2009-05-07 07:30:00 CEST
2009-05-07 07:30:06 CEST
REGULATED INFORMATION
Lännen Tehtaat - Interim report (Q1 and Q3)
INTERIM REPORT 1 January - 31 March 2009
LÄNNEN TEHTAAT PLC Interim report 7 May 2009, 8.30 am
INTERIM REPORT 1 January - 31 March 2009
- Equity ratio increased to 76.5% (64.0%); the company is debt-free.
- Cash flow from operating activities was EUR +8.1 (-7.4) million.
- Consolidated net sales from continuing operations totalled EUR 64.7 (90.9)
million; most of the decrease was in Grain Trading.
- Operating profit from continuing operations, excluding non-recurring items,
came to EUR -0.7 (0.6) million; non-recurring items totalled EUR 0.0 (4.8)
million.
- Profit before taxes from continuing operations, excluding non-recurring
items, was EUR -0.4 (-0.1) million.
- Profit for the period came to EUR -0.3 (5.0) million, and earnings per share
amounted to EUR -0.04 (0.78).
The information in this interim report has not been audited.
Matti Karppinen, CEO:
“The Group's financial position and balance sheet strengthened further in the
first quarter. Our equity ratio rose to 76.5 per cent. Consolidated profit was
below that of a year ago, which was expected. The fall in profit was
attributable above all to the drop in net sales in Grain Trading and the impact
of the weakened Norwegian and Swedish currencies on raw material costs. Positive
factors supporting the profit level, however, were the improvements in
productivity and cost-efficiency in most of the businesses, and the good sales
and successful product launches in Frozen Foods.
”During the first quarter we closely monitored the downturn in the economy, made
an assessment of the impact on the behaviour of consumers and customers and
sought to forecast the impact of these changes on our business activities. The
development of management, functions and processes within the Group companies
has continued, with the aim of boosting cash flow and adding to strategic
agility.
”From the start of the year, Seafood's business units have been reporting
directly to the Group CEO. Under Group management control, Seafood's Finnish and
foreign business management models and reporting practices have been reshaped,
which has improved the manageability, transparency and predictability of
operations.
”Work continued on achieving the Group's strategic growth target. The strong
financial position and balance sheet provide a sound foundation for further
development of the Group.”
KEY FIGURES ILLUSTRATING PERFORMANCE, EUR million
Continuing operations Jan-Mar 2009 Jan-Mar 2008
Net sales 64.7 90.9
Operating profit -0.7 5.4
Operating profit, excluding non-recurring items -0.7 0.6
Profit before taxes -0.4 4.7
Profit before taxes, excluding non-recurring items -0.4 -0.1
Profit for the period -0.3 4.7
Earnings per share, EUR -0.04 0.74
NET SALES AND PROFIT
Continuing operations
Net sales from the continuing operations in January-March totalled EUR 64.7
(90.9) million, a decrease of 29% on the same quarter in 2008. Most of this
decrease was in Grain Trading, where the level of market prices in the first
quarter was significantly below that for the same period in 2008, and volumes
were also considerably lower.
The operating profit from the continuing operations, excluding non-recurrent
items, was EUR -0.7 (0.6) million. The non-recurring items totalled EUR 0.0
(4.8) million. The operating profit includes the share of the profits of
associated companies, which, excluding non-recurring items, totalled EUR 0.0
(0.0) million; if non-recurring items are included, the figure is EUR 0.0 (4.9)
million. The first-quarter 2008 comparison figure for the associated companies'
profit comprised the compensation paid as part of the EU's sugar reform, which
was entered as income from non-recurring items.
Financial income and expenses from the continuing operations totalled EUR +0.3
(-0.7) million. This figure includes valuation gains of EUR +0.4 (0.0) million
with no cash flow implications. The financial expenses also include EUR -0.1
(-0.2) million as the share of Avena Nordic Grain's profit attributable to the
Avena employee shareholders.
The profit before taxes was EUR -0.4 (4.7) million. The continuing operations'
profit for the period came to EUR -0.3 (4.7) million, and the earnings per share
amounted to EUR -0.04 (0.74).
Discontinued operations
The share of the profit of the associated company Suomen Rehu is presented under
discontinued operations in the first quarter 2008 figures in the income
statement. In the balance sheet figures for the first quarter of 2008, the
non-current assets held for sale include the assets of the jams and marmalades
business.
The profit for the period from discontinued operations came to EUR 0.0 (0.3)
million.
Profit for the period
The profit for the period from both the continuing and discontinued operations
came to a total of EUR -0.3 (5.0) million, and the earnings per share amounted
to EUR -0.04 (0.78).
FINANCING AND CASH FLOW
The Group's financial position strengthened further and its liquidity remained
at a good level.
The fist-quarter cash flow from operating activities after interest and taxes
amounted to EUR 8.1 (-7.4) million. The impact of the change in working capital
was EUR +6.3 (-7.2) million. The net cash flow from investing activities came to
EUR -0.5 (3.6) million, and cash flow from financing activities came to EUR -8.2
(4.2) million. The net change in cash and cash equivalents was EUR -0.5 (0.4)
million.
At the end of the quarter, the Group had EUR 8.6 (37.8) million in
interest-bearing liabilities and EUR 13.0 (9.5) million in liquid assets. Net
interest-bearing liabilities totalled EUR -4.5 (28.4) million. The consolidated
balance sheet total stood at EUR 178.4 (207.6) million. At the end of the
quarter, equity totalled EUR 136.5 (132.9) million. The equity ratio increased
to 76.5% (64.0%). Commercial papers issued for the Group's short-term financing
totalled EUR 1.0 (32.0) million at the end of the quarter. The Group's financing
over the next few years is secured with committed credit facilities; a total of
EUR 25 (25) million was available in credit at the end of the quarter. No credit
facilities were used during the quarter.
INVESTMENT
Gross investment in non-current assets in the first quarter came to EUR 0.5
(1.3) million.
PERSONNEL
The average number of personnel during the period was 646 (729). The number of
personnel in Frozen Foods was 179 (220), in the Seafood business 394 (431), in
Vegetable Oils 35 (35), in Grain Trading 28 (30) and in Other Operations 10
(13). The personnel at Apetit Suomi Oy have been divided between Frozen Foods
and Seafood in proportion to the service fees.
OVERVIEW OF OPERATING SEGMENTS
Frozen Foods
EUR mill. Jan-Mar Jan-Mar Jan-Dec
2009 2008 2008
Net sales 12.9 13.5 49.3
Operating profit, excluding non-recurring items 0.4 0.4 3.1
Like-for-like net sales in Frozen Foods, excluding the sale of jam and marmalade
products, grew by EUR 0.8 million, or 6%. The growth in net sales is
attributable to the increase in volume and in the average price. The net sales
growth was greatest in retail frozen foods, at over 10%. Among these retail
product groups, sales of frozen potato products and frozen ready meals did
extremely well, and growth was also good in frozen vegetables. Sales of basic
products were good in the first quarter, and sales were also boosted by new
products. Examples of extremely successful product launches include potatoes and
chopped vegetables for soups, a range of family soups, and lactose-free spinach
soup. Sales in the hotel, restaurant and catering sector grew by about 6%. Sales
to the food industry were at the level of the first quarter of 2008. Export
sales were down as a result of a reduction in the export of peas.
The operating profit of Frozen Foods, excluding non-recurring items, was at the
level of the first quarter of 2008. Non-recurring items totalled EUR 0.0 (-0.1)
million. The wet autumn meant that some of the Finnish root vegetable crop could
not be harvested. This led to a need for imported raw materials, which increased
Apetit Pakaste's costs. The adverse profit impact of the sale of the jams and
marmalades business and the greater use of imported raw materials was
compensated by the centralising of production and the improved efficiency of
operations.
The start-up of the production transferred from Turku to Säkylä at the end of
2008 and the outsourcing of the finished-product storage facilities and dispatch
operations proceeded successfully.
The number of Frozen Foods personnel in the first quarter was 179 (220). The
reduction in personnel was primarily the result of the sale of the jams and
marmalades business and the discontinuing of the Turku factory towards the end
of 2008, and the centralisation of functions at Säkylä. During the first
quarter, the Frozen Foods personnel were extensively involved in the user
training and testing of the new enterprise resource planning system.
Investment during the quarter totalled EUR 0.4 (0.8) million. This included
completing the investment arising from the centralisation of production at
Säkylä and the renewal of the enterprise resource planning system and the
contract grower data system. These systems will be introduced during the second
quarter of the year.
Seafood
EUR mill. Jan-Mar Jan-Mar Jan-Dec
2009 2008 2008
Net sales 18.5 21.5 89.7
Operating profit, excluding non-recurring items -0.9 -0.5 -1.6
The net sales of the Seafood business were down by 14% on the figure for the
same quarter a year earlier. The operating profit, excluding non-recurring
items, fell short of the previous year's figure and was negative. Non-recurring
items in the quarter totalled EUR 0.0 (-0.1) million.
The drop in Seafood net sales in Finland was due to the reduction in Kalatori
service counters and because consumer demand was focused particularly on
campaign-priced, low value added fillet products. Profitability improved
considerably in comparison with the same quarter in 2008, but a slightly
negative first-quarter profit was nevertheless posted. The improved level of
profitability was due to an increase in productivity in production and
logistics, and a decrease in fixed costs as a result of strict cost management.
In operations abroad, the decrease in euro-denominated net sales in comparison
with those of a year earlier was especially attributable to the weakening of the
Norwegian and Swedish currencies. Calculated in local currencies, the net sales
of operations abroad were down by about 2%. The net sales of the
krone-denominated Norwegian units showed a year-on-year decline, while the
krona-denominated Swedish unit's net sales were up on the first-quarter 2008
figures, due to the higher sales prices of shellfish products and the volume
growth brought by new customers.
The profitability of operations abroad declined in comparison with that for the
first quarter of 2008. Profit was adversely affected particularly by the rise in
raw material prices caused by exchange-rate fluctuations, which concerned
shellfish products especially, and the sales emphasis on lower-margin products.
The situation improved towards the end of the first quarter, when it was
possible to raise prices to compensate for the increase in raw material prices.
The number of personnel in the Seafood business totalled 394 (431). The
reduction in personnel occurred mainly in Seafood's Finnish-based operations.
With the aim of bringing production and costs into line, co-determination talks
with personnel were begun at the Kuopio production plant in January concerning
lay-offs affecting both blue-collar and white-collar personnel. Some of the
personnel were laid off for one to two weeks during the first quarter.
The Seafood business's management system was renewed at the start of the year.
Jarno Järvinen, the director responsible for processed fish products in Finland,
Heljä Mantere, the director heading the concept business, and Jan Brevik, the
director for the Norwegian and Swedish seafood business have been reporting
directly to the CEO, Matti Karppinen, since the start of the year.
Investment in the Seafood business totalled EUR 0.0 (0.3) million.
Vegetable Oils
EUR mill. Jan-Mar Jan-Mar Jan-Dec
2009 2008 2008
Net sales 12.7 14.2 62.0
Operating profit, excluding non-recurring items 0.2 0.2 -0.0
The net sales of the Vegetable Oils business were down by 10% on the figure for
the same quarter a year earlier. This drop in net sales was due to the lower
volumes in both vegetable oil exports and in sales of the protein feeds.
There was a plentiful supply of rapeseed oil on the market due to the reduction
in biodiesel use. The excess of supply over demand led to lower prices for
edible oils. The raw material market price was distinctly lower than in both the
first and final quarters of 2008. The use of Finnish raw materials was
significantly lower than in the first quarter a year ago.
The Vegetable Oils profit showed a slight year-on-year improvement. The refining
margin based on market prices was low, and the market conditions were difficult.
Mildola's internal performance capability was enhanced by the further
development of processes, operating methods and the organisation in general.
Mildola's food safety management system was granted an ISO 22000:2005
certificate in January. The certified operations include the manufacture, sale
and marketing of vegetable oil and plant protein products, as well as production
methods for these and product research and development.
The number of personnel in the Vegetable Oils business was 35 (35). To bring
production and costs into line, the Vegetable Oils personnel were laid off for
about one week during the first quarter.
Investment in the Vegetable Oils business totalled EUR 0.0 (0.0) million.
Grain Trading
EUR mill. Jan-Mar Jan-Mar Jan-Dec
2009 2008 2008
Net sales 20.7 42.1 148.5
Operating profit, excluding non-recurring items 0.7 1.7 5.5
The net sales of the Grain Trading business were down by about 50% on the figure
for the same quarter a year earlier. The drop in first-quarter net sales was the
result of lower market prices and smaller sales volumes than a year earlier. The
volume of Finnish grain trading grew in comparison with the first quarter of
2008, but exports and also trade with third countries fell short of the figures
a year ago.
Due to the good harvests obtained in different parts of the world, there was a
plentiful supply of grains and oilseeds on the market, which held prices low and
kept grain in the hands of growers, both in the EU and elsewhere. The food and
feed industries had already covered a major share of their needs earlier on, and
made additional purchases only on a short-term basis.
The operating profit of the Grain Trading business was at the forecast level,
representing a decrease on the figure for the previous year as a result of the
fall in net sales. The internal efficiency of operations was improved, and fixed
costs were below those for the first quarter of 2008.
The number of personnel in the Grain Trading business totalled 28 (30).
First-quarter investment in Grain Trading amounted to EUR 0.1 (0.0) million and
was for the renewal of its enterprise resource planning system. The system will
be introduced during the spring.
Other Operations
EUR mill. Jan-Mar Jan-Mar Jan-Dec
2009 2008 2008
Net sales 0.4 1.0 3.0
Operating profit, excluding non-recurring items -1.1 -1.2 -1.6
Other Operations comprise the service company Apetit Suomi Oy, Group
Administration, items not allocated under any of the operating 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
in proportion to the use of services.
Net sales in Other Operations amounted to EUR 0.4 (1.0) million. The
year-on-year decrease in net sales was a result of the transfer of the Frozen
Foods and Seafood sales and product development personnel from Apetit Suomi Oy
to Apetit Pakaste Oy and Apetit Kala Oy at the end of March 2008, and the
termination of the service fees associated with these operations.
The segment's operating profit, excluding non-recurring items, was EUR -1.1
(-1.2) million, including EUR 0.0 (0.0) million as the share of the profits of
associated companies. The non-recurring items totalled EUR 0.0 (4.9) million.
The non-recurring items in the first quarter of 2008 consisted of the EU sugar
reform compensation included in the profit of the associated company Sucros Ltd.
At the end of February, the majority holding in Sucros Ltd was transferred to
the German company Nordzucker AG following the deal on the sale of Danisco A/S's
sugar division. Lännen Tehtaat plc continues to have a 20% holding in Sucros
Ltd.
Investment in Other Operations totalled EUR 0.0 (0.1) million.
DECISIONS OF THE ANNUAL GENERAL MEETING
Lännen Tehtaat plc's Annual General Meeting of 2 April 2009 adopted the parent
company's financial statements and the consolidated financial statements, and
discharged the members of the Board of Directors and of the Supervisory Board
and the Chief Executive Officer from liability for the financial year 2008.
Dividend distribution
The Annual General Meeting decided to pay a dividend of EUR 0.85 per share on
the profit for the financial year 2008. The dividend was paid on 17 April 2009.
Amendments to the Articles of Association
The Annual General Meeting approved the Board's proposals for amending article 2
of the Articles of Association, on the company's sphere of operations, and
article 10, paragraph 1, on the invitation to the AGM. The references to
engaging in the animal feed and plant seedling technology businesses were
removed from article 2. Article 10, paragraph 1, concerning the invitation to
the AGM was amended such that the meeting invitation must now be published on
the company's website and, if so decided by the Board of Directors, in at least
one national newspaper determined by the Board of Directors, at the earliest two
months and at the latest 21 days before the meeting.
Authorisations to issue shares
The Annual General Meeting authorised the Board of Directors to decide on
issuing new shares and on the transfer of Lännen Tehtaat plc shares held by the
company, in one or more lots as a share issue of a total of no more than 761,757
shares. The share issue authorisation covers all of the Lännen Tehtaat plc
shares already in the company's possession, i.e. 130,000 shares. The maximum
number of new shares that can be issued is 631,757.
The subscription price for each new share must be at least its nominal value,
EUR 2. The transfer price for Lännen Tehtaat plc shares held by the company must
be at least the current value of the share at the time of transfer, determined
by the price quoted in public trading on the NASDAQ OMX Helsinki exchange, but
when implementing share-based incentive plans, shares can also be issued without
consideration.
The authorisation concerns the following: the right to deviate from the
shareholders' pre-emptive subscription right (targeted issue), if the company
has a substantial financial reason to do so, such as developing the company's
capital structure, financing and executing corporate acquisitions or other
arrangements, or implementing a share-based incentive system; the right to offer
shares instead of money, also against capital consideration in kind or otherwise
under certain conditions or by using right of set-off; and the right to decide
on the share subscription price and other terms and circumstances concerning the
share issue.
The authorisation is valid until the next Annual General Meeting. The
authorisation revoked the earlier authorisation to issue shares, given on 2
April 2008, and the authorisation to transfer Lännen Tehtaat plc shares, given
on the same date.
SHARES AND TRADING
The number of Lännen Tehtaat plc shares traded on the stock exchange during the
first quarter was 156,317 (383,666), representing 2.5% (6.1%) of the total
number of shares. The highest share price quoted was EUR 14.43 (16.46) and the
lowest EUR 12.64 (13.20). The share turnover was EUR 2.1 (5.4) million. At the
end of the quarter, the market capitalisation totalled EUR 81.8 (94.6) million.
FLAGGING ANNOUNCEMENTS
No flagging announcements were made during the first quarter.
SALE OF SHARES IN JOINT ACCOUNT
On 23 February 2009, a total of 51,910 Lännen Tehtaat plc shares that were in
the joint book-entry account were sold in trading on the NASDAQ OMX Helsinki
exchange. The sale was based on the decision of the Lännen Tehtaat plc Annual
General Meeting of 29 March 2007 to sell, on behalf of the respective holders,
the company's shares held in the joint book-entry account and not transferred to
the book-entry system.
The proceeds from the sale, less the expenses of notification and selling, were
deposited with the State Provincial Office of Western Finland. By presenting a
share certificate to the State Provincial Office, holders of shares that were in
the joint account, or other holders of the right, are entitled to a proportion
of the income from the share sale that corresponds to the shares they held. The
proceeds from the sale of the shares, less expenses, and the dividends for
2005-2007 come to EUR 15.69 per share. The proceeds are redeemable on or before
17 March 2019.
GOVERNING BODIES
At its organisational meeting on 17 April 2009, Lännen Tehtaat plc's Supervisory
Board elected Helena Walldén as its chairwoman 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: Harri Eela, Heikki Halkilahti, Aappo Kontu,
Matti Lappalainen, Hannu Simula, Soili Suonoja and Tom v. Weymarn. Tom v.
Weymarn was elected chairman of the Board of Directors and Matti Lappalainen was
elected deputy chairman.
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, 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.
Apetit Kala's sales peak at weekends and on seasonal holidays. As Easter can
take place in either the first or the second quarter, this can affect the
comparability of Seafood's net sales and profit from one year to the next. A
major proportion of the entire year's profit in the Seafood business depends on
the success of Christmas sales.
Net sales in Grain Trading vary from one year and quarter to the next, 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 are: the
effects of the economic downturn on demand from consumers and customers; the
solvency of customers and the delivery performance of suppliers; the management
of raw material price changes and currency risks; changes in the operating
environments of the Group's businesses and in customerships; introduction of the
new enterprise resource planning system in Frozen Foods and in Grain Trading;
and corporate acquisitions and the subsequent integration processes.
SIGNIFICANT EVENTS SINCE THE CLOSE OF THE FIRST QUARTER
No significant events have occurred since the close of the first quarter.
FUTURE PROSPECTS
The global economic downturn may have an impact on Lännen Tehtaat's businesses
during the year. Forecasting changes in consumer demand and in customer
behaviour is difficult, however, but it is widely believed that consumer demand
for food products will increasingly be channelled towards basic foodstuffs and
low value added products.
The net sales from Lännen Tehtaat's continuing operations will be affected
particularly by changes in the price level of grains and oilseeds. Based on the
prevailing prices of grains and oilseeds, the Group's half-year net sales are
expected to be significantly below the 2008 comparison figure.
The sluggish state of the grain trade and the fall in prices mean that Grain
Trading's second-quarter profit will not rise to the record level of a year
earlier, and the Group's second-quarter operating profit, excluding
non-recurring items, is forecast to be down on the second quarter 2008 figure.
Thanks to the development measures taken by the Group's businesses, the
performance of the continuing operations has improved on that in 2008. However,
given the economic conditions, an assessment of the situation for the latter
part of the year is more difficult to make than under normal circumstances,
which is why the company does not at this stage wish to present any estimate of
the full-year profit for 2009.
The need for investment in non-current assets is significantly less than in
2008.
CONSOLIDATED INCOME STATEMENT
EUR million
1-3/2009 1-3/2008 1-12/2008
Continuing operations
Net sales 64.7 90.9 349.1
Other operating income 0.3 0.3 3.8
Operating expenses -64.4 -89.4 -342.8
Depreciation -1.3 -1.3 -5.1
Impairments - - -0.2
Share of profits of associated companies 0.0 4.9 9.1
Operating profit -0.7 5.4 13.9
Financial income and expenses 0.3 -0.7 -3.3
Profit before taxes -0.4 4.7 10.7
Income taxes 0.1 0.0 -0.7
Profit for the period,
continuing operations -0.3 4.7 10.0
Discontinued operations
Profit for the period,
discontinued operations - 0.3 7.1
Profit for the period -0.3 5.0 17.1
Attributable to
Equity holders of the parent -0.2 4.9 17.0
Minority interests -0.1 0.1 0.1
Basic and diluted earnings per share,
calculated of the profit attributable
to the shareholders of the parent
company, EUR
Continuing operations -0.04 0.74 1.60
Discontinued operations - 0.04 1.13
Total -0.04 0.78 2.73
STATEMENT OF COMPREHENSIVE INCOME
EUR million
1-3/2009 1-3/2008 1-12/2008
Profit for the period -0.3 5.0 17.1
Other comprehensive income
Cash flow hedges 0.9 -0.4 -1.6
Taxes related to cash flow hedges -0.3 0.1 0.4
Translation differences 0.7 -0.1 -2.1
Other 0.0 -0.1 0.1
Total comprehensive income 1.0 4.5 13.9
Attributable to
Equity holders of the parent 1.0 4.4 13.9
Minority interests 0.0 0.1 0.0
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million
31 March 31 March 31 Dec
2009 2008 2008
ASSETS
Non-current assets
Intangible assets 5.8 4.8 5.3
Goodwill 6.4 7.0 5.9
Tangible assets 43.0 43.1 43.5
Investment in associated companies 25.1 44.9 25.0
Available-for-sale investments 0.1 0.1 0.1
Receivables 3.1 4.5 3.1
Deferred tax assets 1.2 0.6 1.4
Non-current assets total 84.6 105.0 84.3
Current assets
Inventories 49.4 63.2 55.1
Receivables 31.1 28,3 38.7
Income tax receivable 0.2 0.4 0.7
Financial assets at fair value
through profits 3.7 4.0 3.8
Cash and cash equivalents 9.3 5.5 9.9
Current assets total 93.7 101.4 108.0
Non-current assets classified
as held for sale - 1.2 -
Total assets 178.4 207.6 192.3
EQUITY AND LIABILITIES
Equity attributable to the equity
holders of the parent company 136.1 132.1 135.1
Minority interest 0.4 0.8 0.5
Total equity 136.5 132.9 135.6
Non-current liabilities
Deferred tax liabilities 4.1 4.1 4.5
Long-term financial liabilities 4.6 5.0 4.5
Non-current provisions 0.1 0.1 0.1
Other non-current liabilities 0.2 - 0.2
Non-current liabilities total 9.0 9.2 9.3
Current liabilities
Short-term financial liabilities 4.0 32.8 10.7
Income tax payable 1.0 1.2 0.7
Trade payables and other liabilities 27.9 31.4 36.1
Current liabilities total 32.8 65.4 47.4
Total liabilities 41.8 74.7 56.8
Liabilities directly associated with non-current
assets classified as held for sale - 0.0 -
Total equity and liabilities 178.4 207.6 192.3
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million
1-3/2009 1-3/2008 1-12/2008
Net profit for the period -0.3 5.0 17.1
Adjustments, total 1.5 -4.4 -8.5
Change in net working capital 6.3 -7.2 -5.1
Interests paid -0.2 -0.6 -2.4
Interests received 0.3 0.3 0.4
Taxes paid 0.4 -0.4 -1.8
Net cash flow from operating activities 8.1 -7.4 -0.4
Investments in tangible and intangible assets -0.5 -1.3 -8.1
Proceeds from sales of tangible
and intangible assets 0.0 0.1 3.0
Acquisition of subsidiaries deducted by cash - -0.4 -0.4
Transactions with minority - 1.5 1.5
Acquisition of associated companies - -0.4 -0.4
Proceeds from sales of associated companies - - 27.0
Purchases of other investments - - -14.0
Proceeds from sales of other investments - 4.0 18.1
Dividends received from investing activities - - 3.6
Net cash flow from investing activities -0.5 3.6 30.3
Repayments of short-term loans -8.1 4.5 -18.4
Repayments of long-term loans -0.1 -0.2 -0.1
Payment of financial lease liabilities 0.0 0.0 -0.1
Purchase of own shares - - -1.0
Dividends paid to minority - - -0.3
Dividends paid - - -5.3
Cash flows from financing activities -8.2 4.2 -25.1
Net change in cash and cash equivalents -0.5 0.4 4.8
Cash and cash equivalents at the
beginning of the period 9.9 5.1 5.1
Cash and cash equivalents at the
end of the period 9.3 5.5 9.9
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
EUR million
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 company
I = Minority interest
J = Shareholders' equity total
A B C D E F G H I J
Shareholders'
equity at
1 Jan 2008 12.6 23.4 0.4 7.2 -0.8 0.1 84.5 127.3 0.7 128.0
Transactions with
minority - - - - - - 0.4 0.4 - 0.4
Total comprehensive
income - - -0.3 - - -0.1 4.8 4.4 0.1 4.5
Shareholders'
equity at
31 March 2008 12.6 23.4 0.1 7.2 -0.8 0.0 89.7 132.1 0.8 132.9
Shareholders'
equity at
1 Jan. 2009 12.6 23.4 -0.8 7.2 -1.8 -1.9 96.6 135.1 0.5 135.6
Total comprehensive
income - - - 0.6 - 0.7 -0.2 1.0 -0.1 1.0
Shareholders'
equity at
31 March 2009 12.6 23.4 -0.8 7.8 -1.8 -1.2 96.3 136.1 0.4 136.5
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 2008.
The amendment of IFRS 8 will not change the information shown in these segments
because the Group's earlier segment-based reporting was based on the Group's
internal reporting structures. The amendment of IAS 1 has an impact on the
presentation method of the profit and loss account and the changes in equity.
SEGMENT INFORMATION
A Frozen Foods
B Seafood
C Vegetable Oils
D Grain Trading
E Other Operations
F Continuing operations total
G Discontinued operations
H Total
Operating segments 1-3/2009
EUR million A B C D E F G H
Total external sales 12.9 18.5 12.7 20.7 0.4 65.2 - 65.2
Intra-group sales 0.0 0.0 0.0 -0.2 -0.3 -0.5 - -0.5
Net sales 12.9 18.5 12.7 20.5 0.1 64.7 - 64.7
Share of profits of
associated companies
included in operating
profit - - - - 0.0 0.0 - 0.0
Operating profit 0.4 -0.9 0.2 0.7 -1.1 -0.7 - -0.7
Gross investments in
non-current assets 0.4 0.0 - 0.1 - 0.5 - 0.5
Corporate acquisitions
and other share
purchases - - - - - - - -
Depreciations 0.4 0.5 0.2 0.0 0.2 1.3 - 1.3
Impairments - - - - - - - -
Personnel 179 394 35 28 10 646 - 646
Operating segments 1-3/2008
EUR million A B C D E F G H
Total external sales 13.5 21.5 14.2 42.1 1.0 92.2 - 92.2
Intra-group sales 0.0 0.0 0.0 -0.4 -0.9 -1.3 - -1.3
Net sales 13.5 21.5 14.2 41.7 0.1 90.9 - 90.9
Share of profits of
associated companies
included in operating
profit - - - - 4.9 4.9 - 4.9
Operating profit 0.4 -0.5 0.2 1.7 3.7 5.4 - 5.4
Share of profits of
associated companies - - - - - - 0.3 0.3
Gross investments in
non-current assets 0.8 0.3 0.0 - 0.1 1.3 - 1.3
Corporate acquisitions
and other share
purchases - - - - - - - -
Depreciations 0.4 0.6 0.2 0.0 0.1 1.3 - 1.3
Impairments - - - - - - - -
Personnel 220 431 35 30 13 729 - 729
Operating segments 1-12/2008
EUR million A B C D E F G H
Total external sales 49.3 89.7 62.0 148.5 3.0 352.4 - 352.4
Intra-group sales -0.1 0.0 0.0 -1.1 -2.1 -3.3 - -3.3
Net sales 49.2 89.7 62.0 147.4 0.9 349.1 - 349.1
Share of profits of
associated companies
included in operating
profit - - - - 9.1 9.1 - 9.1
Operating profit 5.1 -2.4 -0.1 5.5 5.9 13.9 6.6 20.5
Share of profits of
associated companies - - - - - - 0.5 0.5
Gross investments in
non-current assets 6.0 1.5 0.2 0.3 0.2 8.1 - 8.1
Corporate acquisitions
and other share
purchases - 0.1 - 0.4 - 0.5 - 0.5
Depreciations 1.4 2.1 0.7 0.0 0.8 5.1 - 5.1
Impairments - 0.2 - - - 0.2 - 0.2
Personnel 237 441 35 30 12 755 - 755
Net sales by geographical segment
EUR million
1-3/2009 1-3/2008 1-12/2008
Finland 45.9 46.9 209.9
Scandinavia 11.6 19.9 65.8
Baltic countries and Russia 0.9 1.0 7.6
Other countries 6.3 23.1 65.9
Continuing operations total 64.7 90.9 349.1
DISCONTINUED OPERATIONS
The sale of the majority holding of 51% in Suomen Rehu Ltd was completed at the
start of June 2007, when Suomen Rehu and its subsidiaries were transferred to
Hankkija-Maatalous Oy. Lännen Tehtaat plc and SOK subsidiary Hankkija-Maatalous
Oy signed an agreement on 1 September 2008, transferring the remaining 49% of
shares owned by Lännen Tehtaat in Suomen Rehu Ltd to Hankkija-Maatalous Oy.
Lännen Tehtaat recognized a non-recurring tax-free profit of EUR 6.6 million for
the sale of these minority shares in its financial performance for the 2008
third quarter.
NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE
Non-current assets classified as held for sale in the comparison period belong
to Apetit Pakaste Oy's jams and marmalades business that was sold to Saarioisten
Säilyke Oy in autumn 2008.
KEY INDICATORS
31 March 31 March 31 Dec
2009 2008 2008
Shareholders' equity per share, EUR 21.99 21.12 21.83
Equity ratio, % 76.5 64.0 70.5
Gearing, % -3.3 21.3 1.1
Gross investments in non-
current assets, EUR million,
continuing operations 0.5 1.3 8.1
Corporate acquisitions and other
share purchases, EUR million,
continuing operations - - 0.5
Average number of personnel,
continuing operations 646 729 755
Average number of shares, 1 000 pcs 6,188 6,253 6,221
The key figures in this interim financial report are calculated with same
accounting principles than presented in year 2008 annual financial statements.
CONTINGENT LIABILITIES
EUR million
31 March 31 March 31 Dec
2009 2008 2008
Mortgages given for debts
Real estate mortgages 8.8 9.6 8.6
Corporate mortgages - 1.3 -
Guarantees 10.4 10.6 10.8
Non-cancellable other leases,
minimum lease payments
Real estate leases 4.8 4.7 5.1
Other leases 0.8 0.8 0.9
DERIVATIVE INSTRUMENTS
Outstanding nominal values of
derivative instruments
Forward currency contracts 2.4 6.4 6.3
Commodity derivative instruments 13.5 4.4 13.3
Interest rate swaps - 15.0 -
INVESTMENT COMMITMENTS
Lännen Tehtaat does not have significant investment commitments as of 31 March
2009.
CHANGES IN TANGIBLE ASSETS
EUR million 1-3/2009 1-3/2008 1-12/2008
Book value at the beginning of the period 43.5 43.5 43.5
Acquisitions 0.2 0.9 5.9
Disposals 0.0 -0.1 -0.2
Depreciations and impairments -1.2 -1.2 -5.3
Other changes 0.5 0.0 -0.5
Book value at the end of the period 43.0 43.1 43.5
TRANSACTIONS WITH ASSOCIATED COMPANIES AND JOINT VENTURES
EUR million
1-3/2009 1-3/2008 1-12/2008
Sales to associated companies 0.1 3.7 13.4
Sales to joint ventures 2.0 2.2 8.5
Purchase from associated companies 0.4 0.0 0.7
Purchase from joint ventures 0.0 0.0 0.3
Long-term receivables from associated
companies 2.7 3.8 2.7
Trade receivables and other
receivables from associated companies 1.5 3.0 1.6
Trade receivables and other
receivables from joint ventures 0.9 0.7 0.6
Trade payables and other liabilities
to associated companies 0.0 0.1 0.0
LÄNNEN TEHTAAT PLC
Board of Directors
Further information: Matti Karppinen, CEO, tel. +358 10 402 4001
Copies to:
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