Aarhus Oliefabrik A/S

Transcription

1 M. P. Bruuns Gade 27 P. O. Box 50 DK-8100 Åarhus C Denmark Telephone: Direct line: Fax: Telex: palmf dk ehh@aarhus.com CVR no Giro rd Quarter Report 2002 Aarhus Oliefabrik A/S CVR no Announcement no. 15/2002 to the Copenhagen Stock Exchange Further information can be obtained from: Erik Højsholt Esben Vibe Managing Director, CEO Director, CFO Telephone: Telephone: Mobile phone: Mobile phone: The announcement is available at Aarhus Oliefabrik s home page: Requests for copies can be directed to investor@aarhus.com Please visit our Investor Relations section at the site: Translation into English in case of variations, the original version in Danish will apply.

2 Page 2 of Today, Monday 25 November 2002, the Board of Directors of Aarhus Oliefabrik A/S considered and adopted the accounts for the first three quarters of Highlights For the third quarter of 2002, consolidated post-tax profits totalled DKK 29.2 million and are in accordance with expectations. For the first three quarters of 2002, the post-tax consolidated profits totalled DKK 77.2 million, compared with DKK million in the same period in Consolidated operating income amounted to DKK 56.6 million for the third quarter of 2002, compared with DKK 83.2 million for the same period in 2001 a decline of DKK 26.6 million, of which the non-recurring income from the sale of shares in the Maritex AS subsidiary accounted for 20 million in Consolidated operating income amounted to DKK million for the first three quarters of 2002, compared with DKK million in the same period last year a decline of DKK 58.7 million, of which the non-recurring income from the sale of real property and shares accounted for DKK 45 million in Earnings from the strategic focus areas chocolate and other confectionery speciality fats and the food service segment were in accordance with expectations. Group sales and earnings from the bulk oil segment were affected by intense price competition and the impact of global recession on bulk oil customers. The profitability of the parent company is expected to continue in the years ahead and the five-year rule regarding tax loss utilization has been cancelled. Consequently, the value of the parent company tax asset, which is approximately DKK 25 million, will be taken to income in the annual accounts. For the full year, consolidated post-tax profits are expected to amount to DKK million, compared with DKK million as previously announced (announcement no 12 of 29 August 2002). The upward adjustment reflects the income of the parent company tax asset, on the one hand, and reduced sales volumes and earnings from the bulk oil segment, on the other. Consolidated operating income is now expected to amount to DKK million for the full year, which is DKK 10 million below the income previously announced (announcement no 12 of 29 August 2002). At their meeting today, the Board of Directors adopted the provisional budgets for 2003 according to which consolidated operating income and pre-tax profits are expected to improve.

3 Page 3 of 8 Consolidated key figures and ratios 3 rd quarter 1 st -3 rd quarters Full year Turnover 1,194 1,273 3,486 3,456 4,880 Value added *) ,029 1,447 Operating income Pre-tax income from participating interests Net financing costs Profit on ordinary activities before tax and minority interests Profit Total assets, end of period Shareholders equity, end of period Capital investments Depreciation Profit margin ratio Equity ratio Return on invested capital Average no. of shares (1,000) 4,000 4,000 4,000 4,000 4,000 Market price, end of period Equity value per share Earnings per share Shareholders equity movements: Shareholders equity as at 1 January**) - - 1,531 1,372 1,372 Profit Dividends for Exchange adjustments in subsidiaries and associates Dividend on own shares and acquisition/allocation of employee shares Adjustment of financial instruments Goodwill depreciation, BSP Pharma A/S Total movements Shareholders equity, end of period - - 1,431 1,439 1,531 *)The value added in 2001 has been adjusted because certain direct sales costs are reduced directly from the turnover as from **)For the same reason, net revaluations of DKK 8 million in 2002 and DKK 17 million in 2001 have been added to shareholders equity as at 1 January.

4 Page 4 of 8 The company s accounting policies have been revised in accordance with the new Danish Annual Accounts Act and new accounting standards. The main revisions were described in the 1 st quarter report 2002 dated 29 May 2002 (announcement no. 8/2002). Reading the above table ( Consolidated key figures and ratios ) the following should be noted: - that profits for 2001 included non-recurring income of DKK 45 million, partly from the sale of real property to Bruuns Galleri and, partly from the sale of Maritex AS shares; - that profits for 2002 have been positively affected by low financing costs and higher contributions from the associates primarily United Plantations Berhad, Malaysia; - that the exchange rate adjustments in respect of subsidiaries and associates, as at 30 September 2002, exerted a negative effect of DKK million on shareholders equity, due to the decline in the values of the US dollar (USD), British pound (GBP) Malaysian Ringgit (MYR) and Mexican peso (MXN); - that the revaluation of financial instruments to hedge future transactions has exerted a negative effect of DKK 4.2 million on shareholders equity during the first three quarters of As at 25 November 2002, the holding of own shares totalled 144,782 shares equal to 3.6% of the share capital. As at 30 September 2002, the market price of the company s own shares was DKK 20.1 million above cost. Comments on developments in the period under review For the first three quarters of 2002, consolidated turnover was largely at the same level as in the first three quarters of 2001 and reflects a decline in sales volumes within the whole group, compensated by higher raw material prices. Sales volumes declined at Anglia Oils in the UK and Aarhus Olie in Denmark, whilst volumes increased at Aarhus Inc. in the USA and Santa Lucia in Mexico. The decline in consolidated value added totalled DKK 49 million for the first three quarters of 2002 relative to the same period in The decline was mainly due to the general decrease in sales volumes in the bulk oil segment. Operating income declined from DKK million for the first three quarters of 2001 to DKK million for the same period in If the non-recurring income of DKK 45 million is excluded, operating income declined by DKK 13.7 million, compared with same period last year. The decline was primarily attributable to Aarhus Olie in Denmark, Anglia Oils in the UK and Santa Lucia in Mexico whereas operating income at Aarhus Inc. in the USA improved over last year. For the first three quarters of 2002, capital participations, before tax, totalled DKK 27.0 million a significant improvement over the DKK 2.8 million profit for the same period in

5 Page 5 of United Plantations Berhad in Malaysia accounted for the bulk of the increase, as a result of significantly higher palm oil prices. Consolidated financing costs totalled DKK 54.3 million for the first three quarters of 2002 a reduction of DKK 20.9 million relative to the same period last year. Aarhus Olie in Denmark and Santa Lucia in Mexico were the main contributors to the reduction as a result of falling interest rates. Group companies Aarhus Olie, Denmark 3 rd quarter 1 st -3 rd quarters Full year Turnover ,219.3 Value added Operating income Pre-tax profit on ordinary activities Profit Total assets, end of period - - 1, , ,286.2 Shareholders equity, end of period Capital investments Profit margin ratio Return on invested capital Total business volume (tonnes) 41,274 43, , , ,027 For the first three quarters of 2002, Aarhus Olie in Denmark recorded a profit of DKK 24.7 million a decline of DKK 4.3 million relative to the first three quarters of In comparing this year s profit for the first three quarters with the same period last year, it should be noted that the implementation of the new accounting policy applying to internal project engineering costs in connection with new plants and investments has resulted in an improvement of just under DKK 4 million. The profit reflects a decline in volumes, especially in the bulk oil segment, and average margins at the level with the margins attained in the same period in Global market prices of cocoa butter the fat that Aarhus Olie s speciality products can replace rose to some extent during the third quarter of As the sales contracts are usually of a long-term nature, the potential effect on Aarhus Olie s earnings will not be reflected until 6-12 months from now, at the earliest.

6 Page 6 of 8 Anglia Oils Limited, United Kingdom 3 rd quarter 1 st -3 rd quarters Full year Turnover , , ,804.7 Value added*) Operating income Pre-tax profit on ordinary activities Profit Total assets, end of period Shareholders equity, end of period Capital investments Profit margin ratio Return on invested capital Total business volume (tonnes) 84,796 84, , , ,313 *)The comparative figures for 2001 have been adjusted as certain direct sales costs (agents commissions) are being deducted directly from turnover as from Such costs used to be included in sales costs. For the first three quarters of 2002, Anglia Oils Limited recorded a profit of DKK 32.2 million (GBPm 2.7), which was DKK 6.6 million below the profit attained for the same period in 2001.The decline was due to intensified competition on the British market for bulk oils as well as fats for the bakery industry. The integration of Rowallan is progressing according to schedule and is expected to exert a positive effect on earnings with effect from Aarhus Inc., USA 3 rd quarter 1 st -3 rd quarters Full year Turnover Value added Operating income Pre-tax profit on ordinary activities Profit Total assets, end of period Shareholders equity, end of period Capital investments Profit margin ratio Return on invested capital Total business volume (tonnes) 30,982 30,467 88,243 86, ,681

7 Page 7 of 8 For the first three quarters of 2002, Aarhus Inc. recorded a profit of DKK 16.9 million (USDm 2.0), which is DKK 4.2 million below the profit attained for the same period last year. In 2002, operating income was DKK 4.3 million above the income for the first three quarters of 2001 but was more than offset by tax provisions set aside in 2002 as a result of tax losses in previous years having been fully utilised. Santa Lucia, S.A. de C.V., Mexico 3 rd quarter 1 st -3 rd quarter Full year Turnover Value added Operating income Pre-tax profit on ordinary activities Profit before minority interests Aarhus Olie s share of profit Total assets, end of period Shareholders equity, end of period Aarhus Olie s share of equity, end of period Capital investments Profit margin ratio Return on invested capital Total business volume (tonnes) 32,910 34,299 95,718 92, ,834 For the first three quarters of 2002, Santa Lucia, S.A. de C.V., recorded a profit of DKK 5.4 million (MXNm 6.4), which is DKK 2.0 million below the profit attained for the same period in Operating income declined by DKK 6.9 million during the first three quarters of 2002 relative to the same period last year but the decline was more than offset by lower financing costs as a result of falling interest rates in Mexico. Minor subsidiaries performed as anticipated. Associates Consolidated profits include post-tax contributions from United Plantations Berhad in Malaysia, Maritex AS in Norway and BSP-Pharma A/S in Denmark totalling DKK 16.9 million. United Plantations Berhad in Malaysia recorded a post-tax profit of MYR 34.2 million (DKKm 72.0) for the first three quarters of 2002 an improvement of MYR 22.1 million (DKKm 45.4) over the same period last year. The improvement is due to significantly higher palm oil prices in the first three quarters of 2002, compared with the same period last year. BSP-Pharma A/S has reached the first of three significant milestones in its business plan the conclusion of the pre-clinical programme with exceptionally good results (see announcement

8 Page 8 of 8 no 10 dated 15 August 2002). The development of the new products is on schedule to be concluded within the next two years. Ownership structure The merger of United International Enterprises Ltd. and International Plantations & Finance Ltd. has been completed. As a result, the major shareholder of Aarhus Oliefabrik A/S is now United International Enterprises (Denmark) A/S holding 1,837,644 shares or 45.9% of the company. For further information, you may see our previous announcements to the Copenhagen Stock Exchange (nos 5 and 9/2002). Outlook for the full year For the full year, consolidated post-tax profits are expected to amount to DKK million, compared with DKK million indicated in previous announcements to the Copenhagen Stock Exchange (no 12 of 29 August 2002). The upward adjustment reflects the value of the parent company tax asset, on the one hand, and reduced sales volumes and earnings from the bulk oil segment, on the other. Consolidated operating income is now expected to amount to DKK million for the full year, which is DKK 10 million below the income previously announced (announcement no 12 of 29 August 2002). Expectations are based on a business volume in tonnes for 2002 slightly below the volume processed in 2001, which amounted to just under DKK 4.9 billion. The turnover, expressed in Danish Kroner, depends to a significant extent on the raw material price level. At their meeting today, the Board of Directors adopted the provisional budgets for 2003 according to which consolidated operating income and pre-tax profits are expected to improve. Kjeld Ranum Chairman Erik Højsholt Managing Director