Harvest delay to hit Apetit profits

Core Viewpoint - Finnish food company Apetit has issued a profit warning for fiscal 2025 due to delays in harvest production, forecasting an operating result of €5.6-6.6 million ($6.7-$7.8 million), a decrease from €9.3 million in 2024 [1][2] Group 1: Profit Forecast and Impact - Apetit expects its operating result for 2025 to be between €5.6-6.6 million, down from €9.3 million in 2024, excluding the impact of the Foodhills acquisition [1] - The company had previously indicated that its operating result would "slightly decrease" from the prior year [1] Group 2: Harvest Production Delays - The timing of harvest production and its completion is affecting inventory valuation, leading to decreased operating results in the Food Solutions business, which produces frozen vegetables and ready meals [2] - Delays in harvest production and smaller-than-expected production volumes are contributing to the decline in operating results [2] Group 3: Foodhills Acquisition - Apetit acquired Foodhills for Skr100 million (approximately $10.56 million), with a final purchase price of Skr60 million after repaying Skr20-30 million in loans [3] - Foodhills, which operates a production plant in Sweden, reported net sales of Skr167.8 million in 2024 but incurred an operating loss of Skr54.7 million [4] - The contribution from Foodhills to Apetit's Food Solutions segment is expected to be negative in December [4] Group 4: Accounting Impact - Apetit anticipates a positive non-cash accounting impact from the bargain purchase of Foodhills, estimated to be between €8-10.5 million, to be recognized in the annual figures for 2025 [5]