewal proceeded to some 90 brick-and-mortar
restaurants. This together with the comprehensive menu renewal done in summer
2014, successful new products together with targeted, influential and
sustainability emphasized marketing has positively changed consumers' brand
experience of Kotipizza. This is seen as an increase in the number of customers.
In addition, the average number of brick-and-mortar restaurants increased by
five restaurants compared to those from previous year.
The chain-based net sales are the total combined net sales of the company's
franchisees, based on which the company's franchising fees are invoiced monthly.
It also includes the sales of the restaurants owned directly by the group.
Group comparable net sales for the first quarter of the financial year were
15.4 MEUR (13.1) and they grew 17.7% compared to same period in the previous
year. Reported net sales were 15.4 MEUR (13.1). Sales growth was mainly based on
Foodstock's increased sales volume to Kotipizza underpinned by the good chain-
based sales development. New customers of Foodstock, Fafa's and Espresso House,
which were not yet Foodstock's customers in the previous year, increased net
sales. The net sales of Foodstock grew 17.7% year on year in the first quarter
of the fiscal year. The Kotipizza segment's net sales increased 11.8% compared
to the previous year and were 3.1 MEUR (2.8). The Chalupa segment's net sales in
the first quarter of the financial year were 0.2 MEUR (0.0).
GROUP EBIT
February-April 2016
Comparable EBIT of the Group was 1.05 MEUR (0.71) in the first quarter of the
financial year. Reported EBIT was 1.05 MEUR (0.10). Reported EBIT did not
include items affecting comparability. The reported EBIT of the previous year
included 0.61 MEUR items affecting comparability. Out of this EUR 495 thousand
were related to closing down company's previous headquarters and EUR 115 were
related to Foodstock's accrual error.
The EBIT improved mainly due to volume improvement as the relative sales margin
was practically on the previous year's level and fixed cost growth clearly below
the volume growth. Clearly higher depreciations compared to the previous year
(non cash item) had a negative impact on the EBIT.
SALES AND EBITDA OF THE SEGMENTS
KOTIPIZZA SEGMENT
-------------------------------------------------------
EUR THOUSAND 2-4/16 2-4/15 2/15-1/16
-------------------------------------------------------
Net sales 3 096 2 770 11 784
Comparable gross margin/EBITDA 1 478 839 5 465
Depreciation and impairments -147 -98 -584
Comparable EBIT 1 331 741 4 881
Reported gross margin/EBITDA 1 478 570 5 196
Reported EBIT 1 331 472 4 612
-------------------------------------------------------
-------------------------------------------------------
Olli Väätäinen, COO of Kotipizza Oyj
"The Kotipizza chain continued to reform strongly in the spirit of the fast
casual phenomenon during the review period, continuing a facelift of the
restaurant design. More than half of the chain's brick-mortar restaurants have
already been renovated. At the end of the review period, the number of
restaurants was 254 (263). Kotipizza continued to develop its online store. At
the end of the review period, orders made through the online store amounted to
nearly a tenth of the net sales in brick-and-mortar restaurants. During the
review period, Kotipizza's own mobile app was also launched."
February-April 2016
Net sales of Kotipizza for the first quarter of the financial year were 3.10
MEUR (2.77) and they increased 11.8% compared to same period in the previous
year. The increase in net sales was based on growth in chain-based net sales and
in consequence all franchising contract based net sales increased.
Kotipizza's comparable EBITDA of was 1.48 MEUR (0.84) in the first quarter of
the financial year and it grew 76.2% compared to same period in the previous
year. Improvement in comparable EBITDA was mainly due to restructuring measures
implemented in the segment's operations and favourable development of chain-
based net sales in Kotipizza. Reported EBITDA was 1.48 MEUR (0.57) in first
quarter of the financial year. Reported EBITDA in Kotipizza did not include
items affecting comparability in the first quarter. The previous year's
comparable EBITDA for the first quarter has been adjusted with EUR 269 thousand
of items affecting comparability related to costs of closing down company's
previous headquarters.
FOODSTOCK SEGMENT
-------------------------------------------------------
EUR THOUSAND 2-4/16 2-4/15 2/15-1/16
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Net sales 12 112 10 286 44 096
Comparable gross margin/EBITDA 334 215 964
Depreciation and impairments -31 -28 -113
Comparable EBIT 303 187 851
Reported gross margin/EBITDA 334 100 849
Reported EBIT 303 72 736
-------------------------------------------------------
Anssi Koivula, CEO of Helsinki Foodstock Oy
"The most significant development of the review period was that Helsinki
Foodstock signed an agreement with Muurahaiskarhu Oy making it responsible for
supply chain management for the Siipiravintola chain of restaurants in Finland.
Within the Group, Foodstock's operations have been especially affected by the
Kotipizza chain's growing emphasis on the sustainability and local ingredients.
Foodstock has also taken part in the planning of the sourcing of the ingredients
for the Chalupa chain. Chalupa's sourcing has gradually been shifted to us and
we are now responsible for a majority of the chain's sourcing."
February-April 2016
Net sales of Foodstock for the first quarter of the financial year were 12.11
MEUR (10.29) and they grew 17.7% compared to same period in the previous year.
The growth in net sales was mainly due to favourable development of Kotipizza
chain-based net sales, which had a positive boost to Foodstock's delivery
volumes for the chain. Net sales to the Rolls chain increased materially
compared to the previous year. The number of restaurants in Foodstock's customer
Rolls increased materially compared to the previous year as Kotipizza sold its
55 Burger, Cola, Fries concept burger restaurants to Rolls. The positive volume
effect of Foodstock's new customers, like Fafa's and Espresso House, were also
visible in the reported numbers.
Foodstock's comparable EBITDA improved and was 0.33 MEUR (0.22) in the first
quarter of the financial year. Foodstock's reported EBITDA was 0.33 MEUR (0.10)
in the first quarter of the financial year. Reported EBITDA did not include
items affecting comparability in the first quarter. Previous year's EBITDA
included EUR 115 thousand of items affecting comparability, which were related
to Foodstock's accrual error.
CHALUPA SEGMENT
-------------------------------------------------------
EUR THOUSAND 2-4/16 2-4/15 2/15-1/16
-------------------------------------------------------
Net sales 180 0 443
Comparable gross margin/EBITDA -72 0 -66
Depreciation and impairments -12 0 -18
Comparable EBIT -84 0 -84
Reported gross margin/EBITDA -72 0 -66
Reported EBIT -84 0 -84
-------------------------------------------------------
Iman Gharagozlu, Creative Director of Chalupa Oy
"The work of refining, testing and documenting the Chalupa concept continued
during the review period so that the chain can start expanding on a franchising
basis. The most significant development of the review period was that the chain
started its expansion outside the Helsinki region. Out of three restaurants
opened during the review period two are run by franchisees. At the end of the
review period altogether five Chalupa restaurants were operational and in
addition Chalupa products were available in one of the Kotipizza's lunch
restaurants."
February-April 2016
Chalupa's net sales were 0.18 MEUR (0.00) in the first quarter of the financial
year and comparable EBITDA together with reported EBITDA was -0.07 MEUR (0.00).
Chalupa opened new restaurants in Kauniainen, Munkkiniemi in Helsinki, and
Tampere during the review period. The two latter new restaurants were opened
under franchising agreements.
OTHERS SEGMENT
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EUR THOUSAND 2-4/16 2-4/15 2/15-1/16
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Net sales 0 15 47
Comparable gross margin/EBITDA -454 -208 -1 337
Depreciation and impairments -51 -6 -37
Comparable EBIT -505 -214 -1 374
Reported gross margin/EBITDA -454 -434 -1 792
Reported EBIT -505 -440 -1 829
-------------------------------------------------------
Others segment includes mainly operations of the group headquarters.
February-April 2016
Net sales of the Others segment were 0.00 MEUR (0.01) in the first quarter of
the financial year. Comparable EBITDA was -0.45 MEUR (-0.21). Reported EBITDA
was -0.45 MEUR (-0.43). Reported EBITDA did not include items affecting
comparability. The previous year's comparable EBITDA for the first quarter has
been adjusted with EUR 266 thousand of items affecting comparability related to
costs of closing down company's previous headquarters.
FINANCIAL ITEMS AND RESULT
Finance costs of the Group were 0.20 MEUR (0.87). The materially higher
financing costs in the previous year were based on materially more leveraged
balance sheet structure together with higher interest rates on debt.
Group taxes were -0.20 MEUR (-0.11) in the financial year.
The result of the period was 0.66 MEUR (-0.66) in the financial year.
Earnings per share were 0.10 EUR (0.00) in the financial year.
THE GROUP'S FINANCIAL POSITION
Kotipizza Group's balance sheet total as of 30 April 2016 was 57.4 MEUR (51.3).
The Group's non-current assets as at 30 April 2016 amounted to 40.5 MEUR (38.5),
and current assets amounted to 16.9 MEUR (12.7).
The Group's net cash flow from operating activities for the financial year was
1.4 MEUR (-1.5). Working capital was tied up the amount of EUR 0.41 MEUR
(released 0.44).
The net cash flow from investment activities for the period was -0.12 MEUR (-
0.08). Investments in tangible and intangible assets for the period amounted to
0.38 MEUR (0.10), and proceeds from sales of tangible assets were 0.26 MEUR
(0.00).
The net cash flow from financing activities was -0.38 MEUR (-0.05).
The Group's equity ratio was 52.0% (10.5%). The increase in equity ratio was due
to share issue implemented and transferring company's shareholder loan and
interest related to shareholder loan into equity in accordance with the initial
public offering.
Interest-bearing debt amounted to 17.8 MEUR (36.1), of which current debt
accounted for 0.84 MEUR (0.13). Kotipizza Group Oyj redeem in full its three-
year unsecured bond with a nominal value 30 MEUR on 11 August 2015 with the
proceeds from the 4 June 2015 announced and 6 October 2015 implemented Initial
Public Offering and the new 17.0 MEUR term loans withdrawn on 7 August 2015. New
term loans have covenants.
Further information on Kotipizza Group's financial risks is presented in the
financial statements for the 31 January 2016.
INVESTMENTS
The gross investments for the period amounted to 0.38 MEUR (0.10). The Company's
investments to fixed assets, related mainly to IT systems, amounted to 0.38 MEUR
(0.10).
PERSONNEL
On 31 October 2015, Kotipizza Group employed 38 people, all of who worked in
Finland. At the end of the previous financial year 31 January 2016, the Company
employed 38 people, all of who worked in Finland.
BUSINESS ARRANGEMENTS
There were no business arrangements during the review period.
CHANGES IN THE MANAGEMENT
There were no changes in Kotipizza Group's operative management, Board of
Directors or Management Board during the period.
MANAGEMENT BOARD
Kotipizza Group's Management Board comprises five members: Tommi Tervanen (CEO),
Timo Pirskanen (CFO), Olli Väätäinen (Chief Operating Officer), Anssi Koivula
(Chief Procurement Officer) and Antti Isokangas (Chief Communications and
Corporate Responsibility Officer).
SHARES AND SHARE CAPITAL
Kotipizza Group Oyj's share capital at the end of the review period was EUR
80,000.00 and it comprised 6,351,201 shares. At the beginning of the review
period 1 February 2016 the number of the shares was 6,351,201. At the end of the
period, the Company had 600 (9) shareholders. The Company does not hold any
treasury shares.
Information about the company's shareholder structure by sector and size of
holding, the largest shareholders and Board of Director and Corporate Management
Board interests can be viewed on the company's website at
www.kotipizzagroup.com.
RESOLUTIONS OF THE GENERAL MEETINGS
Kotipizza Group's Annual General Meeting held on 11 May 2016 resolved that no
dividend is paid for the financial period ending 31 January 2016, but EUR 0,35
per share is paid from the reserves for invested unrestricted equity.
The AMG adopted the financial statements for financial year ending 31 January
2016 and discharged the members of the Board of Directors and CEO from liability
for the financial year ending 31 January 2016.
The AGM resolved the number of Board members to be six. Johan Wentzel, Minna
Nissinen, Petri Parvinen, Kim Hanslin and Kalle Ruuskanen were re-elected as
members of Board of Directors for a term of office that lasts until the end of
the next AGM. Marjatta Rytömaa was elected as a new member. Johan Wentzel was
re-elected as Chairman of the Board of Directors.
The AGM resolved that the members of the Board will be paid as follows: Chairman
of the Board of Directors Johan Wentzel and member Marjatta Rytömaa EUR 500 per
month (EUR 6 000 p.a.) and other members of the Board of Directors EUR 2 000 per
month (EUR 24 000 p.a.) each.
The AGM resolved that the remuneration for the auditor be paid according to
invoice approved by the company. The AGM resolved to re-elect audit firm Ernst &
Young Oy as the company's auditor for a term that ends at the closing of the
next AGM.
The AGM resolved to authorize the Board of Directors to decide on a share issue
on following terms:
1 The authorization may be used in full or in part by issuing shares in
Kotipizza Group Oyj in one or more issues so that the maximum number of shares
issued is 635 000 shares.
2 The Board of Directors may also decide on a directed share issue in deviation
from the shareholders' pre-emptive rights in case there is a weighty financial
reason to do so, such as in order to finance or carry out acquisitions or other
business transactions, develop the company's capital structure, or in order to
use the shares for an incentive scheme. The Board of Directors would be
authorized to decide to whom and in which order the shares will be issued. In
the share issues shares may be issued for subscription against payment or
without charge.
3 Based on the authorization, the Board of Directors is also authorized to
decide on a share issue without payment directed to the company itself, provided
that the number of shares held by the company after the issue would be a maximum
of 10 per cent of all shares in the company. This amount includes shares held by
the company and its subsidiaries in the manner provided for in Chapter 15,
section 11 (1) of the Companies Act.
4 This authorization includes the right for the Board of Directors to decide on
the terms and conditions of the share issues and measures related to the share
issues in accordance with the Companies Act, including the right to decide
whether the subscription price will be recognized in full or in part in the
invested unrestricted equity reserve or as an increase to the share capital.
5 The authorization is valid until 31 July 2017.
6 The authorization will supersede the authorization to decide upon share issues
given to the company's Board of Directors on 28 May 2015.
RISKS AND UNCERTAINTIES
In the long term, Kotipizza Group's operative risks and uncertainties relate to
a possible failure in predicting consumer preferences and in creating attractive
new concepts, as well as to new business risks related to possible expansion to
new cities and abroad. The competitive situation is expected to remain harsh in
the fast food industry. Company's management cannot affect the general market
development and consumer behaviour with its actions.
Restaurant openings also have a material impact on company's franchising, rent,
entry, building, operating system, training and other income, income received
from selling raw materials and supplies and transport and flow of goods related
income and thus to the company's financial result.
Kotipizza Group is currently launching a new fast casual concept, which is
reported as Chalupa segment. Launching a new business concept has several risks
related e.g. anticipation of consumer needs, habits, taste and behaviour.
Launching a new concept has a risk of not reaching an established position at
the market and not having a well-established clientele. Failure in launching a
new concept causes costs to the company and has a material adverse impact on
company's brand, financial position and financial result.
EVENTS AFTER THE REPORT PERIOD
The company announced on 6 May 20116 that the Board of Directors of Kotipizza
Group Oyj had resolved on a new long-term share-based incentive program targeted
to the executive board. In the earning period 1.2.2016-31.1.2019 the performance
measures applied are the average growth of Kotipizza Group chain's total sales
and earnings per share in the three-year earning period. Based on earning period
1.2.2016-31.1.2019 at maximum 47.204 performance shares can be given as reward,
which includes the cash payment portion of the reward. The potential reward is
to be paid as combination of shares (50%) and a cash payment (50%). The Board of
Directors thus anticipates that the maximum dilutive effect on the number of the
company's registered shares for the first earning period is 0,37, should the
reward realise in full.
The company announced on 30 May 2016 that the members of the Marketing Co-
operative of the Kotipizza chain had decided to change the co-operative into a
Franchisee co-operative. The change is going to have a financial effect on
Kotipizza Group Oyj. Funds collected for Kotipizza's countrywide marketing, 4
per cent of the sales of the Kotipizza chain, are going to be invoiced to the
Kotipizza segment starting 1 July 2016. Previously, the funds were collected to
the Marketing Co-operative, independent of the Group. This will grow the
segment's, and thus the Group's, turnover without affecting profit, but will
have an effect on relative profitability. In 2015, the Marketing Co-operative
had a turnover of approximately 3.2 million Euros. The change did not have any
effect on the company's first quarter numbers.
OUTLOOK FOR THE FINANCIAL YEAR 2017 UNCHANGED
Demand for chained fast food is estimated to remain stable. The economic growth
in Finland is expected to be slow and to clearly underperform Eurozone.
According to estimates the national economy in Finland is expected to remain on
the previous years' level or to even slightly decline. The development of the
national economy has a direct impact to consumer demand and to demand for
chained fast food. According to the Finnish Hospitality Association (MaRa) the
turnover of the chained based fast food restaurants in Finland grew 5.7% in
2015. Demand for fast food has according to statistics remained relatively
stable, surely following the overall development of the economy. According to
MaRa's statistics turnover of the chained based fast food restaurants in Finland
has grown 2.2 percent a year (CAGR) in years 2000-2015.
The growth of our chain-based net sales exceeded the market growth for chained
fast food in year 2015 based on the ongoing concept renewal in Kotipizza,
efficient marketing activities, innovative R&D and sustainable procurement.
According to the Group management, there are currently no such structural
changes seen in the market place that the management would not expect company's
chain based net sales to grow in line with the fast food market growth in
Finland or even to exceed the market growth in 2016.
The Company estimates the chain-based net sales will grow during the present
financial year by over 5 percent as compared to the previous financial year, and
the comparable gross margin (EBITDA) will grow as compared to the previous
financial year.
ACCOUNTING POLICIES
Kotipizza Group's unaudited interim report for the three-month period ending 30
April 2016, including the audited comparison figures for the three-month period
ending 30 April 2015, have been prepared according to IAS 34 and applying the
same accounting principles that were used in the previous audited full year
financial statements.
SUMMARY OF THE FINANCIAL STATEMENT AND NOTES
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
2-4/16 2-4/15 2/15-1/16
--------------------------
000 € 000 € 000 €
Continuing operations
Net sales 15 387 13 071 56 370
Other income 48 39 126
Change in inventory of raw materials and finished
goods (+/-) -495 699 458
Raw materials and finished goods (-) -11 631 -11 009 -45 106
Employee benefits/expenses (-) -828 -1 347 -3 605
Depreciations (-) -241 -132 -735
Impairments (-) 0 0 -17
Goodwill impairment (-) 0 0 0
Contingent consideration (-) 0 0 0
Other operating expenses (-) -1 195 -1 217 -4 056
--------------------------
Operating profit 1 045 104 3 435
Finance income 10 1 28
Finance costs -200 -868 -3 011
--------------------------
Loss / profit before taxes from continuing
operations 855 -763 452
Income taxes -200 109 -124
--------------------------
Loss / profit for the period from continuing
operations 655 -654 328
--------------------------
Discontinued operations
Loss after tax for the period from discontinued
operations 0 -6 -113
--------------------------
Loss / profit for the period 655 -660 215
--------------------------
Earnings per share, EUR:
Basic, profit for the period attributable to
ordinary equity holders of the parent (no dilutive
instruments) 0,10 0,00 0,05
Earnings per share for continuing operations, EUR:
Basic, profit for the period attributable to
ordinary equity holders of the parent (no dilutive
instruments) 0,10 0,00 0,08
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
2-4/16 2-4/15 2/15-1/16
------------------------
000 € 000 € 000 €
Profit (loss) for the period) 655 -660 215
Other comprehensive income:
Other comprehensive income to be reclassified to
profit or loss in subsequent periods:
Cash flow hedges 10 0 -367
Exchange differences on translation of foreign
operations 0 0 0
Net other comprehensive income to be reclassified to 10 0 -367
profit or loss in subsequent periods ------------------------
Other comprehensive income for the period, net of tax 8 0 -294
------------------------
Total comprehensive income for the period, net of tax 663 -660 -79
------------------------
Attributable to:
Owners of the company 697 -660 -45
Non-controlling interest -34 0 -34
------------------------
663 -660 -79
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30.4.2016 30.4.2015 31.1.2016
Assets 000 € 000 € 000 €
Non-current assets
Property, plant and equipment 1 449 771 1 002
Goodwill 35 819 35 819 35 819
Intangible assets 2 332 1 236 2 118
Non-current financial assets 2 2 2
Non-current receivables 560 485 783
Deferred tax assets 288 186 289
------------------------------
40 450 38 499 40 013
Current assets
Inventories 2 867 3 642 3 385
Trade and other receivables 4 941 5 302 4 945
Current tax receivables 58 245 58
Prepayments 0 0 0
Cash and cash equivalents 9 050 3 528 8 099
------------------------------
16 916 12 717 16 487
Assets classified as held for sale 15 35 19
Total Assets 57 381 51 251 56 519
------------------------------
30.4.2016 30.4.2015 31.1.2016
------------------------------
000 € 000 € 000 €
Equity and liabilities
Share capital 80 80 80
Translation differences 0 0 0
Fund for invested unrestricted equity 29 818 5 362 29 818
Retained earnings 73 -1 238 -624
Non-controlling interests -48 20 -14
------------------------------
Total equity 29 923 4 224 29 260
Non-current liabilities
Interest bearing loans and borrowings 16 939 35 937 16 363
Financial liabilities at fair value through
profit or loss 357 152 367
Other non-current liabilities 2 449 4 162 2 462
Deferred tax liabilities 54 70 54
------------------------------
19 799 40 321 19 246
Non-current liabilities
Interest bearing loans and borrowings 841 130 1 041
Trade and other payables 6 562 6 511 6 882
Provisions 57 0 90
Current tax liabilities 199 10 0
------------------------------
7 659 6 651 8 013
Liabilities related to assets held for sale 0 55 0
Total liabilities 27 458 47 027 27 259
------------------------------
Total shareholders' equity and liabilities 57 381 51 251 56 519
------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity attributable to owners of the company
-------------------------------------------------------------
Fund for Retai- Trans-
invested ned lation Non-
Share unrestricted earn- differ- controlling Total
EUR THOUSAND capital equity ings rences interest equity
1 February 2016 80 29 818 -624 0 -14 29 260
Result for the
period 0 0 697 0 -34 663
Other
comprehensive
income 0 0 0 0 0 0
-------------------------------------------------------------
Total
incomprehensive
income for the
period 0 0 697 0 -34 663
Share issue 0 0 0 0 0 0
Initial public
offering costs 0 0 0 0 0 0
Other change 0 0 0 0 0 0
Dividends 0 0 0 0 0 0
30 April 2016 80 29 818 73 0 -48 29 923
-------------------------------------------------------------
Equity attributable to owners of the company
-------------------------------------------------------------
Fund for Retai- Trans-
invested ned lation Non-
Share unrestricted earn- differ- controlling Total
EUR THOUSAND capital equity ings rences interest equity
1 February 2015 80 5 362 -579 0 0 4 863
Result for the
period 0 0 -660 0 0 -535
Other
comprehensive
income 0 0 0 0 0 0
-------------------------------------------------------------
Total
incomprehensive
income for the
period 0 0 -660 0 0 -660
Share issue 0 0 0 0 20 20
Dividends 0 0 0 0 0 0
Other change 0 0 1 0 0 1
30 April 2015 80 5 362 1 238 0 20 4 224
-------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
2-4/2016 2-4/2015
Operating activities 000 € 000 €
Profit before tax 855 -763
Loss for discontinued operations 0 -7
Adjustments to reconcile profit before tax to net cash flows
Depreciation of property, plant and equipment 118 54
Depreciation and impairment of intangible assets 123 78
Depreciation and write-downs of discontinued operations 0 0
Contingent considerations 0 0
Gain on disposal of property, plant and equipment -35 0
Finance income -10 -1
Finance costs 200 868
Change in working capital
Change in trade and other receivables (+/-) 208 422
Change in inventories (+/-) 518 -704
Change in trade and other payables (+/-) -312 -153
Change in provisions (+/-) -33 0
Interest paid (-) -198 -1 319
Interest received 10 1
Income tax paid (-) -2 -15
------------------
Net cash flows from operating activities 1442 -1539
Investing activities
Acquisition of subsidiaries 0 20
Investments for tangible assets (-) -40 -15
Investments for non-tangible assets (-) -337 -86
Repayment for loan assets 0 0
Proceeds from sale of assets-held-for-sale 0 0
Sale of property, plant and equipment 260 0
------------------
Net cash flows used in investing activities -117 -81
Financing activities
Funds received from the share issue 0 0
Loans withdrawal 0 0
Loans repayments (-) -187 0
Finance lease payments (+/-) -187 -53
Net cash flow used in financing activities -374 -53
Net change in cash and cash equivalents 951 -1673
Cash and cash equivalents at 1 February 8099 5201
------------------
Cash and cash equivalents at 30 April 9050 3528
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1. SEGMENT INFORMATION
Reported segment information of the Group has been changed due to establishing
the new Chalupa segment. Franchising and Kotipizza segments in the previous
audited financial statements have been combined to the Kotipizza segment and
Wholesale segment is now reported as the Foodstock segment. In addition to these
operational segments a new operational Chalupa segment has been established.
Business administration segment in the previous audited financial statements is
now reported as Others segment.
KOTIPIZZA SEGMENT
-------------------------------------------------------
EUR THOUSAND 2-4/16 2-4/15 2/15-1/16
-------------------------------------------------------
Net sales 3 096 2 770 11 784
Comparable gross margin/EBITDA 1 478 839 5 465
Depreciation and impairments -147 -98 -584
Comparable EBIT 1 331 741 4 881
Reported gross margin/EBITDA 1 478 570 5 196
Reported EBIT 1 331 472 4 612
-------------------------------------------------------
FOODSTOCK SEGMENT
-------------------------------------------------------
EUR THOUSAND 2-4/16 2-4/15 2/15-1/16
-------------------------------------------------------
Net sales 12 112 10 286 44 096
Comparable gross margin/EBITDA 334 215 964
Depreciation and impairments -31 -28 -113
Comparable EBIT 303 187 851
Reported gross margin/EBITDA 334 100 849
Reported EBIT 303 72 736
-------------------------------------------------------
CHALUPA SEGMENT
-------------------------------------------------------
EUR THOUSAND 2-4/16 2-4/15 2/15-1/16
-------------------------------------------------------
Net sales 180 0 443
Comparable gross margin/EBITDA -72 0 -66
Depreciation and impairments -12 0 -18
Comparable EBIT -84 0 -84
Reported gross margin/EBITDA -72 0 -66
Reported EBIT -84 0 -84
-------------------------------------------------------
OTHERS SEGMENT
-------------------------------------------------------
EUR THOUSAND 2-4/16 2-4/15 2/15-1/16
-------------------------------------------------------
Net sales 0 15 47
Comparable gross margin/EBITDA -454 -208 -1 337
Depreciation and impairments -51 -6 -37
Comparable EBIT -505 -214 -1 374
Reported gross margin/EBITDA -454 -434 -1 792
Reported EBIT -505 -440 -1 829
-------------------------------------------------------
ALL SEGMENTS TOGETHER
-------------------------------------------------------
EUR THOUSAND 2-4/16 2-4/15 2/15-1/16
-------------------------------------------------------
Net sales 15 387 13 071 56 370
Comparable gross margin/EBITDA 1 286 846 5 026
Depreciation and impairments -241 -132 -752
Comparable EBIT 1 045 714 4 274
Reported gross margin/EBITDA 1 286 236 4 187
Reported EBIT 1 045 104 3 435
-------------------------------------------------------
NOTE 2. NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS
The non-current assets held for sale and discontinued operations were related to
Kotipizza Segment's Russian operations, Domi-pizzapalat, sale of Franchising
segment's 55 Burger, Cola, Fries concept and divestment of the Financial
management services segment. Selling price of the both divested businesses,
Financial management services and 55 Burger, Cola, Fries concept, was 1 euro.
30/04/16 30/04/15
------------------
000 € 000 €
Net sales 0 20
Other operating income 0 0
Depreciation 0 0
Expenses 0 -27
Operating loss (EBIT) 0 -7
Finance costs 0 0
Capital loss related to discontinued operations 0 0
------------------
Loss for the period from a discontinued operation before tax 0 -7
Tax impact 0 1
------------------
Loss for the period from the discontinued operations 0 -6
Earnings per share for discontinued operations, EUR:
Basic, profit for the period attributable to ordinary equity
holders of the parent
(no dilutive instruments) 0,0 0,0
The major classes of assets and liabilities related to
discontinued operations:
30/04/16 30/04/15
------------------
Assets 000 € 000 €
Inventories 0 9
Trade receivable and other receivables 15 26
------------------
Assets related to discontinued operations 15 35
Liabilities
Received collaterals 0 15
Other liabilities 0 11
Accrued expenses 0 29
Liabilities related to discontinued operations 0 55
Cash flows related to discontinued operations are not
reported separately, and due to this, the information cannot
be accurately reported.
NOTE 3. RELATED PARTY TRANSACTIONS
Parties are considered to be related when a party has control or significant
influence over the other party relating to decision-making in connection to its
finances and business. The Group's related parties include the parent company,
subsidiaries, members of the board of directors and management board, managing
director and their family members. The key management comprises the members of
the management board. The table below sets forth the total amounts of related
party transactions carried out during the period. The terms and conditions of
the related party transactions correspond terms and conditions applied to
transactions between independent parties.
Amounts Purchases
owed to from Outstanding Sales to Outstanding
Interest related related trade related trade
paid parties parties payables parties receivables
-----------------------------------------------------------------
000 € 000 € 000 € 000 € 000 € 000 €
Key
management of
the group
2-4/16 0 0 9 3 0 0
2-4/15 0 0 27 9 136 87
Other related
parties
2-4/16 0 0 139 29 0 0
2-4/15 0 0 216 68 0 0
Controlling
entities
2-4/16 0 0 0 0 0 0
2-4/15 100 0 0 0 0 0
Companies
controlled by
the members
of the Board
2-4/16 0 0 0 0 0 0
2-4/15 0 0 3 0 0 0
2-4/16 2-4/15
Salaries Pension expenses Salaries Pension expenses
----------------------------------------------------
000 € 000 € 000 € 000 €
Management and key
personnel of the Group: 184 35 129 23
The salaries of the Group's management and key personnel include car and
telephone benefits, and there are no other benefits. No benefits are applied
after service, and the Group has not paid any share-based payments. Key
management personnel have not been granted a loan, and the Group has not
guaranteed loans to the management personnel.
Managing director and 2-4/16 2-4/15
board members:
Salaries Pension expenses Salaries Pension expenses
----------------------------------------------------
000 € 000 € 000 € 000 €
Tommi Tervanen, CEO 54 10 51 9
Johan Wentzel, Chairman of
the Board 1,5 0 1,5 0
Kim Hanslin, Board member 6 0 6 0
Minna Nissinen, Board
member from 1 January 2015 6 0 6 0
Petri Parvinen, Board
member from 1 January 2015 6 0 6 0
Kalle Ruuskanen, Board
member from 1 January 2015 6 0 6 0
Mikael Autio, Board member
from 1 February 2015 1,5 0 1,5 0
NOTE 4. EMPLOYEE BENEFITS EXPENSE
All employee benefits expenses are included in administrative (fixed) expenses.
2-4/16 2-4/15
--------------
000 € 000 €
Wages and salaries 665 1 145
Social security costs 45 80
Pension costs (defined contribution plans) 118 122
--------------
Total employee benefits expense 828 1 347
NOTE 5. CONTINGENT LIABILITIES
Commitments 30/04/16 30/04/15
000 € 000 €
Leasing commitments 107 32
Secondary commitments 0 23
Rental guarantees 641 590
Bank guarantees 420 920
Rental commitments for premises 3 379 3 426
Loans from financial institutions 16 625 0
Guarantees for other than Group companies 415 661
Guarantees
Pledged deposits 146 361
Business mortgages 17 500 2 500
Guarantees 20 640
Pledged shares, book value 30 487 0
General guarantee for other Group companies unlimited
In Helsinki on 20 June 2016
Kotipizza Group Oyj's Board of Directors
Further information: CEO Tommi Tervanen, tel. +358 207 716, and CFO Timo
Pirskanen, tel. +358 207 716 747
CALCULATION OF KEY FIGURES
Adjusted operating profit Operating profit adjusted with non-recurring sales
profit and loss and with expenses from
restructuring of the Company's operations and
personnel reductions
Adjusted operating profit % Adjusted operating profit / Net sales * 100
Operating profit Reported operating profit
Operating profit, % Operating profit / Net sales * 100
Return on equity Net result / Equity * 100
Equity ratio Equity / Total assets * 100
Earning per share Loss / profit for the period / Number of shares
(Interest-bearing debt - liquid assets) / Own
Net gearing assets * 100
where Own assets = Equity in the balance sheet +
Voluntary provisions + Equity's subordinated loans
EBITDA adjusted with non-recurring sales profit
and loss and with expenses from restructuring of
Adjusted EBITDA the Company's operations and personnel reductions
Adjusted EBITDA % Adjusted EBITDA / Net sales * 100
Net sales + Other income +/- Change in inventory
of raw materials and finished goods - Raw
materials and finished goods - Employee
benefits/expenses - Other operating expenses
EBITDA
EBITDA % EBITDA / Net sales * 1000
[HUG#2021567]
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