15.8.2024 08:30:00 EEST | Apetit Oyj | Half Year financial report
Apetit Plc's Half-Year Report 1 January-30 June 2024: Operating result of the first half of the year exceeded the comparison period - profit guidance unchanged
April-June 2024, continuing operations*)
- In continuing operations net sales were EUR 37.0 (45.0) million. Operating result was EUR -0.1 (0.7) million. EBITDA was EUR 1.5 (2.0) million.
- The net sales of Food Solutions were EUR 16.5 (16.7) million and operating result EUR -0.1 (-0.1) million.
- The net sales of Oilseed Products were EUR 20.7 (28.5) million and operating result EUR 0.7 (1.4) million.
- The change in market prices for oilseed plants was the main reason for the decrease in the Group's net sales. The decrease in sales volumes in both businesses was in line with the usual seasonal fluctuation.
- Operating result decreased mainly due to Oilseed Products. The result of Oilseed Products was weakened by the fluctuation in sales volumes between comparison periods. The result for the comparison period for Oilseed Products was strong. The result of Food Solutions was at the same level as last year.
January-June 2024, continuing operations*)
- In continuing operations net sales were EUR 79.2 (93.2) million. Operating result was EUR 3.3 (2.7) million. EBITDA was EUR 6.5 (5.5) million.
- The net sales of Food Solutions were EUR 37.0 (36.3) million and operating result EUR 1.8 (1.5) million.
- The net sales of Oilseed Products were EUR 42.5 (57.2) million and operating result EUR 2.9 (2.7) million.
April-June 2024, Group, incl. discontinued operations**)
- Net sales were EUR 37.0 (45.0) million. Operating result was EUR -0.1 (0.6) million. EBITDA was EUR 1.5 (2.0) million.
- The net sales of Grain Trade were EUR 0.0 (0.0) million and operating result EUR 0.0 (-0.1) million.
January-June 2024, Group, incl. discontinued operations**)
- Net sales were EUR 79.2 (93.2) million. Operating result was EUR 3.3 (2.6) million. EBITDA was EUR 6.5 (5.4) million.
- The net sales of Grain Trade were EUR 0.0 (0.0) million and operating result EUR 0.0 (-0.1) million.
- The equity ratio was 82.5 (85.8) per cent and gearing was -6.2 (-15.2) per cent. The Group's cash flow from operating activities was EUR 6.8 (7.7) 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 and strategic projects, 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 Grain Trade business was completed in stages during the first half of 2022.
The information in this report is unaudited. The figures in brackets refer to the corresponding period in 2023, and the comparison period means the corresponding period in the previous year, unless otherwise stated.
PROFIT GUIDANCE FOR 2024 UNCHANGED
(Published on 15 February 2024)
Group's operating profit is estimated to stay at the level of the comparison year (EUR 7.5 million in 2023). The operating profit from Food Solutions is estimated to further improve. In Oilseed Products, the operating profit is expected to decline due to outlook of market prices.
KEY FIGURES
EUR million | 4-6/2024 | 4-6/2023 | Change | 1-6/2024 | 1-6/2023 | Change | 2023 |
Continuing operations | |||||||
Net sales | 37.0 | 45.0 | -18 % | 79.2 | 93.2 | -15 % | 175.5 |
EBITDA | 1.5 | 2.0 | -27 % | 6.5 | 5.5 | 18 % | 13.2 |
Operating result | -0.1 | 0.7 | 3.3 | 2.7 | 22 % | 7.5 | |
Share of profit of associated company Sucros | 0.3 | 0.5 | -0.3 | 0.9 | 4.0 | ||
Profit for the period | 0.1 | 0.8 | 2.0 | 2.8 | 9.8 | ||
Earnings per share, EUR | 0.01 | 0.14 | 0.32 | 0.45 | 1.56 | ||
Investments | 4.0 | 2.5 | 7.5 | ||||
Group | |||||||
Net sales | 37.0 | 45.0 | -18 % | 79.2 | 93.2 | -15 % | 175.5 |
EBITDA | 1.5 | 2.0 | -25 % | 6.5 | 5.4 | 20 % | 13.1 |
Operating result | -0.1 | 0.6 | 3.3 | 2.6 | 25 % | 7.5 | |
Profit for the period | 0.1 | 0.8 | 2.0 | 2.8 | 9.7 | ||
Earnings per share, EUR | 0.01 | 0.14 | 0.32 | 0.45 | 1.56 | ||
Equity per share, EUR | 16.19 | 15.48 | 16.60 | ||||
ROCE-% | 7.6 | 7.7 | 7.3 | ||||
Working capital, end of period | 21.6 | 17.5 | 23.0 | ||||
Net cash flow from operating activities | 6.8 | 7.7 | 9.7 | ||||
Equity ratio, % | 82.5 | 85.8 | 78.9 | ||||
Net gearing, % | -6.2 | -15.2 | -5.7 |
Esa Mäki, CEO:
"The operating result for the first half of the year was better than that of the comparison period. Both businesses have improved their operating result. We continue to maintain our profit guidance, according to which the Group's operating profit is estimated to be at the same level as in the comparison period. The outlook for the harvest season is currently fairly good, but the possible realisation of risks related to harvesting will only be seen during the autumn. Net sales in the first half of the year declined, mainly due to lower market prices for oilseed products than in the comparison period.
Apetit's operating result for the second quarter of the year declined from the comparison period. In Oilseed Products, operating result clearly decreased in the second quarter of the year from the strong profits in the comparison period. The result was weakened by the fluctuation in sales volumes between comparison periods. In Food Solutions, operating result was at the same level as last year.
The Group's net sales decreased from the comparison period in the second quarter. The decrease was mainly due to the fall in the market prices of oilseed plants compared to the comparison period, sales volumes also decreased. There were normal fluctuations between comparison periods in the decline in the sales volumes, and no significant change can be seen in this year's production and sales amounts. In Food Solutions, the net sales were almost on a par with the comparison period. Sales volumes decreased from the comparison period. The decline in volumes was impacted by export sales of frozen peas that occurred at different times during the comparison period.
The work on the new bottling line for the Kantvik vegetable oil milling plant is progressing. The construction work related to the property is in the final phase and the installation of equipment has started. The investment of approximately EUR 4.5 million is expected to be completed according to the original schedule in the second half of the year.
The harvest season of Finnish field vegetables has progressed largely as planned. The hot and dry spring posed challenges for the growth of spinach and the first-sown peas, but the harvest outlook is mostly within expectations. The harvest outlook for root vegetables is also good before the harvest season. For the current harvest season, we increased the frozen pea cultivation area to 1,800 hectares. Domestic frozen peas play a central role in our strategy. By increasing pea cultivation, we want to meet the growing demand for exports.
The cultivation areas for Finnish turnip rape and rapeseed increased from last year. The beginning of the harvest season was strained by drought, which caused uneven seedling emergence and pest pressure. After Midsummer, the weather has been more favourable for oilseed plants, and we believe that the harvest outlook in Finland is average. Our goal is to further increase the use of Finnish turnip rape and rapeseed at our vegetable oil milling plant. Domestic origin is a significant differentiating factor in vegetable oils.
Work on Finnish cultivation development has continued at both the Räpi experimental farm and the RypsiRapsi forum's cultivation tests. The focus of the RypsiRapsi forum's trial activities during the current harvest season is on variety tests carried out as strip and square tests. In April, a multi-year project co-funded by the European Union was launched with the aim of increasing the cultivation reliability and volume of turnip rape and rapeseed in Finland. The project is a concrete demonstration of the desire to increase the cultivation of Finnish oilseed plants.
The Räpi experimental farm has focused particularly on further research into pea varieties. The aim of the experiments is to find varieties that can withstand Finland's changing cultivation conditions. In recent years, we have seen even greater variations in conditions, from heavy rain to heat and drought. Increasing pressures from diseases and pests are also taken into account in the variety tests. At Räpi, variety tests are carried out on carrots and swedes, for example, with the aim of finding new varieties for use by contract growers.
We will continue to work on the focus areas in line with the strategy. For the BlackGrain rapeseed powder, the work has focused on developing the production process on a commercial scale. The pea protein project has continued small-scale testing to produce pea protein from Finnish raw ingredients. With both projects, we are increasing the opportunities for raising the added value of Finnish raw ingredients.
The important ERP project has progressed according to schedule. The first phase of production implementation is scheduled to take place in the second half of the year. Some of Apetit's operations have already implemented the new ERP system at the end of last year.
Food inflation has slowed and turned negative in June. There are still major differences between product categories, and no significant change in consumer behaviour has been observed. Affordability is still an important criterion in purchase decisions. Apetit's product range is well suited to the current situation.
In the summer, we brought new vegetable oils to the shops. The Salad Oil and Pizza and Pasta Oil from Apetit's Neito product family are high-quality new products that are suitable for a wide range of cooking and seasoning. The launches of new products will continue this year."
WEBCAST
A news conference (in Finnish) will be held as a live webcast on 15 August 2024 at 10:00 a.m. The news conference can be followed at apetit.fi/sijoittajille. The presentation material and a recording of the webcast will be available on the company's website after the news conference.
Apetit Plc
Contacts
- Esa Mäki, CEO, Apetit Oyj, +358104022100, esa.maki@apetit.fi
About Apetit Oyj
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 with vegetables by offering tasty food solutions that make daily life easier and produce high-quality vegetable oils and rapeseed expellers for feeding stuff. Apetit Plc's shares are listed on Nasdaq Helsinki. Read more: apetit.fi
