Huhtamaki adopts new IAS and IFRS standards and changes reporting between business segments
Huhtamaki adopts new IAS and IFRS standards and changes reporting between business segments
HUHTAMÄKI OYJ STOCK EXCHANGE RELEASE 25.2.2013 AT 09:00
As of January 1, 2013 Huhtamäki Oyj has adopted the revised IAS 19 Employee Benefits standard and IFRS 11 Joint Arrangements standard. In addition the rigid paper and plastic packaging unit in South Africa, previously reported as part of the Molded Fiber segment, is reported as part of the Foodservice Europe-Asia-Oceania segment as of January 1, 2013. The Group's financial reporting as of the Interim Report for January 1-March 31, 2013 will be in line with these changes. Quarterly Group and segment information for 2012 has been restated accordingly. Detailed figures are presented in the tables attached to this release.
The adoption of the revised IAS 19 Employee Benefits standard results into higher EBIT, lower EPS and reduced equity in the Group's financial figures for 2012. The Group's EBIT in 2012 is increased by EUR 2 million as the net interest costs related to employee benefits are reported in financial items. The EBIT impact is positive for most segments. The Group's EPS in 2012 is lower by 2 cents due to increase in net interest costs as the interest rate definition in calculation of plan asset return has changed. The Group's equity in the 2012 opening balance sheet is reduced by EUR 49 million as a result of recognizing actuarial gains and losses in other comprehensive income.
The adoption of IFRS 11 Joint Arrangements standard concerns the Group's 50% owned subsidiary Laminor S.A. in Brazil. The unit's figures have previously been consolidated into the Flexible Packaging segment using the proportional method. As of January 1, 2013 the unit is consolidated using the equity method. The impact of the change on the Flexible Packaging segment's and Group's net sales in 2012 is EUR 14 million negative.
The rigid paper and plastic packaging unit in South Africa that has previously been reported as part of the Molded Fiber segment is reported as part of the Foodservice Europe-Asia-Oceania segment as of January 1, 2013. The impact of the change in reporting on the Foodservice Europe-Asia-Oceania segment's net sales in 2012 is positive by EUR 26 million and on EBIT by EUR 1 million. Correspondingly, the Molded Fiber segment's net sales and EBIT in 2012 are impacted negatively.
For further information, please contact: Timo Salonen, CFO, tel. +358 10 686 7880 Kia Aejmelaeus, Head of Investor Relations, tel. +358 10 686 7819
HUHTAMÄKI OYJ Group Communications
Huhtamaki Group is a leading manufacturer of consumer and specialty packaging with 2012 net sales totaling EUR 2.3 billion. Foodservice and consumer goods markets are served by approximately 14,200 people in 64 manufacturing units and several sales offices in 31 countries. The parent company, Huhtamäki Oyj, has its head office in Espoo, Finland and its share is quoted on NASDAQ OMX Helsinki Ltd. Additional information is available at www.huhtamaki.com.
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