15.2.2024 08:30:01 EET | Apetit Oyj | Financial Statement Release

Apetit Plc: Financial Statements Release 1 January to 31 December 2023: Apetit’s result clearly improved

October–December 2023, continuing operations*)

• Net sales amounted to EUR 42.6 (46.6) million. EBITDA was EUR 3.7 (4.5) million. Operating profit was EUR 2.2 (3.0) million. The net sales were decreased by stabilisation of market prices in oilseed products.
• The net sales of Food Solutions were EUR 19.8 (17.1) million and operating profit EUR 2.0 (1.8) million. Both net sales and sales volumes increased from comparison period.
• The net sales of Oilseed Products were EUR 22.9 (29.7) million and operating profit EUR 0.9 (1.7) million. Operating profit decreased from the comparison periods exceptionally strong result.

January–December 2023, continuing operations*)

• Net sales were EUR 175.5 (181.7) million. EBITDA was EUR 13.2 (9.2) million. Operating profit was EUR 7.5 (3.5) million. Both business segments improved their result.
• The net sales of Food Solutions were EUR 73.7 (64.2) million and operating profit EUR 5.8 (4.2) million. Net sales grew in all sales channels. The impact of inflation, which has weakened profit development, was successfully moderated, which had a positive impact on the result.
• The net sales of Oilseed Products were EUR 102.4 (118.2) million and operating profit EUR 4.6 (1.5) million. Net sales decreased due to stabilisation of market prices. Raw material sourcing was successful throughout the year. International crush margins were at an elevated level during the entire calendar year.

October–December 2023, Group, incl. discontinued operations**)

• The Group’s net sales were EUR 42.6 (46.6) million. EBITDA was EUR 3.7 (4.4) million. Operating profit was EUR 2.2 (2.9) million.
• The net sales of Grain Trade were EUR 0.0 (0.0) million and operating profit EUR 0.0 (-0.1) million.

January–December 2023, Group, incl. discontinued operations**)

• The Group’s net sales were EUR 175.5 (231.8) million. EBITDA was EUR 13.1 (12.4) million. Operating profit was EUR 7.5 (6.2) million.
• The net sales of Grain Trade were EUR 0.0 (67.2) million and operating profit EUR -0.1 (2.7) million.
• The Group’s liquidity was good, and its financial position was strong. The equity ratio was 78.9 (81.8) per cent and gearing was -5.7 (-13.2) per cent. The Group’s cash flow from operating activities after interest and taxes was EUR 9.7 (28.4) million. The figure in comparison year was mainly attributable to the divestment of the Grain Trade business.

*) Apetit’s continuing operations are Food Solutions and Oilseed Products. In addition, Apetit reports Group Functions, consisting of the expenses related to Group management, strategic projects and listing on the stock exchange, that are not allocated to the business segments.

**) Grain Trade has been reported as a discontinued operation starting from the Q1/2022 Business Review. The divestment of the Grain Trade business was completed in stages during the first half of 2022.

The figures for 2023 and 2022 have been audited. The quarterly and six-month figures are unaudited. The figures in brackets refer to the corresponding period in 2022, and the comparison period means the corresponding period in 2022, unless otherwise stated.

PROFIT GUIDANCE FOR 2024

Group’s operating profit is estimated to stay at the level of the comparison year (EUR 7.5 million in 2023). The operating profit from Food Solutions is estimated to further improve. In Oilseed Products, the operating profit is expected to decline due to outlook of market prices.

BOARD OF DIRECTORS’ DIVIDEND PROPOSAL

The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.75 per share be paid for the financial year 2023.

Esa Mäki, CEO:

“Operating profit from Apetit’s continuing operations clearly improved year-on-year. In Oilseed Products, profit improvement was significant and raw material sourcing was successful throughout the year. International crush margins were at an exceptionally elevated level during the entire calendar year. In Food Solutions, the sales developed favourably. The impact of inflation, which has weakened profit development, was successfully moderated. Throughout the year, price increases were made in Food Solutions. Long-term work in product development and product portfolio management had positive impacts on Apetit’s result.

The Group’s full-year net sales decreased from the comparison year due to the fact that market prices decreased in oilseed products. In Food Solutions, net sales increased year-on-year in all sales channels. Sales volumes grew in the Food service sector and exports and remained at the comparison year’s level in retail trade and industrial sales.

We took significant strategic steps in 2023. In October, we announced an approximately EUR 4.5 million investment in a new bottling line to be built at the Kantvik vegetable oil milling plant. It is our goal, that the new line will become operational during the second half of 2024. The investment follows Apetit’s strategy of speeding up growth. It enables us to take the vegetable oil supply chain more firmly into our own hands and develop products with a higher degree of processing.

The ongoing ERP project has progressed according to the planned schedule. The first implementation phase of the project between November and December was successful. A large and important project demands a lot from the personnel. Strategically significant ERP system is carried out in project groups that cross the group's organizational boundaries.

We established sales organisation in Sweden to boost food exports. Apetit’s foothold in Sweden has strengthened as our products have expanded into new retailer groups. The share of food exports in net sales increased in 2023. Net sales from exports to Sweden increased slightly year-on-year.

The commercialisation of the rapeseed protein ingredient BlackGrain progresses. In 2023, we took important steps in production process development towards starting commercial scale production. We will tell more about our long-term plans on BlackGrain in the second half of 2024.

We also launched a project to produce Finnish pea protein. The pea is one of the most used plant proteins worldwide, but thus far there has been no pea protein production in Finland. Apetit’s expertise in plant-based raw materials and strong cooperation with Finnish primary production lay a solid foundation for the project. “More domestic plant proteins” is one of Apetit’s strategic focus areas.

Apetit was the driving force in the establishment of the new domestic oilseed plant production development group, RypsiRapsi-foorumi. Domestic rapeseed harvest has been worryingly low in recent years. With the forum we want to produce practical information and efficient rapeseed cultivation methods. The goal is to promote the cultivation of domestic rapeseed and its profitability.

We have reduced CO2 emissions caused by our use of energy by 68 per cent compared to 2019. Apetit’s production facilities have gone through a major energy transition in recent years and 74 per cent of the energy we used in 2023 was from renewable sources. The Säkylä frozen foods plant’s new energy solution that is based on heat recovery and enables the use of biogas was deployed in summer 2023.

Strong cost inflation influenced the past operating year and consumer purchasing behaviour. Affordable price plays an increasingly important role in purchasing decisions. Apetit’s product range is an excellent match to consumer demand. In addition to the price, important factors influencing purchase decisions are long-term trends, such as healthiness and sustainability.

In early 2023, we conducted a survey on Finnish consumers’ perceptions concerning frozen vegetables. Approximately one in three Finns say that they buy frozen vegetables almost every time they go grocery shopping and about nine out of ten consider frozen vegetables to be excellent help in making everyday life easier and increasing the use of vegetables. Approximately 85 per cent of Finns consider frozen vegetables to be a sustainable choice. Apetit focuses on domestic and plant-based raw materials as well as products that promote well-being and sustainable consumption. We continue our efforts to seek growth from diverse plant-based food solutions and added-value products. The past year indicates that Apetit is on the right track.

I would like to warmly thank all Apetit employees and for their cooperation the owners, customers, contract growers and other partners for the year 2023.”

KEY FIGURES

WEBCAST

A news conference (in Finnish) will be held as a live webcast on Thursday, 15 February 2024 at 10:00 a.m. The news conference can be followed at apetit.fi/sijoittajille. The presentation material and a recording of the webcast will be available on the company’s website after the news conference.

Contacts

• Esa Mäki, CEO, Apetit Oyj, +358104022100, esa.maki@apetit.fi

About Apetit Oyj

Apetit is a food industry company firmly rooted in Finnish primary production. Our operations are based on a unique and sustainable value chain: we create well-being with vegetables by offering tasty food solutions that make daily life easier and produce high-quality vegetable oils and rapeseed expellers for feeding stuff. Apetit Plc's shares are listed on Nasdaq Helsinki. Read more: apetit.fi

Attachments

• Apetit-Plc_Financial-Statements-Release-2023.pdf