Net operating revenues 85,1 100,0 EBITDA -1,3 5,4 EBIT -3,1 3,2 Operating margin -3,6 % 3,2 % Group

Transcription

1 1st quarter 2008

2 Group The Group s operating revenues in Q were MNOK 263,1 compared to proforma MNOK 252,7 last year. EBITDA was MNOK 0,0 compared to proforma MNOK 4,6 last year, and EBIT MNOK -8,9 compared to proforma MNOK -4,3 last year. Result after tax was MNOK -5,7 compared to proforma MNOK -12,8 last year. The proforma figures for 2007 are excluding the discontinued operations in Domstein Pelagic, Fiskmäster n in Sweden and Domstein Enghav Danmark, and are directly comparable to the 2008 figures. The group s balance sheet by the end of Q1 was MNOK 1 087,0 compared to MNOK 1 231,6 last year. Book equity was MNOK 314,5 corresponding to an equity ratio of 28,9% compared to 22,0% last year. Net interest bearing debt was MNOK 610,3. The first quarter results are strongly influenced by the development in exchange rates and interest levels. Both Domstein Fish and the Norwegian part of Domstein Enghav have developed negatively, whereas Domstein Enghav in Sweden has increased both turnover and results. The associated companies Norway Pelagic (38%) and Ervik Havfiske (50%) have both performed well. An agreement in principle to merge the Norwegian activities of Domstein Enghav and Naustvik has been entered. The merged company will exceed NOK 1 bill. in net operating revenues and become the largest supplier of seafood in the Norwegian market. The two companies have parallel operations throughout Norway and the merger is expected to produce large synergies both through cost reductions and increased revenues. Due diligence is in progress and a final agreement planned within the end of June. Domstein Fish Domstein Fish is the business area for whitefish consisting of fillet production, trading and supplies of bait with departments in Måløy, Raudeberg and Trondheim. The activities include production and sales of fresh, chilled and frozen products of whitefish with high quality and environmental profile, based on traditional raw materials, breeded wild fish and farmed fish. The main market is Europe. Net operating revenues 85,1 100,0 EBITDA -1,3 5,4 EBIT -3,1 3,2 Operating margin -3,6 % 3,2 % Most of the Domstein Fish revenues are in foreign currencies, especially GBP. The negative development in currency rates has resulted in reduced revenues and results. Production of cod fillets has been the main activity in the Måløy factory during the 1 st quarter. Sales to the British market have shown a price reduction of 15-20% compared to last year. Iceland have had an opposite currency development and the competition from their products has prevented increased prices. Raw material prices have been stable resulting in a large decrease in profitability as regards cod fillet production. Production has been reduced in the 1 st quarter saving raw materials for the summer and autumn seasons, when normally prices can be increased. This situation will continue until the saithe fisheries start towards the end of May. There are no stocks of saithe products at the moment, where Scandinavia is the main market. A good saithe season can therefore increase production volumes and improve results during the summer. During the second half-year a new line of environmental products will be launched in the Scandinavian market based on line caught fish. Contracts have been made to distribute these products to more than 50% of the Swedish retail market. The new product line is expected to increase the sales of whitefish in Scandinavia and to stabilize prices and profitability.

3 Domstein Enghav Domstein Enghav is a producer, marketer and distributor of seafood in Norway and Sweden. The distribution in Norway apart from Oslo and Bergen, is organized through Matgrossisten Norge AS (70%). Domstein Enghav Denmark is sold with effect from 1/ The transaction does not influence the 2008 results. An agreement in principle to merge the Norwegian activities of Domstein Enghav and Naustvik has been entered. The two companies have parallel operations throughout Norway and the merger is expected to produce large synergies both through cost reductions and increased revenues. Due diligence is in progress and a final agreement planned within the end of June. After the merger Domstein Enghav will consist of the Swedish operations. Net operating revenues 194,2 189,4 EBITDA -2,1 1,4 EBIT -6,0-2,3 Operating margin -3,1 % -1,2 % Domstein Enghav Net revenues Operating results Q Q Domstein Enghav Sverige 57,7 60,5 2,9 2,2 Domstein Enghav Norge 80,2 84,4-5,4-0,1 Matgrossisten Norge 73,5 62,3-0,8-0,2 Enghav AS 1,2 0,0-2,2-3,7 Eliminations -18,4-17,9-0,6-0,6 Total 194,2 189,4-6,0-2,3 The Swedish operations during the 1 st quarter have been profitable. Reduced revenues are due to a lower price level for caviar products. The operating margin has increased from 3,6% to 5,0%. The prospects for the remaining year are positive. The negative profitability in Norway is mainly tied to the sales and distribution activities in Oslo/Våler and the fish food factory in Haugesund, where the revenues have not been adequate enough to cover operating expenses. A large amount of the calculated synergies from the Naustvik merger are tied to these activities. Domstein Eiendom Domstein Eiendom controls the properties in Norway which are hired out to Norway Pelagic and Domstein. Yearly lease is MNOK 24,2. Net operating revenues 6,0 EBITDA 5,5 EBIT 2,7 Operating margin 44,4 %

4 Ervik Havfiske (50 %) Ervik Havfiske AS is a fishing vessel company with 12 sea-going longliners and controls 13 cod and 14 haddock quotas in Norway. In addition, several of the company s vessels are fishing on foreign quotas. The share of the profit in Ervik Havfiske is included in the financial profit as income from investments in associated companies and amounted in Q1 to MNOK 1,9 compared to MNOK 2,4 last year. Net operating revenues 75,3 59,2 EBITDA 22,2 17,4 EBIT 17,1 13,5 Operating margin 22,7 % 22,8 % Operations in Q1 have been good showing an increase in operating profit compared to last year. Increased interest costs lead to a slightly lower result after tax compared to last year. The operations are expected to be good throughout 2008, but the results will be influenced by high interest- and fuel costs. Norway Pelagic (38 %) As of July 1 st 2007 Domstein s pelagic activities were merged with Global Fish, Bergen Fiskeindustri, Koralfisk and Bernt Hansen. The share of the profit in Norway Pelagic is included in the financial profit as income from investments in associated companies and amounted in Q1 to MNOK 10,4. Net operating revenues 543,8 EBITDA 45,6 EBIT 40,1 Operating margin 7,4 % Norway Pelagic s result in Q1 is good. Supply of raw material has been record high and at the same time the market has developed positively. Supplies of raw materials are limited in Q2 owing to seasonal variations. The demands especially from Russia and Eastern Europe are good, and the prospects for 2008 are promising. Financing The board is giving priority to restructure the interest bearing debt in order to obtain a more long term financing. This includes refinancing the convertible loan of MNOK 50 due Shareholder information Domstein ASA is listed on Oslo Stock Exchange with ticker DOM. The market value of the company per 31st March 2008 was MNOK 332, based on a share price of NOK 4,75. Number of outstanding shares is Måløy, 29 th May 2008 The Board of Directors of Domstein ASA

5 Resultatregnskap konsern 2008 Q Q Q Consolidated operating results Group Nok.mill. proforma Netto driftsinntekt Operating revenues 263,3 252,7 507, ,3 Varekostnad Raw materials and consumables used -193,3-180,4-373,5-766,3 Øvrige betalbare driftskostnader Other operating expenses -70,0-67,7-111,5-264,1 Sum driftskostnader Total operating expenses -263,3-248,1-485, ,4 EBITDA 0,0 4,6 22,9 21,9 Ordinære avskrivinger Ordinary depreciation -8,9-8,9-12,4-29,6 EBIT -8,9-4,3 10,4-7,7 Inntekt på investering i tilknyttet selskap 12,3 1,2 1,2 21,0 Income from investments in associated companies 0,0 Netto finanskostnader Net financial expenses -12,3-10,3-13,6-36,5 Ordinært resultat før skatt Result before tax -9,0-13,4-2,0-23,2 Skattekostnad Taxes 3,2 0,7 0,7 9,7 Resultat etter skatt Result after tax -5,7-12,8-1,4-13,5 0 Resultat margin Profit margin -2,2 % -5,1 % -0,3 % -1,3 % Driftsmargin Operating margin -3,4 % -1,7 % 2,1 % -0,7 % Resultat pr. aksje (nok) Profit per share -0,08-0,18-0,02 0,72 Utv.resultat pr. aksje (nok) Diluted profit per share -0,07-0,15 0,00 0,72 Avkastning sysselsatt kapital Return on capital employed 0,7 % -0,6 % 2,3 % 23,6 % Egenkapitalandel (inkl min int) Book equity ratio 28,9 % 22,0 % 22,0 % 28,1 % Utestående aksjer Outstanding shares Balanse konsern Consolidated balance sheet Group Nok.mill. Immaterielle eiendeler Intangible fixed assets 138,7 165,1 131,1 Varige driftsmidler Tangible fixed assets 306,4 423,3 306,1 Finansielle anleggsmidler Financial fixed assets 271,5 42,2 257,4 Anleggsmidler Total fixed assets 716,6 630,6 694,5 Varer Inventories 210,5 354,8 216,0 Fordringer Receivables 152,5 225,1 185,9 Omløpsmidler holdt for salg Current assets held for sale 0,0 0,0 27,4 Betalingsmidler Cash and equivalents 7,4 21,0 9,5 Omløpsmidler Current assets 370,4 601,0 438,8 Sum eiendeler Total assets 1087,0 1231,6 1133,3 Innskutt egenkapital Equity contributions 35,0 34,9 35,0 Opptjent egenkapital Earned equity 276,3 233,7 280,5 Minoritetsinteresser Minority interests 3,3 1,9 3,5 Egenkapital og minoritetsinteresser Total equity 314,5 270,5 318,9 Avsetning for forpliktelser Provisions 5,3 5,9 5,3 Rentebærende langsiktig gjeld Interest bearing long term debt 306,3 432,1 304,7 Øvrig langsiktig gjeld Other long term liabilities 2,5 2,6 2,6 Sum annen langsiktig gjeld Total other long term liabilities 308,8 434,8 307,3 Rentebærende kortsiktig gjeld Interest bearing current liabilities 311,4 311,7 288,5 Ikke-rentebærende kortsiktig gjeld Non interest bearing current liabilities 146,9 208,7 188,8 Kortsiktig gjeld holdt for salg Current liabilities held for sale 0,0 0,0 24,5 Kortsiktig gjeld Current liabilities 458,3 520,4 501,8 Sum egenkapital og gjeld Total equity and liabilities 1087,0 1231,6 1133,3 Netto rentebærende gjeld Net interest bearing debt 610,3 722,8 583,6 Egenkapitalandel Equity ratio 28,9 % 22,0 % 28,1 %

6 Kontantstrømoppstilling konsern Consolidated cash flow statement Group Kontantstrøm operasjonelle aktiviteter Net cash flow from operating acitvities -12,6 4,5 5,1 Kontantstrøm investeringsaktiviteter Net cash flow investment activities -8,0-8,1-9,3 Kontantstrøm finansieringsaktiviteter Net cash flow from financial activities 18,6 0,5-10,3 Effekt av valutakursendringer Effect of change in exchange rates 0,0-0,2-0,3 Endring av kontanter og innskudd Net change in cash and bank deposits -2,1-3,2-14,7 Kontanter og innskudd ved periodens begynnelse Cash and bank deposits at start of period 9,5 24,2 24,2 Kontanter og innskudd ved periodens slutt Cash and bank deposits at end of period 7,4 21,0 9,5 Avstemming av egenkapital Change in equity Egenkapital ved begynnelsen av perioden Equity at the start of the period Resultat i perioden Result for the period Omregningsdifferanser Conversion differences Andre egenkapital justeringer Other changes in equity Egenkapital ved slutten av perioden Equity at the end of the period Denne rapporten er utarbeidet I henhold til International Financial Reporting Standards IFRS herunder standard for delårsrapportering ( IAS 34 ). - This report is produced according to International Financial Reporting Standards IFRS Including the interim report standard ( IAS 34 ). - ved utarbeidelse av delårsrapporten er det benyttet de samme prinsipper som i årsregnskapet - When preparing interim reports we utilise the same principles as for the annual report Domstein ASA N-6706 Måløy, Norway Tel.: Fax: