Good morning and welcome to Fodelia's Full Year 2025 Financial Statements presentation. My name is Riikka Wulff, I'm the Group CEO, and together with me at the studio this morning we have our new CFO Janne Aalto. Janne will present himself a bit later after my opening words. I'll comment a bit on our key highlights for 2025. After that, Janne will go through our financial development in more detail, and I will get back to the stage then and comment the figures behind or the doing behind the figures. We should have plenty of time for a Q&A session at the end of the presentation. Let's see. But let's start with a few highlights. Our group's net sales for last year increased by 8.4% compared to the comparable net sales in 2024. Our adjusted operating profit in 2025 amounted to 4.7% of net sales.
That fell a bit behind our own targets. But what is the most important thing for myself, at least, is that we guide for significant growth both in net sales and in profitability in 2026. The outlook for this year that we have already started is quite good. We'll get back to that later on in the presentation. Then a few figures on Fodelia level, and these are all unadjusted figures. Last quarter, net sales was EUR 14 million. The change in net sales was 4.1% compared to 2024. That amounted to EUR 0.6 million operating profit compared to the last year's EUR -0.4 million. Operating profit margin was 4% on Q4. And the same figures for the whole year. Net sales EUR 54.5 million compared to EUR 53.6 million.
Here we need to take into account that in 2024, the divested businesses added up to approximately EUR 3.3 million in 2024. As I mentioned, these are unadjusted figures. Janne will go through these in more detail after myself. Operating profit for last year was EUR 2.4 million compared to the EUR 0.7 million in 2024. The full year unadjusted operating profit was 4.3%. Then Janne will go through the figures in more detail and also in the business areas. Go ahead, Janne.
Thank you, Riikka. Hello and good morning for everyone also on my behalf. Before going into the details of the figures, I will present myself shortly. My name is Janne Aalto. I'm the new Group CFO, and I started in this position on January 7th. Before joining for the company, I worked over 13 years at Ernst & Young Oy called EY in several roles in advisory and consulting services. For example, in the CFO advisory, corporate treasury, financial reporting and development, and also in M&A. My last position at EY was Director in the CFO advisory services. First of all, let's look at Fodelia Group key performance indicators. As Riikka already explained, our net sales in the full year were EUR 54.5 million. That led to the operating profit EUR 2.4 million. Our operating profit before goodwill amortizations, so EBITA, was EUR 2.6 million.
Our profit for the period was EUR 0.7 million, but at the same time, our adjusted profit for the period was EUR 1.7 million. The key difference there is our joint venture business called Fodbar. And basically, in the last quarter of the year, we issued new capital loan for the company, and at the same time, we had to record Fodbar losses to our profit and loss statement to financial expenses. Then let's dive into Feelia's figures. On the top line, we can see there the October-December, so the last quarter figures. The net sales was EUR 11.3 million, and our net sales increased 10.6%. And that amounted to operating profit EUR 0.8 million. And our operating profit margin for the Feelia business was 7.5%. Then in full year, our net sales in Feelia were EUR 43.3 million, and our net sales increased 12.3%.
That led to operating profit EUR 3.8 million, and our operating profit margin was 8.7%. These figures are comparable figures because we merged the Marjava business to Feelia at the end of 2024. In these figures, the 2024 figures are basically adjusted by including Marjava business so that the numbers are comparable. Let's look at the Oikia business and the key figures. In the last quarter, net sales of Oikia were EUR 2.9 million, and the change of net sales were minus 12.7%. That led for the operating profit EUR 0.03 million, and the profit margin was 1%. In a full year, net sales for the Oikia business were EUR 12 million, and the change of net sales were minus 6%. The operating profit was EUR 0.05 million, so the operating profit margin was 0.4%.
Basically, what happened in the Oikia business, Riikka will comment a bit more in details later on. Basically, the private label market was challenging, and also our e-commerce, so the online business. Then at the same time, our own brand products were performing really well. Let's have a look at other key figures. Our return on equity in full year was 5.8%. At the same time, our adjusted return on equity was 13.4%. Our equity ratio was 57.3%, and net gearing was 29.6%. Basically, we can say that we have a strong balance sheet and strong financial position also going forward. Dividend proposal and per share information. As explained before, our adjusted profit for the financial year was EUR 1.7 million. That means that our adjusted earnings per share was EUR 0.2 per share.
Our board proposes in accordance to our dividend policy. Basically, we are paying dividends 35% of our adjusted profit for the financial year. We are paying EUR 0.07 cents per share in this year. Then over back to Riikka. Thank you.
Thank you, Janne. Okay, so let's dive into the doing behind the figures. Before that, a short description of our business areas. Feelia is the company operating in the food service market and offering long shelf life ready meals. The Delimax brand complements that Feelia product range. With Oikia, we focus on the retail market and still so far for a little while on the direct-to-consumer e-commerce. I will get back to that later on. Fodbar is our joint venture between us and Bravedo. Let's start before going into the business areas a few words about Fodelia's year 2025. I would describe our year as a year of strategic transformation and building the foundation for growth. Especially Feelia has been growing so fast for so many years that not all of our internal processes have been able to keep up with the pace.
So, at this time, we took the time to build the structures and the management to be able to look for the growth still in the future. It's quite often it happens that when you grow fast, you have more customers, more kilos produced. Maybe not all the internal processes keep up with the pace. So, this is the year, or 2025 was the year of making sure that we have enough focus also on our processes. So, the foundation for growth and profitability was built by focusing on our core operations. During the past couple of years, we have been giving up the business that is not so profitable or that is not in the core of our operations. And now we know where we focus. We focus on Feelia's core concept and in Oikia's side, of course, on our own brand.
Naturally, we want to be also a good partner for our customers in private label operations. But yeah, Feelia is in the core of our operations. Even though the year had many changes, we were able to keep up with the good financial stability. We didn't reach all of our targets, but I would say that our financial stability maintained quite good during all these transformations going on throughout the year. When we move into 2026, I would say that we are in a stronger position than we have been for a long time. We have a very good outlook for the future regarding our customer pipeline and regarding already closed deals. It's quite easy to start this year knowing that all the work that we have been doing is actually paying off.
Feelia's growth potential both in the domestic market and in the export market is significant. We see great potential there. And Oikia brand is starting to generate results with our own brand sales. So I'm quite optimistic with this year. Then a few words about how our organization was renewed. We have been talking about this a lot throughout 2025, or actually maybe more on the last half of the year. But four points as how we changed or renewed our organization. First of all, we've been clarifying the responsibilities and the roles. We have new recruitments, but we have also been discussing about the roles of the people who still work with us. How? Who's doing what? That has been a big and important thing inside of renewing our organization. Then second of all, we've been developing the management model.
When we started the year 2025, we still had three CEOs in the group. Now we have only 1 CEO. We have a 5-person management team in the group concentrating especially on the strategic issues in the longer run. Then both our companies have operational steering boards concentrating on the operational activities, the everyday management of those companies. Then third of all, we have strengthened especially Feelia's sales and production. We have nearly doubled the size of our sales team. We have been supporting the sales team by going through our product lines. We have a new production director at the Pyhäntä plant. There are many things how we've been developing both our sales and production internally. Then, of course, it's all about people. It's the people who make the results.
So it's of crucial importance for us to also invest in our people, the competence of our people. We support that growth by appointing a new HRD director for the group level. Well, all these changes increased our cost in the short term, but not that significantly, actually. If we look at the fixed salary level in the longer run, if we look at Q1 2026, the additional salaries based on all these changes are less than 3% in the fixed salary costs compared to the Q1 2024. The fixed salaries or the fixed personal costs are less than 10% of our turnover. So we don't talk here about huge add-ons on cost level.
It's really about what type of roles we have, what type of people we have, what type of leadership we have at the company to be able to support the long-term growth in the group. So that about the reorganizing. And then let's head into the business units. First, Oikia. Well, Oikia's year 2025 was really challenging. What I'm really satisfied with is how our investments in our own brand have been paying off. As we've been talking, we've been increasing the sales of our own brand quite nicely, actually over 21% during 2025. And our brand awareness is now better than it has been, actually, than it has ever been. Our net sales and operating profit, of course, declined. The result remained close to break-even due to the loss of contract manufacturing. That is not something where we can be satisfied with.
That is something that we have been working now to actually improve the situation for 2026. We've been doing that quite successfully. But the weak profitability of Oikia is mainly due to the not-so-good negotiations in the private label manufacturing. We are now focusing on snacks. We've been divesting some businesses during the past couple of years. Now one add-on on that is that we are planning to focus on snacks. We have initiated an evaluation process regarding the possible sale of our e-commerce, of Feelia Ruokakauppa. As we know, these figures on the group level are not that huge. So we don't expect to have a huge impact on the group's financial position based on this.
We are looking there maybe for a solution where an entrepreneur could take on the good work that we have been doing with our webcom and continue it with lower cost level than we have been able to do. Well, yeah, I already commented on the strategic progress in our own brand. So then last words about Oikia are about the efficiency and sustainability. Our investments improving energy efficiency and resource utilization reduce water and electricity consumption relative to production volumes. So in this case, the sustainability is also very good economically since it's been leading to lower cost level in both the energy and the water consumption, which is very satisfactory. Then a few words about Oikia snacks, how we divide the turnover between the private label and the branded products. As we can see here, the share of our own brand sales grew significantly from 24-26.
Well, of course, I would be happier with these figures if we could have kept the good work with the good figures with the private label. As we can see here, there was quite a bit of decline in numbers with our private label sales. So that's, of course, one part of why the share of our own branded products is so much higher now compared to 2024. But still, we managed to grow quite nicely in our own brand sales. And that is something where we are concentrating also in 2026. We do want to be the good partner also in private label production. But for us, if we think about the company value, how we push on creating or developing our own brand and pushing on with the brand awareness there. But then let's move to Feelia's year.
I think the year was characterized by stable growth and controlled development as part of our group's long-term strategy. Feelia's net sales grew significantly faster than the market, as has been the case for many years now. We didn't reach totally our operating profit targets for the year, but we know the reasons behind and we are able to affect the reasons behind to make sure that the 2026 will be significantly better in that sense. As we've been telling, we had some problems with our production during the Q3 and Q4. We've been able to fix those problems. We did see growing food waste in Q4 and Q3 last year, which led to decreasing sales margin. Also, the price of beef meat has been going up significantly. And we weren't maybe fast enough to push those increases in raw costs into our sales prices.
So that is something where we are keeping an eye this year. Let's put it that way. So I have all the reasons to expect that we will be doing better in that sense in 2026. During 2025, we made investments in developing our sales, our production, and our product range. As I mentioned, we nearly doubled the amount of our salespeople. We've been supporting our sales team with our product development, of course, and product management as well. We have a new production director at Pyhäntä. And by her leadership, or under her leadership, we've been pushing on with how to improve our internal processes to make sure that we keep up the good work also in the future with these growing kilos that we have at the factory.
Our plan is to do everything we can do also internally to support our customer-driven growth in the future as well. The continuous development of our product lines is of huge importance for us. One thing is the special diets that we have been developing for the elderly people in Finland. For those maybe having their lunches and dinners at the hospital, you might need smoother food in that, for example, in hospitals or for the elderly care. We have now a three-week range of lunches and dinners with special diets for these. One example of our product development and how we create the concepts for our customers. Following the Marjava merger, Feelia's service offering expanded to include Delimax berry and juice products. One example where we specifically combined Feelia and Fodbar is our Nordic brunch concept.
We have created a new concept to be able to use in private restaurants or, of course, in the public sector as well. To offer a great Nordic Brunch, in the core is the porridge. Porridge is something that is trending in Finland and also in other countries. And it's been of great interest for our customers. I highly recommend to try our oat porridge if you have a chance to do that. And also with Feelia, we have pushed with the sustainability and energy efficiency. Investments in renewable energy and resource efficiency support Feelia's long-term competitiveness and create us actually some cost savings as well. Then a few words about our customers. If we look at the number of billed customers in 2023 and compare it with the figure in 2025, there was a nearly 70% growth in the number of billed customers, which is a great thing.
At the same time, it also means that we used more of our time to operate with the current customers that we already have, to solving their problems, communicating with them. Looking back, it's easy to say that we should have doubled the size of our sales team already earlier to make sure that we keep up the good work with our sales pipeline, with new customers as well the whole time. But we have done it now, and we have very good discussions going on with our current customers and especially with new customers. One example of new bigger customers last year was the partnership with Verkanappulat, which is a daycare chain in Finland in early childhood education. So that's just one example, of course. As you can see from the figures, we have plenty of new customers.
But I would say that at this point, we are especially good with the private early childhood education customers here in Finland, operating very closely with our customers to make sure that our product range supports their needs and is good for the children at the daycare. Then I would like to comment on our FERP, our ordering platform, in a few words. It is something we have continued the development of our software throughout 2025 also and still continuing in 2026. We are adding new features based on our customers' wishes all the time and then every now and then taking bigger leaps as bringing in bigger improvements. Our customers use the software for ordering our food. The software is very easy to use, and you don't need to know the kilos or anything like that. It's enough that you know the number of people eating each specific day.
In the software, you can add the special diets, for example. It makes the ordering very easy. You can keep up with or follow the food waste in that system. It's an everyday tool for our customers, which is a strategically very important issue for us. Because since we are creating and developing the system that our customers use on an everyday basis, it gives us insight as what are the problems of our customers, what they need to operate their business. It's more than just providing the food. It's about providing the everyday tool and combining the knowledge that we get from there, both creating better tools for the future and creating, of course, also new food. It's a very important system for us strategically. Quite a good share of our turnover nowadays comes via FERP system nowadays.
Last year, it's out of that EUR 43 + something million in turnover for Feelia, almost EUR 13 million came through FERP. So quite a big share. Altogether, 8 million meals were ordered via FERP last year. So a very important system for us is very much in the center of our strategy and one important part of the whole concept, what brings us Feelia's competitive edge compared to competition. Then a few words about Fodbar. Janne already commented on the figures and how it didn't have that positive impact on our figures. But last year was quite an exceptional year. There were several simultaneous launches. For example, the ramp-up phase of OmaHäme took a lot of energy on Fodbar's side. When we look at 2024, there weren't any big launches, which meant that the year was good and it was profitable.
Now, in 2025, there were big launches, and the ramp-up phase seems to be really expensive and difficult. Again, we expect 2026 to look a lot better. But this did have an effect on our figures for the whole year of 2025. Well, then one of the most important things this morning is the outlook and guidance. Our group's net sales are estimated to be approximately EUR 59 million-EUR 65 million in 2026. Part of this is, of course, already from closed deals. Some is from how we see how the pipeline for new customers looks. And we expect our operating profit to improve significantly this year. So the outlook for the year is quite good. Our long-term target of reaching the EUR 100 million level, we have pushed that two years ahead or behind. So we used to estimate to have EUR 100 million by 2028.
But due to completed divestments, we have pushed the year to 2030. However, we do expect the profit margin to exceed 10% at the latest by 2028. At this point, we are focusing on Feelia, not that much on mergers and acquisitions. As we have seen, we have been actually divesting, not buying businesses. I'm not saying that we wouldn't buy something. If there's something very interesting for us that adds on with Feelia's core concept, like Marjava did, that would be a good match for us. But mainly, we are focusing on the core by ourselves, making sure that the organic growth is as good as it could be. And we see that it could be really good. So that's the outlook for 2026. And then a few words that I would like to mention on our group-level strategy.
First of all, we will develop this slide a bit during this year. Well, developing the slide is not as important as thinking what's behind the figures or the text here. This has been the same slide for a couple of years now. So this is something that we are looking at with our management team this year. But something that I would like to comment from this slide this morning, especially, is the cornerstones of our strategy and the point number two there, to stand out with new, sustainable, and innovative products and concepts. This is of huge importance for us. We have been always known for knowing our customers, being the agile partner, being able to fix the product lines and fix the problems that our customers face in their everyday life. And that is something that we, of course, want to be known also in the future.
So to be able to do that, we need to be active with our product development. We need to know our customers. And that is something that is very, very important for us with both of our business areas. But yeah, other than that, we will get back to this slide later on this year. And now we have plenty of time for the Q&A sessions. How does it look like, Janne? Do we have questions?
Yes. We have basically three questions for the same topic. So the e-commerce business or our online store. So the first question here that can you elaborate a bit more that are we going to sell the business or looking for the possibility for that or outsourcing or what's the future?
Yes, we are looking for selling the business and looking for especially entrepreneurs to maybe take over the business, which would mean that in the future, that would be our group's customer. That's the plan with the web store.
And do we see that there can be potential buyer candidates even though it's not profitable at the moment?
Yes, we have dug into the figures very deeply. And there are some costs where you can cut down if you are operating that on an entrepreneurial level. And of course, you could also look into the concept, especially with the logistics, how that could be maybe done a bit differently compared to how it's done nowadays. So there are some things that make me believe that some right entrepreneur for that could make a successful business out of that or profitable business out of that.
Yeah, so one question was also that what's the reasonable pull to sell the brand or the website or what? And you partially explained already, but do you want to...
Yeah, well, maybe I will want to add on on the brand because if and hopefully when we find the new partner to take over the web store, it's now connected with our Oikia brand. And in the longer run, that's, of course, not very optimal that someone else than us would be operating under Oikia brand. So the potential outcome would be maybe have someone operating it with a new brand, with the selection about like it is, but with a new brand and be a reseller of Feelia's products. Sort of going back to the where we were, except that the entrepreneur would be outside of our group, not inside the group.
Okay, thank you. And then NATO. So do you see that NATO is a possibility for the Feelia business?
Yes, definitely so. NATO has a very interesting web store where basically anyone can offer anything. So that is something that we have been looking into already. And I see that as a great potential for us. That is no silver bullet for making skyrocketing businesses at once, but of course, especially interesting for us.
Then one question regarding Fodbar business. So in what moment do you see that it will turn around and be positive, basically making profit? And do you accept loss-making business? And if so, how long?
Well, not for long, of course. With any businesses, we need to see that it will be profitable to accept the losses in the short run. But we do see that it's profitable in the longer run.
It's the ramp-up phase that is really difficult for Fodbar. When you get the new units up and running, it's profitable. But the ramp-up phase is the most difficult part. So that is maybe something where we need to improve as how we d o that.
Okay. And then a few questions regarding international possibilities. So export market. Do we see that Sweden is one possibility or maybe some other countries as well?
Yeah, Sweden is the easiest for us. Some of our customers whom we operate here in Finland are also operating in Sweden. So that is the easiest market for us. And of course, there's also the logistical nearness. So yeah, Sweden is the most probable market to enter.
And is it so that Sweden is especially for the Feelia business an opportunity? But then also, what about Oikia's possibilities?
Yeah, we do have some exports with Oikia already.
We have Oikia Moomin brand for the little children. So that is something that is interesting also in other countries. Maybe in Sweden as well, but also in other countries, also maybe further away from Finland. But yeah, the bigger business that we are looking for in the export market is for Feelia. But Oikia and Oikia Moomin is an interesting brand to export as well.
Okay. And then a few questions regarding Oikia. So do you see that the future of Oikia's profitable growth is based on its own brand? Or also is it so that the private label market is also able to be profitable for Oikia?
Yes, also private label is a profitable business for us. And especially so, again, this year as it has used to be. But yeah, if we look at the sales margin, it's, of course, better for our own brand compared to private label production.
Okay. And then one question. How many new major client agreements we are assuming below our new guidance for 2026?
That's a good question. I haven't really because the numbers that we've reported here are the number of billing customers. So in some cases, there are... I cannot say. I'm not sure. In details. In details because I don't want to draw some figure and I need to be sure of that. But plenty, of course. We have a huge potential customer base at the moment. And the guidance is based on how we see different customers and types of customers. It's not something that we just pumped up with, but there are the Excel sheets behind.
But I cannot comment, give the exact figure on the number of customers that it's based on.
Okay. Then there is a question regarding the cash flow and why the cash flow was weak in the last quarter. Then what happened there?
So maybe you can answer that.
I will explain. So basically, at the end of the year, in December, so basically during the last quarter, we had few cash outflows, which impacted, obviously, for the cash and cash equivalent position. So one was because we issued a capital loan to the Fodbar. So that was a big cash outflow. And then also, we had tax payments. So basically, we paid from 2024 some residual taxes. And also at the same time, we had tax prepayments considering the year 2026.
So at the same time, we have had basically three pretty significant cash payments. But then at the same time, we see that more like a one-time event. And then the cash position is obviously improving going forward. And also maybe it's good to add that as our board is proposing in our dividend guidance and the dividend payment, so we don't see any kind of issues with the cash and cash equivalent position. Then could you elaborate more on what is going to accelerate the sales for Feelia during 2026?
Well, actively work with our customers, both our current customers and especially with new customers. We have several potential discussions going on already and more coming in the upcoming weeks and months. I think we have more meetings with new customers than we have ever had before.
And of course, that's how it should be since we have doubled the number of sales team.
Yeah. And then also there was one question more regarding Oikia. So what is the own brand revenue and how the own brand compared to the private label revenue was divided for Oikia?
Yeah, that we actually handled with the... But just a reminder to look back on that one. Here we can see the figure. So 1/3 of revenue came out of our own brand and 66% out of private label. And as we can see here, the private label was declining while our own brand sales were increasing.
Yeah. And then also it's also impacting our export business possibilities, MFA market. Do you have any plans, any activity there?
Yeah, we don't have active plans at the moment. The plan is to grow organically. But of course, buying something interesting might make it easier to enter, for example, the Swedish market. So that is always one possibility. But we are focusing now on the organic growth, both in Finland and abroad.
Okay. And then... Yeah, we got a few new questions still. So can you explain a little bit more about the losses that occurred to the contract manufacturing? Is that you have set fixed prices which have been too low? Can you explain?
Well, yeah, we didn't lose any customers there. Let's start with that. But we lost some product lines within some customers. So that's one reason there. And then, yeah, we didn't succeed in the price negotiations as well as during the past couple of years. The potato market in Finland and Europe has been developing quite differently throughout the years.
Last year, there was an overflow with European potato in the market. Whereas in Finland, we have been having a quite stable situation here. So for some years, we actually got advantage of Europe, that the Central Europe having really bad potato years. And now 2025 was totally different in that sense. There was an overflow with the potato. So that's one explanation behind that our negotiation position wasn't as strong as it used to be. And if it's not of crucial importance for the customers to have domestic potato, then it's quite difficult for us to compete with the huge production lines in Central Europe compared to the smaller facilities and smaller amount of potato also here in Finland.
But for those customers who specifically want to have a domestic player and Finnish potato, we are actually the only player providing that purely Finnish potato manufactured in a Finnish factory.
Okay, thanks for that. Then we have one more question regarding the guidance. Basically, last year, we originally gave a guidance, and then we had to adjust that in the mid-year a bit down.
Yeah.
So basically, the question is that what is our visibility for the guidance for 2026? And basically, do we see and do we believe that we are able to meet those targets?
We definitely do. We've been going through. We have been especially digging into that during the past couple of weeks because I wanted to be sure before giving out the guidance that we actually can reach that. Of course, it's never...
I cannot say that we have closed all the deals in January. Of course, not. But we see already the closed deals that we have and the sales pipeline. So I have all the reasons to believe that we are reaching our guidance. I would like to say easily, but let's leave that out.
Yeah. And then also, yeah, we... Yeah, I take this first. So how common is it for the customers to require local potatoes from Oikia? Is this a real competitive advantage or something that is not asked for?
It is something that is asked for. It is of great importance for us.
Yeah. And then actually, we have this one really long question there.
Okay.
So in the report, you mentioned in 2026, Feelia gained 405 new customers, one example of which was the launch of the chainwide cooperation with the Verkanappulat daycare chain in the early childhood education customer segment. The total number of the customers at the end of 2025 was approximately 1,500. Do these figures include Marjava for both years or only since the merger in 2024 at the end of the year or some other time period?
That's a very good question. I'm quite sure that they are included in both the figures. We always compare. So the figures feel like comparable. They should be comparable, but I need to check that. But I'm quite sure. Yeah. Knowing the figures, it couldn't be otherwise, actually.
Yeah. And can you say anything about the size of the added customers in 2025? Are they in line with the earlier or multiple, smaller or larger?
Around the same. I wouldn't say that there's a big difference between the last years. We haven't had any huge new customers. But inside those figures, there are smaller and there are bigger customers. So I think they are quite in line with the previous years.
And then are you able to break down the business growth of Fedelia and Marjava? Because both ones are nowadays in the same below Feelia's figures.
Well, in the sense of growth, 2025 wasn't the best year for Delimax. So there was some growth, but mainly the growth came from Feelia, to be honest. Now we see great potential for this year. But most of the Feelia was... I mean, Delimax was close to flat last year.
Thank you, Riikka. I guess we covered all the questions, so...
Perfect. Thank you, Janne. Have a great day, all of you, following our webcast today.
Thank you.