Apetit Oyj · OMXHEX:APETIT
Apetit Oyj — Q1 2016 Earnings Presentation
25 slides from Apetit Oyj's earnings presentation, May 12, 2016
Slide 1: Apetit Q1/2016 Interim Report
Apetit Q1/2016 Interim Report Juha Vanhainen, CEO Eero Kinnunen, CFO Briefing for Analysts and Media 12th May 2016 at 10.00 a:m. Scandic Simonkenttä, Helsinki APETIT PLC | Interim Report Q1/2016 12 May 2016
Slide 2: Creating Wellbeing with Vegetables
• Apetit produces food solutions based on 15% vegetables, fish and vegetable oils. • Apetit is active in the trading of grains, 42% oilseeds and raw materials for feeds in DISTRIBUTION Finland and internationally. 20% OF NET SALES • Its customers include consumers, the 2015 Creating retail trade, th
Slide 3: The new segment structure as of the beginning of 2016
The new segment structure as of the beginning of 2016 Comparison Figures for 2015 Food Solutions Oilseed Products Grain Trade Seafood NET SALES NET SALES NET SALES NET SALES EUR 96 million EUR 61 million EUR 170 million EUR 83 million OPERATIONAL OPERATIONAL OPERATIONAL OPERATIONAL EBITDA EBITDA EBI
Slide 4: Operational EBIT trend going in the right direction, but level is unsatisfactory
Apetit Group Q1/2016 Operational EBIT trend going in the right direction, but level is unsatisfactory • Consolidated net sales declined from the comparison period on account of lower prices and volumes in the grain markets, and was EUR 87.5 (91.5) million • Supported by the Seafood business, the ope
Slide 5: Business segment review
Business segment review January - March 2016 APETIT PLC | Interim Report Q1/2016 12 May 2016
Slide 6: Business segments – strategic focuses and target positions
Business segments – strategic focuses and target positions Food Solutions Oilseed Products Grain Trade Seafood Frozen + fresh Vegetable oils and Grain, oilseed and the vegetable solutions expeller animal feedstuff trade Strategic Leading brand in The most reliable Most reliable Product leader focus
Slide 7: Food Solutions Q1/2016: Net sales grew, room to improve profitability
Food Solutions Q1/2016 Food Solutions Q1/2016 Net sales grew, room to improve profitability OPERATIONAL ENVIRONMENT NET SALES GREW YEAR ON YEAR Net Sales • Net sales were 25.0 (23.9) M€ EUR million, comparison 2016/2015 • Grocery sales increased in Finland 1.5 per cent in January–March. Prices of fo
Slide 8: Tuorekset – completely new vegetable product
Expansion into the fruit and vegetable section in retail Tuorekset – completely new vegetable product category in retail stores • Tuorekset are diverse, consumer-packaged, ready-to-use vegetables • As they are pre-washed, peeled and chopped they are always ready for use in various dishes and meal pr
Slide 9: Oilseed Products Q1/2016
Oilseed Products Q1/2016 Oilseed Products Q1/2016 Profitability and net sales at the same level as in comparison period NET SALES GREW SLIGHTLY Net Sales OPERATIONAL ENVIRONMENT • The sales of oilseed products and especially EUR million, comparison 2016/2015 vegetable oils increased slightly • Thank
Slide 10: Grain Trade Q1/2016: Slow quarter in the grain markets
Grain Trade Q1/2016 Grain Trade Q1/2016 Slow quarter in the grain markets TRADE VOLUMES WERE DOWN Net Sales OPERATING ENVIRONMENT EUR million, comparison 2016/2015 • Net sales were down from the comparison 170.5 period and amounted to 30.8 (37.9) M€ The grain market was slower than usual at the begi
Slide 11: Seafood Q1/2016: good trend was a positive highlight
Seafood Q1/2016 Seafood Q1/2016 Seafood’s good trend was a positive highlight VOLUMES LOWERED IN FINLAND, OPERATIONAL ENVIRONMENT INCREASED IN NORWAY Net Sales EUR million, comparison 2016/2015 • The price level of Norwegian salmon continued • As a result of the increased price level of 82.9 to incr
Slide 12: Investment in efficiency in Kuopio
Profitability improvement in Seafood Investment in efficiency in Kuopio • Fish processing operations were centralised in Kuopio in 2015 • In late 2015, investment decisions was made to improve process efficiency in Kuopio • Investment have increased automation and improved operational efficiency rap
Slide 13: Summary of the financial development in Q1
Summary of the financial development in Q1 Apetit group Food Solutions Oilseed Products Grain Trade Seafood Q1/2016 Q1/2016 Q1/2016 Q1/2016 Q1/2016 NET SALES NET SALES NET SALES NET SALES NET SALES 25.0 M€ 16.5 M€ 30.8 M€ 20.5 M€ (23.9 M€) (16.0 M€) (37.9 M€) (20.8 M€) 87,5 M€ (91,5 M€) Intra-group
Slide 14: Outlook for 2016
Outlook for 2016 • In Finland, the market situation in the retail sector is expected to remain challenging. The growth outlook of the Finnish economy is weak. The decline in grain price levels in the early part of the year reduced activity on the international grain market and the market situation i
Slide 15: Financial Review Q1
Financial Review Q1 CFO Eero Kinnunen APETIT PLC | Interim Report Q1/2016 12 May 2016
Slide 16: Group net sales and operational EBIT in Q1/2016
Group net sales and operational EBIT in Q1/2016 Net Sales Operational EBIT EUR million, comparison 2016/2015 EUR million, comparison 2016/2015 2015 2016 380.8 2.7 2.6 1.8 113.8 100.2 91.5 87.5 87.5 -0.3 75.3 -1.0 -1.0 -1.6 Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year 2015 2016 APETIT PLC | Interim Re
Slide 17: Seasonal variation is clearly evident in the Group's operational EBIT
Seasonal variation is clearly evident in the Group’s operational EBIT Operational EBIT for 2014–2016 by quarter, EUR million EUR million • The recognition of the fixed 5 production overheads included in historical cost as an 4 3.8 expense item is deferred until the time of sale 3 2.7 • For this reas
Slide 18: Group-level key figures
Group-level key figures Rolling EUR million Q1/2016 Q1/2015 Change 2015 12 m Net sales 87.5 91.5 - 4% 380.8 376.9 Operational EBITDA 0.6 0.2 8.5 8.9 Operational EBIT -1.0 -1.6 2.6 3.2 Operating profit -1.0 -1.6 -1.0 -0.4 Profit for the period -2.2 -2.3 -4.6 -4.5 Earnings per share, EUR -0.35 -0.31 -
Slide 19: Balance sheet
Balance sheet March 31, March 31, ASSETS 2016 2015 Tangible assets 46.4 41.6 Investments in associated companies 21.7 33.9 Inventories 64.6 49.6 Receivables 35.2 33.6 Other assets 16.4 21.4 Total assets 184.2 180.1 EQUITY AND LIABILITIES Equity 114.8 122.5 Financial liabilities 26.4 8.0 Trade payabl
Slide 20: Summary
Summary APETIT PLC | Interim Report Q1/2016 12 May 2016
Slide 21: Strategic guidelines
Strategic guidelines Growth through higher value-added Increased agility, with a focus on the products and an attractive brand production and commercial scale New opportunities and industrial symbioses Primary production in partnership networks for the food chain from the bioeconomy through closer c
Slide 22: Apetit Group's financial targets for 2018
Apetit Group’s financial targets for 2018 GROUP • GROUP ROCE in 2018 > 10% • EBITDA in 2018: EUR 20 million or more (2015: EUR 8.5 million) • An equity ratio of at least 40% (2015: 61.1%) SEGMENTS Target for Food Solutions Oilseed Products Grain Trade Seafood organic growth Share of packaged and We
Slide 23: Implementation schedule for the most important measures for the strategy period
Implementation schedule for the most important measures for the strategy period 2016 2017 2018 Food Solutions Expansion in fresh products Renewal of frozen products Enhancing production efficiency to enable growth Service and product development Enhancing exports Oilseed In-depth R&D operations Prod
Slide 24: Highlights in the period
Highlights in the period Operational EBIT trend was The new Tuorekset product Seafood’s performance was a concept was introduced to the going in the right direction. positive highlight. market. The profit level must be The results of investments in efficiency could be seen. Over 70 shops are partici
Slide 25: thank you.
Apetit thank you.