Apetit's result was lower than in the comparison period due to increase in costs - in Oilseed Products, the result improved
FINANCIAL PERFORMANCE IN BRIEF
July-
- In continuing operations comparable net sales increased by 20 per cent to
EUR 45.2 (37.8) million. EBITDA wasEUR 3.2 (3.6) million. Operating profit wasEUR 1.7 (2.3) million. -
The net sales of Food Solutions was
EUR 15.2 (15.2) million and operating profitEUR 1.7 (2.5) million. -
The net sales of Oilseed Products was
EUR 30.3 (22.8) million and operating profitEUR 0.6 (0.3) million.
January-
- In continuing operations comparable net sales increased by 24 per cent to
EUR 135.1 (108.7) million. EBITDA wasEUR 4.7 (9.0) million. Operating profit wasEUR 0.5 (5.0) million. -
The net sales of Food Solutions was
EUR 47.1 (45.9) million and operating profitEUR 2.4 (4.0) million. -
The net sales of Oilseed Products was
EUR 88.5 (63.2) million and operating profitEUR -0.2 (2.5) million.
July-
- The Group's comparable net sales decreased by 29 per cent to
EUR 45.5 (64.5) million. EBITDA wasEUR 3.4 (4.2) million. Operating profit wasEUR 1.9 (2.6) million. The divestment of the Grain Trade business was completed on31 May 2022 . -
The net sales of Grain Trade was
EUR 3.2 (40.3) million and operating profitEUR 0.2 (0.4) million.
January-
- The Group's comparable net sales decreased by 8 per cent to
EUR 185.2 (200.9) million. EBITDA wasEUR 8.0 (7.0) million. Operating profit wasEUR 3.3 (2.3) million. -
The net sales of Grain Trade was
EUR 67.2 (116.5) million and operating profitEUR 2.8 (-2.7) million. The divestment of the Grain Trade business was completed on31 May 2022 . -
The Group's liquidity was good, and its financial position was strong. The equity ratio was 80.6 (54.3) per cent and gearing was -7.3 (37.0) per cent. The Group's cash flow from operating activities after interest and taxes was
EUR 21.5 (-4.0) million.
*) Apetit's continuing operations are Food Solutions and Oilseed Products. In addition, Apetit reports Group Functions, consisting of the expenses related to Group management, strategic projects and listing on the stock exchange, that are not allocated to the business segments.
**) Grain Trade is reported as a discontinued operation starting from the Q1/2022 Business Review. The divestment of the Estonian grain trade business to
The information in this report is unaudited. The figures in brackets refer to the corresponding period in 2021, and the comparison period means the corresponding period in the previous year, unless otherwise stated.
EUR million | 7-9 | 7-9 | Change | 1-9 | 1-9 | Change | 1-12 |
2022 | 2021 | 2022 | 2021 | 2021 | |||
Continuing operations | |||||||
Net sales | 45.2 | 37.8 | 20 % | 135.1 | 108.7 | 24 % | 149.1 |
EBITDA | 3.2 | 3.6 | 4.7 | 9.0 | 11.1 | ||
Operating profit | 1.7 | 2.3 | 0.5 | 5.0 | 5.8 | ||
Share of profit of associated company Sucros | -0.2 | 0.2 | -0.6 | -0.4 | 0.4 | ||
Profit for the period | 1.0 | 2.0 | -0.4 | 3.8 | 5.3 | ||
Earnings per share, EUR | 0.15 | 0.33 | -0.07 | 0.61 | 0.85 | ||
Investments | 4.1 | 4.7 | 6.6 | ||||
Group (incl. discontinued operations) | |||||||
Net sales | 45.5 | 64.5 | -29 % | 185.2 | 200.9 | -8 % | 283.9 |
EBITDA | 3.4 | 4.2 | 8.0 | 7.0 | 9.2 | ||
Operating profit | 1.9 | 2.6 | 3.3 | 2.3 | 2.8 | ||
Profit for the period | 1.1 | 2.3 | 1.7 | 1.2 | 2.4 | ||
Earnings per share, EUR | 0.17 | 0.37 | 0.27 | 0.19 | 0.38 | ||
Equity per share, EUR | 14.89 | 14.22 | 14.95 | ||||
ROCE-% | 3.2 | 3.0 | 2.4 | ||||
Working capital, end of period | 21.9 | 53.4 | 50.5 | ||||
Net cash flow from operating activities | 21.5 | -4.0 | 5.0 | ||||
Equity ratio, % | 80.6 | 54.3 | 59.4 | ||||
Net gearing, % | -7.3 | 37.0 | 26.6 |
Esa Mäki, CEO:
"Both businesses showed a profit in the third quarter. However, the increase in costs, which has influenced the operations from beginning of the year, still impaired the Q3 result, which was slightly lower than in the comparison period. In Oilseed Products, the result improved from the comparison period. The result for the review period was improved by the transfer of the higher costs to sales prices. The fact that raw material prices levelled off supported profit performance, but profitability is still impaired by high costs, such as energy and logistics costs.
In Food Solutions, both net sales and sales volumes grew in the third quarter especially in the food service sector. In retail trade, sales volumes and net sales remained on a par with the comparison period's high level. In exports, sales did not reach the comparison period level. A significant factor in the decrease in net sales of exports is the postponement of pea deliveries. In Food Solutions, the effects of the cost inflation have already been transferred to prices, but the price changes will mainly enter into force at the beginning of October. In particular, high energy costs, which had increased from the comparison period, had a negative impact on the result.
This harvest season has been successful for Finnish vegetables. The Finnish frozen pea harvest was good in terms of both quantity and quality and also in line with the targets set. The root vegetable harvest season has gone well, too. For instance, the harvest of carrots grown under carrot netting is qualitatively and quantitatively good. We continued our domestic vegetable research and development activities with making the cultivation technique more efficient for chickpeas and cauliflower, among other things. During the research period, chickpeas were collected with pea harvesters for the second time. Based on the lessons learned from the previous harvest season, some changes were made to harvesting, which resulted in positive experiences.
Apetit is a stable buyer for domestic rapeseed. We will continue our efforts to increase the cultivation area and harvest size of domestic oilseed plants in
In its corporate responsibility programme, Apetit has committed to reducing its direct emissions by 75 per cent by 2025. The most significant emission reductions are achieved from energy solutions: the introduction of electricity generated with wind power and the Kantvik bioenergy plant, which was commissioned last year. At the Säkylä plant, the goal is to commission the energy solution based on heat recovery and gas produced with bioenergy during the second quarter of 2023. Work on the plot of the Säkylä frozen foods plant have already started, with the aim of having us closer to our ambitious emission reduction target already next year, as scheduled. The new energy solution will reduce the Säkylä plant's CO2 emissions by up to 80 per cent.
Our significant investment in the Pudasjärvi frozen pizza plant is completed. At the turn of September-October, frozen pizzas baked with sourdough have arrived in shops from our renewed frozen pizza plant. The delicious frozen pizzas, made in
Our efforts to promote a sustainable food supply chain and improve profitability continues."
KEY FIGURES BY SEGMENT, CONTINUING OPERATIONS
Food Solutions
EUR million | 7-9/2022 | 7-9/2021 | Change | 1-9/2022 | 1-9/2021 | Change | 2021 |
The segment's net sales | 15.2 | 15.2 | 0% | 47.1 | 45.9 | 3% | 61.5 |
EBITDA | 2.6 | 3.3 | 4.9 | 6.5 | 9.2 | ||
Operating profit | 1.7 | 2.5 | 2.4 | 4.0 | 5.9 |
Oilseed Products
EUR million | 7-9/2022 | 7-9/2021 | Change | 1-9/2022 | 1-9/2021 | Change | 2021 |
The segment's net sales | 30.3 | 22.8 | 33% | 88.5 | 63.2 | 40% | 88.1 |
EBITDA | 1.0 | 0.6 | 1.0 | 3.4 | 3.4 | ||
Operating profit | 0.6 | 0.3 | -0.2 | 2.5 | 2.0 |
Group Functions
EUR million | 7-9/2022 | 7-9/2021 | Change | 1-9/2022 | 1-9/2021 | Change | 2021 |
The function's net sales | - | - | - | ||||
EBITDA | -0.4 | -0.3 | -1.2 | -0.9 | -1.5 | ||
Operating profit | -0.6 | -0.5 | -1.7 | -1.4 | -2.2 |
In addition to the reporting segments, Apetit reports Group Functions, consisting of the expenses related to Group management, strategic projects and listing on the stock exchange, that are not allocated to the business segments.
KEY FIGURES BY SEGMENT, DISCONTINUED OPERATIONS
Grain Trade
EUR million | 7-9/2022 | 7-9/2021 | Change | 1-9/2022 | 1-9/2021 | Change | 2021 |
The segment's net sales | 3.2 | 40.3 | -92 % | 67.2 | 116.5 | -42 % | 164.5 |
EBITDA | 0.2 | 0.6 | 3.1 | -2.0 | -2.0 | ||
Operating profit | 0.2 | 0.4 | 2.8 | -2.7 | -3.0 |
FINANCIAL PERFORMANCE IN JULY-SEPTEMBER, CONTINUING OPERATIONS
Comparable net sales increased by 20 per cent to
Operating profit was
FINANCIAL PERFORMANCE IN JULY-SEPTEMBER, DISCONTINUED OPERATIONS
In July-September, net sales amounted to
Summary of January-September
Net sales amounted to
The Group's liquidity was good, and its financial position was strong. The equity ratio was 80.6 (54.3) per cent, and gearing was -7.3 (37.0) per cent. The Group's cash flow from operating activities after interest and taxes was
THE DIVESTMENT OF THE GRAIN TRADE BUSINESS
On
The requirements for closing the sale of the Estonian company were fulfilled, and the transaction was completed on
On
The agreed acquisition price was about
IMPACTS ON BUSINESS OF THE WAR IN
The war in
EVENTS AFTER THE END OF THE PERIOD
The Group had no material events after the end of the period.
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. With production focusing on harvest time, raw materials are mainly processed into finished products during the second half of the year. This means that more fixed production overheads are recognised on the balance sheet in the second half of the year. Due to this accounting practice, most of the Group's annual profit is accrued during the second half of the year. The seasonal nature of profit accumulation is most marked in the Food Solutions segment and in the associated company Sucros, where production reflects the crop harvesting season.
Harvesting seasons cause seasonal variation in the amount of working capital tied up in operations. Working capital tied up in Oilseed Products is at its highest towards the end of the year and decreases to its lowest in the summer before the next harvest season. As production in the Food Solutions segment is also seasonal and follows the harvest period, the working capital tied up in operations is at its highest around the turn of the year in that segment.
PROFIT GUIDANCE FOR 2022 UNCHANGED
(published on
The full-year operating profit from continuing operations is expected to decrease year-on-year (
For further information, please contact:
Esa Mäki, CEO, tel. +358 10 402 2100
Apetit is a food industry company firmly rooted in Finnish primary production. Our operations are based on a unique and sustainable value chain: we create well-being through vegetables by offering tasty food solutions that make daily life easier and produce high-quality vegetable oils and rapeseed expellers for feedstuff.
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