CEO’s review Q1/2026

“Apetit Group’s operating result for the first quarter of 2026 declined into a loss. The operating result of the business acquired from Sweden was, as expected, loss-making, which weakened the result of Food Solutions compared to the comparison period. Operations are seasonal, and typically the result level at the beginning of the year is lower than at the end of the year.

Net sales in Food Solutions increased from the comparison period, particularly as a result of net sales of the business acquired from Sweden. Net sales of Food Solutions’ Finnish operations increased slightly from the comparison period, and sales volumes were at the level of the comparison period.

In Oilseed Products, the decline in the result was affected by the price of the raw material used and by the sales volumes and the crushing margin that were lower than in the comparison period. The impact of BlackGrain from Yellow Fields® rapeseed powder on the result of Oilseed Products was negative. BlackGrain and the plant protein produced from it have received a positive reception from customers. Its distinguishing strengths are its nutritional composition and its ability to improve the structure of the product. For example, the Sopu meatball, which reached the final of the Suomalainen menestysresepti programme, contains BlackGrain plant protein.

We announced on 26 February 2026 that the company would initiate change negotiations covering the entire personnel of the Pudasjärvi frozen pizza factory. The change negotiations ended on 13 April, after which a decision was made to close the Pudasjärvi frozen pizza factory. Due to the factory’s significant investment needs and the development of frozen pizza sales, production has been decided to be continued as contract manufacturing in Finland. The amount of annual cost savings resulting from the closure of the factory is approximately EUR 0.7 million starting from 2027. The Group’s one-off investment needs for the coming years will decrease by approximately three million Euros due to the closure of the factory. The one-off costs and write-downs related to the closure of the factory, allocated to 2026, will have an impact of approximately EUR 2.3 million on operating result.

In March, we announced an automated warehouse to be built in connection with the Säkylä frozen food factory. Under a long-term cooperation agreement, Pakkasvakka Oy will invest in a new automated finished goods warehouse with a capacity of approximately 16,000 pallet spaces. The automated finished goods warehouse will improve logistical efficiency and respond to increased capacity needs. The warehouse is intended to be in the test run phase already during this year.

With the expansion into Sweden, Apetit became a significant European producer of frozen peas. In the upcoming growing season, our contract growers in Finland and Sweden will cultivate frozen peas on a total area of approximately 6,000 hectares. In line with our strategic objectives, we have increased the cultivated area in Finland to over 2,000 hectares. In Sweden, the cultivation area of frozen peas has been increased clearly from last year. In Sweden, spring is clearly more advanced than in Finland in the pea cultivation area, and sowing is already well under way.

The cultivation areas of Finnish oilseeds for the upcoming season are again increasing from the previous year. Although the growth is moderate, the direction is right. At Apetit, particularly through the RypsiRapsi Forum, we have worked systematically to increase the cultivation area of oilseeds and to improve cultivation reliability and yield levels. Increasing oilseeds in crop rotation promotes self-sufficiency and brings added value to the domestic food chain.

In line with our strategy, we will continue to strengthen our position in the Finnish and Swedish frozen food markets. At the beginning of the year, we introduced to stores, among other things, the Palko+ product range, with two mixes containing pulses and vegetables to offer an easy and delicious option to add pulses to everyday meals. Apetit has strong expertise in frozen vegetable product development and market knowledge, which we will utilise during the current year in the launch of novelty product for Swedish retail trade.

During the current strategy period, we will report separately, within Food Solutions, on the development of the Finnish operations and on the business acquired from Sweden. Going forward, we will also report on the development of BlackGrain’s net sales and operating result. BlackGrain is reported as part of Oilseed Products. Apetit’s Swedish business operations and BlackGrain are essential to the company’s growth strategy, which is why we want to provide sufficient visibility into our progress. Neither is reported as a separate IFRS reportable operating segment.

The first quarter was affected by many factors that had a negative impact on the result, but growth does not occur without investments. We have taken an important step in developing Apetit’s operations in Sweden by bringing the packaging lines at the Bjuv factory into full operation. Increasing the volumes of packaged products at the factory is an important strategic objective. Reducing costs and improving production efficiency are of paramount importance for achieving a turnaround in the result of the operations in Sweden.”

Esa Mäki
CEO