Interim report July–September 2013

Transcription

Q3
Interim report
July–September 2013
CANDYKING INTERIM REPORT JULY–SEPTEMBER 2013
Interim Report, Q3, July–September 2013
THIRD QUARTER
FIRST NINE MONTHS
olume increased 12.8% in the third quarter, which was primarily
V
attributable to new customers.
Volume increased 5.1% and the strongest growth was in the Other
markets segment.
et sales rose 8.4% to MSEK 427.6 (394.5). Mesured in constant
N
currency, the increase was 8.7%.
et sales rose 0.2% to MSEK 1,290.9 (1,288.7). Mesured in constant
N
currency, the increase was 1.8%.
Underlying EBIT amounted to MSEK 24.8 (22.5), up 10.2% due to
increased net sales combined with the effects of the implemented
cost-saving programme.
Underlying EBIT amounted to MSEK 69.5 (59.7), up 16.5%.
T he initiative in Central and Eastern Europe negatively impacted
the underlying EBIT by MSEK 10.2 (neg: 9.8) in the first nine months.
T he initiative in Central and Eastern Europe negatively impacted
the underlying EBIT by MSEK 3.1 (neg: 2.4) in the third quarter.
The result per share for the first nine months was a loss of SEK
58.90 (loss: 43.26).
The result per share for the period was a loss of SEK 9.62 (loss: 9.45).
Candyking posted a net sales growth of 8.4% in the third quarter and an improvement in
the underlying EBIT of slightly more than 10%. It was positive to note that all three segments
reported growth. To date in 2013, the focus has been on efficiency enhancements and
structural changes. Now that the lion’s share of these activities has been implemented,
Candyking’s resources will increasingly be redeployed towards achieving continued growth
and concept innovation.
David von Laskowski, Chief Executive Officer
SUMMARY OF FINANCIAL DEVELOPMENT
Third quarter
Jul–Sep
2013
MSEK
Jul–Sep
2012
Change,
%
Jan–Sep
2013
Jan–Sep
2012
Change,
%
Rolling 12
months
Full year
Oct 2012–
Sep 2013
Jan–Dec
2012
Volume (tonnes)
10,611
9,409
12.8
31,673
30,127
5.1
42,401
40,855
Net sales
427.6
394.5
8.4
1,290.9
1,288.7
0.2
1,750.2
1,748.0
Underlying EBIT 1
24.8
22.5
10.2
69.5
59.7
16.5
100.2
90.4
Underlying EBITDA
39.7
33.0
20.3
112.9
91.2
23.7
160.8
139.2
Profit (loss) for the period
0.0
–0.9
–
–33.8
–19.8
70.9
–41.9
–27.8
Earnings per share (SEK)2
–9.62
7.7
neg.
–9.45
26.4
neg.
1.8
–70.9
–58.90
98.6
neg.
–43.26
110.6
neg.
36.2
–10.8
–74.72
191.2
neg.
–59.08
203.2
neg.
Cash flow from operating activities
Return on shareholders’ equity
1
First nine months
See definitions on page 21
2
Net profit was charged with coupon interest pertaining to preference shares outstanding, in line with the applicable terms.
CONTACT INFORMATION
FINANCIAL CALENDAR
David von Laskowski, Chief Executive Officer: +46 8 795 03 00
Johan Lindgren, Group CFO & VP Business Support +46 8 795 03 00
Year-end report 2013
Q1 interim report 2014
Annual General Meeting
Q2 interim report 2014
PRESS AND ANALYST MEETING
Candyking will not be holding a press and analyst meeting in connection with the publication of today’s third-quarter interim report. In
case of questions regarding the report, please contact CEO David von
Laskowski or CFO Johan Lindgren.
21 February 2014
5 May 2014
6 May 2014
8 August 2014
The information was issued for publication on 1 November 2013 at
1:00 p.m. This Report has been prepared in Swedish and English
language versions. The Swedish version has precedence in the case
of any differences between the two reports.
2
CEO’s comments
Candyking posted a net sales growth of 8.4% in the third quarter. The
growth was primarily attributable to new customers in the segments
Other markets and Sweden, as well as growth among existing customers, mainly in Norway. It was particularly pleasing to note growth in
all three segments and that Sweden returned to growth after a period
of slightly weaker market conditions. This spring’s roll-out in IKEA’s
European stores affected the quarter positively and we are expecting
a future growth in sales and full year effects during next year with this
customer. Candyking is also engaged in exciting discussions with
new potential customers, mainly within the segment Other markets.
during the year. We have also acted to increase the offerings’ flexibility
to facilitate a more tailored solution to a wider target group. Now that
the lion’s share of these activities has been implemented, Candyking’s
resources will increasingly be redeployed towards achieving continued
growth and concept innovation.
David von Laskowski,
Chief Executive Officer
The underlying EBIT increased in the third quarter with 10.2%. This
was partly attributable to the increase in net sales and partly due to
lower costs as a result of the cost-saving programme implemented
in 2012 and 2013.
Our initiatives in Central and Eastern Europe continue, although the
impact on earnings has been negative in the short term.
For most of 2012 and 2013, the focus has been on efficiency enhancements and structural change. We expect positive full-year effects in
the forthcoming year from the cost-saving measures implemented
+8.4%
Net sales growth
35.6%
Gross margin
+10.2%
Underlying EBIT growth
3
The Group’s development
Volume
Volume in the third quarter rose 12.8% year-on-year. All segments
reported growth, with the strongest increase noted in the Other markets
segment.
Volume in the first nine months rose 5.1% year-on-year. Growth was
mainly attributable to the Denmark, Finland & Norway segment as
well as to Other markets. Sweden has experienced a soft development
due to weaker demand.
Net sales
A year-on-year increase of 8.4% was posted for net sales during the
third quarter. Net sales increased 8.7% measured at fixed exchange
rates. The increase was attributable to growth in all segments, driven
by new customers. The increase in net sales was 4.4 percentage
points lower than the increase in volume. The difference was mainly
due to most of the growth being driven by certain customers in the
Other markets segment, where full in-store service was not included.
In the first nine months, net sales increased 0.2% year-on-year,
corresponding to an increase of 1.8% measured in fixed exchange rates.
The increase was primarily attributable to new customers in the Other
markets segment, offsetting a weak sales development in Sweden.
CHANGE IN NET SALES
30.1 %
20.6 %
8.4 %
6.4 %
–5.8 %
2.4 %
Sweden
Jan–Sep
0.8 %
0.2 %
Denmark, Finland
& Norway
Jul–Sep
Other
markets
Candyking
Change in net sales, %
Exchange rates fluctuation
Jul–Sep
2013
Jan–Sep
2013
–0.4
–1.6
Structural changes
0.0
0.0
Organic growth
8.7
1.8
Total
8.4
0.2
Gross margin
The gross margin declined to 35.6% in the third quarter of 2013, compared with 35.8% for the corresponding period in 2012. The decline in the
gross margin derived primarily from growth in customers generating
a lower gross margin, due to an offering that did not include full
in-store service.
In the first nine months, the gross margin increased 1.4 percentage
points year-on-year to 36.5% (35.1%), due to assortment launches and
enhanced purchasing procedures.
Underlying EBIT
The underlying EBIT for the third quarter increased to MSEK 24.8 compared with MSEK 22.5 for the corresponding year-earlier period. The
improvement was primarily attributable to increased volumes in all
segments combined with lower costs. The initiatives in Central and
Eastern Europe negatively impacted the underlying EBIT by MSEK 3.1
(neg: 2.4) in the third quarter.
The underlying EBIT for the first nine months increased to MSEK
69.5, compared with MSEK 59.7 for the corresponding year-earlier
period, representing an increase of 16.5%. The increase was primarily
attributable to a higher gross margin combined with the effects of the
implemented cost-saving programme. The initiatives in Central and
Eastern Europe negatively impacted the underlying EBIT by MSEK 10.2
(neg: 9.8) in the first nine months.
Net profit for the third quarter was MSEK 0.0 compared with a loss of
MSEK 0.9 for the corresponding year-earlier period. The improvement
in earnings was due to the increase in operating profit. Financial
expenses increased MSEK 11.0, which was due to revaluations of
shareholder and mezzanine loans in EUR, which negatively impacted
earnings for the period.
Net profit for the first nine months was a loss of MSEK 33.8 compared
with a loss of MSEK 19.8 for the corresponding year-earlier period.
The decline was primarily due to increased financial expenses in the
January–September period.
4
The Group’s development
Cash flow from operating and investing activities
Financial position
Cash flow from operating and investing activities for the third quarter was MSEK 1.7 compared with MSEK 17.2 for the corresponding
year-earlier period. The lower cash flow was mainly due to changes
in working capital, which primarily resulted from increased higher
receivables due to a rise in net sales.
Cash flow from operating and investing activities in the first nine
months was MSEK 36.0, compared with MSEK 77.6 for the year-earlier
period. The decline was mainly due to an increase of MSEK 29.6 in
investments in tangible and intangible assets, which resulted from an
increased pace of expansion, the launch of new display solutions in
selected markets and renewed customer contracts.
Net debt at 30 September 2013 was SEK 721.4 M (748.0), compared
with net debt of MSEK 702.1 at 31 December 2012. Cash and cash
equivalents, excluding unutilised overdraft facilities, at the end of the
period amounted to MSEK 4.5 (4.1).
Investments, amortisation and depreciation
In the third quarter of 2013, investments declined year-on-year by MSEK
3.2 to MSEK 6.0 (9.2). The decline was primarily due to installations
and the exchange of display solutions being performed at different
times between the years. Depreciation and amortisation for the
period increased MSEK 4.4 year-on-year due to an increased pace of
expansion and renewed customer contracts.
In the first nine months of 2013, investments also increased by MSEK
29.6 compared with the year-earlier period due to an increased pace of
expansion, the launch of new display solutions in selected markets and
renewed customer contracts. The MSEK 11.8 increase in amortisation
and depreciation in the first nine months of 2013 compared with the
corresponding period in 2012 resulted from the higher investment
level in latter year.
MSEK
Long-term loans, gross
30 Sep
2013
30 Sep
2012
30 Dec
2012
612.3
636.9
618.4
Current borrowings, gross
58.4
60.4
59.8
Bank overdraft facilities
55.7
53.1
28.1
Financial derivative instruments
0.5
1.8
4.3
Other interest-bearing liabilities
3.9
3.8
3.9
730.9
755.9
714.5
Gross debt
Financial derivative instruments
Other financial assets
Cash and cash equivalents
Net debt
1.1
0.0
0.7
3.9
3.8
3.9
4.5
4.1
7.9
721.4
748.0
702.1
5
Segment reporting
SWEDEN
Third quarter
Rolling 12
months
Full year
Change,
%
Oct 2012–
Sep 2013
Jan–Dec
2012
First nine months
Jul–Sep
2013
Jul–Sep
2012
Change,
%
Jan–Sep
2013
Jan–Sep
2012
Volume (tonnes)
4,871
4,605
5.8
15,350
15,835
–3.1
20,913
21,398
Net sales
194.6
190.0
2.4
621.5
660.1
–5.8
852.6
891.2
12.5
11.8
6.0
37.1
32.8
13.2
58.9
54.6
MSEK
Underlying EBIT
DENMARK, FINLAND & NORWAY
Third quarter
First nine months
Jul–Sep
2013
Jul–Sep
2012
Volume (tonnes)
3,101
2,881
7.6
Net sales
148.6
139.6
6.4
8.5
10.0
–15.4
30.6
MSEK
Underlying EBIT
OTHER MARKETS
MSEK
Volume (tonnes)
Net sales
Underlying EBIT
Change,
%
Third quarter
Jan–Sep
2013
Rolling 12
months
Full year
Jan–Sep
2012
Change,
%
Oct 2012–
Sep 2013
Jan–Dec
2012
9,478
8,980
5.5
12,573
12,075
452.5
448.7
0.8
612.7
609.0
35.0
-12.4
41.0
45.4
First nine months
Full year
Jan–Dec
2012
Jul–Sep
2012
Change,
%
Jan–Sep
2013
2,639
1,923
37.2
6,845
5,312
28.8
8,915
7,382
84.4
64.9
30.1
217.0
180.0
20.6
284.8
247.8
3.9
0.8
416.4
1.8
–8.1
–
0.3
–9.6
In the third quarter, volumes in Sweden increased 5.8% year-onyear. The increase was primarily attributable to new customers
and successful campaigns. Net sales rose 2.4%, corresponding to a
volume increase of 5.8%, with the difference in growth primarily due
to a changed customer and concept mix. Underlying EBIT rose 6.0%
compared with the year-earlier period, primarily driven by increased
net sales combined with lower fixed costs.
Weak market conditions, primarily in the first six months of the
year, negatively impacted the financial performance for the first nine
months, during which volume and net sales declined 3.1% and 5.8%,
respectively. Underlying EBIT increased 13.2% year-on-year, primarily
driven by increased cost efficiency.
Denmark, Finland & Norway
In the third quarter, volumes rose 7.6% and net sales increased 6.4%
year-on-year. The increases were mainly due to a rise in campaign
volumes in Norway. The underlying EBIT declined 15.4%, primarily
due to increased amortisation of intangible assets due to renewed
customer contracts.
Volume rose 5.5% in the first nine months in parallel with an increase
of 0.8% in net sales. All markets in the segment reported increased volumes through higher sales to existing customers. Net sales increased
less than volume, which was mainly due to changes in the customer
mix. The reason for this was that Candyking lost a customer tender
process in Norway during 2011, which negatively impacted sales as of
Change,
%
Oct 2012–
Sep 2013
Jul–Sep
2013
Sweden
Jan–Sep
2012
Rolling 12
months
June 2012. The underlying EBIT declined 12.4%, primarily as a result of
increased amortisation of intangible assets due to renewed customer
contracts and the account lost in Norway in 2012.
Other markets
In the third quarter, volumes rose 37.2% year-on-year, which was
mainly attributable to one new major international customer and
a new concept (Candyking Favourites). Net sales increased 30.1%
during the period, with the difference in comparison to volume growth
being due to new customers, for whom full in-store service was not
included. Underlying EBIT rose 3.1% year-on-year, primarily driven
by high volume growth. The initiatives in Central and Eastern Europe
negatively impacted the underlying EBIT for the segment by MSEK 3.1
(neg: 2.4) in the quarter.
In the first nine months, year-on-year growth in volume and net sales
was 28.8% and 20.6%, respectively. Growth was attributable to new
customers, primarily one new major international customer. Underlying
EBIT was positively impacted by higher volumes and increased by MSEK
9.9 compared with the year-earlier period. The initiatives in Central
and Eastern Europe negatively impacted the underlying EBIT for the
segment by MSEK 10.2 (neg: 9.8) for the first nine months.
6
The Board of Directors certifies that this interim report provides a fair and accurate review of the operations,
financial position and earnings of the Parent Company and the Group and that it describes the significant risks
and uncertainties facing the Parent Company and the companies included in the Group.
Solna, 31 October 2013
Candyking Holding AB
Mats G. Jansson
Chairman of the Board
Jan Ohlsson
Board member
Helene Biström
Board member
Morthen Johannessen
Board member
Fredrik von Oelreich
Board member
Mats Holgerson
Board member
David von Laskowski
President and CEO
The information in this interim report has been reviewed by the company’s auditor.
7
Report of Review of
Interim Financial Information
Introduction
We have reviewed this report for the period January 1 to September 30 2013 for Candyking Holding AB. The board
of directors and the CEO are responsible for the preparation and presentation of this interim report in accordance
with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report
based on our review.
Scope of Review
We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of
Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily
of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with International Standards on
Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review
do not enable us to obtain assurance that we would become aware of all significant matters that might be identified
in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not
prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the
Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.
Stockholm, 31 October 2013
Öhrlings PricewaterhouseCoopers
Magnus Brändström
Authorised Public Accountant
8
Consolidated profit and loss in summary
Third quarter
MSEK
Net Sales
Other operating income
Total income
Goods for resale
Jul–Sep
2013
First 9 months
Rolling 12
months
Full year
Jul–Sep
2012
Jan–Sep
2013
Jan–Sep
2012
Oct 2012–
Sep 2013
Jan–Dec
2012
427.6
394.5
1,290.9
1,288.7
1,750.2
1,748.0
2.0
4.2
10.0
10.1
13.0
13.1
429.6
398.7
1,300.9
1,298.9
1,763.1
1,761.1
–275.2
–253.2
–820.0
–836.2
–1,107.7
–1,124.0
Other external costs
–61.7
–61.5
–193.0
–191.2
–268.3
–266.5
Personnel costs
–55.1
–56.8
–180.3
–194.8
–242.8
–257.3
Depreciation and amortisation
–14.8
–10.4
–43.4
–31.5
–60.7
–48.8
–0.9
–4.1
–7.8
–8.5
–10.9
–11.6
–407.8
–386.1
–1,244.4
–1,262.3
–1,690.3
–1,708.2
Other operating expenses
Total operating costs
Operating profit
Net financial items
Profit (loss) before tax
Taxes
Net profit (loss) for the period
21.8
12.6
56.5
36.6
72.8
52.9
–22.9
–11.9
–97.7
–66.1
–144.5
–112.9
–1.1
0.7
–41.2
–29.5
–71.7
–60.0
1.1
–1.7
7.4
9.7
29.8
32.2
0.0
–0.9
–33.8
–19.8
–41.9
–27.8
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Exchange differences arising from translating foreign operations
–15.8
–13.1
–26.2
–14.2
–16.3
–4.2
Total comprehensive income, net of tax
–15.7
–14.1
–60.0
–33.9
–58.1
–32.0
–15.7
–14.1
–60.0
–33.9
–58.1
–32.0
Earnings per share, SEK before dilution
–9.62
–9.45
–58.90
–43.26
–74.72
–59.08
Earnings per share, SEK after dilution
–9.62
–9.45
–58.90
–43.26
–74.72
–59.08
Average number of shares befor dilution
1,114,897
1,114,897
1,114,897
1,114,897
1,114,897
1,114,897
Average number of shares after dilution
1,114,897
1,114,897
1,114,897
1,114,897
1,114,897
1,114,897
Total comprehensive income attributable to:
Owners of the parent company
NON RECURRING ITEMS
MSEK
Third quarter
Jul–Sep
2013
First 9 months
Jul–Sep
2012
Jan–Sep
2013
Jan–Sep
2012
Rolling 12
months
Full year
Oct 2012–
Sep 2013
Jan–Dec
2012
Adjustments for non-recurring items
Net sales
0.0
0.7
0.0
0.7
0.0
0.7
0.0
–0.1
–0.2
–0.1
–0.1
0.0
Goods for resale
0.3
4.4
0.3
4.4
–1.4
2.7
1.0
2.2
1.2
7.4
9.3
15.4
Personnel costs
0.8
1.1
10.1
8.3
17.2
15.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.7
0.0
2.4
0.6
2.9
Total one off items
2.1
10.0
11.4
23.1
25.6
37.3
Realized forward contracts brought back
1.0
0.0
1.6
0.0
1.8
0.2
Total non recurring items
3.0
10.0
13.0
23.1
27.4
37.5
One off items for the third quarter mainly consist of costs related to organizational re-structuring in UK & Ireland and Denmark, as well as
costs related to the now closed warehouse in Norway. In the first nine months the one off items mainly consisted of personnel costs relating to
changes in group management as well as costs for re-structuring. 9
Consolidated balance sheet in summary
MSEK
Intangible assets
30 sep -13
30 sep -12
31 dec -12
1,112.2
1,098.6
1,107.1
Tangible assets
97.8
84.2
87.6
Deferred tax assets
101.2
78.1
91.5
3.9
3.8
3.9
1,315.1
1,264.7
1,290.1
Financial non-current assets
Total non-current assets
Inventory
Accounts receivable
Derivative instruments
82.9
97.3
81.7
196.4
204.7
201.7
0.7
1.1
0.0
Tax receivables
0.2
1.6
1.3
Deferred tax receivables
0.1
0.0
0.4
37.8
62.8
54.7
4.5
4.1
7.9
323.1
370.4
348.3
1,638.2
1,635.1
1,638.5
Shareholders' equity
-24.0
32.0
36.0
Borrowings
381.9
432.5
405.7
0.0
1.8
2.6
Liabilities to shareholders
731.7
640.1
671.8
Deferred tax liabilities
56.5
Prepaid expenses, accrued income and other receivables
Cash and cash equivalents
Total current assets
TOTAL ASSETS
55.5
66.9
Pension obligations
3.9
3.8
3.9
Other liabilities
0.0
0.0
0.0
1,173.0
1,145.1
1,140.4
59.8
Total non-current liabilities
Borrowings
58.4
60.4
0.5
0.0
1.8
Bank overdraft facilities
55.7
53.1
28.1
Accounts payable
230.1
188.8
236.7
Other liabilities
43.3
70.2
54.3
Tax liabilities
3.1
5.4
4.0
Deferred tax liabilities
0.0
0.0
0.0
98.1
80.1
77.4
Accrued expenses and deferred income
Total current liabilities
TOTAL EQUITY AND LIABILITIES
489.2
458.0
462.0
1,638.2
1,635.1
1,638.5
10
Consolidated statement of changes
in shareholders’ equity in summary
Third quarter
MSEK
Shareholders' equity at the beginning of the period
Jul–Sep
2013
–8.2
First 9 months
Full year
Jul–Sep
2012
Jan–Sep
2013
Jan–Sep
2012
Jan–Dec
2012
46.3
36.0
62.3
62.3
–27.8
0.0
–0.9
–33.8
–19.8
Exchange-rate differences
–15.8
–13.1
–26.2
–14.2
–4.2
Total comprehensive income
–15.7
–14.1
–60.0
–33.9
–32.0
Change in future contract regarding acquisition of shares
0.0
–0.2
0.0
3.6
5.7
Dividend
0.0
0.0
0.0
0.0
0.0
Transactions with shareholders
Warrants
0.0
0.0
0.0
0.0
0.0
Total transactions with shareholders
0.0
–0.2
0.0
3.6
5.7
–24.0
32.0
–24.0
32.0
36.0
Shareholders' equity at the end of the period
11
Consolidated cash flow statement
in summary
Third quarter
MSEK
Jul–Sep
2013
First 9 months
Jul–Sep
2012
Jan–Sep
2013
Jan–Sep
2012
Rolling 12
months
Full year
Oct 2012–
Sep 2013
Jan–Dec
2012
Operating profit before financial items
21.8
12.6
56.5
36.6
72.8
52.9
14.8
10.4
43.4
31.5
60.7
48.8
Other non-cash items
–1.0
1.8
–2.3
2.7
–1.9
3.1
1.3
–0.3
–2.0
–1.7
–5.8
–5.5
37.0
24.5
95.6
69.2
125.8
99.3
Income tax paid
Cash flow from operating activities before changes in
working capital
Increase/decrease in inventory
Increase/decrease in operating receivables
Increase/decrease in operating liabilities
Total changes in working capital
Cash flow from operating activities
–9.2
–14.7
–1.1
13.3
15.3
29.8
–28.9
–16.8
–12.5
–21.0
1.6
–6.9
8.8
33.3
16.6
49.0
48.6
81.0
–29.3
1.9
3.0
41.4
65.4
103.8
7.7
26.4
98.6
110.6
191.2
203.2
Investments in intangible assets
–0.5
–1.9
–24.6
–6.4
–34.2
–15.9
Investments in tangible assets
–5.6
–7.3
–38.0
–26.6
–49.8
–38.4
Acquisition of subsidiary
0.0
0.0
0.0
0.0
0.0
0.0
Investment in financial non-current assets
0.0
0.0
0.0
0.0
0.0
0.0
Cash flow from investing activities
–6.0
–9.2
–62.6
–33.0
–84.0
–54.3
Amortisation of loans
–0.6
–0.8
–30.8
–21.7
–60.0
–50.9
0.0
0.0
1.0
0.0
1.2
0.2
–6.8
–13.1
–34.1
–38.2
–48.3
–52.3
Interest received
Interest paid
Redemption of minority
0.0
0.0
0.0
0.0
0.0
0.0
Increase/decrease in current financial liabilities
6.7
–2.6
27.6
–15.1
2.3
–40.4
–0.6
–16.4
–36.2
–74.9
–104.8
–143.5
Cash flow for the period
1.0
0.8
–0.2
2.7
2.5
5.4
Cash and cash equivalents at the beginning of the period
5.2
4.1
7.9
2.5
4.1
2.5
Cash flow for the period
1.0
0.8
–0.2
2.7
2.5
5.4
Exchange rate difference in cash and cash equivalents
–1.7
–0.8
–3.2
–1.1
–2.0
0.0
Cash and cash equivalents at the end of the period
4.5
4.1
4.5
4.1
4.5
7.9
Cash flow from financing activities
12
Key figures
Third quarter
First nine months
Jan–Sep
2012
Change,
%
Full year
Oct 2012–
Sep 2013
Jan–Dec
2012
Jul–Sep
2013
Jul–Sep
2012
Change,
%
Volume (tonnes)
10 611
9 409
12.8
31 673
30 127
5.1
42 401
40 855
Net Sales
427.6
394.5
8.4
1,290.9
1,288.7
0.2
1,750.2
1,748.0
Underlying EBIT
24.8
22.5
10.2
69.5
59.7
16.5
100.2
90.4
Gross margin (%)
35.7
MSEK
Jan–Sep
2013
Rolling 12
months
Result & Other information
35.6
35.8
36.5
35.1
36.7
Underlying EBIT margin (%)
5.8
5.7
5.4
4.6
5.7
5.2
Net margin (%)
0.0
–0.2
–2.6
–1.5
–2.4
–1.6
Non recurring items
Amortisation of intangible assets
3.0
10.0
–69.6
13.0
23.1
–43.7
27.4
37.5
–4.8
–2.0
139.5
–14.8
–6.2
139.0
–23.5
–14.9
Depreciation of tangible assets
–10.0
–8.4
19.0
–28.6
–25.4
12.7
–37.1
–33.9
Underlying personnel costs
–54.3
–55.7
–2.6
–170.2
–186.4
–8.7
–225.5
–241.7
whereof variable and semi variable costs
–33.6
–33.6
0.1
–103.0
–110.9
–7.1
–138.2
–146.0
whereof fixed costs
–20.7
–22.1
–6.5
–67.2
–75.5
–11.1
–87.4
–95.7
Underlying other external costs
–60.7
–59.4
2.3
–191.8
–183.9
4.3
–259.0
–251.1
whereof variable and semi variable costs
–45.4
–41.9
8.4
–139.3
–129.7
7.4
–186.9
–177.3
whereof fixed costs
–15.3
–17.5
–12.4
–52.5
–54.1
–3.0
–72.1
–73.8
–3.1
–2.4
29.1
–10.2
–9.8
4.1
–12.7
–12.3
Underlying EBIT losses in Central and
Eastern Europe
Financial position
Working capital
–45.6
32.7
–
–45.6
32.7
–
–45.6
–24.9
Net debt
721.4
748.0
–3.6
721.4
748.0
–3.6
721.4
702.1
Net debt / EBITDA R12
5.4
11.0
–51.1
5.4
11.0
–51.1
5.4
6.9
EBITDA / interest costs
4.2
2.0
107.7
3.3
1.7
96.9
3.2
1.9
1,216.8
1,245.0
–2.3
1,218.7
1,265.0
–3.7
1,227.2
1,256.5
Capital employed - average for the period
Return on average capital employed (%)
(R12)
5.6
5.8
5.6
5.7
5.6
6.1
Return on average equity (%) (R12)
neg.
neg.
neg.
neg.
neg.
neg.
Equity/assets ratio (%)
neg.
2.0
neg.
2.0
neg.
2.2
Number of employees at the end of the
period
996
1,017
–2.1
996
1,017
–2.1
996
1,024
Average number of full-time employees for
the period (FTE)
526
556
–5.4
543
589
–7.8
546
580
Employees
13
Consolidated quarterly data, profit and loss
Q3 2013
MSEK
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Volume (tonnes)
10,611
8,932
12,130
10,728
9,409
9,036
11,682
Net Sales
427.6
368.8
494.5
459.2
394.5
390.7
503.6
2.0
3.0
4.9
3.0
4.2
1.1
4.8
429.6
371.9
499.4
462.3
398.7
391.8
508.4
Total income
Goods for resale
–275.2
–234.4
–310.3
–287.7
–253.2
–255.2
–327.8
–61.7
–60.6
–70.7
–75.3
–61.5
–62.9
–66.8
Personnel costs
–55.1
–58.6
–66.5
–62.5
–56.8
–69.6
–68.4
–14.8
–14.8
–13.8
–17.3
–10.4
–10.7
–10.4
–0.9
–3.5
–3.4
–3.1
–4.1
–3.1
–1.2
–407.8
–371.9
–464.7
–446.0
–386.1
–401.5
–474.6
33.8
Operating profit
21.8
–0.1
34.7
16.3
12.6
–9.8
Non recurring items
–3.0
–3.0
–6.9
–14.4
–10.0
–9.0
–4.1
Underlying operating profit
24.8
3.0
41.7
30.7
22.5
–0.8
37.9
Q2 2010
Q1 2010
MSEK
Volume (tonnes)
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
10,407
10,622
11,041
10,148
10,499
9,595
8,332
12,289
441.7
443.1
463.4
426.6
418.4
382.0
337.2
485.1
1.4
1.3
1.0
1.6
1.6
1.9
0.0
8.5
Total income
443.2
444.4
464.5
428.2
420.0
383.9
337.2
493.6
Goods for resale
Net Sales
–293.7
–283.7
–301.7
–273.4
–270.3
–239.8
–216.4
–315.9
–61.8
–55.6
–58.4
–57.7
–30.5
–74.6
–55.6
–54.5
Personnel costs
–69.4
–66.4
–64.8
–64.1
–85.9
–33.4
–45.3
–58.5
–12.0
–11.1
–10.5
–10.1
–8.0
–7.8
–8.2
–6.8
–0.5
–1.0
0.0
–0.3
0.0
0.0
0.0
0.0
–437.5
–417.7
–435.4
–405.6
–394.7
–355.7
–325.6
–435.8
57.8
Operating profit
Non recurring items
5.7
26.7
29.1
22.6
25.3
28.3
11.6
–2.8
–2.5
–3.3
–0.5
0.0
0.0
0.0
0.0
8.4
29.2
32.4
23.1
25.3
28.3
11.6
57.8
14
Parent company profit and loss in summary
Third quarter
MSEK
Jul–Sep
2013
First 9 months
Jul–Sep
2012
Jan–Sep
2013
Jan–Sep
2012
Rolling 12
months
Full year
Oct 2012–
Sep 2013
Jan–Dec
2012
Net Sales
0.0
0.0
0.0
0.0
0.0
0.0
17.3
21.2
60.7
64.5
74.1
77.9
Total income
17.3
21.2
60.7
64.5
74.1
77.9
0.0
0.0
0.0
0.0
0.0
0.0
–3.5
–4.4
–12.3
–17.1
–15.8
–20.5
Goods for resale
Personnel costs
–7.3
–9.5
–34.5
–34.1
–46.8
–46.5
–0.9
–0.6
–2.7
–1.7
–3.5
–2.5
–0.1
–0.1
–0.6
–0.3
–1.1
–0.7
–11.8
–14.7
–50.1
–53.2
–67.1
–70.2
Operating profit
Net financial items
Taxes
5.5
6.5
10.6
11.3
7.0
7.6
–12.8
–17.8
–74.1
–61.6
–102.3
–89.8
–7.3
–11.2
–63.5
–50.3
–95.4
–82.2
1.6
9.4
13.9
14.1
9.2
9.4
–5.7
–1.8
–49.6
–36.2
–86.2
–72.8
Exchange differences arising from translating foreign operations
0
0
0
0
0
0
–5.7
–1.8
–49.6
–36.2
–86.2
–72.8
15
Parent company balance sheet in summary
MSEK
30 Sep -13
30 Sep -12
31 Dec -12
7.7
Intangible assets
7.5
7.5
Tangible assets
0.1
0.1
0.1
Deferred tax assets
0.0
0.0
0.0
1,461.9
1,424.3
1,419.5
1,469.5
1,431.9
1,427.2
Financial non-current assets
Total non-current assets
Current assets
40.3
87.8
78.7
Total current assets
40.3
87.8
78.7
1,509.8
1,519.7
1,505.9
142.6
228.7
192.1
TOTAL ASSETS
Shareholders' equity
Non-current liabilities
1,124.3
1,082.1
1,087.2
Total non-current liabilities
1,124.3
1,082.1
1,087.2
Current liabilities
242.9
208.9
226.6
Total current liabilities
242.9
208.9
226.6
1,509.8
1,519.7
1,505.9
TOTAL EQUITY AND LIABILITIES
16
Parent company statement of changes
in shareholders’ equity in summary
MSEK
Shareholders' equity at the beginning of the period
30 Sep -13
192.1
30 Sep -12
31 Dec -12
264.9
264.9
–49.6
–36.2
–72.8
Total comprehensive income
–49.6
–36.2
–72.8
0.0
Dividend
0.0
0.0
Warrants
0.0
0.0
0.0
Total transactions with shareholders
0.0
0.0
0.0
142.6
228.7
192.1
Shareholders' equity at the end of the period
17
Accounting policies
Accounting policies
The Candyking Group applies the International Financial Reporting
Standards (IFRSs) adopted by the EU. This interim report has been
prepared in accordance with IAS 34 Interim Financial Reporting, the
Swedish Annual Accounts Act and RFR 1 Supplementary Accounting
Rules for Groups.
The Parent Company’s financial statements have been prepared in
accordance with RFR 2, Accounting for Legal Entities and the Swedish
Annual Accounts Act. The same accounting policies are applied as for
the Group, except in those cases indicated in the section headed “Parent
Company accounting policies” in the 2012 Annual Report, Note 2.20.
For a more detailed description of the accounting policies applied
to the Group and Parent Company in this interim report, refer to the
2012 Annual Report. The same accounting policies are applied as in
the latest annual report except as listed below.
CHANGED ACCOUNITING POLICIES AND THEIR
IMPACT ON FINANCIAL INFORMATION
As of 1 January 2013, items recognised in other comprehensive income
are presented in two categories depending on whether or not the
items will be reversed in profit and loss in the future.
In Candyking’s consolidated income statement, the only item under
other comprehensive income is exchange-rate differences. This will
subsequently be possible to reverse to profit and loss.
Pension obligations
IFRS regulations pertaining to pension obligations (IAS 19) were
amended with effect from January 2013. However, this has had no
impact on the financial statements, since Candyking’s pension agreements are exclusively defined-contribution plans, with the exception
of one agreement pertaining to a former CEO. The latter agreement
has been settled.
Fair value disclosures for financial instruments
IFRS rules pertaining to the measurement of financial instruments in
interim reports (IFRS 13 and IFRS 7) were amended with effect from
January 2013.
External bank loans carry variable interest rates, and the carrying
amount is assessed as corresponding to the fair value. Although
certain portions of shareholder loans carry fixed interest rates, they
are deemed to correspond to their level of market risk, which is why
the carrying amounts for these are assessed as corresponding to
their fair value.
Financial instruments
Candyking holds derivative instruments in the form of short-term
currency future contracts, which are all measured at fair value, both
initially and on subsequent remeasurements. The measurement is
based on discounted cash flows and on the currency future contracts
being included in level 2 of the valuation hierarchy. The gain or loss
that arises from remeasurement is recognised in profit and loss.
Segment reporting
The Board of Directors and Group Management assess and evaluate
operations by operating segment. The division by operating segment
has been based on the operation’s portion of shared risks and opportunities. Candyking considers Sweden; Denmark, Finland including
the Baltics & Norway; and Other markets as operating segments.
The operating segment Sweden comprises the Swedish subsidiary
Candyking Sverige AB’s operations in the Swedish home market, with
the exception of sales to multinational customers. The Swedish market
is established and pick & mix market penetration approximated to
30% of the confectionery market. Because the company’s sales to
multinational customers are in the process of being built up and are
associated with higher risk, they been removed and placed in the
Other markets segment.
The Denmark, Finland & Norway operating segment consists of
Candyking’s operations in the markets in Denmark, Finland (including
the Baltics) and Norway. These are considered established markets,
even if the penetration of pick & mix in these markets has risen faster
than in the Swedish market. Because the basic conditions for these
three markets are similar, they have been gathered into one operating
segment.
The Other markets operating segment includes multinational
customers, exports and operations in new markets where the pick
& mix concept is relatively new and its penetration is less than 5% of
the confectionery market.
18
Accounting policies continued
PROFIT AND LOSS SEGMENTS
MSEK
Sweden
Third quarter
Jul–Sep
2013
Jul–Sep
2012
First nine months
Change,
%
Jan–Sep
2013
Jan–Sep
2012
Full year
Change,
%
Jan–Dec
2012
12.5
11.8
6.0
37.1
32.8
13.2
54.6
Denmark, Finland and Norway
8.5
10.0
–15.4
30.6
35.0
–12.4
45.4
Other markets
3.9
0.8
416.4
1.8
–8.1
–
–9.6
24.8
22.5
10.2
69.5
59.7
16.5
90.4
Non recurring items
–3.0
–10.0
–69.6
–13.0
–23.1
–43.7
–37.5
Operating profit
21.8
12.6
73.3
56.5
36.6
54.4
52.9
–22.9
–11.9
93.1
–97.7
–66.1
47.8
–112.9
–1.1
0.7
–
–41.2
–30
39.6
–60
1.1
–1.7
–
7.4
9.7
–23.8
32.2
0.0
–0.9
–
–33.8
–19.8
70.9
–27.8
Net financial items
Taxes
Items that may be reclassified
subsequently to profit or loss
Exchange differences from translation
of foreign operations
–15.8
–13.1
19.9
–26.2
–14.2
85.3
–4.2
–15.7
–14.1
11.7
–60.0
–33.9
76.9
–32.0
19
Disclosures and risk factors
Business combinations
In the first six months of 2013, a deposit of MSEK 29 was used to pay the
remaining supplementary purchase consideration for the acquisition of
the Danish subsidiary Tastymix A/S, which took place in January 2011.
Presentation of cash flow
In a change from its presentation in the 2012 Annual Report, Candyking
has moved interest paid and received from cash flow from operating
activities to cash flow from financing activities.
Seasonal variations
Candyking’s volume, net sales and EBIT are partially impacted by
seasonal variations. Sales in the first and second quarters are significantly affected by the quarter in which Easter falls. This effect applies
particularly to Sweden and Norway. In the fourth quarter, sales are
significantly affected by Halloween.
Employees
On average, the number of full-time equivalents (FTEs) declined from
589 for the January-September 2012 period to 543 for the January–
September 2013 period. This was primarily due to the personnel
restructuring programmes implemented in 2012 and 2013.
Significant events during the period
At an extraordinary general (EGM) meeting held on 30 July 2013, the
Board member Niklas Sloutski and the deputy Board members Jannik
Pedersen and Jerker Sundström stepped down, and each of them
was discharged from personal liability. Furthermore, Mats G. Jansson,
Helene Biström and Mats Holgerson were elected new Board members.
The EGM also decided to adopt new Articles of Association, whereby
the minimum number of Board members is five and the maximum
number is ten, with a maximum of three deputy Board members.
Events after the balance-sheet date
No significant events have occurred after the balance-sheet date.
The Candyking share
The share capital consists of 1,114,897 common shares and 12 preference
shares. The shares carry a voting value of one vote per share. All shares
issued by the Parent Company have been paid in full.
Ownership structure as of 30 September 2013
Owner
No. of shares
Holding (%)
Accent Two Holding Ltd
814,506
73.1
EQT Expansion Capital Ltd
162,656
14.6
Other
137,747
12.4
Total
1,114,909
100.0
Information about related parties
Other than shareholder loans, there were no further related-party
transactions.
Warrants
A warrants programme was adopted at the Annual General Meeting
on 27 February 2013. These warrants are exercisable up till the end
of 2014 and entitle the holder to a share of the company’s profits from
the year in which the shares are issued. Shareholders’ equity in the
company increased TSEK 35.2 in March 2013 through the payment for
the subscription rights by the subscribers.
Taxes
Tax has been calculated in the interim report in line with the same
policies applied in the 2012 annual accounts.
Risks and uncertainties
A number of factors exist that could impact Candyking’s earnings and
operations. All identified risks are continuously followed and most of
the risks and uncertainties are managed through internal procedures
while others are to a greater degree dependent on external factors.
Identified industry and market risks include increased health awareness, negative publicity linked to the brand and increased raw material
prices. Identified operational risks include reduced or lost sales to any
of the major customers, significant dependence on key personnel and
disruptions or faults in the business management system. Identified
financial risks include credit risk, liquidity risk and currency risk. These
are managed in line with the financial policy adopted by the Board.
Candyking’s existing financing matures in the period 2015–2017;
however, as a consequence of the planned IPO, negotiations are
ongoing concerning a new financing solution. The final terms for
the new financing solution may be impacted by changes in market
conditions or if Candyking’s earnings should decline due to unexpected
changes in demand. For further information, please refer to the 2012
Annual Report.
20
Definitions
GENERAL
All amounts in tables are in SEK millions unless otherwise stated. All values in parentheses () are comparative
figures for the year-earlier period unless otherwise stated.
EARNINGS MEASUREMENTS
Total revenue
Total income
Gross profit/loss
Net sales less goods for resale
Underlying profitability measures
Recognised earnings measurement including reversals of total non recuring items
MARGIN MEASUREMENTS
Gross margin
Gross profit as a percentage of net sales
Underlying profitability margin
Underlying profitability margin as a percentage of net sales
Net margin
Profit for the period as a percentage of total income
RETURN MEASUREMENTS
Return on shareholders’ equity
Profit for the period as a percentage of average shareholders’ equity
Return on capital employed
Operating profit plus financial income as a percentage of average capital employed
CAPITAL STRUCTURE
Gross debt
Total long- and short-term borrowings, overdraft facilities, financial derivative instruments and accrued interest
Net debt
Net debt less cash and cash equivalents
Interest-bearing liabilities
Total long and short-term borrowings, including pensions and other long-term employment benefits
Working capital
Total current assets, excluding cash and cash equivalents and interest-bearing instruments less current
liabilities excluding interest-bearing instruments
Equity/assets ratio
Shareholders’ equity at the close of the period as a percentage of total assets
Capital employed
Total assets less non-interest-bearing liabilities
PER SHARE DATA
Earnings per share
Profit for the period in relation to the average number of shares during the period
OTHER DEFINITIONS
Non recuring items
Non recuring items pertains to one off items and the realised effects of currency future contracts
Exchange rates
30 Sep 2013
30 Sep 2012
31 Dec 2012
GBP, average
10.07
10.75
10.74
GBP, at end of period
10.36
10.61
10.49
NOK, average
1.12
1.16
1.16
NOK, at end of period
1.07
1.14
1.17
DKK, average
1.15
1.17
1.17
DKK, at end of period
1.16
1.13
1.16
EUR, average
8.58
8.74
8.71
EUR, at end of period
8.66
8.44
8.62
PLN, average
2.04
2.08
2.08
PLN, at end of period
2.05
2.05
2.12
21
Candyking was founded in 1984 and is the leading supplier of pick & mix in the Nordic region, the
UK and Ireland and has operations in Poland, the Czech Republic, Slovakia and Hungary. Candyking
currently has more than 10,000 retail outlets and offers stores a turnkey concept that includes products,
displays and accompanying store and logistic services. Candyking’s confectionery concept and brands
are Candyking, Karamellkungen, Premiyum and Candyking Favourites. In addition, Candyking is the
leading pick & mix supplier of natural snacks in Sweden and Finland under the Parrot’s brand. In
2012, the company had about 1,000 employees and sales of about SEK 1.75 billion. More information
is available at www.candyking.com
Candyking Holding AB
Corporate identity number 556738-8219
Telegrafgatan 8A, SE-169 72 SOLNA, SWEDEN Tel: +46 8 795 03 00 www.candyking.com
The information in this interim report could contain forward-looking information. Words such as “anticipate”, “believe”, “estimate”, “intend”, “plan” and so on are intended
to identify forward-looking information. Such information could encompass risks and uncertainties including market changes, raw material prices, competing products,
demand, exchange rates and other risks. These forward-looking statements reflect the management of Candyking’s view of the future and are given with respect for any
future events and, accordingly, involve a measure of risk. All forward-looking statements are based on the estimates and assumptions made by the Board of Candyking
and are deemed reasonable but are, however, uncertain and difficult to predict. Actual results or events may differ materially from these forward-looking statements.
Candyking disclaims any obligation or undertaking to update these forward-looking statements.

Interim report July–September 2013

Transcription

Similar documents

2_1045am_measurement_VictorAimi

Reel Chat Recommends - Bellmore Memorial Library

Employment history Clavic Consulting AB 2012-09-01 -

Interim repotr January - June 2106 Read more

PDF

September Newsletter 2016

- aimy plus

Q2-2013

Lantmännen Annual Report and Sustainability Report