Quarterly Report • Apr 25, 2013
Quarterly Report
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Operating profit reached a record high first quarter result of SEK 242 million (220), an improvement of 10 percent compared to the corresponding quarter in 2012. Due to the strengthening of the Swedish krona there was a negative currency translation impact of SEK 6 million. Operating profit excluding the negative currency translation impact improved by 13 percent.
Operating profit per kilo amounted to SEK 0.62 (0.60), a continued improvement largely attributable to a higher proportion of speciality and semi-speciality products.
Business Area operating profit:
Earnings per share increased by 10 percent, from SEK 3.43 to SEK 3.78.
Return on net assets calculated on a rolling 12 month basis was 14.7 percent compared to 14.2 percent at year-end and 13.2 percent at the corresponding quarter last year.
Sales amounted to SEK 4,011 million (4,222), mainly as an effect of lower raw material prices and a negative currency translation of SEK 94 million.
EBITDA improved SEK 25 million, from SEK 305 million to SEK 330 million. Operating cash flow in the first quarter amounted to SEK 213 million (384), including a moderate reduction in working capital of SEK 4 million (139).
With the raw material price evolution during the second half of 2012, AAK expects to display a continuing reduction in working capital during the second quarter.
During the first quarter Group volume increased by 6 percent.
Food Ingredients continued to demonstrate very strong development, particularly in Infant Nutrition and Latin America, while commodity volumes in the UK and Scandinavia continued to decline somewhat. Chocolate & Confectionery Fats and Technical Products & Feed improved slightly.
We continue to see positive effects of the AAK Acceleration program (Growth-Efficiency-People). Recent acquisitions are developing in line with plans.
Based on AAK's customer value propositions for health and reduced costs, our customer product co-development and solutions approach, and the AAK Acceleration program, we continue to remain prudently optimistic for the future. The main drivers are expected to be the strong Food Ingredients business and the expected recovery in Chocolate & Confectionary Fats. Irrespective of market conditions, the anticipated improvement in the Chocolate & Confectionary Fats results is however unlikely to be significant until the second half of 2013.
Arne Frank CEO and President
| Full | ||||||
|---|---|---|---|---|---|---|
| Q1 | Q1 | year | ||||
| SEK million | 2013 | 2012 | % | 2012 | ||
| Income statement | ||||||
| Volumes (MT)* | 388 | 366 | +6 | 1,511 | ||
| Operating profit (EBIT) | 242 | 220 | +10 | 975* | ||
| Net profit | 157 | 141 | +11 | 647 | ||
| Financial position | ||||||
| Total assets | 9,795 | 9,362 | +5 | 9,760 | ||
| Equity | 3,947 | 3,652 | ** | +8 | 3,836 | ** |
| Net working capital | 2,776 | 3,151 | -12 | 2,761 | ||
| Net interest-bearing debt | 2,517 | 2,910 | ** | -14 | 2,635 | ** |
| Cash flow | ||||||
| EBITDA | 330 | 305 | +8 | 1,322 | ||
| Cash flow from operating activities | 213 | 384 | -45 | 1,539 | ||
| Cash flow from investing activities | -95 | -107 | +11 | -794 | ||
| Free cash flow | 118 | 277 | -57 | 745 | ||
| Earnings per share | ||||||
| Earnings per share before dilution | 3.78 | 3.43 | +10 | 15.66 | ||
| Earnings per share after dilution | 3.74 | 3.42 | +9 | 15.56 | ||
| Key figures | ||||||
| Volume growth, % | +6 | +7 | -1 | +6 | ||
| Operating profit per kilo | 0.62 | 0.60 | +3 | 0.66 | ||
| Return on net assets | 14.7 | 13.2 | +11 | 14.2 | ||
| Net debt / EBITDA | 1.85 | 2.25 | ** | -18 | 1.92 | ** |
*) Hurricane Sandy had a negative impact on operating profit in the fourth quarter 2012 by an estimated SEK 21 million. All volumes in this report have been adjusted to include lost shipments covered by insurance compensation. See further page 8 and page 10.The full year 2012 also includes SEK 7 million acquisition related costs incurred in the second quarter 2012. **) Restated figures according to revised accounting standard IAS19 pension, see Attachment 1 of this report.
Volume increased by 6 percent compared to the first quarter 2012 mainly due to acquisitions and increased speciality and semi-speciality volumes, partly offset by somewhat lower commodity volumes in the UK and Scandinavia.
Net sales decreased by SEK 211 million due to lower raw material prices and the negative impact of currency translation by SEK 94 million.
The operating profit for the first quarter was record high, reaching SEK 242 million (220), an improvement by 10 percent. The impact of currency translation was negative by SEK 6 million following the strengthening of the Swedish krona. Operating profit excluding the negative currency translation impact improved by 13 percent.
Operating profit per kilo continued to improve from SEK 0.60 to SEK 0.62 per kilo, an improvement by 3 percent. Food Ingredients showed a stable operating profit per kilo at SEK 0.63 compared to last year, however, it has been diluted by the Oasis acquisition made in May 2012 which has a lower operating profit per kilo than the average for the business area. Chocolate & Confectionary Fats improved operating profit per kilo by 14 percent from SEK 1.03 to 1.17 per kilo mainly as a result of a higher proportion of value added products. Technical Products & Feed improved by 8 percent.
The net financial cost was SEK 23 million (24).
EBITDA improved by SEK 25 million, from SEK 305 million to SEK 330 million. Operating cash flow in the first quarter amounted to SEK 213 million (384). Taxes of SEK 97 million were paid during the first quarter compared to SEK 29 million in the first quarter 2012, the company expects this to reverse during the second quarter. Working capital improved modestly by SEK 4 million (139). Subsequent to the end of the first quarter, the company received SEK 26 million in insurance compensation related to Hurricane Sandy. This deferral had a negative impact on working capital for the quarter.
After net investments amounting to SEK 95 million (107), cash flow was positive SEK 118 million (277).
The equity/assets ratio amounted to 40 percent (39* percent at 31 December 2012). Net debt at 31 March 2013, amounted to SEK 2,517 million (SEK 2,635* million on 31 December 2012). At 31 March 2013, the Group had total credit facilities of approximately SEK 5,490 million.
The average number of employees at 31 March 2013 was 2,157 (2,211 on 31 December 2012). The significant reduction was related to the ongoing restructuring of the UK operation.
There was no exceptional impact on the operating profit related to the Hurricane Sandy in the first quarter 2013. Insurance compensation has been recorded, please see further comments on page 8 and 10.
*) Restated figures according to revised accounting standard IAS19 pension, see Attachment 1 of this report.
Operating profit SEK million Q1 2013 Q1 2012 % Full year 2012 + 15 % Volumes 249 217 +15 937 Net sales 2,552 2,600 -2 10,729 Operating profit per kilo Operating profit 158 137 +15 703 + 0 % Operating profit per kilo 0.63 0.63 +0 0.75
Food Ingredients reported a volume growth of 15 percent compared to the corresponding quarter in 2012, attributable mainly to acquired businesses and increases in semi-speciality and speciality products. During the first quarter commodity volumes in the UK and Scandinavia continued to decrease somewhat. For comparable units volume decreased by 2 percent.
Net sales decreased by SEK 48 million mainly due to lower raw material prices, partly offset by acquired businesses. The currency translation impact was negative SEK 62 million.
The integrations of the recent acquisitions, Oasis and Crown, are progressing according to plan.
Operating profit was a record high, reaching SEK 158 million (137), an increase by 15 percent due
to the recent acquisitions and very strong performance in Infant Nutrition and Latin America. Food Service also improved. The impact of currency translation was negative by SEK 4 million. Operating profit excluding the negative currency translation impact improved by 18 percent.
Food Ingredients showed a stable operating profit per kilo at SEK 0.63 compared to last year, however, it has been diluted by the Oasis acquisition made in May 2012 which has a lower operating profit per kilo than the average for the business area.
The product mix and production efficiency were normalized during the first quarter 2013 compared to the exceptionally favourable fourth quarter 2012.
We continue to remain optimistic for the future however, we expect the rate of operating profit improvement in 2013 to be lower than during 2012, albeit still double digits.
| Q1 | Q1 | Full year | |||
|---|---|---|---|---|---|
| Operating profit | SEK million | 2013 | 2012 | % | 2012 |
| Volumes | 72 | 78 | -8 | 309 | |
| + 4 % |
Net sales | 1,036 | 1,224 | -15 | 4,583 |
| Operating profit per kilo | Operating profit | 84 | 81 | +4 | 316 |
| + 14 % |
Operating profit per kilo | 1.17 | 1.03 | +14 | 1.02 |
Total volume declined by 8 percent mainly as a result of very low prices of cocoa butter in 2011 and the first three quarters of 2012, which continues to affect sales of speciality and semispeciality products negatively.
Net sales for Chocolate & Confectionary Fats decreased by SEK 188 million mainly as a consequence of lower raw material prices and an unfavourable currency translation impact of SEK 31 million.
During the first quarter operating profit started to stabilize and for the first time in 12 months the business area reported an improvement in profitability compared to the corresponding quarter last year. However, the underlying CBE margin has not yet improved because of deliveries out of existing contract backlog.
Operating profit improved by 4 percent and amounted to SEK 84 million (81) due to improved product mix. The impact of currency translation was negative SEK 2 million. Operating profit excluding the negative currency translation impact improved by 6 percent.
Operating profit at SEK 1.17 per kilo (1.03) improved mainly due to a better product mix.
The performance of the business area is expected to stabilize in the first part of 2013 and, provided the cocoa butter price remains at the current more normal level it is expected that profitability will improve significantly during the second half of 2013.
Irrespective of market conditions, the anticipated improvement in Chocolate & Confectionary Fats results is unlikely to be significant until the second half of 2013.
| Q1 | Q1 | Full year | |||
|---|---|---|---|---|---|
| Operating profit | SEK million | 2013 | 2012 | % | 2012 |
| + 4 % |
Volumes | 67 | 71 | -6 | 265 |
| Net sales | 423 | 398 | +6 | 1,599 | |
| Operating profit per kilo | Operating profit | 26 | 25 | +4 | 88 |
| + 8 % |
Operating profit per kilo | 0.39 | 0.36 | +8 | 0.33 |
Volumes decreased by 6 percent compared to the corresponding quarter in 2012.
Net sales for the business area increased by SEK 25 million or by 6 percent.
Operating profit of SEK 26 million (25) improved slightly despite the challenging business climate affecting this business area.
Operating profit at SEK 0.39 per kilo (0.36) improved by 8 percent mainly due to better pricing obtained in certain parts of the business.
The next quarters will continue to be challenging, but profitability is expected to slowly improve.
No significant changes have taken place in relations or transactions with related parties since 2012.
AAK's two plants in the New Jersey area were temporarily shut down on October 29, 2012 due to Hurricane Sandy. No employees were injured at either of the plants.
The plant in Port Newark was back in production (with reduced capacity) on November 26, 2012 and was by the end of the year 2012 back at almost full capacity. At the end of the first quarter 2013 the plant was back at full capacity.
AAK has insurance cover for property damage and business interruption.
The recorded insurance claim during the first quarter 2013 has been reported under "Other income" in the Income statement; amounted to approximately SEK 30 million; and has been reflected in the appropriate business area results. Reported volumes have been adjusted for lost shipments to reflect the normalized operations. Subsequent to the end of the first quarter the company received SEK 26 million related to the claim.
During the fourth quarter 2012 Hurricane Sandy had a negative impact on operating profit by an estimated SEK 21 million affecting Food Ingredients by SEK 6 million, Chocolate & Confectionary Fats by SEK 5 million and Group Functions by SEK 10 million. During the first quarter 2013 there were no exceptional effects on operating profit related to Hurricane Sandy.
It is not likely that the insurance settlement will be finalized until after the fiscal year 2013.
AAK is a global company represented in many countries and as such is exposed to a number of commercial and financial risks. Accordingly, risk management is an important process for AAK in its work to achieve established targets.
Efficient risk management is an ongoing process conducted within the framework of business control, and is part of the ongoing review of operations and forward-looking assessment of operations.
AAK's long-term risk exposure is assumed not to deviate from the inherent exposure associated with AAK's ongoing business operations.
For a more in-depth analysis of risks, refer to AAK's Annual Report for 2012.
This interim report is prepared in accordance with the Swedish Annual Accounts Act and IAS 34, Interim Financial Reporting. For information regarding the accounting policies applied, see the Annual Report for 2012. The accounting policies are unchanged, compared with those applied in 2012, except for IAS 19R below.
Effective as of January 1, 2013 the company has implemented the IAS 19 accounting for pension obligations in line with the IFRS accounting requirements. There is no significant impact on the balance sheet or key ratios related to this change in accounting principles. Please refer to the Attachment 1 of this report showing the impact of the restatement.
For definitions see the 2012 Annual Report.
The Parent Company is a holding company for the AAK Group. Its functions are primarily activities related to the development and administration of the Group.
The Parent Company's invoiced sales during the first quarter 2013 were SEK 14 million (12). The result for the Parent Company after financial items amounted to negative SEK 17 million (negative 9).
Interest-bearing liabilities minus cash and cash equivalents and interest-bearing assets totalled negative SEK 466 million (negative 626 as at 31 December 2012). Investments in intangible and tangible assets amounted to SEK 0 million (0).
The Parent Company's balance sheet and income statement are shown on pages 10-12.
AarhusKarlshamn AB (publ) is the Parent Company of the AAK Group. The company has prepared its financial reports in accordance with the Annual Accounts Act and RFR 2 Reporting for legal entities.
There have been no major changes since yearend.
Malmö April 25, 2013
Arne Frank Chief Executive Officer and President
This report has not been reviewed by the company's auditors.
The information is that which AarhusKarlshamn AB (publ) is obliged to publish under the provisions of the Stock Exchange and Clearing Operations Act and/or the Trading in Financial Instruments Act. The information was released to the media for publication on April 25, 2013 at 11.00 am CET.
| Group | Parent | ||||
|---|---|---|---|---|---|
| Q1 | Q1 | Full year | Q1 | Q1 | |
| SEK million | 2013 | 2012 | 2012 Q 4 |
2013 | Q 4 2012 Full year |
| Net sales | 4,011 | 4,222 | 16,911 | 14 | 12 |
| Other operating income* | 54 | 10 | 108 | 0 | 0 |
| Total operating income | 4,065 | 4,232 | 17,019 | 14 | 12 |
| Raw materials and supplies | -3,151 | -3,374 | -13,388 | - | - |
| Other external expenses | -291 | -283 | -1,173 | -13 | -12 |
| Cost for remuneration to employees | -291 | -270 | -1,119 | -14 | -10 |
| Amortisation and impairment losses | -88 | -85 | -347 | 0 | 0 |
| Other operating expenses | -2 | 0 | -17 | 0 | 0 |
| Total operating costs | -3,823 | -4,012 | -16,044 | -27 | -22 |
| Operating result (EBIT) | 242 | 220 | 975 | -13 | -10 |
| Interest income | 2 | 2 | 8 | - | 39 |
| Interest expense | -19 | -27 | -102 | -2 | -38 |
| Other financial items | -6 | 1 | -15 | -2 | - |
| Total financial net | -23 | -24 | -109 | -4 | 1 |
| Result before tax | 219 | 196 | 866 | -17 | -9 |
| Income tax | -62 | -55 | -219 | - | 0 |
| Net result | 157 | 141 | 647 | -17 | -9 |
| Attributable to non-controlling interests |
2 | 1 | 7 | - | - |
| Attributable to the Parent company´s | 155 | 140 | 640 | -17 | -9 |
| shareholders |
*) Includes insurance compensation related to Hurricane Sandy.
| Group | Parent | ||||
|---|---|---|---|---|---|
| Q1 | Q1 | Full year | Q1 | Q1 | |
| SEK million | 2013 | 2012 | 2012 Q 4 |
2013 Q 4 |
Full year 2012 |
| Income for the period | 157 | 141 | 647 | -17 | -9 |
| Exchange differences on translation of foreign operations |
-54 | -28 | -98 | - | - |
| Revaluation of defined benefit schemes |
- | -16 | -64 | - | - |
| Fair value changes in cash flow hedges |
10 | 17 | -13 | - | - |
| Tax related to fair value changes in cash flow hedges |
-2 | -4 | 3 | - | - |
| Total comprehensive income for the period |
111 | 110 | 475 | -17 | -9 |
| Attributable to non-controlling interests |
3 | 2 | 6 | - | - |
| Attributable to the Parent company´s shareholders |
108 | 108 | 469 | -17 | -9 |
| Group | Parent | ||||
|---|---|---|---|---|---|
| SEK million | 31.3.2013 | 31.3.2012* | Q 431.12.2012*Q 431.3.2013 Full year 31.3.2012 Full yea | ||
| Assets | |||||
| Goodwill | 1,038 | 719 | 1,045 | - | - |
| Other intangible assets | 81 | 88 | 87 | 1 | 1 |
| Tangible assets | 2,778 | 2,804 | 2,800 | 2 | 3 |
| Financial assets | 135 | 164 | 135 | 7,060 | 7,064 |
| Total non-current assets | 4,032 | 3,775 | 4,067 | 7,063 | 7,068 |
| Inventory | 2,604 | 2,499 | 2,583 | - | - |
| Current receivables | 2,877 | 2,873 | 2,780 | 22 | 62 |
| Cash and cash equivalents | 282 | 215 | 330 | 0 | 0 |
| Total current assets | 5,763 | 5,587 | 5,693 | 22 | 62 |
| Total assets | 9,795 | 9,362 | 9,760 | 7,085 | 7,130 |
| Equity and liabilities | |||||
| Shareholders´equity* | 3,920 | 3,632 | 3,812 | 4,003 | 4,089 |
| Non-controlling interests | 27 | 20 | 24 | - | - |
| Total equity including non | |||||
| controlling interests | 3,947 | 3,652 | 3,836 | 4,003 | 4,089 |
| Total non-current liabilities* | 3,077 | 3,425 | 3,257 | 2,967 | 2,900 |
| Accounts payables | 1,673 | 1,186 | 1,480 | 3 | 3 |
| Other current liabilities | 1,098 | 1,099 | 1,187 | 112 | 138 |
| Total current liabilities | 2,771 | 2,285 | 2,667 | 115 | 141 |
| Total equity and liabilities | 9,795 | 9,362 | 9,760 | 7,085 | 7,130 |
No changes have arisen in contingent liabilities.
*) Restated figures according to revised accounting standard IAS19 pension, see Attachment 1 of this report.
| Total equity | |||
|---|---|---|---|
| Total | Non | incl. non | |
| equity | controlling | controlling | |
| SEK million | capital | interests | Q 4 interests |
| Openings equity 1 January 2013 | 3,812 | 24 | 3,836 |
| Profit for the period | 155 | 2 | 157 |
| Other comprehensive income | -47 | 1 | -46 |
| Total comprehensive income | 3,920 | 27 | 3,947 |
| Closing equity 31 March 2013 | 3,920 | 27 | 3,947 |
| SEK million | Total* equity capital |
Non controlling interests |
Total equity incl. non controlling Q 4 interests |
|---|---|---|---|
| Openings equity 1 January 2012* | 3,524 | 18 | 3,542 |
| Profit for the period | 140 | 1 | 141 |
| Other comprehensive income* | -32 | 1 | -31 |
| Total comprehensive income | 3,632 | 20 | 3,652 |
| Closing equity 31 March 2012 | 3,632 | 20 | 3,652 |
*) Restated figures according to revised accounting standard IAS19 pension, see Attachment 1 of this report .
| SEK million | Asset Q 4 | Q 4LiabilityFull year |
|---|---|---|
| Financial instruments reported in balance sheet 31 March 2013 |
||
| Raw material hedge contracts | 279 | 86 |
| FX hedge contracts | 103 | 96 |
| Interest rate swaps | - | 62 |
| Total derivatives financial instruments | 382 | 244 |
| Fair value adjustment inventory | 9 | 46 |
| Total financial instruments | 391 | 290 |
| Q1 | Q1 | Full year | |
|---|---|---|---|
| SEK million | 2013 Q 4 |
2012 | Q 4 2012 Full year |
| Operating activities | |||
| Cash flow from operating activities before changes in | 209 | 245 | 950 |
| working capital | |||
| Changes in working capital | 4 | 139 | 589 |
| Cash flow from operating activities | 213 | 384 | 1,539 |
| Investing activities | |||
| Cash flow from investing activities | -95 | -107 | -794 |
| Cash flow after investing activities | 118 | 277 | 745 |
| Financing activities | |||
| Cash flow from financing activities | -166 | -389 | -730 |
| Cash flow for the period | -48 | -112 | 15 |
| Cash and cash equivalents at start of period | 330 | 331 | 331 |
| Exchange rate difference for cash equivalents | 0 | -4 | -16 |
| Cash and cash equivalents at end of period | 282 | 215 | 330 |
| Q1 | Q1 | Full year | |
|---|---|---|---|
| 2013 | 2012 | 2012 | |
| Number of shares, thousand | 40,898 | 40,898 | 40,898 |
| Earnings per share, SEK* | 3.78 | 3.43 | 15.66 |
| Earnings per share incl dilution, SEK** | 3.74 | 3.42 | 15.56 |
| Earnings per share incl full dilution, SEK*** | 3.66 | 3.34 | 15.18 |
| Equity per share, SEK | 95.82 | 89.76 | 95.32 |
| Equity per share, SEK**** | 95.82 | 88.81 | 93.18 |
| Market value on closing date | 329.00 | 209.00 | 276.00 |
* The calculation of earnings per share is based on weighted average number of outstanding shares.
** The calculation of earnings per share is based on weighted average number of outstanding shares including dilution from outstanding subscription options (in accordance with IAS 33).
*** Earnings per share after full dilution is calculated by dividing net income for the period by the total number of average outstanding shares for the period including a conversion of all outstanding share options to ordinary shares.
**** Restated figures according to revised accounting standard IAS19 pension, see Attachment 1 of this report.
| 2012 | 2013 | |||||
|---|---|---|---|---|---|---|
| Full | ||||||
| SEK million | Q1 | Q2 | Q3 | Q4 | Q 4 year |
Q1 Q 4 |
| Food Ingredients | 137 | 156 | 190 | 220 | 703 | 158 |
| Chocolate & Confectionery | 81 | 65 | 88 | 82 | 316 | 84 |
| Fats | ||||||
| Technical Products & Feed | 25 | 20 | 22 | 21 | 88 | 26 |
| Group Functions | -23 | -30 | -27 | -31 | -111 | -26 |
| Total AAK Group | 220 | 211 | 273 | 292 | 996 | 242 |
| Non-recurring items: | ||||||
| Impact related to Sandy* | - | - | - | -21 | -21 | - |
| Total legal operating profit | 220 | 211 | 273 | 271 | 975 | 242 |
| AAK Group | ||||||
| Financial net | -24 | -31 | -32 | -22 | -109 | -23 |
| Result before tax | 196 | 180 | 241 | 249 | 866 | 219 |
*Impact of Hurricane Sandy see page 9.
For information regarding cocoa and cocoa butter please refer to information at www.icco.org.
AAK will host a conference call on April 25, 2013 at 1 pm CET. The conference call can be accessed via our home page www.aak.com.
The interim report for the second quarter 2013 will be published on July 22, 2013.
The interim report for the third quarter 2013 will be published on October 30, 2013.
The fourth quarter and year-end report for 2013 will be published on February 4, 2014.
Capital market day in Stockholm November 12, 2013.
Capital market day in London November 22, 2013.
The annual and quarterly reports are also published on www.aak.com
This report contains forward looking statements. Such statements are subject to risks and uncertainties as various factors, many of which are beyond the control of AarhusKarlshamn AB (publ), may cause actual developments and results to differ materially from the expectations expressed in this report.
The report has been translated from Swedish. The Swedish text shall govern for all purposes and prevail in the event of any discrepancy between the versions.
Fredrik Nilsson, Director Group Controlling and Investor Relations Phone: + 46 40 627 83 34 Mobile: + 46 708 95 22 21 E-mail: [email protected]
Effective as of January 1, 2013 the company has implemented the IAS 19 accounting for pension obligations in line with the IFRS accounting requirements. The changes refer to the reporting of defined benefit pension plans.There is no significant impact on the balance sheet or key ratios related to this change in accounting principles as can be seen from the tables below.
The impact of the changes implies briefly:
The amendment to IAS 19 eliminates the possibility of applying the corridor method, that is, the possibility of only reporting a portion of actuarial gains and losses as income or expenses as earlier applied by AAK. Instead, all actuarial gains and losses are reported in "Other comprehensive income" when they arise.
The amended standard also implies that the return on plan assets is not reported, as previously, together with the expected return on plan assets but, instead, is reported in the income statement as interest income, calculated according to the discount rate applying at the beginning of the year.
The accounting principles for defined benefit pension plans are, therefore, changed compared with the Group's accounting principles in the annual financial statements for 2012 and compared with interim reports previously reported in 2012. The new principles impact the accounting retroactively and, consequently, the opening balance as of January 1 2012 has been re-calculated. Furthermore, the comparative figures for the quarters have been adjusted.
The transition to the new mandatory accounting principles has implied that net pension provisions, including special employers' contributions, increased by SEK 31 million as of January 1 2012. This increase in the provision has been reported against profit brought forward, that is in equity, implying that the Group's total equity decreased by SEK 23 million after deferred tax.
In the comparative figures as of March 31 2012, net pension provisions have increased from SEK 10 million to SEK 62 million and deferred tax has decreased from SEK 317 million to SEK 303 million. This has implied that "Other comprehensive income" has decreased from SEK 126 million to SEK 110 million. The equity/assets ratio has been impacted less than 1 percent during the quarter.
Revaluation effects of all quarters 2012 please see table below:
| Equity asset ratio,% | earlier | Adjusted | |
|---|---|---|---|
| As reported | |||
| Closing equity December 31, 2012 | 3,812 | 24 | 3,836 |
| Total comprehensive income | 189 | 0 | 189 |
| Other comprehensive income | -16 | -1 | -17 |
| Profit for the period | 205 | 1 | 206 |
| Closing equity September 30, 2012 | 3,623 | 24 | 3,647 |
| Stock options | 6 | - | 6 |
| Total comprehensive income | 40 | 3 | 43 |
| Other comprehensive income | -127 | -1 | -128 |
| Profit for the period | 167 | 4 | 171 |
| Closing equity June 30, 2012 | 3,577 | 21 | 3,598 |
| Dividend | -194 | - | -194 |
| Stock options | 7 | - | 7 |
| Total comprehensive income | 132 | 1 | 133 |
| Other comprehensive income | 4 | - | 4 |
| Profit for the period | 128 | 1 | 129 |
| Closing equity March 31, 2012 | 3,632 | 20 | 3,652 |
| Total comprehensive income | 3,632 | 20 | 3,652 |
| Profit for the period Other comprehensive income |
140 -32 |
1 1 |
141 -31 |
| Adjusted openings balance January 1, 2012 | 3,524 | 18 | 3,542 |
| Revaluation of defined benefit schemes | -23 | - | -23 |
| Openings equity January 1, 2012 | 3,547 | 18 | 3,565 |
| SEK million | capital | interests Q 4 |
Q 4 interests Full year |
| Total equity | controlling | controlling | |
| Non | incl. non | ||
| Total equity |
| March 31, 2012 | 39 | 39 |
|---|---|---|
| June 30, 2012 | 37 | 36 |
| September 30, 2012 | 38 | 37 |
| December 31, 2012 | 40 | 39 |
AarhusKarlshamn AB (AAK) is one of the world's leading producers of high valueadded speciality vegetable fats. Development and production of these fats require significant technological know-how and they are used in various applications within bakery, infant nutrition, dairy, cosmetics, chocolate and confectionery. AAK has production facilities in Denmark, Great Britain, Mexico, the Netherlands, Sweden, Uruguay and the US. The company is organised in three Business Areas; Food Ingredients, Chocolate & Confectionery Fats and Technical Products & Feed. Further information can be found on the company's website www.aak.com. .
Investor Relations contact: Fredrik Nilsson, Director Group Controlling and Investor Relations Phone: + 46 40 627 83 34 Mobile: + 46 708 95 22 21 E-mail: [email protected]
AarhusKarlshamn AB (publ) Jungmansgatan 12, 211 19 Malmö, Sweden Phone: + 46 40 627 83 00, Reg. No. 556669-2850, www.aak.com
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