HUHTAMÄKI OYJ HUHTAMÄKI OYJ PRESS RELEASE 27.3.2019 AT 09:15
Huhtamaki restated financials 2018 following the adoption of the new IFRS 16 Leases standard
Huhtamaki has adopted the new IFRS 16 Leases standard as of January 1, 2019 using the full retrospective transition method. Quarterly financial information for 2018 has been restated accordingly. Restated figures are presented in the tables published as attachment to this release. The main impacts of the implementation are:
Group income statement for Q1-Q4 2018
- EUR 1.3 million decrease to the profit for the period
- EUR 2.6 million increase to EBIT and adjusted EBIT
- EUR 25.1 million increase to EBITDA and adjusted EBITDA
Group statement of financial position for January 1, 2018
- EUR 97.6 million increase to tangible assets
- EUR 5.2 million decrease to the total equity, which represent the cumulative impact on the profit for the period for previous reporting periods
- EUR 88.2 million increase to non-current interest-bearing liabilities and EUR 15.7 million increase to current interest-bearing liabilities
Group statement of financial position for December 31, 2018
- EUR 111.4 million increase to tangible assets
- EUR 100.7 million increase to non-current interest-bearing liabilities and EUR 18.9 million increase to current interest-bearing liabilities
- EUR 20.8 million increase to net cash flows from operating activities and 20.8 million decrease to net cash flows from financing activities
IFRS 16 Leases (effective for 2019 annual period with early adoption permitted) replaces IAS 17 Leases -standard. The standard introduces new requirements for accounting for lease agreements. It introduces a single lessee accounting model that requires a lessee to recognize most leases as assets and liabilities in the statement of financial position.
The Group has examined the impacts of the new standard, analyzing especially the identification of a lease and the measurement of a lease liability. The new standard impacts primarily the accounting for the Group's IAS 17 operating leases. On December 31, 2018, the operating lease commitments were EUR 100 million. These were reported as the nominal value of the future minimum payments of non-cancellable leases and therefore do not directly correspond to the present value of lease liabilities according to IFRS 16.
The Group has adopted the standard as of January 1, 2019 using the full retrospective transition method. The Group uses the exemptions provided by the standard not to book short-term leases (lease term of 12 months or less) and leases for which the underlying asset is of low value to the statement of financial position. The leases that the Group recognizes in the statement of financial position include forklifts, vehicles, other machinery and equipment, premises and land. The new standard impacts the consolidated financial statements and key figures such as earnings per share (EPS), net debt, gearing, return on net assets (RONA) and free cash flow.
For further information, please contact:
Thomas Geust, CFO, tel. +358 10 686 7880
Katariina Hietaranta, Head of IR and Financial Communications, tel. +358 10 686 7863
HUHTAMÄKI OYJ
Global Communications
Huhtamaki is a global specialist in packaging for food and drink. With our network of 78 manufacturing units and additional 24 sales only offices in altogether 34 countries, we're well placed to support our customers' growth wherever they operate. Mastering three distinctive packaging technologies, approximately 17,700 employees develop and make packaging that helps great products reach more people, more easily. In 2018, our net sales totaled EUR 3.1 billion. The Group has its head office in Espoo, Finland and the parent company Huhtamäki Oyj is listed on Nasdaq Helsinki Ltd. Additional information is available at www.huhtamaki.com.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Huhtamäki Oyj via Globenewswire
