Candyking Q1 report Flexibilitet

Transcription

1 Candyking Q1 report 2014 Flexibilitet

2 First quarter 2014 Candyking s business is highly seasonal with Easter representing the strongest sales period during the year for our main markets Sweden and Norway. Last year Easter fell in Q1 whereas this year it falls in Q2. This has a significant impact on operating result and, consequently, making a quarterly comparison on group level very difficult. Q1 volumes down 10.2%. However, disregarding markets with an Easter seasonality (Sweden and Norway) volumes increased by 27.8% and net sales increased by 28.9%. This was mostly an effect of the roll out of a new customer in Poland and strong sales in UK and Denmark. Q1 net sales decreased by 10.1% to MSEK (494.5). The decrease was 10.5% measured in constant currency. Q1 underlying EBIT amounted to MSEK 9.9 (42.4), mainly due to the Easter effect. The percentage decrease in underlying EBIT was higher than in underlying EBITDA due to increased depreciations as a consequence of investments in new customers and roll out of new displays in Denmark and Norway. Q1 was affected by increased cost of goods sold, primarily due to adverse currency fluctuations, foremost a strengthened EUR vs. SEK. In order to mitigate the effect, price increases have been announced and actions have been initiated with regard to sourcing and operational costs. These initiatives are expected to generate effects gradually during the second half of the year. Cash flow from operations decreased by MSEK The decrease in cash flow was mainly a result of more capital being tied up in working capital (MSEK 76.6). This was primarily an effect of stock build up in Sweden for Easter. Stock will normalize during Q2. On January 22 nd, Candyking secured the long term financing by successfully placing a four-year SEK 750 million senior secured bond, allowing Candyking to refinance old acquisition debt and the majority of Mezzanine debt. The change in the financing structure have led to a significantly improved cash position and will decrease the cost and cash to service debt. Net financial items increased by MSEK 21.2 due to revaluation of EUR loans as a consequence of the strengthened EUR. Fredrik von Oelreich was appointed new CEO of Candyking as of March 1 st, The composition of the Board of Directors was also changed following the withdrawal of the IPO. First quarter MSEK Jan-Mar Jan-Mar Change, (%) Volume (tonnes) 10,889 12, Net Sales Net Sales constant currency* Underlying EBIT** Underlying EBITDA** Profit (loss) for the period Cash flow from operating activities n.a. Net Debt Significant events after the conclusion of the period Accent has acquired EQT s holdings (shareholder loan, remaining part of the Mezzanine loan and equity) in Candyking. Accent own 98.6% and Management 1.4% of the outstanding shares in Candyking post the transaction. *Group consolidated in fixed fx rates. Current period s fx rates applied on previous period. **Underlying profitability measures: Recognized earnings measurement including reversals of total non recurring items. Non recurring items pertains to one off items, the realized effects of currency future contracts and losses from the discontinued operations in Slovak, the Czech Republic and Hungary. One off items for the first 2 quarter mainly relates to costs for the bond and cost related to previous CEO.

3 Candyking segments Year-on-year net sales growth -30.4% Sweden Q1 1.9% Denmark, Finland and Norway 53.5% Other markets -10.1% Candyking Net Sales per segment First Quarter MSEK cc* 2014 Sweden Denmark, Finland and Norway Other markets Candyking Sweden The volume decreased by 29.6% in the first quarter, which is explained by the Easter seasonality. Easter took place in the last week of March in 2013 and occurred the third week of April in The Q1 year on year development in Sweden is therefore not comparable. With an important share of goods imported, the deprecation of the SEK vs. EUR exchange rate has negatively affected the gross margin in Sweden. Price increases have been announced to mitigate the impact on profitability. Denmark, Finland & Norway The volume decreased by 1.8% in the first quarter while net sales increased by 1.9%. Measured in fixed exchange rates net sales increased by 2.4%. The difference in volume and net sales growth was due to strong volume growth in Denmark were the net sales includes confectionery tax, giving a relatively higher per kilo price. The slight decrease in volume was a net effect of lower volumes in Norway due to the timing of Easter, compensated by very strong volume growth in Denmark due to full roll out with Coop and a positive like for like trend. The Finnish volume was down due to the termination of the S group central contract. Also in Norway the cost of goods was negatively affected by unfavorable currency fluctuations. Other Markets** In the first quarter, the volume rose by 45.9% year-on-year, which was mainly attributed to one new major international customer, successful campaigns in the UK and a new Polish customer. Net sales increased by 45.1% measured in fixed fx rates. The project of exiting Hungary, Czech Republic and Slovakia was initiated during Q1 and is expected to be completed by the end of June *Group consolidated in fixed fx rates. Current period s fx rates applied on previous period.** The Other Markets segment include multinational customers, exports and operations 3 in new markets where the pick & mix concept is relatively new and the penetration is less than 5% of the confectionery market

4 Consolidated quarterly data, profit and loss MSEK Q Q Q Q Q Q Q Q Q Volume (tonnes) 10,889 11,590 10,611 8,932 12,130 10,728 9,409 9,036 11,682 Net Sales Other operating income Total income Goods for resale Other external costs Personnel costs Depreciation and amortisation Other operating expenses Total operating costs Operating profit Non recurring items Underlying* operating profit (EBIT) Underlying* EBITDA *Underlying profitability measures: Recognized earnings measurement including reversals of total non recurring items. Non recurring items pertains to one off items, the realized effects of currency future contracts and losses from the discontinued operations in Slovak, the Czech Republic and Hungary. One off items for the first quarter mainly relates to costs for the bond and cost related to previous CEO. 4

5 Consolidated profit and loss MSEK First Quarter Jan-Mar 2014 Jan-Mar 2013 Net Sales Other operating income Total income Goods for resale Other external costs Personnel costs Depreciation and amortisation Other operating expenses Total operating costs Operating profit Net financial items Profit (loss) before taxes Taxes Net profit (loss) for the period Other comprehensive income Items that may be reclassified subsequently to profit and loss Exchange differences arising from translating foreign operations Total comprehensive income, net of tax

6 Consolidated balance sheet MSEK 31-Mar Mar-13 Intangible assets 1, ,124.5 Tangible assets Deferred tax assets Financial non-current assets Total non-current assets 1, ,304.9 Inventory Accounts receivable Derivate instruments Tax receivables Deferred tax receivables Prepaid expenses, accrued income and other receivables Cash and cash equivalents Total current assets TOTAL ASSETS 1, ,807.5 MSEK 31-Mar Mar-13 Shareholders' equity Borrowings Derivate instruments Liabilities to shareholders Deferred tax liabilities Pension obligations Other liabilities Total non-current liabilities 1, ,140.8 Borrowings Derivate instruments Bank overdraft facilities Accounts payable Other liabilities Tax liabilities Deferred tax liabilities Accrued expenses and deferred income Total current liabilities TOTAL EQUITY AND LIABILITIES 1, ,

7 Consolidated cash flow statement First Quarter MSEK Jan-Mar Jan-Mar Operating profit before financial items Depreciation and amortisation Other non-cash items Income tax paid Cash flow from operating activities before changes in working capital Changes in working capital Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Cash flow from the period

8 Consolidated statement of changes in shareholders equity in summary MSEK Shareholders' equity at the beginning of the period First Quarter Jan-Mar 2014 Jan-Mar Profit (loss) for the period Exchange-rate differences Total comprehensive income Transactions with shareholders Shareholders' equity at the end of the period

9 Parent company profit and loss in summary First Quarter MSEK Jan-Mar 2014 Jan-Mar 2013 Net Sales Other operating income Total income Goods for resale Other external costs Personnel costs Depreciation and amortisation Other operating expenses Total operating costs Operating profit Net financial items Profit (loss) before tax Taxes Net profit (loss) for the period

10 Parent company balance sheet and statement of changes in shareholders equity in summary MSEK 31-Mar Mar-13 Intangible assets MSEK 31-Mar Mar-13 Shareholders' equity Tangible assets Deferred tax assets Financial non-current assets 1, ,416.3 Total non-current assets 1, ,424.4 Current assets Profit (loss) for the period Total comprehensive income Transaction with shareholders Total current assets TOTAL ASSETS 1, ,565.6 Shareholders' equity at the end of the period Shareholders' equity Non-current liabilities 1, ,090.4 Total non-current liabilities 1, ,090.4 Current liabilities Total current liabilities TOTAL EQUITY AND LIABILITIES 1, ,

11 This year end report has not been reviewed by the Company s auditor For more information please contact: Fredrik von Oelreich, President & CEO, +46 (0) Johan Lindgren, Group CFO & VP Business Support, +46 (0) About Candyking Candyking was founded in 1984 and is the leading supplier of pick & mix in the Nordic region, the UK & Ireland and Poland. 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 2013, the company had about 1,000 employees and sales of about SEK 1.8 billion. More information is available at 11