Translation: Original published in Finnish on 4/24/2026 at 9:25 am EEST.

Source: Inderes

This morning, Apetit published a significantly weaker Q1 report than we expected, as the company's earnings turned into a loss and fell short of our estimates. Although revenue grew year-on-year, it was slightly below our estimate due to lower sales volumes. Conversely, the result was weighed down by Foodhills' unprofitability and cost pressures, particularly due to the increase in electricity prices. As expected, the company reiterated its recently lowered guidance in the report, but, in our preliminary assessment, Q1's operational performance creates downward pressure on our estimates, given the risk posed by inflationary pressures.

Sales volumes fell short of expectations in both segments

In Q1, Apetit's revenue increased by 5% to 46.1 MEUR, below our estimate of 48.2 MEUR. The weaker-than-expected growth was due to Food Solutions' sales volumes in Finland, which remained at the comparison period's level and thus also fell short of our estimates. However, the segment's revenue grew 20%, supported by the acquisition of Foodhills in Sweden (4.1 MEUR). In Oilseed Products, which is tied to market price movements, revenue decreased by 8%, which was 1% below our estimate, due to declining volumes and stabilizing prices. Overall, volume development in both segments was weaker than we expected.

Result clearly below our estimates

The company’s EBIT fell to -1.4 MEUR (Q1’25: 2.3 MEUR), clearly below our EBIT forecast of 1.8 MEUR. Food Solutions' EBIT remained at zero, which was weaker than both the comparison period and our estimates. This sluggish performance was primarily due to Foodhills’ losses, which were greater than we had anticipated, and the impact of rising electricity prices. Earnings in Oilseed Products declined as well from last year and fell short of our expectations due to raw material prices, lower volumes, and a narrowing crushing margin. We had also expected an earnings improvement from the associate company Sucros, but its losses remained flat year-on-year, causing EPS to fall to EUR -0.47, which is well below our estimate.

Downward pressure likely in our forecasts, as first part of year was weaker than expected

Apetit recently lowered its profit guidance for 2026 and now expects the operating result to clearly decrease year-on-year (2025: 5.9 MEUR excluding the non-recurring impact of the Foodhills acquisition). In our view, however, the previous profit warning is related to the one-off effects of closing the frozen pizza factory. Nevertheless, the company’s Q1 operational profitability was also weaker than we had forecast, so our current-year forecasts are likely to face downward pressure.