Altia’s result was satisfactory despite the deteriorating market
For Altia, 2008 was divided into two parts because of the rapidly changing financial situation. Altia grew as planned until September, after which the deteriorating financial situation and resulting changes in consumer behaviour had a significant impact on the company's operations. The decline in Scandinavian currencies had a great influence on costs in these countries. The result was satisfactory despite the deteriorating market situation.
January–December 2008 in brief
- Net sales decreased by 1.2% to EUR 463.3 (468.5) million.
- Operating profit excluding non-recurring items was EUR 11.7 (15.3) million, and EUR 9.0 (-48.9) million including non-recurring items.
- Net profit for the period excluding non-recurring items and their impact on taxes was EUR 8.9 (9.2) million, and EUR 6.2 (-48.9) million including non-recurring items.
- Equity ratio was 30.3% (31.9%) on 31 December 2008. Gearing was 87.4% (77.6%) on 31 December 2008.
Operating environment
In Finland, the retail sales of alcohol beverages decreased by a total of 1.2% (1.8%) in 2008, and the increase in wine sales has clearly slowed. Compared to 2007, the import of strong alcohol beverages by travellers increased by 6.5% and that of wines by 15.1%. In Sweden, total sales increased by 3.1% (5.4%) from the beginning of the year, despite the decrease in the sales of strong beverages. In Norway, sales increased by 3.9% (3.4%) from the beginning of the year. At an annual level, the sales of strong beverages decreased by 4.7% in Finland and by 1.1% in Sweden, whereas it increased by 1.1% in Norway. In all monopoly countries, the sales of wines remained at an increase of 2–5%. The sales of white wines increased quicker than that of red wines, which was a new common feature. In Finland, retail sales of wines increased by 2.4% (5.3%), that of red wines by 1.8% (7.6%) and that of white wines by 2.5% (2.2%). In Sweden, sales of wines increased by 4.5% (6.0%), that of red wines by 2.8% (5.9%) and that of white wines by 5.0% (3.9%). In Norway, sales of wines increased by 4.5% (3.1%), that of red wines by 2.8% (2.9%) and that of white wines by 7.5 % (2.4%).
Altia Group
Altia Group's net sales decreased by 1.2% to EUR 463.3 (468.5) million. Operating profit excluding non-recurring items stood at EUR 11.7 (15.3) million, and EUR 9.0 (-48.9) million including non-recurring items. Operating profit includes non-recurring expenses and provisions totalling EUR 2.7 million. During the financial period, Group company inventories have been entered as obsolete items and impairment recognitions to a total value of EUR 1.9 million (0.9), of which non-recurring items comprised EUR 0.6 million. The comparability of the figures is affected by the previous year's impairment loss of EUR 60 million from the Group's goodwill and intangible rights.
Other operating income amounted to EUR 7.4 (9.5) million. The reference year's other income includes a non-recurring income item received from the sale of the vinegar business.
Personnel expenses stood at EUR 63.0 (62.5) million. The 2008 figures also include an income of EUR 0.3 million in 2007 annual bonuses (EUR 0.6 million in 2006 annual bonuses in the reference year). Non-recurring expenses in the personnel costs reported for 2008 amounted to EUR 2.1 million (EUR 2.2 million in 2007).
Other operating expenses amounted to EUR 67.0 (70.1) million.
Net financing costs in January–December 2008 stood at EUR -1.2 million (4.6). The change compared to the previous year is mainly caused by exchange rate changes related to items denominated in foreign currencies.
The consolidated balance sheet total was EUR 402.2 (431.5) million on 31 December 2008.
Outlook
The financial situation is forecasted to have an impact on consumers' alcohol habits so that premium products will be replaced by less expensive products, or consumers will transfer to less expensive beverage categories.
In Finland, tax increases in alcohol beverages will reduce sales. In addition, import by travellers will increase. At the beginning of 2009, a tax increase of 31% for strong alcohol beverages was carried out in Latvia, which will reduce the sales of strong alcohol beverages. In other Nordic countries, total sales are expected to remain at the 2008 level.
Altia's long-term strategic objective is to grow into an internationally competitive alcohol beverage company. During the review period, Altia's mission was shaped, financial objectives were agreed on and a new vision was created. Furthermore, several new development projects covering the entire Group were started.
Altia will continue to strengthen its products and trademarks in all market areas. Our goal is to further increase our market shares in all Nordic countries and the entire Baltic region.
Because of the exceptional uncertainty in the global economic and financial situation, it is difficult to forecast the Group's operating profit.
More information: Antti Pankakoski, CEO, tel. +358 40 844 1666