March 10 - Altia Group's growth continued and its operating profit improved, but non-recurring items affected the company's profit for 2007.
The International Financial Reporting Standards-compliant (IFRS) comparison is based on figures for the corresponding period in 2006, unless noted otherwise. The figures are unaudited.
October–December 2007 in brief
• Net sales increased by 3.0 per cent to EUR 139.4 (135.3) million.
• Operating profit excluding non-recurring items was EUR 6.8 (5.8) million and EUR 4.8 (2.9) million including non-recurring items.
• Net profit for the period under review amounted to EUR 3.9 (5.2) million, and EUR 1.1 (3.2) million including non-recurring items.
• Operating profit for October–December was affected by non-recurring items at a net amount of EUR 2.0 (0.0) million.
January–December 2007 in brief
• Net sales increased by 7.0 per cent to EUR 494.7 (462.4) million.
• Operating profit excluding non-recurring items was EUR 17.1 (15.8) million and EUR -47.0 (15.1) million including non-recurring items.
• Net profit for the fiscal year excluding non-recurring items and their tax effects was EUR 9.2 (10.3) million and EUR -48.9 (9.7) million including non-recurring items.
• Operating profit for January–December was affected by non-recurring items at a net amount of EUR 64.1 (0.5) million.
• non-recurring impairments, expenses and reservations totalling EUR 66.6 million, and
• income of EUR 2.3 million from the sale of the vinegar business and EUR 0.2 million in periodised compensation claims.
• Equity ratio was 30.4 per cent (38.1 per cent) on 31 December 2007. Gearing was 77.4 per cent (51.5 per cent) on 31 December 2007.
Altia Group October–December 2007
(IFRS comparison with the figures for October–December 2006, unless otherwise stated.)
Altia Group's net sales increased by 3.0 per cent to EUR 139.4 (135.3) million. Operating profit for the fourth quarter amounted to EUR 4.8 (2.9) million and operating profit as a percentage of net sales was 3.4 (2.2). The growth in net sales slowed down mainly due to changes to the supplier portfolio. During the fourth quarter Group company inventories have been entered as obsolete items and scrapping items to a total value of EUR 0.5 million in connection with the development of the supplier portfolio.
Other operating income amounted to EUR 1.0 (1.6) million.
The Group's personnel costs totalled EUR 17.0 (18.4) million. The decrease in personnel costs in comparison with those of the previous year is mainly due to corrective periodisation carried out in connection with the 2007 annual bonus system in December 2007.
Other operating expenses amounted to EUR 19.8 (18.6) million.
Financial expenses for the second quarter amounted to EUR 1.4 (-1.3) million.
Net profit for the fourth quarter of 2007 amounted to EUR 1.1 (3.2) million. The figures reported for the fourth quarter include a total of EUR 2.0 million in non-recurring expenses and periodisations.
Altia Group January–December 2007
(IFRS comparison with the figures for January–December 2006, unless otherwise stated.)
Altia Group's net sales increased by 7.0 per cent to EUR 494.7 (462.4) million. Operating profit amounted to EUR -47.0 (15.1) million. The growth in net sales in comparison with those of the previous year was due to the addition of the net sales figures for two companies acquired in 2006 and 2007: SIA Mobil Plus ADV with net sales of EUR 19.5 (13.4) million and Vintappergaarden A/S with EUR 1.4 (0) million. Operating profit includes non-recurring expense items and provisions totalling EUR 66.7 million, as well as EUR 2.5 million in income received from the sale of the vinegar business and as periodised profit. During the fiscal year Group company inventories have been entered as obsolete items and scrapping items to a total value of EUR 0.9 million.
Other operating income amounted to EUR 8.2 (5.9) million. Other operating income includes a non-recurring income item received from the sale of the vinegar business in the second quarter.
The Group's personnel costs totalled EUR 65.0 (59.5) million. The EUR 5.5 million increase in personnel costs was due to an increase of EUR 4.3 million in salary expenses and EUR 0.7 million in pension expenses. The figures for 2007 also include an expense for the 2006 annual bonus of EUR 0.6 million. Non-recurring expenses in the personnel costs reported for 2007 amount to EUR 2.2 million.
Other operating expenses amounted to EUR 73.6 (66.0) million.
Financial expenses for the period January–September 2007 amounted to EUR 4.5 (1.7) million. The figures for the 2006 fiscal year included a significant non-recurring financial income item.
Net loss for 2007 amounted to EUR -48.9 (9.7) million.
Non-recurring items during the 2007 fiscal year
The Group's figures for the 2007 fiscal year include non-recurrent expenses amounting to EUR 66.6 million and non-recurring income totalling EUR 2.5 million.
Non-recurring items affecting the operating profit figures included in the report:
- EUR 60.0 million impairment of the Group's goodwill and intangible assets based on updated impairment testing. Depreciation focused on Swedish and Finnish units that produce cash flow.
- Personnel expenses of EUR 2.2 million in connection with reorganisation.
- Non-recurring expenses totalling EUR 3.2 million due to the disposal of the fuel ethanol investment.
- Other non-recurring expense items amounting to EUR 1.3 million.
- Profit of EUR 2.3 million received from the sale of the food industry operations.
- Periodised profit of EUR 0.2 million received in compensation for unresolved civil case.
Outlook for the near future and post-balance sheet date events
In the Finnish market, the first quarter of 2008 is expected to be on a par with the corresponding period in 2007. In the other Nordic markets, sales are expected to increase at a moderate pace in comparison with those of the first quarter of 2007. In the Baltic market, total sales are expected to remain at the 2007 level. Our goal will be to further increase our proprietary and supplier product market shares in all Nordic countries and in the Baltic region.
Altia Corporation is a growing wine, beer and spirit distributor with unique consumer knowledge of the Nordic and Baltic markets. It imports, markets, produces and exports alcoholic beverages. Altia represents international quality brands form all over the world. It also distils barley spirit for beverages, and has a strong range of proprietary products. The annual sales total almost 500 million euros. Altia has over 1100 employees in six countries.