Apetit Oyj - Interim report (Q1 and Q3)

APETIT PLC’S INTERIM REPORT, JANUARY-JUNE 2014

Apetit Plc, Interim Report, 14 August 2014 at 08.30 am

This is a summary of the Interim Report January - June 2014. The complete
Interim Report, including tables of financial information, is attached to this
release and can be downloaded from the company's website at
www.apetitgroup.fi/en. 

SECOND QUARTER (APRIL-JUNE)

  -- Consolidated net sales were at the previous year's level and amounted to
     EUR 98.1 (98.4) million.
  -- Operating profit excluding non-recurring items was lower than a year
     earlier and came to EUR 0.7 (2.4) million; non-recurring items totalled EUR
     ‑0.1 (‑0.3) million.
  -- The profit for the period was EUR 0.1 (1.7) million, and earnings per share
     amounted to EUR 0.02 (0.28).

JANUARY-JUNE

  -- Consolidated net sales were down on the previous year and amounted to EUR
     187.0 (198.4) million.
  -- Operating profit excluding non-recurring items came to EUR 0.4 (3.8)
     million; non-recurring items totalled EUR ‑0.5 (-0.5) million.
  -- The profit for the period was EUR -1.1 (2.4) million, and earnings per
     share amounted to EUR -0.12 (0.44).

The assessment of profit performance for the full year is unchanged.

he information in this Interim Report has not been audited. The figures in
parentheses are the equivalent figures for the same period in 2013, and the
comparison period means the corresponding period of the previous year, unless
stated otherwise. 

Veijo Meriläinen, CEO:

The Apetit Group's second-quarter net sales were at the previous year's level.
Net sales grew in the Grains and Oilseeds Business as a result of high sales
volumes in the grain trade and despite a decrease in market prices. In the Food
Business, net sales declined as a result of a decrease in sales of fresh
products to the professional food service sector. 

Second-quarter operating profit excluding non-recurring items was down on the
previous year. The Food Business operating profit in the comparison period
included EUR 1.5 million recognised as income in association with the
additional purchase price of Caternet Finland Oy. In the Other Operations
segment, lower market prices for sugar weakened the result for the associated
company Sucros. 

Despite the decrease in operating profit, there were positive aspects in the
profit performance of the business areas. The profitability of the Grains and
Oilseeds Business improved on the previous year as a result of the volume
growth in the grain trade and strong demand for vegetable oils and expeller. In
Food Business, the profitability was better than the comparison period, taking
into consideration the income recognition of the reduction in the additional
purchase price of Caternet Finland Oy, which was included in the operating
profit for the comparison period. The profitability of frozen products was good
and the profitability of fish and fresh products improved or remained unchanged
from the previous year, although this was again at an unsatisfactory level. In
response to the weak state of the market and unsatisfactory profitability
level, we are seeking to reduce overhead costs by EUR 1.6 million in comparison
with the figures for 2013. Savings of EUR 1.0 million towards this total were
made during the first half of the year. 

We also launched long-term programmes early in the year aiming to improve the
profitability of the fish and fresh products groups. The majority of the
measures under the programmes will be carried out in 2014 and 2015, and we
expect them to improve the efficiency of operations extensively in purchasing,
in the supply chain and in sales. The expected financial impact of these
programmes will be announced later in the year. 

The import ban set by Russia effects a wide range of food products produced by
Finnish food companies. Apetit Plc's business segments do not export to Russia
in considerable amounts. Therefore the sanctions are not expected to have a
direct impact on our sales or operations. 

Our longer-term target is to strengthen Apetit as a Finnish company and brand
operating in the food industry and solidly integrated with primary production.
We will revise our food and vegetable oil solutions in order to better meet
consumers' and customers' needs, and will actively seek opportunities to
strengthen our market position in the grains and oilseeds market."



KEY FIGURES

EUR million                    Q2    Q2   Change  Q1-Q2/  Q1-Q2/  Change  Q1-Q4/
                              2014  2013           2014    2013            2013 
--------------------------------------------------------------------------------
Net sales                     98.1  98.4    0%     187.0   198.4   -6%     387.3
Operating profit, excluding    0.7   2.4           0.4     3.8             12.2 
 non-recurring items                        
Operating profit               0.6   2.1           -0.1    3.3             9.4  
Profit before taxes            0.1   1.7           -1.1    2.4             9.3  
Profit for the period         0.02  0.28           -0.12   0.44            1.63 
Earnings per share, EUR                            21.71   21.80           22.90
Shareholders' equity per                           76.7    73.1            70.3 
 share, EUR                                                                     



OUTLOOK FOR 2014

The Apetit Group's net sales will be affected particularly by the level of
activity in the grain and oilseed markets and by changes in the price level of
grains and oilseeds. As a result of the lower global market prices of grains,
the Group's net sales for this year are expected to decrease or to be no higher
than the previous year's level. 

The Group's full-year operating profit excluding non-recurring items is
expected to fall short of the previous year's level. In the Food Business, the
market conditions are expected to continue to be challenging. In comparison
with the same period in 2013, the profitability of the Grains and Oilseeds
Business has been positively influenced by the volume growth in the grain trade
and in vegetable oil products, and by the success in raw material procurement.
In the Other Operations segment, lower market prices for sugar are expected to
weaken the result for the associated company Sucros. The Group's July-December
operating profit excluding non-recurring items is expected to be no higher than
the previous year's level. 

In addition, the outcome of the shareholder agreement dispute concerning Sucros
may have a significant effect on the result for 2014. Apetit has received a
notification from the Arbitral Tribunal that the Arbitral Award regarding the
dispute is rendered to the Parties on Tuesday 19 August 2014, unless nothing
unexpected will take place. 



PUBLICATION DATES FOR FINANCIAL REPORTS

Interim reports for 2014 will be published as follows: January-September on 6
November at 8.30 am. 



FURTHER INFORMATION

Veijo Meriläinen, CEO, tel. +358 (0)10 402 00



**************

INVITATION TO A BRIEFING

A briefing (in Finnish) for analysts and media representatives will be held
today at 10.00 a.m. in Hotel Scandic Simonkenttä (address: Simonkatu 9,
Helsinki). In the briefing Apetit Plc's CEO Veijo Meriläinen presents the
January - June results of Apetit Plc and gives more information about current
issues. 

The presentation material will be available on the company's website at  
http://www.apetitgroup.fi/en/ after the event. 



COPIES TO

NASDAQ OMX Helsinki Ltd
Main media
www.apetitgroup.fi.

Attachments:

Apetit_Q2_2014_interim report_FINAL.pdf