Finnish food producer Apetit has issued a profit warning for its fiscal 2025, attributing the setback to “delays in harvest production.”
The company, excluding the effects of its recent acquisition of Foodhills, completed in November, anticipates an operating result between €5.6-6.6 million ($6.7-$7.8 million) for 2025. This marks a decline compared to €9.3 million in 2024.
Previously, Apetit had indicated that its operating result—excluding the acquisition’s impact—would “slightly decrease” from the previous year. In a statement made on December 12, Apetit clarified that the timing of harvest production and its completion directly influences inventory valuation in the fiscal year.
Moreover, the company pointed out that delays in harvest linked to “production-related reasons” and lower-than-expected production volumes will negatively affect the operating results of the Food Solutions division, which specializes in frozen vegetables and ready meals.
While Apetit has asserted that it does not foresee a “significant impact” on the underlying Food Solutions unit, the timing issues are expected to depress the division’s operating profit.
Two months ago, when the acquisition of Foodhills was disclosed, Apetit announced it would acquire all share capital of the Swedish pea supplier for Skr100 (approximately $10.56). This acquisition included a repayment of Skr20-30 million in loans previously provided by the former owner, ultimately leading to a final purchase price of Skr60 million.
Foodhills operates a production facility in Bjuv, Sweden, primarily serving the Swedish foodservice market. The company posted net sales of Skr167.8 million in 2024 but incurred an operating loss of Skr54.7 million. As of Friday, Apetit anticipated that the contribution from Foodhills to its Food Solutions segment would be “negative” for December.
Additionally, Apetit highlighted a “significant” non-cash accounting effect due to the bargain purchase of Foodhills. The company estimates that this positive impact on its operating results will range from €8-10.5 million, which will be reflected in the annual figures for 2025.
In a rapidly evolving food and beverage industry, such challenges underscore the need for adaptability and strategic planning. Apetit’s situation is a testament to the dynamic nature of food and drink consumer trends, and the importance of staying attuned to market shifts.
