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Apetit Oyj Earnings Release 2020
3303_rns_2021-02-19_7ab9bbb1-876f-4f2b-a33b-a9847ed951b3.pdf
Earnings Release
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1921
April
Apetit
Apetit Plc: Financial Statements Release 1 January to 31 December 2020
Apetit Group’s systematic development led to a clear profit improvement - The result for 2020 clearly profitable
October–December 2020, continuing operations*
- Net sales amounted to EUR 82.0 (105.4) million
- EBITDA was EUR 2.7 (0.1) million
- Operating profit was EUR 1.1 (-1.1) million
January–December 2020, continuing operations*
- Net sales amounted to EUR 292.9 (296.9) million
- EBITDA was EUR 10.1 (0.8) million
- Operating profit was EUR 3.9 (-4.8) million
*) Apetit’s continuing operations are Food Solutions, including the frozen products category, Oilseed Products and Grain Trade. In addition to the three reporting segments (Food Solutions, Oilseed Products, Grain Trade), Apetit will report Group Functions, consisting of the expenses related to Group management, strategic projects and listing on the stock exchange that are not allocated to the three business segments.
The reporting principles mentioned above have been in effect starting from the company’s reporting for the first half of 2020. The comparison figures for 2019 were published on 12 June 2020. Apetit has also discontinued the use of alternative profitability-based performance measures.
The figures for 2020 and 2019 have been audited. The quarterly and six-month figures are unaudited. The figures in brackets refer to the corresponding period in 2019, and the comparison period means the corresponding period in the previous year, unless otherwise stated. The comparison figures have been adjusted to correspond to the continuing operations in 2020, except the service business, which is included in the comparison figures for the first half of 2019. The service business was gradually divested by the end of April 2019.
PROFIT GUIDANCE FOR 2021
The full-year operating profit from continuing operations is expected to improve year-on-year (EUR 3.9 million in 2020).
BOARD OF DIRECTORS’ DIVIDEND PROPOSAL
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.50 per share be paid for the financial year 2020.
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
Esa Mäki, CEO:
"We determinedly continued to improve our profitability in the last quarter of the year. Annual profitability improved by nearly EUR 9 million. Profitability improvement is mainly attributable to strong demand for the Apetit brand products in retail trade, improved efficiency in our own operations and commercial successes both in Finland and in export trade. In the grain trade, we have focused on developing our trading ability, in line with our strategy: we have largely succeeded with this goal, although towards the end of the year, the outlook of grain price development had a negative impact on profitability.
In the fourth quarter, the impacts of the COVID-19 pandemic could still be seen most strongly in the Food Service channel of the Food Solutions business, where net sales decreased year-on-year in spite of a partial recovery of sales during the second half of the year. The sales of frozen products grew year-on-year in other channels, especially in retail trade and exports. In Oilseed Products and Grain Trade, the impacts of the COVID-19 pandemic still remained minor.
One of Apetit's strategic focus areas is to strengthen the Swedish market as the primary focus area of food exports. We have made progress towards our goal in the Swedish retail trade and in November, we signed an agreement on the Food Service product sales with a local partner in Sweden. The cooperation started at the beginning of February. We will systematically continue to increase exports in selected markets. In 2020, the value of food exports was EUR 5.3 million.
In December, the European Commission granted a novel food authorisation for Apetit's rapeseed ingredient, the BlackGrain from Yellow Fields rapeseed powder. The novel food authorisation is the culmination of the BlackGrain product development work we have been doing for years. It also enables us to continue the development of new rapeseed-based ingredients. In addition, we promote to assess options related to the commercialisation of the ingredient.
The commissioning of the bioenergy plant under construction in conjunction with the Kantvik vegetable oil milling plant will be further delayed due to reasons related to an equipment supplier. We are currently assessing different options for completing the construction work. The bioenergy plant is already at an advanced stage of construction and we are aiming to commission it during summer 2021.
In order to ensure the availability of domestic rapeseed raw materials, we are continuing our determined work to increase oilseed plant cultivation area and harvest levels. In December 2020, the Finnish Safety and Chemicals Agency (Tukes) granted a special permission for the spring 2021 regarding a preparation used in treating oilseeds. The possibility of treating oilseeds will support the cultivation of domestic rapeseed, thereby increasing harvest levels from their current low point. In addition to being in good and stable demand, oilseed plants offer a profitable opportunity to increase versatility of crop rotation. The renewed oilseed plant campaign for 2021 started at the beginning of February: we offer contract growers new benefits and tools for oilseed plant cultivation.
The planning for the coming cultivation season is in full swing also for field vegetables. In the coming growing season, we will seek a record harvest in peas as its demand in the export markets continues to be strong. We are also constantly conducting research on new crops at our Räpi experimental farm and promoting the development of domestic vegetable-based proteins: an example of this is the broad bean, which we will again be growing at the experimental farm after an interim year. The harvest will be processed into products later in the autumn.
Apetit published its updated strategy in May. We have proceeded effectively in all strategic focus areas: Optimising core business functions, Strong foothold in Sweden, Growth from plant-based added value products, Developing farming partnerships and Sustainable actions. In light of the 2020 results, we are well on track to reach our financial objectives by the end of the strategy period."
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
KEY FIGURES
| EUR million | 10–12 2020 | 10–12 2019 | Change | 1–12 2020 | 1–12 2019 | Change |
|---|---|---|---|---|---|---|
| Continuing operations | ||||||
| Net sales | 82.0 | 105.4 | -22% | 292.9 | 296.9 | -1% |
| EBITDA | 2.7 | 0.1 | 10.1 | 0.8 | ||
| Operating profit | 1.1 | -1.1 | 3.9 | -4.8 | ||
| Share of profit of associated company Sucros | 0.6 | 0.6 | 0.3 | -0.9 | ||
| Profit for the period | 1.5 | -0.3 | 3.1 | -5.4 | ||
| Earnings per share, EUR | 0.24 | -0.05 | 0.49 | -0.87 | ||
| Working capital at the end of the period | 48.4 | 64.0 | ||||
| Investment | 7.8 | 11.5 | ||||
| Group (incl. discontinued operations) | ||||||
| Net sales | 82.0 | 105.4 | -22% | 293.0 | 312.6 | -6% |
| EBITDA | 2.8 | 2.2 | 10.2 | 2.9 | ||
| Operating profit | 1.2 | -1.3 | 4.1 | -3.4 | ||
| Profit for the period | 1.5 | -0.5 | 3.2 | -4.4 | ||
| Earnings per share, EUR | 0.25 | -0.08 | 0.52 | -0.71 | ||
| Equity per share, EUR | 15.26 | 15.09 | ||||
| ROCE % | 3.3 | -4.0 | ||||
| Net cash flow from operating activities | 26.8 | -5.9 | ||||
| Equity ratio | 66.5 | 55.0 | ||||
| Gearing | 21.7 | 35.9 |
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
NET SALES AND PROFIT OF CONTINUING OPERATIONS
October–December
Net sales in the fourth quarter were EUR 82.0 (105.4) million. Operating profit was EUR 1.1 (-1.1) million. The operating profit includes capitalisation of fixed costs arising from harvest-time production and a change in grain stocks in the amount of EUR 0.5 (0.3) million.
The share of the profit of the associated company Sucros was EUR 0.6 (0.6) million in October–December.
The profit before taxes was EUR 1.6 (-0.7) million, and taxes on the profit for the period came to EUR -0.1 (0.4) million. Profit for the period came to EUR 1.5 (-0.3) million, and earnings per share amounted to EUR 0.24 (-0.05).
January–December
Net sales in January–December were EUR 292.9 (296.9) million. Operating profit was EUR 3.9 (-4.8) million. The operating profit includes capitalisation of fixed costs arising from harvest-time production and a change in grain stocks in the amount of EUR -0.1 (0.0) million.
The share of the profit of the associated company Sucros was EUR 0.3 (-0.9) million in January–December.
Financial income and expenses totalled EUR -0.5 (-0.7) million.
The profit before taxes was EUR 3.7 (-6.4) million, and taxes on the profit for the period came to EUR -0.6 (0.9) million. Profit for the period came to EUR 3.1 (-5.4) million, and earnings per share amounted to EUR 0.49 (-0.87).
CASH FLOWS, FINANCING AND BALANCE SHEET
Apetit Group's balance sheet position remained strong in terms of the equity ratio as well as liquidity.
The consolidated cash flow from operating activities amounted to EUR 26.8 (-5.9) million in January–December. The impact of the change in working capital was EUR 17.3 (-5.5) million. The effect of seasonality on the change in working capital is presented under the heading Seasonality of operations.
The net cash flow from investing activities was EUR -8.9 (1.4) million. The cash flow from financing activities came to EUR -19.7 (4.8) million, including EUR -15.3 (8.0) million in net loan repayments and EUR -2.8 (-2.5) million in dividend payments.
At the end of the period, the Group's interest-bearing liabilities amounted to EUR 21.7 (36.6) million and liquid assets to EUR 1.1 (2.9) million. Net interest-bearing liabilities totalled EUR 20.6 (33.7) million.
The consolidated balance sheet total stood at EUR 142.8 (170.8) million. At the end of the review period, equity totalled EUR 95.0 (93.9) million. The equity ratio was 66.5 (55.0) per cent, and gearing was 21.7 (35.9) per cent. The Group's liquidity is managed by committed credit facilities, fixed loans and a commercial paper programme. At the end of the period, the available credit facilities amounted to EUR 29 (29) million. The total of commercial papers issued stood at EUR 15.0 (30.0) million.
INVESTMENT
Investment by continuing operations in non-current assets came to EUR 7.8 (11.5) million and was divided as follows: investment in Food Solutions totalled EUR 2.9 (10.0) million, in Oilseed Products EUR 4.7 (1.3) million, in Grain Trade EUR 0.1 (0.1) million and in Group Functions EUR 0.1 (0.0) million.
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
PERSONNEL
In January–December 2020, the continuing operations had 343 (376) employees in full-time equivalents. Apetit Group had 345 (373) employees at the end of December. The number of employees at Apetit's Säkylä plant varies during the year based on the harvest seasons.
STRATEGY
Strategy period 2020–2022
Apetit Plc published its strategy for 2020–2022 in May 2020. A key feature of the renewed strategy is strengthening the existing unique value chain that has a strong foundation in Finnish primary production. The operations of the strategy period aim towards the objective of building Apetit into a successful Finnish company focusing on plant-based food products.
In its strategy, Apetit focuses on utilising its existing strengths and strengthening them further in all of its business areas. A key factor in everything Apetit does is ensuring future success.
Apetit has identified the phenomena in the operating environment that both steer and support the company's strategy and its implementation: The demand for plant-based food products is on the increase. As culinary trends, making daily life easier, well-being and the origin of food are highlighted further. In addition, the frozen foods market will grow. In the big picture, climate change will increase extreme weather phenomena and seasonal variations in harvest. Climate-responsible everyday actions are emphasised in the building of a sustainable food supply chain through different value chains.
Strategic focus areas and key measures in 2020
Optimising core business functions
We will improve process efficiency in all of our operations. We will scale our operations in relation to the company's existing size. We will improve resource efficiency through partnerships. We will develop our trading ability in the grain trade.
Key measures in 2020:
- Construction of a bioenergy plant in conjunction with the Kantvik vegetable oil milling plant in Kirkkonummi.
- Development of functions and practices to match current business operations.
- Creation and development of appropriate partnership networks.
- Trading ability development in the grain trade by improving operational coordination.
Strong foothold in Sweden
We will strengthen the Swedish market as the primary focus area of food exports. We will ensure and deepen our existing customer relationships and also build new customer relationships. We will develop and expand our market-specific product portfolio. We will build appropriate partnerships for other selected markets.
Key measures in 2020:
- Introduction of the Apetit brand products (14 products) into the product selection of ICA, the largest retail chain in Sweden.
- Launch of sales cooperation with a local partner for the Food Service channel in Sweden.
- Establishment of new partnerships and the launch of cooperation in other markets.
- Systematic increase of the total export volume.
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
Growth from plant-based added value products
We will increase the sales of our existing product portfolio and expand our customer base. We will expand to new product segments. We will strengthen our commercial position in the Food Service channel. We will create a model for the commercialisation of the rapeseed protein ingredient.
Key measures in 2020:
- Continuous development of new plant- and fish-based products and product groups.
- Launch of new product groups: first fully Finnish wok vegetables to shops' frozen food sections.
- More customer-oriented operating model in the Food Service channel.
- Investment decision to start the small-scale production of the rapeseed ingredient in summer 2021 and the launch of the assessment of options related to the commercialisation of the ingredient.
Developing farming partnerships
Food Solutions: We will expand contract farming in pea and possible new plants. We will improve the preconditions for farming by developing cultivation measures, soil fertility and plant protection measures, among other things. We will make use of new opportunities, such as carbon farming.
Oilseed Products: We will deepen our contract farming model to ensure the availability of Finnish raw materials.
Grain Trade: We will become the farmer's primary partner by developing logistics solutions and utilising selected partnerships.
Key measures in 2020:
- New contract growers and a record in pea cultivation area.
- Further development of Apetit's responsible farming practices and their implementation among contract growers.
- Active participation in projects promoting soil fertility and carbon sequestration.
- Renewal and deepening of the oilseed plant contract farming model.
- Establishment and development of Farmer's Avena Berner cooperation.
Sustainable actions
We will promote cultivation development and implement new sustainable cultivation methods. We will provide new diverse alternatives to increase plant-based and sustainable eating. We will make sustainability an even more intertwined part of all of our operations. We will decrease the Group's environmental and climate impacts in accordance with set objectives.
Key measures in 2020:
- Adoption of wind power at all of the Group's production facilities.
- Joining the food industry's material efficiency commitment.
- Material review at the Säkylä production facility.
- Calculation of the environmental footprint of selected products.
- Development and standardisation of the Group's carbon footprint calculation to comply with the GHG Protocol (Scope 1 and 2).
Financial objectives
EBITDA will be EUR 14 million in 2022 (continuing operations in 2019 EUR 0.8 million)
Return on capital employed (ROCE %) > 8% (2019: -4.0%)
The realisation of set strategic objectives is based on regular harvest development and systematic execution of strategic measures. The company is open to corporate transactions that are in line with its strategy. The possible impacts of the ongoing COVID-19 pandemic on financial objectives will be reassessed later, if necessary.
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
Dividend policy remains as before
The Board of Directors of Apetit Plc aims to ensure that the company's shares provide shareholders with a good return on investment and retain their value. The company will distribute at least 50 per cent of the profit for the financial year in dividends.
OPERATING ENVIRONMENT
Impacts of the COVID-19 pandemic on Apetit's businesses
In Apetit Group, the impacts of the COVID-19 pandemic vary by business. Thanks to its proactive and systematic approach, Apetit has been able to maintain normal operations.
Food Solutions
The COVID-19 pandemic has affected the Food Solutions business the most.
The retail demand for food increased clearly when the exceptional situation started in the spring: food consumption has shifted to people's homes to a significant degree as restaurants and other public services, such as schools and day-care centres, scaled back their operations. Consequently, the sales of consumer products were exceptionally high for a time in the early stages of the exceptional circumstances, with demand levelling off later.
Demand has decreased significantly in the Food Service sector as restaurants and other public services, such as schools and day-care centres, scaled back their operations. In the summer, demand in the Food Service channel began to gradually increase compared to the early stages of the exceptional situation but, at the annual level, it was still substantially below the pre-pandemic period.
Oilseed Products
In the Oilseed Products business, the demand for vegetable oils grew particularly in the retail segment and decreased in the Food Service channel, similarly to the Food Solutions business.
Grain Trade
In the Grain Trade business, the COVID-19 pandemic has only had a minor impact, mainly in the form of increased market volatility in the early stages of the pandemic.
Apetit aims to anticipate the business impacts of the pandemic to the greatest extent possible and consider the impacts of various scenarios on the Group's operations in the short term as well as the long term.
Apetit's measures related to the COVID-19 pandemic
Apetit's goal during the COVID-19 pandemic has been to ensure the health of employees, customers and other stakeholders while ensuring the undisrupted continuation of production, business operations and the food supply chain. To this end, the production units and other operations have implemented various arrangements to minimise interaction between employees and with outside parties, increased the use of personal protective equipment, further improved hygiene standards at various work areas and instructed office employees to work remotely.
Apetit ensures the functioning of the food supply chain by complying with the guidelines issued by the authorities and by preparing for both exceptional and normal operating conditions in its businesses. The precautionary measures take into account all of the key functions in the company's value chain, such as raw material sourcing and the procurement of materials as well as production and logistics, customer cooperation,
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
sales and support functions. During the COVID-19 pandemic, the Finnish food supply chain has proved its resilience and functionality even under difficult and exceptional circumstances. This has led to a marked increase in the visibility and appreciation of domestic food production.
SUSTAINABLE VALUE CHAIN
Apetit engages in, and develops, sustainable business in accordance with the objectives specified in the corporate responsibility programme. The key measures taken to support sustainable business are as follows:
Bioenergy plant in Kirkkonummi
Apetit is building a bioenergy plant in conjunction with the Kirkkonummi vegetable oil milling plant. It will replace the current energy solution that uses non-renewable fuels and will significantly reduce the Group's CO₂ emissions.
Promotion of carbon farming and soil fertility
Apetit participates in several projects which study carbon sequestration in soil, promote carbon farming and develop soil fertility improvement measures. Research, development and practical implementation of measures related to carbon farming and soil fertility are carried out at Apetit's Räpi experimental farm and on the fields of contract growers. The improvement of natural soil fertility aims not only at carbon sequestration but also at the reduction of nutrient runoffs.
Sustainable packaging solutions
As part of the long-term development of packaging solutions, Apetit is committed to reducing the thickness of packaging plastic used in consumer packaging, increasing the recyclability of packaging, improving the clarity of recycling indications and instructions on packaging as well as choosing materials manufactured from renewable natural resources where possible. The target of reducing the thickness of consumer packaging by 15 per cent was achieved in early 2021.
Utilisation of side streams
Side streams from harvest season production, such as peeling waste and plant material discarded during quality assurance processes, have been delivered for use as bioenergy raw material and animal feed, for instance. In the future, production side streams from the Kirkkonummi vegetable oil milling plant will also be used as fuel in the company's own bioenergy plant.
Products made from domestic lakefish
Apetit's product family based on domestic lakefish has established its position on Finnish consumers' dinner tables. Apetit Lakefish Fingers are made from roach caught in Finnish lakes as part of fish stock management, which increases Apetit's selection of sustainable fish products. Fish stock management helps reduce the eutrophication of lakes, among other things. Research has shown that Apetit Lakefish Fingers curb eutrophication and have a moderate carbon footprint. The other products in the product family include Järvikalapihvit freshwater fish cakes and Särkisen fish balls made from roach.
Improving material efficiency
At the beginning of 2020, Apetit joined the food industry's material efficiency commitment with goals such as improving the efficiency of the use of raw materials, reducing the volumes of mixed waste and cutting back on water consumption. By enhancing material efficiency, Apetit seeks to improve the efficiency of its production operations as well as profitability.
Apetit also strives to better identify the stages of production where it is possible to not only prevent raw material and material waste, but also conserve other natural resources and further increase process efficiency. To achieve this target, a material review was conducted at the Säkylä production facility in late 2020.
Electricity from wind power
All of the electricity used by Apetit Group's production facilities has been generated from renewable energy sources starting from 1 April 2020. Going forward, Apetit's production facilities run exclusively on wind power. Apetit Group's total CO₂ emissions decreased by 37 per cent from the comparison year 2019.
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
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 than during the first 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 frozen foods group of the Food Solutions segment and in the associated company Sucros, where production reflects the crop harvesting season.
Harvesting seasons also cause seasonal variation in the amount of working capital tied up in operations. Working capital tied up in Grain Trade and 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 the production of frozen products 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 the Food Solutions segment.
Net sales in Grain Trade vary from one year and quarter to the next, even quite considerably, being dependent on the demand and supply situation and on the price level in Finland and other markets.
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
OVERVIEW OF OPERATING SEGMENTS
Food Solutions
Frozen vegetable products and frozen ready meals
| EUR million | 10–12 2020 | 10–12 2019 | Change, % | 1–12 2020 | 1–12 2019 | Change, % |
|---|---|---|---|---|---|---|
| Net sales* | 16.0 | 15.7 | 2% | 60.1 | 58.9 | 2% |
| EBITDA | 3.4 | 2.6 | 8.4 | 5.9 | ||
| Operating profit | 2.5 | 1.3 | 5.0 | 2.5 |
*incl. intra-group net sales
Financial and operational performance in October–December
Net sales for October–December amounted to EUR 16.0 (15.7) million. The sales of frozen products increased especially in the retail segment and export operations. Sales decreased in the Food Service channel as restaurants and other public services, such as schools and day-care centres, scaled back their operations due to the COVID-19 pandemic.
Operating profit was EUR 2.5 (1.3) million. Profit was increased by efficiency improvement measures related to the use of raw materials and production efficiency as well as substantial sales growth in the retail segment and export operations. Profit was weakened by the significant decline in sales in the Food Service channel.
Summary of January–December
The net sales of Food Solutions grew somewhat from the previous year, while profitability improved substantially year-on-year. The divestment of the service business reduced the segment's net sales. The share of the service business, EUR 2.3 million, is included in the net sales of the comparison period until April 2019.
The COVID-19 pandemic resulted in sales growth in the retail segment and a substantial decline in sales in the Food Service channel. Despite the partial recovery of Food Service sales during the second half of the year, net sales clearly decreased year-on-year.
Food exports to Sweden grew in line with expectations: 14 products sold under the Apetit brand were introduced into the product selection of ICA, the largest retail chain in Sweden. In 2020, food exports accounted for 9 per cent of net sales (2019: 6 per cent) and were mainly targeted at Sweden, Italy and the United Kingdom.
The result of Food Solutions was improved by clear sales growth in the retail segment and exports, improved production efficiency and commercial successes.
The Food Solutions segment's investments totalled EUR 2.9 (10.0) million and were mainly associated with production efficiency improvements in Säkylä.
Operating environment
The cultivation season got off to a slow start as the cold springtime weather delayed sowing and the start of the growing season. In June, the hot and dry conditions posed challenges, particularly for pea cultivation. In general, the harvest of field vegetables was normal.
In the retail segment, the frozen foods category (excluding ice cream products) grew by 14 per cent year-on-year in Finland. Food Service wholesale* declined by 18 per cent in January–December. The exceptional circumstances caused by the COVID-19 affected the development of the business.
Source: Nielsen Homescan Finland, *Source: Finnish Grocery Trade Association (PTY)
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
Oilseed Products
Vegetable oils and rapeseed expeller
| EUR million | 10–12 2020 | 10–12 2019 | Change, % | 1–12 2020 | 1–12 2019 | Change, % |
|---|---|---|---|---|---|---|
| Net sales* | 16.4 | 15.6 | 5% | 65.8 | 65.0 | 1% |
| EBITDA | 0.5 | 0.5 | 3.0 | 2.3 | ||
| Operating profit | 0.2 | 0.3 | 2.0 | 1.5 |
*incl. intra-group net sales
Financial and operational performance in October–December
Net sales grew and were EUR 16.4 (15.6) million in October–December, thanks to increased sales volumes resulting from higher rapeseed expeller demand. The main export markets for oilseed products were Norway and Sweden, with exports representing 24 per cent of net sales.
Operating profit was EUR 0.2 (0.3) million, on a par with the previous year.
Summary of January–December
Net sales grew, thanks to increased sales volumes resulting from higher rapeseed expeller demand. Profitability was improved by an increase in rapeseed expeller sales, the higher average sales price of vegetable oil and increasing sales of retail products.
As a part of its efficiency improvement, Apetit is building a bioenergy plant in conjunction with its rapeseed oil milling plant in Kirkkonummi. The commissioning of the bioenergy plant will be further delayed due to reasons related to an equipment supplier. Different options for completing the construction work are currently being assessed. The aim is to commission the bioenergy plant during summer 2021.
The European Commission granted a novel food authorisation for Apetit's rapeseed ingredient in December 2020. In the autumn, Apetit decided to invest in starting small-scale production, which will make it possible to test the rapeseed ingredient on an industrial scale with potential customers in summer 2021. The assessment of options related to the commercialisation of the ingredient continues.
The development of rapeseed ingredients has been continued with the help of funding from Business Finland. The goal is to develop, in a customer-oriented manner, new ingredients based on the existing ingredient as well as to combine it with other ingredients to create versatile plant-based ingredients.
The impacts of the COVID-19 pandemic remained minor in the Oilseed Products business: clear sales channel-specific changes could be seen in the demand for food oil especially in the spring when sales in the Food Service sector declined considerably but, on the other hand, retail sales increased significantly.
Investment during the period totalled EUR 4.7 (1.3) million and was mainly related to the construction of the bioenergy plant at the Kirkkonummi vegetable oil milling plant and the plant's environmental and efficiency investments, such as an odorous gas scrubber and oil milling efficiency improvements.
Operating environment
The domestic oilseed plant harvest in 2020 was the lowest since the 1970s. This was mainly due to the small cultivation area, the dry growing season and pest-related challenges. According to the Natural Resources Institute Finland's estimate, the total harvest for the year was only 31 million kilos, down 26 per cent from the previous year.
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
12
A
Grain Trade
Finnish and international trade in grains, oilseeds, pulses and raw materials for animal feed
| EUR million | 10–12 2020 | 10–12 2019 | Change, % | 1–12 2020 | 1–12 2019 | Change, % |
|---|---|---|---|---|---|---|
| Net sales* | 53.1 | 77.4 | -31% | 194.3 | 194,9 | 0% |
| EBITDA | -0.5 | -2.2 | 1.0 | -4.8 | ||
| Operating profit | -0.8 | -1.7 | 0.1 | -5.6 |
Financial and operational performance in October–December
*incl. intra-group net sales
Net sales in October–December decreased clearly to EUR 53.1 (77.4) million due to decreased delivery volumes. The relatively small grain harvest in Finland decreased export deliveries from the previous year. In 2020, the export deliveries of the summer harvest from the Baltic countries were evenly distributed throughout the second half of the year, while in the previous year, they focused on the end of the year.
Operating profit was EUR -0.8 (-1.7) million. Profitability was impaired by the strong increase in grain prices, which led to the need to cover existing sales commitments with high-price purchases. In addition, the decrease in Finland's export volume weakened profitability.
Summary of January–December
Net sales were on a par with the previous year. In Finland, exports decreased from the previous year due to the relatively small harvest but, on the other hand, the grain harvest in the Baltic counties was excellent and sales from this region grew. Profitability improved significantly from the comparison period. Profitability was improved especially by the development of the trading ability.
In the Grain Trade business, the impacts of the COVID-19 pandemic were minor. However, market volatility increased: grain derivative prices fluctuated substantially during the year, partly due to the pandemic. Toward the end of the year, wheat futures prices rose to a historically high level despite a good harvest worldwide and an increase in final stocks. This was mainly attributable to the export restriction measures applied by Russia, a major exporter of wheat.
Investment in the Grain Trade business totalled EUR 0.1 (0.1) million.
Operating environment
According to an estimate published by the Natural Resources Institute Finland on 24 November 2020, the total grain harvest in Finland was 3.3 billion kilos. The harvest was the third smallest in the 2000s and left little scope for grain exports. On the other hand, the harvest was very good in the Baltic countries, which is the company's other main area of supply.
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
Group Functions
| EUR million | 10–12 2020 | 10–12 2019 | Change, % | 1–12 2020 | 1–12 2019 | Change, % |
|---|---|---|---|---|---|---|
| Net sales | - | - | - | - | ||
| EBITDA | -0.6 | -0.9 | -2.3 | -2.6 | ||
| Operating profit | -0.8 | -1.0 | -3.2 | -3.1 |
Group Functions, consisting of the expenses related to Group management, strategic projects and listing on the stock exchange, are reported as expenses that are not allocated to the business segments.
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
CORPORATE GOVERNANCE
Corporate Governance Statement and Remuneration Statement
Apetit's Corporate Governance Statement and Remuneration Report will be published in week 10 in conjunction with the publication of the Annual Report. The statements will be available on Apetit's website after their publication.
Annual General Meeting 2020
Apetit Plc's Annual General Meeting was held in Sakylä on 26 May 2020. The Annual General Meeting adopted the parent company's financial statements and the consolidated financial statements, and discharged the members of the Supervisory Board, the Board of Directors and the CEOs from liability for the financial year 2019. The Board of Directors' proposals to the Annual General Meeting were approved without changes. The Annual General Meeting decided to distribute a dividend of EUR 0.45 per share in accordance with the Board's proposal. The dividend was paid on 4 June 2020.
Election of the Supervisory Board
The Annual General Meeting 2020 confirmed that the Supervisory Board will have 18 members elected by the Annual General Meeting. Five persons were appointed to replace members of the Supervisory Board completing their term. Jaakko Halkilahti, Marja-Liisa Mikola-Luoto, Petri Rakkolainen and Mauno Ylinen were re-elected. Olli Saaristo was elected as a new member of the Supervisory Board.
Heikki Laurinen and Pekka Perälä were elected by the Annual General Meeting as the members of the Supervisory Board's Nomination Committee.
Apetit Plc's Supervisory Board appointed Harri Eela as Chair and Marja-Liisa Mikola-Luoto as Vice Chair.
Composition and committees of the Board of Directors
The Supervisory Board decided to elect six members to Apetit Plc's Board of Directors. Lasse Aho, Annikka Hurme, Antti Korpiniemi, Simo Palokangas, Kati Rajala and Niko Simula were elected as members of the Board of Directors. Simo Palokangas was appointed as Chair of the Board of Directors and Lasse Aho as Deputy Chair.
At its organisational meeting, Apetit Plc's Board of Directors elected members to its Audit Committee from among its members until the end of the Board's term of office. Lasse Aho was elected as the Chair of the Audit Committee and Niko Simula as a member.
In accordance with the decision of the Supervisory Board, the Board members will be paid an annual remuneration of EUR 19,560 and that the Chair and Deputy Chair will receive an annual remuneration of EUR 39,060 and EUR 24,120, respectively. A total of 60 per cent of the annual remuneration will be paid in cash and 40 per cent in the form of Apetit Plc shares held by the company at the current value of the shares at the time of transfer. The remuneration will be paid once a year in December. It was also decided that the Chair and members of the Board of Directors be paid a meeting allowance of EUR 510 and EUR 300, respectively.
Auditor
The Annual General Meeting appointed Pasi Karppinen, APA, and PricewaterhouseCoopers Oy, Authorised Public Accountants, with Tuomo Korte, APA, as the auditor with principal responsibility, as the company's auditors for the period ending at the close of the 2021 Annual General Meeting.
Authorisations granted to the Board of Directors
On 27 March 2018, the Annual General Meeting authorised the Board of Directors to decide on share issues. The authorisation includes the right to issue new shares or transfer Apetit Plc shares held by the company. The authorisation covers a maximum total of 626,757 shares, consisting of up to 520,331 new shares and 106,426
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
Apetit Plc shares held by the company (the company held a total of 89,230 treasury shares on 31 December 2020).
The subscription price for each new share will be at least the share's nominal value (EUR 2). The transfer price for Apetit shares held by the company will be at least the market value of the share at the time of transfer, which is determined by the price quoted in public trading on the Nasdaq Helsinki. The Board of Directors will also have the right to issue shares against considerations other than cash. In the implementation of share-based incentive or reward schemes, shares can also be issued without consideration.
The authorisation includes the right to deviate from the shareholders' pre-emptive subscription right (targeted issue) if the company has an important financial reason for doing so, such as the development of the company's capital structure, the financing and implementation of corporate acquisitions or other arrangements, or the implementation of a share-based incentive or reward scheme.
The authorisation is valid until the 2021 Annual General Meeting.
Use of the authorisations granted to the Board of Directors
In accordance with a decision made by the Supervisory Board regarding the remuneration of Board members, a total of 5,470 Apetit Plc shares held by the company were transferred to the Board members on 2 December 2020.
Annual General Meeting 2021
Apetit Plc's Annual General Meeting 2021 is scheduled to be held on 28 May 2021. The Board of Directors will convene the Annual General Meeting later.
BOARD OF DIRECTORS' PROPOSALS CONCERNING PROFIT MEASURES
The parent company's distributable funds totalled EUR 55,197,731.79 on 31 December 2020, after adding the profit for the financial year, EUR 2,852,348.19. The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.50 per share be paid for the financial year 2020. In this case, EUR 3,114,173.00 will be distributed in dividends and EUR 52,083,558.79 will be left in equity.
SHARES AND SHARE OWNERSHIP
Shares, share capital and trading
The shares of Apetit Plc are all in one series. All shares carry the same voting and dividend rights. The Articles of Association specify that the number of votes a shareholder is entitled to exercise cannot exceed one tenth of the votes represented at a general meeting. The nominal value of each of the company's shares is EUR 2. At both the beginning and the end of the financial year, the total number of shares issued by the company stood at 6,317,576, and the registered share capital totalled EUR 12,635,152. The minimum amount of share capital is EUR 10 million, and the maximum amount is EUR 40 million.
Treasury shares
At the end of the review period, the company held a total of 89,230 treasury shares acquired during previous years. These treasury shares represent 1.4 per cent of the company's total number of shares and votes. The company's treasury shares carry no voting or dividend rights.
Flagging announcements
In 2020, Apetit received two flagging announcements:
On 13 May 2020, Apetit Plc received a notification under Chapter 9, Section 5 of the Securities Market Act, according to which the holding of Berner Oy in Apetit Plc's shares and votes had exceeded the 5 per cent threshold on 12 May 2020.
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
16
On 13 May 2020, Apetit Plc received a notification under Chapter 9, Section 5 of the Securities Market Act, according to which the holding of Jussi Capital Oy in Apetit Plc's shares and votes had decreased below 5 per cent on 12 May 2020.
Share price and trading
The number of Apetit Plc shares traded on the stock exchange during the review period was 1,627,429 (1,251,917), representing 25.8 (20.0) per cent of the total number of shares. The highest share price quoted was EUR 10.80 (9.84) and the lowest was EUR 7.12 (7.66). The average price of shares traded was EUR 8.94 (8.54). The share turnover for the period was EUR 14.5 (10.7) million. At the end of the review period, the market capitalisation was EUR 67.6 (49.5) million.
Managers' transactions
Apetit's managers' transactions related to Apetit's securities during the review period have been published as stock exchange releases and can be read on the company's website.
SHORT-TERM RISKS AND UNCERTAINTIES
In addition to the impacts of the ongoing COVID-19 pandemic, the most significant short-term risks for Apetit Group are related to the management of raw material price changes, the availability of raw materials, the harvest quality and quantity of grain, oilseed plants and field vegetables, the functioning of the financing markets, the solvency of customers, the delivery performance of suppliers and service providers, and changes in the Group's business areas and customer relationships.
MATERIAL EVENTS AFTER THE END OF THE REVIEW PERIOD
The Group had no material events after the end of the review period.
PROFIT GUIDANCE FOR 2021
The full-year operating profit from continuing operations is expected to improve year-on-year (EUR 3.9 million in 2020).
PUBLICATION OF THE ANNUAL REPORT
Apetit Plc's Annual Report for 2020 — including the Board of Directors' report, the financial statements for 2020, a corporate responsibility report and a separate Corporate Governance Statement — will be published in week 10 on the company's website at www.apetit.fi.
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
17
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| EUR million | 10-12/2020 | 10-12/2019 | 1-12/2020 | 1-12/2019 |
|---|---|---|---|---|
| Continuing Operations | ||||
| NET SALES | 82.0 | 105.4 | 292.9 | 296.9 |
| Other operating income | 0.3 | 0.5 | 1.0 | 1.2 |
| Material and services | -68.0 | -91.5 | -240.3 | -252.4 |
| Employee benefits expense | -5.4 | -5.5 | -20.0 | -21.3 |
| Depreciation and amortisation | -1.6 | -1.1 | -6.1 | -5.5 |
| Impairment | -0.0 | -0.0 | -0.0 | -0.1 |
| Other operating expenses | -6.2 | -8.8 | -23.5 | -23.6 |
| OPERATING PROFIT | 1.1 | -1.1 | 3.9 | -4.8 |
| Financial income | 0.0 | 0.0 | 0.0 | 0.1 |
| Financial expenses | -0.1 | -0.2 | -0.5 | -0.8 |
| Share of profit/loss accounted for using the equity method | 0.6 | 0.5 | 0.3 | -1.0 |
| PROFIT/LOSS BEFORE TAX | 1.6 | -0.7 | 3.7 | -6.4 |
| Tax on income from operations | -0.1 | 0.4 | -0.6 | 0.9 |
| Profit/loss from continuing operations | 1.5 | -0.3 | 3.1 | -5.4 |
| Discontinued Operations | ||||
| Profit/loss from discontinued operations | 0.0 | -0.2 | 0.1 | 1.0 |
| PROFIT/LOSS FOR THE PERIOD | 1.5 | -0.5 | 3.2 | -4.4 |
Basic and diluted earnings per share calculated on profit attributable to equity holders of the parent
| Continuing operations | 0.24 | -0.05 | 0.49 | -0.87 |
|---|---|---|---|---|
| Discontinued operations | 0.01 | -0.02 | 0.02 | 0.16 |
| To the shareholders of the parent company | 0.25 | -0.08 | 0.52 | -0.71 |
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
| Exchange differences on translating foreign operations | -0.0 | 0.1 | -0.0 | 0.1 |
|---|---|---|---|---|
| Cash flow hedges | 1.8 | -1.2 | 0.8 | -0.4 |
| Taxes related to cash flow hedges | -0.3 | 0.2 | -0.2 | 0.1 |
| 1.5 | -0.9 | 0.6 | -0.2 | |
| TOTAL COMPREHENSIVE INCOME | 3.0 | -1.4 | 3.8 | -4.7 |
| Total comprehensive income attributable to: | ||||
| Owners of the parent company | 3.0 | -1.4 | 3.8 | -4.7 |
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million
31.12.2020
31.12.2019
ASSETS
NON-CURRENT ASSETS
| Intangible assets | 2.3 | 2.1 |
|---|---|---|
| Goodwill | 0.4 | 0.4 |
| Property, plant, equipment | 36.1 | 33.1 |
| Right-of-use assets | 4.6 | 4.1 |
| Shares in associated companies | 19.7 | 19.4 |
| Other non-current financial assets | 0.3 | 0.3 |
| Non-current trade and other receivables | 0.0 | 0.0 |
| Deferred tax assets | 4.3 | 5.0 |
| NON-CURRENT ASSETS | 67.7 | 64.4 |
CURRENT ASSETS
| Inventories | 58.7 | 66.4 |
|---|---|---|
| Trade receivables and other receivables | 15.2 | 37.0 |
| Cash and cash equivalents | 1.1 | 2.9 |
| CURRENT ASSETS | 75.1 | 106.3 |
| ASSETS | 142.8 | 170.8 |
| --- | --- | --- |
EQUITY AND LIABILITIES
| Owners of the parent company | 95.0 | 93.9 |
|---|---|---|
| EQUITY | 95.0 | 93.9 |
NON-CURRENT LIABILITIES
| Deferred tax liabilities | 0.1 | 0.1 |
|---|---|---|
| Non-current liabilities, interest-bearing | 3.9 | 4.4 |
| Non-current interest-free liabilities | 0.2 | 0.3 |
| Liabilities from defined benefit plan | 0.2 | 0.2 |
| NON-CURRENT LIABILITIES | 4.4 | 5.0 |
CURRENT LIABILITIES
| Current interest-bearing liabilities | 17.8 | 32.2 |
|---|---|---|
| Trade Payables and Other Liabilities | 25.6 | 39.5 |
| CURRENT LIABILITIES | 43.4 | 71.6 |
| Liabilities of a disposal group held for sale | - | 0.2 |
| --- | --- | --- |
| Liabilities | 47.8 | 76.8 |
| EQUITY AND LIABILITIES | 142.8 | 170.8 |
| --- | --- | --- |
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
CONSOLIDATED STATEMENT OF CASH FLOWS
| EUR million | 1-12/2020 | 1-12/2019 |
|---|---|---|
| PROFIT/LOSS FOR THE PERIOD | 3.2 | -4.4 |
| Adjustments to cash flow from operating activities | 6.9 | 4.7 |
| Working capital changes | 17.3 | -5.5 |
| Interest paid | -0.5 | -0.7 |
| Interest received | 0.0 | 0.0 |
| Income taxes paid | -0.1 | -0.1 |
| Net cash from operating activities | 26.8 | -5.9 |
| Purchase of tangible and intangible assets | -7.9 | -12.3 |
| Proceeds from sale of tangible and intangible assets | 0.0 | 0.0 |
| Acquisition of subsidiaries, net of cash acquired | -1.0 | |
| Proceeds from sales of business operations | -0.1 | 13.3 |
| Purchase of investments | -0.0 | |
| Proceeds from sale of investments | -0.0 | 0.4 |
| Dividends received | 0.0 | 0.0 |
| Net cash used in investing activities | -8.9 | 1.4 |
| Addition / deduction of current borrowings | -14.3 | 9.0 |
| Repayment of non-current borrowings | -1.0 | -1.0 |
| Payment of lease liabilities | -1.6 | -1.5 |
| Proceeds from disposal of shares on the joint book-entry account | - | 0.7 |
| Dividends paid | -2.8 | -2.5 |
| Net cash used in financing activities | -19.7 | 4.8 |
| Net change in cash and cash equivalents | -1.8 | 0.2 |
| Cash and cash equivalents at the beginning of the period | 2.9 | 2.6 |
| Cash and cash equivalents at the end of the period | 1.1 | 2.9 |
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
A = Share capital
B = Share premium
C = Treasury shares
D = Fair value reserve
E = Other reserves
F = Translation differences
G = Retained earnings
H = Total equity
1-12/2020
| EUR million | A | B | C | D | E | F | G | H |
|---|---|---|---|---|---|---|---|---|
| Equity 1.1. | 12.6 | 23.4 | -1.3 | -0.5 | 7.2 | -0.0 | 52.6 | 93.9 |
| Total comprehensive income | -0.0 | - | - | 0.6 | - | -0.0 | 3.2 | 3.8 |
| Dividend distribution | - | - | - | - | - | - | -2.8 | -2.8 |
| Other changes | - | - | 0.1 | 0.0 | - | - | -0.0 | 0.1 |
| Equity 31.12. | 12.6 | 23.4 | -1.3 | 0.1 | 7.2 | -0.0 | 53.0 | 95.0 |
1-12/2019
| EUR million | A | B | C | D | E | F | G | H |
|---|---|---|---|---|---|---|---|---|
| Equity 1.1. | 12.6 | 23.4 | -1.4 | -0.2 | 7.2 | -0.2 | 59.6 | 101.1 |
| Total comprehensive income | -0.0 | - | - | -0.3 | - | 0.1 | -4.4 | -4.7 |
| Dividend distribution | - | - | - | - | - | - | -2.5 | -2.5 |
| Proceeds from disposal of shares on the joint book-entry account | - | - | - | - | - | - | 0.6 | 0.6 |
| Effect on transition to IFRS 16 | - | - | - | - | - | - | -0.2 | -0.2 |
| Share of direct equity entries in associates | - | - | - | - | - | - | -0.4 | -0.4 |
| Other changes | 0.0 | -0.0 | 0.0 | 0.0 | - | 0.0 | -0.2 | -0.1 |
| Equity 31.12. | 12.6 | 23.4 | -1.3 | -0.5 | 7.2 | -0.0 | 52.6 | 93.9 |
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
ACCOUNTING PRINCIPLES
The Interim report has been prepared in accordance with the IAS 34-standard (Interim Financial Reporting). The accounting policies adopted are consistent with those described in the annual financial statements for 2019, except for the ROCE-%, the calculation formula of which was updated in connection with the new segment structure and the discontinuation of the use of alternative performance measures.
Presentation of changes in the Group structure
Apetit Suomi Oy merged with Apetit Ruoka Oy and Safu Oy merged with Apetit Ruokaratkaisut Oy on 1st January 2020.
Key employees' share holdings in Foison Oy was treated as liability instruments in Apetit's Group balance sheet due to certain terms and conditions of repurchase. Foison Oy owns 10% of Avena Nordic Grain Oy's share capital. The Group recognised earlier financial expense related to the key employees' dividend right from Avena Group. Foison Oy is fully owned by Apetit Oyj 30.12.2020 onwards.
New segment structure and discontinuing the use of alternative performance measures
In addition to the three reporting segments (Food Solutions, Oilseed Products, Grain Trade), Apetit will report Group Functions, consisting of the expenses related to Group management, strategic projects and listing on the stock exchange that are not allocated to the three business segments.
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
DISCONTINUED OPERATIONS
Discontinued operations include the fresh cut products business, which was classified as a discontinued operation in 2019 and was sold in 2019 to the Swedish Greenfood Group. In addition, the result for 2019 of discontinued operations includes an impairment charge of EUR 0.1 million on the remaining purchase price receivable of the seafood segment sold in 2017.
Result from discontinued operations
| 1-12/ | 1-12/ | |
|---|---|---|
| EUR million | 2020 | 2019 |
| Income | 0.0 | 15.8 |
| Expenses | 0.1 | -14.4 |
| Operating profit | 0.2 | 1.4 |
| Financial income and expense | -0.0 | -0.1 |
| Profit before taxes | 0.2 | 1.3 |
| Income taxes | -0.0 | -0.3 |
| Profit for the period, discontinued operations | 0.1 | 1.0 |
Carrying amount of net assets sold
| 1-12/ | 1-12/ | |
|---|---|---|
| EUR million | 2020 | 2019 |
| Tangible assets | - | 11.3 |
| Inventories | - | 0.4 |
| Trade receivables and other current receivables | - | 0.0 |
| Trade payables and other current liabilities | - | -0.6 |
| Net assets sold | - | 11.0 |
Consideration received
| 1-12/ | 1-12/ | |
|---|---|---|
| EUR million | 2020 | 2019 |
| Cash received | - | 13.8 |
| Costs attributable to the sales of business and adjustments to consideration | -0.1 | -0.5 |
| Net cash flow from disposal of business | -0.1 | 13.3 |
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
SEGMENT INFORMATION
A = Food solutions
B = Oilseed products
C = Grain trade
D = Group Functions
E = Continuing Operations
F = Discontinued Operations
G = Apetit Group
1-12/ 2020
EUR million
| A | B | C | D | E | F | G | |
|---|---|---|---|---|---|---|---|
| Segment net sales | 60.1 | 65.8 | 194.3 | - | 320.3 | 0.0 | 320.3 |
| Intra-group net sales | -0.0 | -0.4 | -26.9 | - | -27.3 | 0.0 | -27.3 |
| Net sales | 60.1 | 65.5 | 167.4 | - | 292.9 | 0.0 | 293.0 |
| Operating profit | 5.0 | 2.0 | 0.1 | -3.2 | 3.9 | 0.2 | 4.1 |
| Gross investments in non-current assets | 2.9 | 4.7 | 0.1 | 0.1 | 7.8 | - | 7.8 |
| Business acquisitions and other investments | 0.0 | - | - | - | 0.0 | - | 0.0 |
| Depreciation and amortisation | -3.4 | -1.0 | -0.9 | -0.8 | -6.1 | - | -6.1 |
| Impairment | -0.0 | - | - | -0.0 | -0.0 | - | -0.0 |
| Personnel, FTE | 235 | 43 | 53 | 12 | 343 | 0 | 343 |
1-12/ 2019
EUR million
| A | B | C | D | E | F | G | |
|---|---|---|---|---|---|---|---|
| Segment net sales | 58.9 | 65.0 | 194.9 | - | 318.8 | 15.8 | 334.6 |
| Intra-group net sales | -0.0 | -0.3 | -21.6 | - | -21.9 | -0.0 | -22.0 |
| Net sales | 58.9 | 64.7 | 173.3 | - | 296.9 | 15.7 | 312.6 |
| Operating profit | 2.5 | 1.5 | -5.6 | -3.1 | -4.8 | 1.4 | -3.4 |
| Gross investments in non-current assets | 10.0 | 1.3 | 0.1 | - | 11.5 | 0.3 | 11.8 |
| Business acquisitions and other investments | - | - | - | - | - | - | - |
| Depreciation and amortisation | -3.3 | -0.9 | -0.8 | -0.5 | -5.5 | -0.7 | -6.2 |
| Impairment | -0.1 | - | - | - | -0.1 | 0.0 | -0.1 |
| Personnel, FTE | 255 | 43 | 55 | 14 | 367 | 85 | 452 |
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
Apetit Plc – Financial Statements Release 1 January to 31 December 2020
| GROUP KEY INDICATORS | 2020 | 2019 |
|---|---|---|
| Shareholders' equity per share, EUR | 15.26 | 15.09 |
| Equity ratio, % | 66.5 | 55.0 |
| Net gearing, % | 21.7 | 35.9 |
| Gross investments in non-current assets, EUR million | 7.8 | 11.8 |
| Business acquisitions and other investments, EUR million | 0.0 | - |
| Personnel, FTE | 343 | 452 |
| Average adjusted number of shares | 6,223,332 | 6,217,142 |
The formulas for the key indicators are presented in the 2019 annual financial statements.
COLLATERAL, CONTINGENT LIABILITIES, CONTINGENT ASSETS AND OTHER COMMITMENTS
| EUR million | 31.12.2020 | 31.12.2019 |
|---|---|---|
| Pledges given for debts | ||
| Guarantees | 2.2 | 2.3 |
| Non-cancellable service agreements that have not been capitalised in the balance sheet | ||
| Within one year | 1.0 | 1.5 |
| After one year but not more than five years | 1.2 | 2.9 |
| Total | 2.3 | 4.5 |
| Nominal values of derivative instruments | ||
| Currency derivatives, no cash flow hedge accounting | - | 0.7 |
| Commodity derivatives, cash flow hedge accounting | 37.5 | 27.7 |
| Commodity derivatives, no cash flow hedge accounting | 0.6 | 8.0 |
| Interest rate swaps, no cash flow hedge accounting | 11.4 | 12.4 |
| Contingent assets | ||
| Claim for damages associated with the foreign grain supplier's neglect of delivery | 3.1 | 3.1 |
| Investment commitments | ||
| Food Solutions | 0.1 | 1.4 |
| Oilseed products | 1.7 | 3.3 |
25
CHANGES IN TANGIBLE ASSETS
| EUR million | 1-12/2020 | 1-12/2019 |
|---|---|---|
| Book value at the beginning of the period | 37.2 | 37.2 |
| Additions | 7.7 | 19.9 |
| Disposals | -0.0 | -14.5 |
| Reclassifications | 2.0 | 0.2 |
| Depreciation, amortisation and impairment | -5.6 | -5.5 |
| Other changes | -0.6 | -0.2 |
| Book value at the end of the period | 40.7 | 37.2 |
Tangible assets include right-of-use items in accordance with IFRS16
RELATED PARTY TRANSACTIONS
| EUR million | 1-12/2020 | 1-12/2019 |
|---|---|---|
| Sales to associated companies | 0.6 | 0.7 |
| Purchases from associated companies | 3.5 | 4.2 |
| Trade receivables and other receivables from associated companies | 0.1 | 0.1 |
| Trade payables and other liabilities to associated companies | 0.7 | 0.8 |
| Sales to other related parties | 0.1 | 0.1 |
| Purchases from other related parties | 0.6 | 0.6 |
| Receivables from other related parties | 0.0 | 0.0 |
| Liabilities to other related parties | 0.3 | 0.3 |
Säkylä, 18 February 2021
APETIT PLC
Board of Directors
Apetit Plc – Financial Statements Release 1 January to 31 December 2020