INTERIM REPORT 2016 SECOND QUARTER (Q2)

Transcription

1 INTERIM REPORT 2016 SECOND QUARTER (Q2) Summary - Revenue in the second quarter came to 517 million kroner, 2 million kroner lower than the second quarter of Sales prices increased but sales volumes decreased compared to the same period last year - EBIT came to -19 million kroner in the second quarter compared to -16 million kroner in the same period in Margins per kilo increased compared to the same period last year, and production costs increased slightly. - Net interest-bearing debt decreased with 82 million kroner, from 432 million kroner on March 31 to 349 million kroner on June 30, primarily due to reductions in customer receivables - The equity ratio decreased from 7.4 per cent to 5.0 per cent over the quarter Main figures NOK million Year to date Year Q2 15 Q3 15 Q4 15 Q1 16 Q Operating revenues EBITDA (10) (8) (11) 20 (13) 10 7 (9) EBIT (16) (0) (15) 14 (19) (2) (5) (18) EBIT Margin -3,1 % -0,1 % -3,6 % 2,2 % -3,7 % -0,2 % -0,4 % -0,9 % Net finance (2) (2) (2) (10) (6) (5) (16) (9) Profit before tax (18) (2) (18) 5 (26) (7) (21) (26) Net profit/loss continued operations (17) (5) (28) 5 (26) (6) (21) (38) Net profit/loss discontinued operations (0) (0) Net profit for the period (17) (5) (28) 5 (26) (6) (21) (38) Earning per share(eps) (øre) cont.op (20) (6) (33) 6 (30) (7) (25) (45) Total assets Equity Equity ratio (%) 12,6 % 13,8 % 9,2 % 7,4 % 5,0 % 12,6 % 5,0 % 9,2 % Net interest bearing debt (316) (270) (335) (432) (349) (316) (349) (335) Working capital Norway Seafoods Group AS, Inkognitogaten 8, N-0256 Oslo, PO Box 1301 Vika, N-0112 Oslo, Norway Business ID: NO MVA Telephone: post@norwayseafoods.com

2 Financial results Sales for Norway Seafoods came to 517 million kroner in the second quarter, compared to 519 million kroner for the same period in Sales prices increased but sales volumes decreased. Gross margins increased compared to the same period last year. Production costs increased slightly per kilo. EBIT for the second quarter was -19 million kroner compared to -16 million kroner in the same period last year. Net financial items came to -6 million kroner in the second quarter, compared to -2 million kroner for the same period in The net financial items include net interest expenses as well as currency gains and losses. Currency losses increased compared to the same period last year. Sales and Market Sold volume of primary processed products from the Norwegian operations was tons in the second quarter compared to tons for the same period last year. Sales of whole unprocessed fish from the Norwegian operations decreased from tons to tons in the quarter. According to the Norwegian Seafood Council, Norwegian export volumes of fresh whole cod decreased by 4.4 per cent in the second quarter of 2016 compared to the same period last year. Prices on fresh cod fillets increased by 14 per cent in the second quarter of 2016 compared to the same period in 2015, and prices for frozen cod fillets (not block) increased by 16 per cent. Export volumes of fresh cod fillets from Norway decreased by 7 per cent, and volumes of frozen cod fillets increased by 3 per cent. Sales of fresh value added products were 580 tons in the second quarter compared to 696 tons in the corresponding period in 2015, while sales of frozen value added products decreased from 1058 to 616 tons. The decrease is a result of lower volumes from the value added products business in Denmark which ceased production in January Processing The volume of primary processed products from the Norwegian operations was tons in the second quarter compared to 3849 tons for the same period in Raw material prices for cod in the second quarter increased by 29 per cent compared to the same period last year. The proportion of fresh products decreased from 37 per cent in the second quarter of 2015 to 28 per cent in the second quarter of 2016 for the Norwegian operations, mainly due to increased use of frozen raw materials. The production of fresh value added products was 558 tons in the quarter compared to 693 2

3 tons in the second quarter of Norway Seafoods frozen value added factories decreased the production volume during the quarter and produced 786 tons compared to 890 tons for the same period in Balance sheet and liquidity Total assets decreased with 152 million kroner in the second quarter to 617 million kroner compared to 770 million kroner on March 31. Investments in the second quarter came to -1 million kroner due to sale of equipment in Denmark in the second quarter this year. Bank deposits, including drawing rights, totaled 65 million kroner on June 30, compared to 33 million on March 31. Working capital was 213 million kroner on June 30, a decrease of 87 million kroner from March 31. The working capital was 5 million kroner higher than in the same period last year. Net interest-bearing debt came to 349 million kroner on June 30, a decrease of 82 million from 432 million on March 31. Norway Seafoods equity on June 30 was 31 million kroner, representing an equity ratio of 5.0 per cent compared with 7.4 per cent on March 31. Cash flow Cash flow from operating activities was positive with 83 million kroner in the second quarter. Cash flow from investing activities was positive with 1 million kroner. Cash flow from financing activities was negative with 82 million kroner. Net cash flow was positive with 2 million kroner. Events in the quarter and after the balance sheet date Lerøy becomes new majority shareholder in Norway Seafoods Lerøy Seafood Group ASA has entered an agreement to purchase all shares held by Aker ASA in Norway Seafoods Group AS and Havfisk ASA. Through this transaction, Lerøy will become majority shareholder in both companies. Lerøy intends to offer all other shareholders in the two companies to sell their shares to Lerøy when the transaction is completed. The agreement was signed in June and is subject to approval from relevant authorities in several countries. 3

4 Profit and loss accounts Group NOK million Year to date Year Q2 15 Q3 15 Q4 15 Q1 16 Q Operating revenues Operating expenses (530) (465) (444) (631) (530) (1 079) (1 161) (1 989) EBITDA (10) (8) (11) 20 (13) 10 7 (9) EBITDA Margin -2,0 % -1,8 % -2,6 % 3,1 % -2,5 % 0,9 % 0,6 % -0,5 % Depreciations (6) (6) (6) (7) (6) (12) (13) (25) Non-recurring items (0) EBIT (16) (0) (15) 14 (19) (2) (5) (18) EBIT Margin -3,1 % -0,1 % -3,6 % 2,2 % -3,7 % -0,2 % -0,4 % -0,9 % Net finance (2) (2) (2) (10) (6) (5) (16) (9) Profit before tax (18) (2) (18) 5 (26) (7) (21) (26) Tax on ordinary profit 1 (3) (10) (12) Net profit/loss continued operations (17) (5) (28) 5 (26) (6) (21) (38) Net profit/loss discontinued operations (0) (0) Net profit for the period (17) (5) (28) 5 (26) (6) (21) (38) Minority interest Majority interest (17) (5) (28) 5 (26) (6) (21) (38) 4

5 Norway Seafoods group Balance sheet Assets Amount in NOK million Intangible Assets Fixed tangible assets Total intangible/tangible assets Financial interest-bearing fixed assets Financial interest-free fixed assets Shares and other equity investments Total financial fixed assets Total fixed assets Biological assets Inventory Interest-free short-term receivables Interest-bearing short-term receivables Liquid assets Assets discontinued operations Total current assets Total assets Equity and liabilities Amount in NOK million Total shareholders equity Minority interests Total shareholders equity and minority interests Provisions and other interest-free long-term liabilities Interest-bearing long-term debt Total long-term liabilities Interest-free short-term debt Interest-bearing short term debt Liabilities discontinued operations Total short-term liabilities Total shareholders equity and liabilities

6 Cash Flow statement from continued operations NOK million Year to date Year Q2 15 Q3 15 Q4 15 Q1 16 Q Profit before tax (18) (2) (17) 5 (26) (7) (21) (25) Sales losses/gains Depreciations and amortisations Changes in other net operating assets (46) (95) 103 (13) 8 (24) Cash flow from operating activities (56) (83) 83 (8) 0 (24) Cash flow from investing activities (8) 6 (1) (4) 1 (15) (3) (10) Cash flow from financing activities (57) (48) (82) Total cash flow from reporting period 1 (2) 4 (5) 2 (2) (3) 0 Effects on changes in exchangerates on cash (0) (0) (0) (0) 0 Cash and cash equivalent at the beginning of the period Cash and cash equivalent at the end of the period Not utilised credit facilities Cash and cash equivalent at the end of the period, incl. credit facilities Oslo, July 19 th 2016 The Board of Directors and CEO, Norway Seafoods Group AS 6