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ANNUAL REPORT
2016
Key figures
This is BAMA
Value chain collaboration
A word from the CEO
Consumer insight, knowledge and inspiration
Management review
Goods flow: Norwegian
Goods flow: Import
From field to fork
Business segment: Grocery
Business segment: HoReCa
Business segment: Industry
Business segment: Service market
Business segment: Flowers
Business segment: International
Sustainability at BAMA
Corporate governance
Report from the board of directors
Income statement
Balance sheet
Statement of cash flow
Notes to the financial statements
Auditor’s report
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Table of contents
Key figures 2016
MNOK 2016 2015 2014 2013 2012
INCOME STATEMENT
Operating revenues 16,508.2 15,445.6 13,522.3 12,509.8 10,772.0
EBITDA 972.5 964.0 832.5 784.0 707.0
EBIT 633.9 648.4 492.8 557.2 478.0
Profit before tax 650.3 660.1 485.1 559.4 506.5
Net profit for the year 463.9 461.8 344.4 409.1 344.7
BALANCE SHEET
Non-current assets 2,627.6 2,705.7 2,580.4 2,308.5 1,271.5
Current assets 2,352.1 2,451.4 1,934.2 1,674.4 1,830.4
Equity 1,238.1 1,060.4 1,051.4 997.5 854.1
Long-term liabilities 946.5 990.3 900.2 557.1 242.1
Current liabilities 2,795.0 3,106.4 2,563.1 2,428.4 2,005.6
LIQUIDITY
Change in cash and cash equivalents -114.3 320.0 173.6 -315.9 -112.1
KEY FIGURES
Liquidity ratio (%) 1 84.2 78.9 75.5 69.0 91.3
Profit ratio (%) 2 4.2 4.6 3.9 4.7 4.8
Inventory turnover rate 3 7.4 7.3 6.8 8.0 9.7
Total return (%) 4 31.2 33.3 26.5 37.6 47.0
Gearing ratio (%) 5 24.9 20.6 23.3 25.0 27.5
Sales per full-time equivalent 6 6.3 6.0 5.3 5.3 5.0
DEFINITIONS – KEY FIGURES
1. Current assets as a percentage of current liabilities
2. Operating profit + financial income as a percentage of operating revenues
3. Operating revenues / (assets - current liabilities - deferred tax liabilities + current interest-bearing liabilities)
4. Profit ratio * inventory turnover rate
5. Equity 31 Dec * 100 / total assets
6. Operating revenues / full-time equivalents
0
4,000
8,000
12,000
16,000
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
8.0 16
.0 8.1 14
.2 6.9
0
1
2
3
4
5
4.7
4.5
3.6
4.3
3.9
0
2
4
6
8
2012
6.6
2013 2014 2015 2016
6.3
6.2
6.2
5.9
OPERATING REVENUES (MNOK) SALES GROWTH (%)
PROFIT MARGIN BEFORE TAX (%)
OPERATING MARGIN – EBITDA (%)
1KEY FIGURES ANNUAL REPORT 2016
THIS IS BAMA
BAMA is the Norwegian market leader within fruit, vegetables and other fresh produce. This offers opportunities but also confers significant social responsibility.
BAMA is one of Norway’s oldest privately owned trading companies, and has been in operation for 130 years.
Trading with more than 1,400 suppliers on all continents, today the company is a global player with a probably wider sphere of oper-ations than any other Norwegian business.
We assume end-to-end logistics respon-sibility along the value chain, from the supplier in Norway and abroad all the way to our customers in Norway.
BAMA shall be a growth driver in the Norwegian market, working in close col-laboration with its customers. BAMA shall deliver products to its customers with an absolute focus on quality in all stages of the value chain and possess unique knowl-edge about suppliers and goods supply.
OUR VISIONAs a commercial player, BAMA also aims to stimulate growth in the consumption of fruit and vegetables, in line with official Norwegian health and nutritional policies. This confers us with significant social responsibility, but also offers opportuni-ties. By acting transparently and honestly in everything we do, and complying with our vision of making Norway fresher and healthier, we shall help to improve society, where a healthier diet, increased physical activity and getting sufficient sleep are top of the agenda.
OUR STRUCTUREBAMA is structured into several business areas including two separate Grocery businesses, HoReCa/Service Market, In-dustry, Flowers and International. BAMA also has separate procurement and logis-tics, property and central staff functions.
MAIN OBJECTIVES• BAMA shall be, and be perceived as,
the best supplier and partner for its customers.
• BAMA shall be a growth driver in the Norwegian market.
• BAMA shall deliver products to its customers with an absolute focus on quality in all stages of the value chain and possess unique knowledge about its suppliers and goods supply.
• BAMA shall adopt a societal position in the Norwegian market that helps to boost the focus on healthy eating, physi-cal activity and getting sufficient sleep.
• BAMA shall be a driver of and model business for sustainable development in the environment and social responsibili-ty within the company’s product areas.
CORE VALUESCreating value for our customers is the driving force behind all our activities, to which our employees proudly contribute each day displaying:• Team spirit • Integrity • Consideration of others
2,363
1,400
BNOK
16.5
GROUP EMPLOYEES IN NORWAY:
NUMBER OF SUPPLIERS,5 CONTINENTS
SALES IN 2016:
2 BAMA ANNUAL REPORT 2016
60%of production in Norway is sourced locally
Proximity to the market
LOCAL PRESENCE ACROSS THE WHOLE OF NORWAY
3
INNOVATION AND KNOWLEDGE
We constantly keep abreast of trends, which we cater
for through product development and innovation.
RESEARCH AND DEVELOPMENT
New production methods and better plant materials are raising product quality and thus driving
consumption growth.
CORPORATE SOCIAL RESPONSIBILITY
As a major player in Norway, trading in 85 countries, the
entire organisation assumes major obligations – each
and every day.
CONCEPT DEVELOPMENTA targeted focus on
expertise enhancement and product knowledge in order to cater for emerging trends.
TRANSPORT AND THE ENVIRONMENT
New technologies and transport methods are securing product
quality and sparing the environment.
MARKETING AND KNOWLEDGE
Improved availability, inspiration and increased knowledge boost
consumption.
PRODUCERDedicated and long-term
partners with high levels of expertise. This provides
predictability and growth for the value chain.
MARKET ACCESSClimate variations are resulting in
unstable and unpredictable production, which necessitates
continuous monitoring of the market.
AVAILABLE AND PRACTICAL
Increased availability of healthy and practical products simplify
the consumer’s busy working day.
CONSUMER TRENDS AND NEEDS
Health-conscious consumers prioritise quality and
selection ahead of low prices, and prefer short-travelled
food.
… TO FORKTASTE, NUTRITION AND WELL-BEING
FROM FIELD … A SEED, A PLANT OR
A BULB – OF THE HIGHEST QUALITY
ETHICAL TRADINGOur ethical guidelines oblige us – both in daily transactions and in
dealings with suppliers who produce our products – to ensure that the
way we conduct business complies with signed agreements.
QUALITY AND TASTEDevelop products of higher
quality, higher nutrition and better taste.
THE BAMA MODEL
As Norway’s leading suppliers of fruit, vegetables and other fresh produce, BAMA bears a significant responsibility. BAMA shall help to boost consumption of fruit and vegetables, in the process making Norway fresher and healthier, and ensure that this is achieved in a sustainable manner. The Group adopts a holistic approach along the entire value chain both in Norway and abroad. The “BAMA model” describes the company’s approach to this work.
4 BUSINESS OPERATIONS ANNUAL REPORT 2016
INNOVATION AND KNOWLEDGE
We constantly keep abreast of trends, which we cater
for through product development and innovation.
RESEARCH AND DEVELOPMENT
New production methods and better plant materials are raising product quality and thus driving
consumption growth.
CORPORATE SOCIAL RESPONSIBILITY
As a major player in Norway, trading in 85 countries, the
entire organisation assumes major obligations – each
and every day.
CONCEPT DEVELOPMENTA targeted focus on
expertise enhancement and product knowledge in order to cater for emerging trends.
TRANSPORT AND THE ENVIRONMENT
New technologies and transport methods are securing product
quality and sparing the environment.
MARKETING AND KNOWLEDGE
Improved availability, inspiration and increased knowledge boost
consumption.
PRODUCERDedicated and long-term
partners with high levels of expertise. This provides
predictability and growth for the value chain.
MARKET ACCESSClimate variations are resulting in
unstable and unpredictable production, which necessitates
continuous monitoring of the market.
AVAILABLE AND PRACTICAL
Increased availability of healthy and practical products simplify
the consumer’s busy working day.
CONSUMER TRENDS AND NEEDS
Health-conscious consumers prioritise quality and
selection ahead of low prices, and prefer short-travelled
food.
… TO FORKTASTE, NUTRITION AND WELL-BEING
FROM FIELD … A SEED, A PLANT OR
A BULB – OF THE HIGHEST QUALITY
ETHICAL TRADINGOur ethical guidelines oblige us – both in daily transactions and in
dealings with suppliers who produce our products – to ensure that the
way we conduct business complies with signed agreements.
QUALITY AND TASTEDevelop products of higher
quality, higher nutrition and better taste.
The dynamic and value-chain-based model
reflects our favoured holistic approach.
Detailed planning and predictability shall
secure sustainable production, increased
consumption and profitability in all stages
from a long-term perspective.
BAMA collaborates with skilled and inno-
vative producers, leading development and
research bodies, committed societal con-
tributors and authorities and with custom-
ers who appreciate the value of having an
abundant selection of fruit and vegetables.
This enables us to develop new products,
better packaging, efficient logistics solutions
and targeted marketing measures.
We have made major joint investments
in research and development along the
entire value chain, all the way from the
producer to the consumer. The BAMA
model, which draws on expertise at all
stages, is a unique form of collaboration in
a European context.
BAMA’s most important societal task,
which it performs in close collaboration
with its customers, is to help to boost
consumption growth in accordance with
the authorities’ overarching nutritional
and health targets. The BAMA model
makes a significant contribution to this
important work.
5
Best in the Nordic region is not good enough – we are aiming much higher.
6 A WORD FROM THE CEOANNUAL REPORT 2016
In 2016 BAMA celebrated its 130th anniversary. The company has always actively marketed fruit and vegetables in Norway, for the benefit of the entire industry. Since the new millennium, consumer growth has risen by more than 50 per cent. Working closely with our customers and producers we have made a strong contribution to this growth.
A NATIONAL DRIVER
BAMA’s business strategy provides a basis for sustainable development of the com-pany. In addition, as part of our initiatives to make Norway fresher and healthier, we clearly position ourselves as an important societal contributor.
We are also a global player, trading with more than 250 suppliers on all continents and as many as 1,100 Norwegian pro-ducers of fruit, vegetables, flowers, fresh drinks and other products. We assume end-to-end purchasing and logistics responsi-bility along the value chain, from suppliers in Norway and abroad all the way to our domestic and international customers.
The consumption growth we have achieved in Norway is the result of careful planning working closely with our part-ners along our various value chains. Our customers have helped to significantly increase the availability of fresh fruit, ber-ries and vegetables for Norwegian con-sumers. Fresh berries, for example, which are now available 365 days a year and have generated volume growth of 165 per cent over the last ten years provide an ex-cellent example of our collaboration work with suppliers and customers.
We are naturally proud of the role we have played in stimulating increased con-sumption of vegetables, fruits and berries. Only 34 per cent of men and 41 per cent of women eat the recommended amount of fruit and berries in accordance with the Norwegian government’s dietary recommendations. A total of 15 per cent of men and 13 per cent of women eat the recommended volume of vegetables.
This illustrates that wide-ranging collaboration is required to boost consumption of fruit and vegetables. To this end we participate in the Norwegian Health Minister’s Compass Group, which has been mandated to agree measures to help improve the general public’s diet, and BAMA has signed a letter of intent regarding healthier food.
We strive to establish strong partner-ships between authorities, the business community, organisations and voluntary bodies. With this in mind, BAMA will
continue to spearhead initiatives to boost consumption of fruit and vegetables, and will be measured against the success of these measures.
TRANSITION AND TRENDSThe whole of Norway was in a challenging period of transition in 2016, which also affected BAMA’s operations.
Even though consumption growth of fruit and vegetables in Norway has flat-lined in the last two years, major potential for growth remains. Norwegian consumers are demanding fresh, healthy and natural pro-duce, in particular in fruit and vegetables. The growing popularity of vegetarian op-tions is also benefiting our product groups.
Climate challenges affected both our Norwegian and international suppliers in 2016, resulting in scarcities in important production areas. Alongside a depreciat-ing NOK, this helped to increase purchase prices of key international produce.
RESEARCH – INNOVATION – VALUE CREATIONCreating new growth requires long-term planning, in which our research projects play a key role. Since 2000, together with Gartnerhallen, we have implemented more than 100 targeted projects designed to boost production of Norwegian products, with extremely positive results. One of the projects aims to increase the share of Norwegian potatoes from 60 to 80 per cent by 2018. We are making good progress towards this target, and 2017 will see the market launch of several new potato varieties.
In 2016 we implemented a range of major new research and development initiatives in close collaboration with our value chains. Here we use a totally unique collaboration model in both a Norwegian and international context, from which we expect extremely good results.
Our partnership with Gartnerhallen, which represents 1,120 Norwegian producers, creates value along the entire value chain. Increasing numbers are joining the venture, which is encountering increased demand for local, Norwegian food.
LOOKING TO THE FUTUREBAMA’s position in the Norwegian and global market is important. We have identified significant potential for further development in all our focus areas where we can in particular use our knowledge of the Norwegian market to enhance our role in the Nordic and European fruit and vegetables market. Norway has pioneered, and become a world-leader in, consumption of berries, avocados and a range of other products.This has been achieved through close and integrated value chain collaboration, a model that will also function in other markets.
Competition for the best producers and ingredients is intensifying, in particular due to significantly higher purchasing power and demand for quality products in other parts of the world such as Asia. Nonetheless, together with all our valued partners at all stages of the value chain, we are well placed to counter this competition, and ensure that Norwegian consumers and European customers receive the best products on the market far into the future.
BAMA is striving to develop more sustain-able solutions in all areas and exercise its social responsibility along the entire value chain and will invest significant resources in identifying even more efficient solutions moving forward. An increasing degree of digitalisation – in both administration and goods management flow – is one of the tools we will use to achieve this, alongside major innovation. This will result in even fresher products being delivered to the consumer and generate further consump-tion growth.
Best in the Nordic region is not good enough – we are aiming much higher.
Rune FlaenCEO
7
8 BAMA ANNUAL REPORT 2016
CONSUMER INSIGHT, KNOWLEDGE AND INSPIRATIONRight from the start, BAMA has actively marketed fruit and vegetables through a number of campaigns and activities that benefit the entire industry. These have made a key contribution to doubling consumption growth. A flat-lining of this growth curve in recent years has been countered by reinforced initiatives in several channels.
Sound consumer insight plays a key role in inspiring increased consumption. Our strategic choices and priorities in this area are based on the various needs that in-fluence and motivate consumers. Trading patterns, taste and quality requirements and increased availability of fresh and healthy products are equally important.
TRENDSThe term “healthy food” is perceived differently by different groups depending on what they deem to be most important. However, the majority are interested in a healthy diet, taste and short-travelled food. Trends, coupled with efficient collabo-ration from field to fork, are the key to unlocking consumer growth. This makes product development and innovation, based on consumer needs, more impor-tant than ever.
LOCAL PRESENCEBAMA wishes to motivate and inspire people to eat more healthily and lead an active life. To this end, we present healthy and fresh products in many arenas. We use our “Food for the smallest” project to promote healthy and tasty meals in nurseries. We aim to achieve the best pos-
sible school fruit scheme so as to give all children the opportunity to eat five a day. Our chefs and experts in taste and nutri-tion are committed to offering healthy and sustainable options in canteens and re-freshment rooms, and nutritious and tasty meals in hospitals and nursing homes.Each year we use our sponsorship and other activities at grass-roots level to meet hundreds of thousands of consumers, in the form of children, young people and their parents. This gives us a unique op-portunity to help shape healthy activities and habits at an early age. Last but not least, we go out of our way to meet our customers, whether in the grocery store, on their travels or in restaurants.
INSPIRATIONBAMA presents itself at all levels of soci-ety to highlight the importance of eating healthily and being physically active. We are confident that inspiration and more knowledge about fruit and vegetables will help to boost consumption. And we work on a broad front. Whether through TV adverts, digital surfaces, social media or sports events, we have one aim in mind: making Norway fresher and healthier.
Volume growth in berries in the last ten years.
Several years after their launch, consumption of sweet potatoes is still growing thanks to more knowledge about how to use this popular product.
+ 165%
Making Norway fresher and healthier.
VOLUME TRENDS SWEET POTATOES:
2012
kg
2013 2014 2015 2016
SØTPOTET
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Nor
way
Swed
en
Den
mar
k
Finl
andgrammes
250
275
300
325
350
375
400
CONSUMPTION FRUIT AND VEGETABLES, GRAMMES PER DAY, NORDIC REGION Source: Norwegian Fruit and Vegetables Marketing Board (OFG)/Freshfel 2016
9
Consumers are demanding fresh, healthy and natural ingredients. Many people are now more environmentally aware than in the past, and an increasing number of people are selecting vegetarian options for their meals. Regardless of whether consumers choose our products on grounds of health, the environment, sustainability or the latest trends, this can only be good news for BAMA and its customers. And for the health of the general public.
CONSUMER TRENDSFruit and vegetables are the category of food of most interest to Norwegian consumers. Products must be of a high quality and be available in a wide selection. These elements are so important that they help to determine which stores consumers shop at, and which stores they discount.
We are also experiencing increasing interest in sustainable consumption. Local and environmentally friendly food, and in particular fruit and vegetables, is gaining in popularity.
According to the Norwegian Fruit and Vegetables Marketing Board (OFG), Norwegians eat four of their recommended “five-a-day”, which makes them the highest consumers in the Nordic region. Nonethe-less, we cannot relax until we reach five out of five, and then perhaps even surpass the authorities’ target figures.
Consequently, we are further ramping up our focus on Norwegian production in order to reinforce our competitiveness. In addition, together with our partners we are focusing on research and innovation measures that will enable us to generate new values in all areas of the value chain.
PREDICTABLE ACCESS TO GOODS Access to goods in the global market remained unstable in 2016, a situation that may become the new “normal”. Climate conditions in important production countries affected supplies, with empty vegetable shelves making the news in several countries.
Despite this, BAMA managed to cover demand from its customers, and has not experienced the situation in the same way as suppliers in many other countries. We adopt a long-term approach to everything we do, and trade with high-quality
suppliers of fruit and vegetables all over the world. We plan the season to ensure predictability. As a result, we find that our supplies are prioritised when there is a scarcity of products on the market. This enables us to satisfy our customers’ needs.
It was a good season for Norwegian production, in particular for fruit and storable vegetables. The exception were strawberries and raspberries, where climate challenges significantly reduced harvests compared with a normal year.
In order to continue to secure access to goods moving forward, BAMA is working broadly – in all directions – along the value chain in order to establish an even larger network of suppliers. We collaborate directly, emphasising the importance of good, long-term relationships. This will help to boost our customers’ competitiveness.
SPRINGBOARD FOR FURTHER GROWTH
Local and environ-mentally friendly food, and in particular fruit and vegetables, is gaining in popularity.
10 MANAGEMENT REVIEW ANNUAL REPORT 2016
GROCERY I GROCERY II FLOWERSHORECA/SERVICE
MARKETINDUSTRY INTERNATIONAL
BAMA GROUP
CENTRAL STAFF FUNCTION/PROPERTY
TRADING
Rune FlaenCEO
Jarle GjerdeSenior Vice President Finance, Treasury, IT and HR
Øyvind BrisåSenior Vice President Incoming Goods Flow, Packaging and Logistics
Odd Lindstad Johansen Senior Vice President HoReCa, Service Market, In-house Logistics and Property
Atle BeyerSenior Vice President Industry, Processing, Quality and Environment
BAMA’s Group management:
Wenche HolenSenior Vice President Flowers and Strategic Processes
11
FINANCIAL PERFORMANCEIn 2016 BAMA posted consolidated sales of BNOK 16.5, which were up 6.9 per cent on the previous year. The profit before tax came in at MNOK 650. Management is satisfied with the company’s overall performance for the year.
All the Group’s business areas returned improved sales in 2016.
Grocery areas contributed pleasing overall growth of 3.5 per cent, despite the fact that climate conditions resulted in scarcities in key production areas such as Norwegian berries during the sum-mer season and citrus fruits towards the end of the year. Some categories, such as ready-to-eat products, tomatoes and freshly processed products are generating particularly pleasing growth.
Our main aim is to boost our customers’ competitiveness. Consequently, we work closely on a one-to-one basis with our chain customers to improve the efficiency of the value chain, create solutions for each customer and to help to boost growth in all the product categories we supply. For the second year in a row, HoReCa re-turned improved figures, with sales growth of 8.2 per cent in 2016. Wide-ranging work is being performed in many areas in the market segment, and we actively assist our customers with concept development and new product category initiatives. Seafood and game have been a particular
focus area in recent years, with seafood alone netting 22.0 per cent of sales.
BAMA Industry is also contributing strong growth of 10.8 per cent, extensive-ly on the back of an increased focus on product development and new launches. Processed products such as vegetables and sous-vide products have contributed to solid growth, with ready-cut salads accounting for the majority of sales.
The “freshly processed” product cate-gory offers major potential for growth. In some European countries, freshly produced products account for as much as 20–30 per cent of sales of fruit and vege-tables; however, in Norway this category comes in at 5.0 per cent.
Increased demand for healthier options from customers in Service Market contin-ued in 2016. Several successful launches of sandwich products, drinks and freshly cut fruit were made in the second half of the year. Fresh fruits, berries and vegeta-bles in particular generated growth.
BAMA has made Flowers a strategic focus since 2008. This growth continued into 2016. Most of the growth was driven by Grocery customers; however, Service Mar-ket and the specialist trade also offer major potential. Work on closer, direct relations with individual producers on the continent and efficient transport solutions have secured better quality and greater access to goods. Cut flowers, in particular roses,
Sustainable develop-ment is also a question
of a healthy diet, physical activity, and the five-a-day target.
330
340
350
360
370
380
390
400
20
10
20
11
20
12
20
13
20
14
20
15
20
16
PER CAPITA NORWAY, FRESH FRUIT AND VEGETABLESSource: Norwegian Fruit and Vegetables Marketing Board (OFG) 2016
Grammes per capita/day
Trend
12 MANAGEMENT REVIEW ANNUAL REPORT 2016
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2016
2015
2014
+54%
100%
110%
120%
130%
140%
150%
160%
SALES GROWTH:
6.9%
OPERATING MARGIN:
5.9%
PROFIT MARGIN:
3.9%
VOLUME GROWTH:
2.0%
are responsible for the bulk of the sales. High-quality Norwegian products play an extremely important role in this context. The companies responsible for BAMA’s international business are continuing to deliver excellent results, and in 2016 generated overall sales growth of around 20.0 per cent measured in local currency. The companies included in this area base their activities on BAMA’s value chain model, which also functions in a fiercely competitive international market.
GROWTH POTENTIALOver the last five years, the Group has generated consolidated volume growth of 8.0 per cent in fruit and berries, 7.0 per cent in drinks and 12.0 per cent in veg-etables and freshly processed products. Freshly processed products alone have returned growth of 26.0 per cent, where vegetable mixes and ready-to-eat salads in particular have performed well and offer major growth potential.
BAMA has major opportunities for growth outside its existing categories. Develop-ment of new categories within drinks, vegetarian food and organic products will be harvested by stepping up our focus on product development and innovation.
WORLD-CLASS BANANA RIPENING FACILITYBananas are the bedrock of the busi-ness and the largest product in the fruit category. Moreover, banana consumption
in Norway is among the highest in Europe. In order to secure capacity and future growth, in 2016 we started operation of a new banana ripening facility at Grorud in Oslo. This state-of-the-art system covering more than 5,000 square meters has the capacity to ripen 90,000 crates of bananas each week. The ripening facility is one of the largest in Europe and is world-class with regard to product quality, cost-efficiency and environmentally friendly solutions.
STAFF TRAINING MEASURES Digitalisation and innovation are trans-forming business at breakneck speed. In order to achieve our cost-efficiency, growth and competitiveness targets, we are stepping up our investments in new technology. We are focusing intently on the future, including by implementing training measures for our employees throughout the organisation.
SUSTAINABLE DEVELOPMENTWe aim to be a model business with regard to sustainable development, and strive to ensure that all our operations are performed in a responsible manner. We shall drive growth based on sustainable choices.
Sustainable development is also a question of a healthy diet and physical activity, and the five-a-day target. It is also a question of driving sustainable develop-ment from an environmental and social responsibility perspective.
FRUIT, BERRIES AND VEGETABLESVOLUME TRENDS, NORWAYSource: Norwegian Fruit and Vegetables Marketing Board (OFG)
13
PRODUCTIVE NORWEGIAN SEASON FEATURING EXCITING FOCUS AREASStable and favourable growth conditions resulted in an excellent season for Norwegian products in 2016. Potato and onion farmers in particular enjoyed record harvests. Targeted marketing secures sale of products and inspires consumers to try out new things. Moreover, BAMA and Gartnerhallen are closely collaborating to boost sales of Norwegian produce. One of the most promising projects in 2016 involved the development of new varieties of potato.
2016 was a good year for many of Gartnerhallen’s producers. Many of the largest crops were ready early, in a high quality and large volumes, while an unusually warm and favourable autumn ensured optimal harvesting conditions well into October. Unfortunately, one exception were strawberries, where plagues of grey mould resulted in a weaker-than-expected season. At the other end of the scale, new crop records were set for important stored goods such as potatoes, carrots and onions. The Norwegian share remained stable at 31 per cent, in line with the target figure.
VALUE CHAIN COLLABORATION AND FOCUS ON CAMPAIGNSOnce we have large volumes in stor-age, the challenge is to ensure that our products are purchased and consumed. Here, knowledge- and inspiration-based marketing play a key role. In the autumn a strong focus on digital marketing of Nor-wegian potatoes produced visible results, in the process demonstrating the value of collaborating along the entire value chain. The same could very much be said of the traditional summer campaign, in which this year Norwegian TV chef Lise Finchen-hagen inspired everyone to use “hidden treasures” such as turnips and kohlrabi.
The job of securing sound access to the relevant products for the campaign period starts as early as the previous autumn. This
work, which requires efficient planning and close collaboration along the entire value chain, produced results in 2016.
In the case of turnips, the increase in the campaign period was an incredible 243 per cent, while kohlrabi also gained a firm foothold as a new product on the market.
SUCCESSFUL INNOVATIONThe aim of achieving an 80 per cent Norwegian share of potatoes is an important part of BAMA’s and Gartner-hallen’s collaboration strategy. In 2016 this share edged ever closer to the target, rising from 70 to 72 per cent. While good, high-quality crops make a positive con-tribution, innovation and new ideas also need to be on a different level.
2016 was the first year of large-scale trial cultivate of the new Norwegian potato vari-ety Nansen. Production will be increased in 2017, and during the autumn the first pota-toes will be launched on the market. Thanks to the combination of an attractive taste and appearance and long shelf life, we have high hopes that Nansen will tip the scales further towards the 80 per cent mark.
Innovation is not just a question of new varieties and cultivation methods, but also of how the products are presented to the consumer. Key areas in this context include packaging design, smarter and more envi-ronmentally friendly packaging solutions.
volume growth for turnips in the campaign period.
the Norwegian share of potatoes grew by 2 percentage points in 2016.
243%
72%
New crop records were set for potatoes, carrots and onions.
14 BAMA ANNUAL REPORT 2016
0
50
100
150
200
250
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2016
2015
2014
Value242%
0
50
100
150
200
250
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2016
2015
2014
Verdi242 %
Volum33 %
VALUE TRENDS – PRODUCERSSource: Gartnerhallen
15
CHALLENGING INTERNATIONAL GOODS FLOW
Climate changes and extreme weather conditions are resulting in supply challenges for fruit and vegetables, and in recent years the situation has proved increasingly demanding for BAMA’s trading activities. However, thanks to its long-term and relationship-oriented collaboration model, BAMA receives priority treatment from suppliers, which makes it possible to maintain volumes and quality in the international goods flow for the Norwegian market.
Climate factors such as droughts, precipita-tion and major temperature fluctuations are all making the supply situation de-manding and unpredictable in many of the countries from which BAMA trades. Such incidents are becoming more frequent with each year, making our job more and more challenging – though far from impossible.
For example, in Spain, which is one of Norway’s most important import countries for citrus products, heavy rain resulted in the flooding and destruction of some crops, with producers unable to plant replacement crops.
Challenging climate conditions in many parts of the world also make sourcing replacement products from elsewhere a complex task. In addition, the continuing weak NOK exchange rate throughout 2016 resulted in higher purchase prices. In the wake of a challenging year, we reviewed our import strategy to assess alternative sources of origin, production countries and suppliers in order to secure a more robust supply situation.
LONG-TERM COLLABORATION A SUCCESS FACTORHowever, the most important measure a relatively small global player like BAMA can take is to adopt a long-term, relationship-oriented procurement strategy focusing on the supplier. We work together directly with suppliers, with as few intermediary stages as possible, and engage in ongoing dialogue. This provides both parties with predictability and inspires our partners to go the extra mile to deliver to us.
This is exemplified by the Spanish compa-ny Llombart, which has supplied Nor-wegian consumers with first-class citrus products for 40 years. The company’s professionalism, focus on quality and unsurpassed security of supply even in the most difficult of seasons such as last year won the company the International Supplier of the Year 2016 award.
We could highlight several such partner-ships – all of which are invaluable to us. Our ability to maintain a better level of service and delivery than many of our competitors in a difficult year is attributable to our long-standing and outstanding relationships with our suppliers. The loyalty we show them over time, is returned to us in kind.
At the same time, BAMA is a leading premise-provider for ethical trading in the global market and is involved in work to guarantee sustainability and good working conditions in the countries in which it op-erates. The way we exercise our corporate social responsibility has attracted atten-tion well outside Norway’s borders.
NEW BANANA RIPENING FACILITYBack home in Norway, work to establish a new banana ripening facility at Grodrud in Oslo featured prominently in 2016. With a state-of-the-art facility covering more than 5,000 square meters, 45 ripening sheds and the capacity to process 90,000 crates of bananas a week, this is a world-class ripening facility and one of the larg-est in Europe. We started operations in July 2016, before the facility was officially opened and reached full capacity in 2017.
The Spanish company Llombart has supplied Norwegian con-sumers with first-class citrus products for 40 years. In 2016 the company was named Inter-national Supplier of the Year.
crates of bananas can be ripened in the new banana ripening facility at Grorud at full capacity.
40 years
90,000
The way we exercise our corporate social responsibility has attracted attention well outside Norway’s borders.
16 BAMA ANNUAL REPORT 2016
MOST IMPORTANT ORIGINS % OF PURCHASES:
Europe
Norway
South America
North America
Africa
Asia
Oceania
Spain
Netherlands
Italy
France
Poland
0 5 10 15 20 25 30 35 40 45
42%
30%
11%
6%
5%
5%
1%
Europa
Norge
Sør-Amerika
Nord-Amerika
Afrika
Asia
Oseania
Spania
Nederland
Italia
Frankrike
Polen
0 5 10 15 20 25 30 35 40 45
42 %
30 %
11 %
6 %
5 %
5 %
1 %
Processed4
Berries3
Tomatoes5
Carrots5
Onions4
Bananas11
Potatoes 13
Apples 7
Citrus10
LARGEST PRODUCT CATEGORIESBY WEIGHT PERCENTAGE:
17
FROM FIELD TO FORK
Grocery II
Grocery I
HoReCa
Service Market
AROUND
5,100DAILY
DELIVERIES
520,000TONNES
TERMINALS
PACKAGING PLANTS
TERMINAL DIRECT
INDUSTRIAL PROCESSING
31%NORWEGIAN PRODUCTION300 loading points1120 suppliers
69% INTERNATIONAL PRODUCTION220 loading points250 suppliers
18 BAMA ANNUAL REPORT 2016
BAMA is a global player with a significant sphere of operations, both in Norway and abroad. The company currently has a network of more than 1,400 producers in Norway and abroad, and each year sells more than 500,000 tonnes of fresh fruit, vegetables, berries, drinks and flowers.
Fruit and vegetables are live products whose quality has to be maintained, regardless of distance, and well-thought-out logistics solutions play a crucial role in ensuring that fresh and pristine products reach our customers and the consumer as
quickly as possible. Reducing the distance from field to fork is an ever-present aim in this context, and the products are refrigerated during their entire transport – regardless of origin.
BAMA has built up many years of specialist expertise in purchasing and logistics, and prioritises cultivating and nurturing good relations with new and existing producers. In a world characterised by increasingly volatile access to goods, value chain collaboration is now more important than ever.
The goods flow is BAMA’s very lifeblood. Each year more than 500,000 tonnes of fresh products pass through our terminals on their way to over 5,000 customers in Norway. Some products are short-travelled, while others are imported from virtually all corners of the world. Our business – in a nutshell.
Grocery II
Grocery I
HoReCa
Service Market
AROUND
5,100DAILY
DELIVERIES
520,000TONNES
TERMINALS
PACKAGING PLANTS
TERMINAL DIRECT
INDUSTRIAL PROCESSING
31%NORWEGIAN PRODUCTION300 loading points1120 suppliers
69% INTERNATIONAL PRODUCTION220 loading points250 suppliers
19
BUSINESS SEGMENT:
GROCERYNot too long ago, avocados and mangos were deemed specialised and exotic products in Norwegian grocery stores. However, in recent years sales of both products have sky-rocketed and they have become a regular fixture in the Norwegian shopping trolley. BAMA’s Grocery division has contributed to the sales increase, closely abetted by its chain customers.
A desire for ready-to-eat products has been a clear consumer trend, and one of the reasons for the success of avocados and mangos over the last ten years. While previously having to ripen on the kitchen table for several days, both products are now available in more consumer-friendly and ready-to-eat variants – and are continuing to achieve strong growth.
This is a success story we share with our customers, who were the first in Europe to offer their customers ready-to-eat products. This exemplifies the type of teamwork and focus along the value chain that has made Norway a world leader in on-trend products.
While these products are offered to consumers in alternative packaging and qualities, it is ripened high-quality variants that have contributed the greatest growth. Over the last five years, the volume and value increases achieved by both products through the Grocery sector has been nothing short of remarkable. Norwegians currently eat 12 avocados and 2.5 mangos each year, which is well above consumption in other European countries.
EXPOSURE AND MARKETINGThe work BAMA performs in close collaboration with its chain customers to promote the products is one of the reasons for the successful Norwegian growth in mangos and avocados. An attractive and strategically located fruit and vegetables section with high-quality products is the key to winning the battle for grocery customers, and a growing number of stores are giving mangos and avocados a suitably prominent position. We know that this is helping to drive further growth.
Exposure is also achieved using campaigns and concepts focusing on avocados and mangos – alone, or together with other products. While lower prices naturally play a role, tips on how to use the products in tasty and healthy recipes also help. BAMA contributes through its expertise on the products – which is entirely consistent with our desire to inspire Norwegian consumers using our knowledge of new application areas.
VOLUME TRENDS, AVOCADOS (%)
2012 2013 2014 2015 2016
MANGO
AVOCADO
0
1 000 000
2 000 000
3 000 000
2012 2013 2014 2015 2016
0
2,000,000
4,000,000
6,000,000
8,000,000
Sources:gfk.com/Kantar/Norwegian Fruit and Vegetables Marketing Board
CONSUMPTION PER YEAR, AVOCADOS
COUNTRY NUMBER OF ITEMS
Norway 12
UK 6
Germany 5
Netherlands 5
Austria 4
+81
Onions 6
Avocados 6
Berries 17Tomatoes 12
Grapes7
Cucumbers6
Salads 6
Citrus 11
Potatoes11
Bananas9Apples 8
SHARE OF SALES (%):
20 GROCERY ANNUAL REPORT 2016
growth in mango consumption over the last five years
+ 53%
GROCERYBAMA serves two of the largest companies in the market. The business area is clearly and thoroughly organised into two completely separate physical and administrative structures and
goods flows for the competing grocery systems. This allows us to process the two customers in isolated channels, maintain confidentiality and reinforce the competitive situation.
21
BUSINESS SEGMENT:
HORECADemand for healthy, fresh and local produce in the hotel, restaurant and canteen sector is growing. An increasing number of organisations would also like to say something about the food they serve. This is why BAMA HoReCa’s highly successful local food concept Kort & Godt was launched across Norway in 2016.
Kort & Godt is designed to promote local fruit, berries and vegetables. BAMA is using the concept to clearly show that the company supplies knowledge and not just ingredients. To this end, chefs, waiters and kitchen supervisors are invited to farms to personally meet the producers. The concept deals with taste, seasons, quality, soil and climate. In collaboration with Gartnerhallen, BAMA HoReCa wishes to utilise the focus on local and short-travelled food to help to boost knowledge of the ingredients that are served in Norwegian restaurants.
In 2016 a trial project started at 6 producers in Østfold in 2015 was expanded to include 39 producers in five regions across Norway. Since the launch at the end of August, many of our producers and customers have found common ground with each other through this joint commitment to local high-quality Norwegian ingredients.
THOROUGHLY PREPAREDFresh from the field, our customers can pass on knowledge of the ingredients’ qualities, application areas and background to the people who intend to eat their products. BAMA facilitates this by assigning each producer an SMS code that the customer can use to receive a more detailed presentation of the producer and their ingredients. These are also available on BAMA HoReCa’s mobile-adapted website, which also contains a seasonal calendar showing which fruits, berries and vegetables are in season. We have also assigned the products a unique product number in order to be able to measure sales performance.
The successful concept was continued in the 2017 season, with 11 new Kort & Godt producers joining the 39 existing, and continuing, participants. The focus on enabling customers to communicate knowledge even more efficiently to their guests is also currently being reinforced, with the spotlight even more firmly on waiters and head waiters.
SMS PRODUCER:
SHARE OF SALES (%):
Bell peppers6
Potatoes6
Cucumbers6
Salads10
Apples6
Tomatoes10
Othervegetables 13
Fish and seafood22
Ready-cutsalads 12
Processedvegetables11
22 HORECA ANNUAL REPORT 2016
dedicated Kort & Godt producers
Send an SMS containing norsk 14 to 2252 to meet Jan Ove Fuglem.
For the other producers, select the relevant number between 1 and 50.
50
HORECABAMA HoReCa is a market leader in the marketing and distribution of fruit and vegetables. In recent years other product groups such as fresh meat, chicken and
above all seafood and game have contributed a rising share of sales. The HoReCa market covers hotels, restaurants, catering, the public sector and the business market.
23
BUSINESS SEGMENT:
INDUSTRYBAMA Industry’s processed products satisfy consumers’ desires for fast, expedient and healthy options during a hectic working day. Among our new ready-cut and carefully selected salad mixes, our complete lunch salads in three-compartment containers remain a popular and established favourite.
Over many years, the three variants Chicken Salad, Cheese and Ham Salad and Taco Salad have established themselves as major sellers, with the first two the most popular. The salads are widely distributed in the Grocery sector and are also available for the HoReCa and Service Market sectors. All three produced further solid growth in 2016, with the year’s newcomer Bacon and Broccoli Salad proving a real hit with consumers thanks to its extra-healthy content such as broccoli and red onions.
KEEPING IT HEALTHY AND SIMPLE With a dedicated tasting panel and a product development department consisting of chefs and other food technology experts, BAMA Industry leaves little to chance when developing a new product. And both customers and consumers are demonstrating that they value this constant innovation to make Norway fresher and healthier.
Consumer interest in tasty and healthy products appears here to stay. The Norsk Spisefakta 2016 (Norwegian Food Facts) survey backs up this view, while also revealing that consumers increasingly wish to have processed products that are readily available and quick to prepare. This is reflected in growth in many parts of BAMA Industry’s product range. The entire salad segment, including lunch salads, self-serve salad bars in stores, baby leaf salads and other bespoke and ready-washed salad mixes in bags, are gaining increasing market shares.
The same applies to processed vegetables, where several new variants were launched during the year, while processed potatoes, mashed potatoes and stews also help to complement our broad product ranges. Further new products are scheduled for launch in 2017. BAMA will continue to accommodate such trends.
24 INDUSTRY ANNUAL REPORT 2016
Growth in sale of packaged salads
+ 18%SHARE OF SALES (%):
Processedfruit 2
Ready-cutsalads 28
Processedpotatoes 19
Packaged salads10
Mini carrots 2
Mashed potatoes,soups, etc. 5
Processedvegetables19
Baby leaf salads13
Consumer interest in tasty and healthy products appears here to stay.
INDUSTRYBAMA Industry develops and produces freshly processed products for BAMA’s HoReCa and Grocery business customers. The product range varies from ready-cut salads, fruit and vegetables to
fresh or processed vegetables and potato products. The business area is also responsible for production of sandwich products and meal solutions for the business area.
25
BUSINESS SEGMENT:
SERVICE MARKET BAMA Service Market focuses on offering healthy snacks to people on the move, taking the fight to hot dogs, burgers and fizzy drinks in the kiosk and petrol station market. The 2016 launch of healthy Bendit Shakers and Bendit Smoothies featuring new packaging and a new design exceeded all expectations.
With many people regarding kiosk and petrol station food as unhealthy, Bendit Shakers and Smoothies are intended to encourage people to choose fruit and vegetables as a tasty and inviting alternative to fast food. BAMA uses fresh ingredients that maintain their colour and consistency and contain no additives. And Norwegian ingredients wherever possible.
The launch of the new, freshly packaged Bendit Shakers was well received by both consumers and chain customers. Many of our customers immediately saw the potential and installed extra coolers at their store entrances to showcase the healthy alternatives – with immediate success. With blueberries the best sellers in 2016, in 2017 the concept is being extended to cover even more exciting variants.
SUCCESS IN A BOTTLEBAMA Service Market’s broad product range also encompasses sandwiches, baguettes, salads, smoothies and fruit and nut mixes. Renewal and innovation of both ingredients and presentation play an important role in maintaining and increasing sales. In addition to Shakers, the popular Bendit Smoothies were relaunched in 2016 – with new names and in on-trend bottles.
The already outstanding taste and content of two of the variants were fine-tuned to provide an even healthier and more appealing profile. The content of the fruit and berries also now features more prominently on the label. The launch at the start of school year in the middle of August got sales off to a flying start, which rose by as much as 60 per cent in just a few weeks. The growth continued for the rest of the year, with the products helping to establish BAMA as a serious partner in the drinks category and contributing to new, exciting agreements in 2017.
SHARE OF SALES (%):
Frisk Frukt6,3
Drikke 1,2
Hvitt kjøtt 2,8
Rødt kjøtt 1,2
Fisk/Sjømat 3,3
Friske Gønnsaker
12,1 Salater
8,7
BearbeidedeGrønnsaker
6,4
Påsmurt 57,9
Fresh fruit6.3
Drinks1.2
White meat2.8
Red meat1.2
Fish/seafood3.3
Freshvegetables
12.1 Salads
8.7
Processedvegetables
6.4
Sandwichproducts57.9
Renewal and innovation of both ingredients and presentation play an important role in maintaining and increasing sales.
26 SERVICE MARKET ANNUAL REPORT 2016
SERVICE MARKETBAMA Service Market supplies fruit and vegetables, drinks, meal solutions and sandwich products to the kiosk, petrol station
and service market. While the business area is formally part of BAMA HoReCa, it will be further developed as a separate unit.
27
BUSINESS SEGMENT:
FLOWERSBAMA’s strategic focus on flowers has produced good results in recent years, not least in the form of solid growth in the grocery trade, which is fast becoming a go-to place to purchase flowers in Norway. While having a carefully selected range is an important success factor, roses remain the clear favourite. Moreover, our rose preferences vary – both from season to season and from day to day.
The breadth of roses offered through BAMA’s flower channels is growing each year, as are sales. Norwegian consumers can now choose between a large number of varieties and qualities that change during the season, with stem lengths varying from 30 cm to 60 cm and bud sizes from 1 cm to 8 cm. We are constantly expanding the range of roses, from miniature to the largest and most resplendent. Our roses primarily come from Kenya, where we enter into long-term partnerships with recognised producers.
It is important to be able to offer a wide range of roses and other flowers, particularly when consumers are choosing different variants depending on the day of the week and time of year. People do not necessarily buy the same flowers on a Monday as on a Friday. More “everyday” flowers are bought early in the week, while interest in the most striking bunches of roses blossoms towards the weekend. The colours chosen follow a recognisable pattern during the year, with customers preferring red and white roses in the Christmas period, yellow and orange roses at Easter, and often darker colours in the autumn.
QUALITY AND EXPERTISEAll this means that we are continually having to align our offering with demand, and ensure that we can offer the desired and highest-quality roses at all times. In 2016 we spent a lot of time improving our logistics chain by incorporating alternative and efficient transport solutions.
We also performed significant staff training throughout the previous year, in order to ensure that we select the very best roses at the farms. From here we bring test samples back to Norway, where we simulate different store and living room environments to maximise the roses’ shelf lives. We communicate our expertise along the entire value chain for the benefit of Norwegian rose-lovers.
SHARE OF SALES (%):
CHANGES IN ROSES, NUMBER OF STEMS(million):
Variousflowers 2
Cut flowers65
Summer plants 7
Potted plants26
2011 2012 2013 2014 20162015
ROSER
0
10
20
30
40
50
60
70
28 FLOWERS ANNUAL REPORT 2016
FLOWERSBAMA’s activities within flowers are operated through the following channels: BAMA Blomster AS (Grocery and Service Market) BaRe Blomster AS (Grocery) and BAMA Blomster Trading (purchasing for all
channels, in addition to a supplier to leading specialist trade in Norway). Xpol in the Netherlands is also included in this structure. The companies are incorporated in BAMA Blomster Holding, which is owned by BAMA Gruppen AS.
29
BUSINESS SEGMENT:
INTERNATIONALIn 2016 BAMA’s international businesses delivered total sales growth of 23.3 per cent compared with the previous year, thus demonstrating that our concepts also work in a tough competitive international market. The markets in which our companies operate offer major growth potential.
NATURE’S MANAGEMENT B.V. – NETHERLANDSNature’s Pride and Nature’s Pack, which operate under the Nature’s Management B.V. umbrella, deliver qualities and services that are particularly attractive in their markets. The company is currently European market leader in a number of product areas.
Since its foundation in 2001, the company has established a close partnership with suppliers of exotic fruits and vegetables. The range offered embraces 500 different products from 70 countries of origin and makes the company the European leader in its product categories. The company has also established itself as a major player in the European berries market.
In 2005 the company started ripening mangos and avocados, and remains Europe’s largest ripener of these products, which are ready for delivery 365 days a year.
ARCTIC SPÓŁKA Z O.O. – POLANDBAMA also performs activities in Poland, through Arctic Spółka z o.o. The company mainly focuses on sales and supplies of mushrooms, blueberries and apples, primarily to Nordic customers. Some imports of tomatoes and vegetables are sold to the European market. Around 50 per cent of the company’s sales are made to the Norwegian market.
The company was originally established in 1998 and was incorporated into BAMA’s international structure in 2005. The company delivered strong sales growth in 2016 on the back of a strong focus on other European markets and is well placed to leverage the undoubted further growth potential.
XPOL B.V. – NETHERLANDSAfter several years of close collaboration within flower trading, BAMA decided to extend its international commitment by acquiring a stake in the company in 2015. Here, the intention was to reinforce BAMA’s position in the flowers market and to secure a direct goods flow of quality produce from the producer to our customers in Norway. Xpol was established in 2010 with fresh produce – in particular flowers, herbs and vegetables – as its core activity, primarily from local producers in East Africa, though also from other sources.
The company achieved impressive sales growth in 2016, and significant further growth potential exists in Norway and the company’s other European markets. In total, 52 per cent of the company’s sales are made to the Norwegian market.
NORDIC LUNCH ABIn Sweden BAMA is represented through Nordic Lunch AB, which delivers salads and sandwich solutions to the Service Market and Grocery segments. The company was established in 2000 and operates solely in the Swedish market.
The company returned slightly worse figures in 2016. With new product areas and access to the Swedish grocery market as a relatively new strategic area, there is a solid basis for further growth .
XPOL, SALES SHARES:
ARCTIC SPÓŁKA, SALES SHARES:
NATURE’S PRIDE, SALES SHARES:
Rest ofEurope
50
Norway50
Rest ofEurope
48
Norway52
Rest of Europe 71
Norway29
Rest ofEurope
50
Norway50
Rest ofEurope
48
Norway52
Rest of Europe 71
Norway29
Rest ofEurope
50
Norway50
Rest ofEurope
48
Norway52
Rest of Europe 71
Norway29
30 INTERNATIONAL ANNUAL REPORT 2016
BAMA INTERNATIONALBAMA’s international business comprises a number of wholly or partly owned companies in Europe, including Nature’s Management B.V. and Xpol B.V. in the Netherlands,
Nordic Lunch AB in Sweden and Arctic Spółka z o.o. in Poland. The companies have diverging focus areas and are incorporated into BAMA’s business apparatus in different ways.
31
MODEL BUSINESS FOR SUS TAINABLE DEVELOPMENT
BAMA aims to be a model business with regard to sustainable development and strives to ensure that all its activities are performed in a responsible manner. We shall promote growth based on sustainable choices.
At BAMA sustainable development is a question of a healthy and active lifestyle, and the five-a-day target. It is also a question of promoting sustaina-ble development with regard to the environment and social responsibility.
FIVE A DAYBAMA participates in all areas of society to motivate and inspire people to eat a healthy diet and exercise. This involves using all channels to reach people in various life situations, and at different times of the day – wherever they are.
Surveys show that children and young people are not eating enough fruit and vegetables. To address this, we are using our “Food for the smallest” project to champion healthy and tasty meals in nurseries. We are also working to achieve the best possible school fruit scheme in order to ensure that all children have equal opportunities to eat five a day.
In addition, BAMA supports all sports teams in Norway that are members of the Norwegian Olympic and Paralympic Committee and Confederation of Sports (NIF) by offering a 60 per cent discount on fruit and vegeta-bles, Bendit products and juices – whether for training, meetings, races, cups or other events.
BAMA performs generic marketing for the benefit of the entire industry, which it regards as a natural element of its corporate social responsibility. Whether through adverts for Norwegian vegetables on TV, in dialogue with consumers on Facebook, or supporting elite and amateur sport, we have just one goal in mind: making Norway fresher and healthier.
SUSTAINABILITYANNUAL REPORT 201632
EAT MOVE SLEEPEat Move Sleep is an inspirational knowledge concept promoting the importance of a healthy diet, physical activity and gaining sufficient sleep.
BAMA partners with the Football Association of Norway (NFF), the EAT Foundation and other supporters to communicate knowledge, insights and attitudes that young people and adults can benefit from for the rest of their lives.
Amateur football brings thousands of young sports enthusiasts and their close relatives together, and each year, in col-laboration with NFF, we appoint around 35 ambassador clubs that arrange the Eat Move Sleep Cup, and extol the benefits of a healthy lifestyle all-year-round.
day. Food plays a critical role in preventing malnutrition and establishing a strong immune system.
Our chefs and experts in taste and nutrition are fully committed to facilitating healthy and sustainable options in canteens and refreshment rooms, and nutritious and tasty meals in hospitals and nursing homes, and have implemented specific projects, for example in Modum municipality and the Feiring Clinic, to demonstrate that it is relatively easy to offer a nutritious and tasty food offering within budget, and to inspire other institutions to follow suit.
FOOD AS MEDICINEEveryone should be able to enjoy a healthy diet with enough fruit and vegetables regardless of their stage of life.
Unfortunately, many nursing home patients risk malnutrition and an impaired quality of health and life. For example, older people who live at home tend to eat quite a lot of fruit and vegetables, but their consumption falls if they are institutionalised. Just 49 per cent of old people’s homes serve fruit every day, which makes it difficult to achieve the “five-a-day” target.
BAMA HoReCa is addressing this challenge through the “Food as medicine” project. The aim is for institutions to be able to offer residents healthier and better menus, and more meals during the
BAMA has helped to get things moving and contributed inspiration and the required technical knowledge, which has been reflected in more frequent and more nutritious meals and more fruit and vegetables on the menu.
Gro Jensvoll,Head of Catering Modum municipality
MODEL BUSINESS FOR SUS TAINABLE DEVELOPMENT
discount on fruit, vegetables, Bendit products and juice for all sports teams in Norway that are members of the Norwegian Olympic and Paralympic Committee and Confederation of Sports (NIF)
of old people’s homes serve fruit every day, which makes it difficult to achieve the “five-a-day” target
60%
49%
33
ESTABLISHING DIALOGUE IN COSTA RICAThrough partnerships with various players such as the Norwegian Confederation of Trade Unions (LO), the Federation of Norwegian Commercial and Service Enterprises (HSH) and the International Labour Organization (ILO), BAMA helped to secure freedom of association and technical training on topics such as fundamental rights, business development, market knowledge and HSE for local banana workers.
Although it took seven years from the start of the initiative to signing the agreement, the trade union Colsiba and our supplier Dole are now collaborating extremely well. This exemplifies how we can make a difference by encouraging dialogue instead of withdrawing if we find that things are not as they should be.
At the same time, we must remain humble. We cannot solve all the challenges in a complex world on our own, but we can always improve. We also know that we have the same responsibility in Norway and abroad. By assuming active responsibility, promoting sustainable development along our entire value chain and involving ourselves in improvement processes, we can help to gradually bring about local and global change.
INCLUSIVE WORKPLACEJobbfrukt is a fruitful partnership between BAMA HoReCa and businesses the length and breadth of Norway that facilitates work for people with reduced working capacity. We currently have 80 member businesses and 600 staff who deliver more than 19,000 fruit baskets to satisfied customers in all parts of Norway each week.
Working with Jobbfrukt involves many different tasks that can be adapted to each individual and which give workers major job satisfaction and pride. Businesses that choose Jobbfrukt know that they will receive tasty top-quality products delivered to their doorstep. This combination of food safety and social responsibility has proven to be a winner.
PROMOTING ETHICAL TRADINGBAMA trades with over 250 suppliers in more than 85 countries across the globe – often in countries where people live and work under quite different conditions to those found in Norway. The challenges we encounter provide us with a global responsibility to actively promote sustainable development.
We shall ensure that all our products are produced under ethical conditions and contribute to inclusive workplaces for everyone. Our own ethical collaboration model, based on the key principles of dialogue and collaboration, has underpinned this work for many years. BAMA has been a member of, and reports to, the Initiative for Ethical Trading, works closely with Norwegian organisations such as LO and the Enterprise Federation of Norway (Virke) and maintains ongoing contact with a broad network of suppliers, trade unions, authorities and NGOs in the countries we trade from.
Maintaining a presence without unnecessary intermediate stages and directly involving ourselves in close, long-term and transparent partnerships with our suppliers provides us with real opportunities to help improve the lot of local communities. This in turn gives us the opportunity to set the agenda with regard to working and environmental conditions and food safety, and makes it easier to demand changes and continuous improvements. This approach has functioned well across national and cultural boundaries.
BAMA trades with more than
suppliers in more than
countries
25085
member businesses
employees
fruit baskets delivered each week
19,000
80
600
JOBBFRUKT:
If more businesses took corporate social responsibility as seriously as BAMA, the world would be a slightly different place.
Christine Parker, International Division LO
SUSTAINABILITYANNUAL REPORT 201634
of BAMA’s transport in Norway shall be carried by train by 2020
60%
of BAMA’s units shall be environmentally certified in 2017
GREENER TRANSPORTBAMA has set itself the ambitious aim of reducing the environmental footprint of its transport activities. This requires wide-ranging partnerships and considered choices of transport means along the entire value chain.
BAMA is working to ensure that incoming transport from Europe is carried in the most environmentally friendly manner, using a combination of trains, ships and road vehicles. 60 per cent of BAMA’s transport in Norway shall be carried by train by 2020. This shall help to reduce CO
2
emissions by a minimum of 60 per cent.
A significant contributor to our green transport ambitions is BAMA Logistikk AS. All the company’s lorries are now Euro 6 models, which use less diesel than other models.
THE ENVI-RONMENT AND FOOD WASTAGEToo much food is thrown away in Norway. This is bad for the environment and bad for the economy. Consequently, BAMA assumes responsibility for en-suring that we throw out as little food as possible at all stages of the supply chain.
We strive to increase consumption and reduce food wastage, including by se-curing the freshest possible produce of the highest possible quality all the way to the consumer. This involves many fac-tors. These include collaborating with the best producers and expert inter-national partners, efficient production planning, stable and correct tempera-tures during transport, efficient storage, appropriate and required packaging, correct temperatures in the stores, and above all educating consumers.
BAMA endeavours to ensure that as much of produce is used as possible. Fruit and vegetables that are not sold through the Grocery business area go to HoReCa customers or are used in processed products such as mashed potatoes, mashed turnips, soups and crispy onions. We also donate a signifi-cant percentage to the Oslo Food Bank. BAMA shall help to ensure that Norway achieves its target of halving food wastage by 2030, and our packaging optimisation shall set the standard with regard to both product quality and circular thinking.
REDUCTION IN KG WASTE:
BAMA is endeavouring to ensure that incoming transport from Europe is carried in the most environmentally friendly manner, using a combination of trains, ships and road vehicles.
BAMA’s units shall be certified as Eco-Lighthouses as a tool for impro-
vement and resource utilisation.
2014 2015 TARGET2016
0.0
0.3
0.6
0.9
1.2
1.5
75%
35
CORPORATE GOVERNANCE 2016
36 BAMA ANNUAL REPORT 2016
BAMA Gruppen AS is a leading company and a trend-setting social player within fresh and freshly processed fruit and vegetables, potatoes and flowers in Norway. The company operates in a global market, which entails a significant responsibility in terms of food safety and corporate social responsibility. Efficient corporate governance shall contribute to increased growth, value creation and a good reputation.
CORPORATE GOVERNANCEIn accordance with the Norwegian Limited Liability Companies Act, the company’s board is responsible for ensuring that the company’s business and administration are properly organised. BAMA Gruppen is run as an autonomous and independent company. It has a group structure under which the respective business areas are constituted as independent limited companies, with own boards with corresponding responsibility for the individual companies.
CORE VALUESBAMA Gruppen AS demands honesty and fairness in all matters relating to its business activities. In their conduct, all staff and representatives in all companies shall promote the company’s core values, comply with applicable regulations and legislation at all times and perform their work in accordance with good business practice. BAMA Gruppen’s ethical guide-lines can be viewed at www.bama.no
BUSINESS OPERATIONSBAMA Gruppen’s Articles of Association establish that the company’s objects comprise performing trading, industrial and investment business and other related activities, including participating in other companies.
BAMA Gruppen’s vision is to make Norway fresher and healthier. The main objective is for the company to be perceived as the best supplier and partner for its customers and to be a
growth driver in the Norwegian market. The annual value growth shall be at least 8 per cent and volume growth for fruit and vegetables shall be 3 per cent.
SHARE CAPITAL AND DIVIDENDSAt the end of 2016, the Group’s equity totalled MNOK 1,238.1, which corre-sponds to an equity ratio of 24.9 per cent. The board has proposed the distribution of a dividend for the 2016 financial year in line with the provisions contained in the shareholder agreement, involving a market-based return on invested capital for the shareholders.
SHAREHOLDERSBAMA Gruppen has four shareholders: NorgesGruppen ASA (45.55%), Banan II AS (33.66%), Rema Industrier AS (19.8%) and Macase AS (0.99%). The company’s share capital comprises 303 shares each with a nominal value of NOK 3,000.
There is one share category and each share carries one vote.
TRADABILITYThe company’s Articles of Association and shareholder agreement contain provisions on the tradability of the shares.
GENERAL MEETINGThe annual general meeting is held once a year by the end of June. Notice of the general meeting, the notice’s contents and publication of the agenda documents comply with the requirements laid down by the Norwegian Limited Liability
Companies Act and the rules of procedure for general meetings.
CORPORATE ASSEMBLY AND BOARD OF DIRECTORSThe board comprises eight members who are elected for a term of two years. The general meeting elects the board chair-man. There are three employee represent-atives on the board. No representatives of the general management team sit on the board. The owners exercise their influence through the board and in the general meeting. The board’s tasks and duties are regulated in the adopted rules of pro-cedure for the board, including handling matters of a competition-sensitive nature relating to the company’s customers. Six board meetings were held in 2016.
In accordance with an agreement entered into with employee representative bodies, BAMA Gruppen has no corporate assembly.
RISK MANAGEMENT AND INTERNAL CONTROLThe company adopts a proactive approach to risk management, in which significant responsibility is delegated downwards in the organisation in line with the Group’s core values. The Group’s risk management is bundled in a central staff function, which monitors the various risk areas in the Group and implements ad hoc measures.
Corporate governance complies with the Norwegian Code of Practice from October 2014 where such is expedient based on the company’s operations.
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REPORT FROM THE BOARD OF DIRECTORS 2016NATURE AND LOCATION OF BUSINESSThe Group sells fresh fruit, berries, vegetables, potatoes, processed products, flowers and other products with a limited shelf life. The Group is headquartered in Oslo, and has divisions and subsidiaries throughout Norway. The Group also performs activities in Sweden, the Netherlands and Poland.
GOING CONCERNThe annual financial statements for 2016 have been prepared in accordance with the Norwegian Accounting Act and gener-ally accepted accounting practice in Nor-way (NGAAP). The board confirms that the company fulfils all the prerequisites necessary to continue as a going concern.
WORKING ENVIRONMENT AND PERSONNELBAMA aims to be the most attractive em-ployer within its own and comparable in-dustries. The company consciously strives to create a good working environment and the annual job satisfaction survey reveals high levels of satisfaction with the work-place. BAMA has continued its “BAMA Pluss” initiative – a programme focusing on employee health and welfare. In 2016 total sickness absence for the Norwegian busi-ness amounted to 5.4 per cent, compared with 5.2 per cent the previous year.
In 2016 BAMA Gruppen AS’ total sick-ness absence rate came in at 4.0 per cent, compared with 3.2 per cent the previ-ous year. There were no lost-time work injuries resulting in absence in excess of the statutory employer period in 2016.
GENDER EQUALITYAt the end of the year, BAMA Gruppen AS employed 512 permanent staff, compris-ing 123 women and 389 men. The board comprised eight members, all of whom were men. One member of the six-strong management group was a woman.
As an express overarching principle, the Group shall promote equality and prevent discrimination so as to ensure that everyone is afforded equal opportunities, regardless of gender, age or nationality. The Group has traditionally recruited from male-dominated environments, and this continues to be the case. The percentage of women is particularly low within goods handling. We are endeavouring to raise the percentage of women in this area through better facilitation and use of technical aids. BAMA also wishes to employ more women in management positions, and in future will develop measures to increase the percentage of female managers in the Group.
ENVIRONMENTAL REPORTINGBAMA shall be an initiator of and a model business for sustainable development within its product area environments. BAMA shall take specific measures to actively help to reduce wastage along the value chain, and help Norway to achieve its goal of halving food waste by 2030. We shall develop environmentally friendly, resource-saving solutions for our custom-ers, and help to achieve Norway’s national climate reduction targets by reducing our own consumption and emissions. Environmental improvement measures
KRISTIAN NERGAARD RUNAR HOLLEVIK KNUT HARTVIG JOHANNSON
As Norway’s leading supplier of fruit and vegetables, we have a duty to promote healthy dietary and lifestyle choices.
reduction in food wastage by 2030
divisions certified as Eco-Lighthouses as of 31 December 2016
50%
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38 REPORT FROM THE BOARD OF DIRECTORS ANNUAL REPORT 2016
are implemented, measured and reported in accordance with our objectives and obligations. We shall provide optimal packaging for our products.
BAMA’s transport strategy clearly focuses on the use of inter-modal solutions (use of several transport means such as roads, railways and ships, avoiding products being handled during change of transport method), where the objective is for a higher percentage of incoming transport from Europe to be made using inter-modal solutions by 2020.
The certification process for the Eco-Lighthouse Scheme started in 2010, and as of 31 December 2016, a total of 36 divisions had been certified. Recerti-fications are carried out every three years.
FINANCIAL PERFORMANCE AND POSITIONTotal consolidated sales amounted to BNOK 16.5 in 2016, up BNOK 1.1 (6.9 per cent) on the previous year. All the Group’s business areas delivered across-the-board growth.
The consolidated profit for the year after tax came in at MNOK 463.9, compared with MNOK 461.8 in 2015.
The Group’s financial position is satisfactory. At the reporting date, the Group had cash and cash equivalents of MNOK 683.4. At the end of the year, total assets amounted to BNOK 5.0, compared with BNOK 5.2 twelve months previously. At the same date, consolidated equity
amounted to MNOK 1,238.1, which equates to an equity ratio of 24.9 per cent.
There have been no events since the end of the accounting year of importance for an assessment of the company or the Group. With regard to trading conditions and price changes for products included in the company’s and the Group’s business, the board is not aware of any matter of interest for an assessment of the company or the Group, with the exception of matters discussed in other sections of the annual financial statements.
In the board’s opinion, the presented income statement and balance sheet and associated notes provide a true and fair view of the company’s and the Group’s op-erations and position at the end of the year.
OUTLOOKBAMA bears significant social responsi-bility and shall be a model business with regard to sustainable development. As Norway’s leading supplier of fruit and vegetables, we have a duty to promote healthy dietary and lifestyle choices. While many Norwegians actively embrace the concept of a healthy lifestyle, only two out of ten eat the recommended amount of fruit and vegetables. Only three out of ten adults get enough exercise, and many have difficulty sleeping.
This makes it important for BAMA to con-tribute to further increased consumption of fruit and vegetables and to raise aware-ness of the importance of a good diet, physical activity and sufficient sleep. One
of the ways we try to achieve this is through our inspirational Eat Move Sleep concept. Our aim is to help to reduce the Norwegian health budget over the long term.
BAMA operates in the global market and shall be a leading premise-provider with regard to ethical trading. The company has high ethical standards and works together with suppliers in the countries in which we operate to guarantee sustainable development. BAMA wishes to increase awareness of the company’s work on ethics, quality and development. The aim is for the BAMA model to inspire others and provide the authorities with important input for sound decision-making.
BAMA has a strong presence within Norwegian production. We wish to inspire Norwegian consumers to eat even more home-grown produce, and to communi-cate the attractive taste of and knowledge about the products. BAMA collaborates with innovative and expert producers and aims to provide vital support for Norwe-gian agriculture and Norwegian farmers. BAMA will continue to encourage Norwe-gians to eat locally sourced food, including through the research projects we initiate and participate in.
BAMA shall continue to lead the way in terms of product quality, social respon-sibility, research, the environment, innovation, procurements and logistics. It will also be necessary to clarify the value chain organisation, and this is an area the organisation will have to work on moving forward.
STEIN AUKNER TOM KRISTIANSEN HÅKON ANDERSEN
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Global climate changes are making it increasingly difficult to access quality products. Consequently, the company continually works with suppliers to diver-sify risk and satisfy Norwegian demand. While BAMA is the market leader in fruit and vegetables in Norway, we are a relatively small player on the world stage. This makes it important that we enter into long-term agreements and cultivate fruitful relationships with our producers around the world, and this area will re-main a priority in future. In a world where the global goods supply is becoming in-creasingly unstable, a long-term approach and predictability help to secure priority for our deliveries, despite the small size of the Norwegian market.
FINANCIAL RISKThe Group is exposed to financial risk in the form of interest rate, currency and liquidity
risk. BAMA Gruppen AS’ finance function is organised as a central unit which deals with ongoing follow-up and management of the liquidity situation and financial risk. Interest rate risk primarily attaches to the NIBOR money market interest rate which essentially forms the basis for interest re-ceived and paid on the Group’s bank depos-its and borrowings. The Group’s operating business is not deemed to be exposed to any interest rate risk. The Group is exposed to fluctuations in exchange rates, primarily in EUR, and performs hedging of currency on forward purchases.
The Group aims to maintain good liquidity at all times. The Group’s activities make a daily contribution to liquidity, and the Group utilises a group account scheme to efficiently distribute liquidity. The Group also has unutilised committed overdraft facilities.
The risk of bad debts within the Group’s overall trade receivables portfolio is deemed to be low. The company continually assesses the credit of and monitors customers with unpaid overdue invoices. In addition, an in-house credit department chases up overdue payments collaborating with an external debt collection company where necessary. In recent years bad debts have been low in re-lation to the Group’s sales. The board deems the Group’s liquidity to be satisfactory.
NET PROFIT AND APPROPRIATION OF THE PROFIT FOR THE YEARBAMA Gruppen AS posted a profit for the year of MNOK 254.5. The board proposes a dividend of MNOK 250.0 and that MNOK 4.5 be transferred to other equity. After these transactions, as of 31 December 2016, the company had total equity of MNOK 825.2, which equates to 32.9 per cent.
Oslo, 5 April 2017
The board of directors of BAMA Gruppen AS
Runar Hollevik
Rune Flaen
CEO
Håkon Andersen
Kristian Nergaard
Chairman
Jostein Hestøy
Tom Kristiansen
Knut Hartvig Johannson
Stein Aukner
Bjørn Østeby
JOSTEIN HESTØY RUNE FLAENBJØRN ØSTEBY
40 REPORT FROM THE BOARD OF DIRECTORS ANNUAL REPORT 2016
Income statementfor the period 1 Jan–31 Dec
PARENT COMPANY GROUP
2015 2016 NOK ’000 NOTE 2016 2015
OPERATING REVENUES
8,174,666 8,479,952 Sales revenues 1 16,448,500 15,380,535
118,515 124,994 Other operating revenues 59,735 65,103
8,293,181 8,604,946 Total operating revenues 16,508,235 15,445,638
OPERATING EXPENSES
7,707,966 8,035,096 Cost of goods sold 12,299,918 11,377,603
438,228 418,527 Salaries and personnel costs 2 1,804,198 1,770,738
37,592 36,978 Depr., amort. and impair. of prop., plant and equip. and intang. assets 5 338,607 315,602
-99 -8 Bad debts 6,133 3,997
133,630 165,492 Other operating expenses 2 1,425,475 1,329,333
8,317,317 8,656,085 Total operating expenses 15,874,331 14,797,273
-24,136 -51,139 Operating profit/loss 633,904 648,365
FINANCIAL INCOME AND FINANCIAL EXPENSES
300,382 280,401 Income from investments in subsidiaries 0
0 0 Income from investments in associates 6 1,803 18,371
13,776 25,968 Other financial income 3 56,217 34,594
6,309 2,241 Other financial expenses 3 41,606 41,266
307,849 304,128 Net financial items 16,414 11,699
283,713 252,989 Profit before tax 650,318 660,064
5,381 -1,545 Tax expense 9 186,440 198,234
278,332 254,534 NET PROFIT FOR THE YEAR 463,878 461,830
Net income attributable to minority interests 54,391 41,319
Net income attributable to majority interests 409,487 420,511
TRANSFERS
275,000 250,000 Proposed dividend
3,332 4,534 Transferred to other equity
278,332 254,534 Total
41FINANCIAL STATEMENTS ANNUAL REPORT 2016
Balance sheetfor the period 1 Jan–31 Dec
PARENT COMPANY GROUP
31 DEC 2015 31 DEC 2016 NOK ’000 NOTE 31 DEC 2016 31 DEC 2015
NON-CURRENT ASSETS
INTANGIBLE ASSETS
172,065 154,859 Logistics and management systems 5 158,096 177,639
0 0 Goodwill 5 200,751 274,153
103,150 107,150 Deferred tax assets 9 140,659 167,727
275,215 262,009 Total intangible assets 499,506 619,519
PROPERTY, PLANT AND EQUIPMENT
435 0 Land 240,284 241,907
8,108 53,066 Buildings and construction-related fittings etc. 1,211,324 1,157,559
73,656 69,559 Transport means, machinery, equipment, etc. 595,138 624,031
82,199 122,625 Total property, plant and equipment 5 2,046,746 2,023,497
NON-CURRENT FINANCIAL ASSETS
773,377 669,141 Investments in subsidiaries 6 0 0
185,727 177,767 Intragroup loans 8 0 0
1,840 1,840 Investments in associates 6 71,098 53,264
5,461 5,266 Other shares and shareholdings 6 8,406 6,703
0 0 Other long-term receivables 8 1,815 2,760
966,405 854,014 Total financial non-current assets 81,319 62,727
1,323,819 1,238,648 Total non-current assets 2,627,571 2,705,743
CURRENT ASSETS
51,958 38,346 Inventories 339,726 306,823
RECEIVABLES
656,977 707,483 Trade receivables 7 1,134,799 1,075,266
322,922 318,372 Other current receivables 7 194,181 271,601
979,899 1,025,855 Total receivables 1,328,980 1,346,867
257,687 207,016 Cash and cash equivalents 13 683,357 797,670
1,289,544 1,271,217 Total current assets 2,352,063 2,451,360
2,613,363 2,509,865 Total assets 4,979,634 5,157,103
42 FINANCIAL STATEMENTS ANNUAL REPORT 2016
PARENT COMPANY GROUP
31 DEC 2015 31 DEC 2016 EQUITY AND LIABILITIES NOK ’000 NOTE 31 DEC 2016 31 DEC 2015
EQUITY
PAID-IN EQUITY
909 909 Share capital 11 909 909
356,250 356,250 Share premium 356,250 356,250
357,159 357,159 Total paid-in equity 357,159 357,159
RETAINED EARNINGS
463,513 468,047 Other equity 762,089 584,082
0 0 Minority interests 118,868 119,203
820,672 825,206 Total equity 10 1,238,116 1,060,444
LIABILITIES
PROVISIONS
166,580 154,480 Pension liabilities 4 150,283 190,086
166,580 154,480 Total provisions 150,283 190,086
OTHER LONG-TERM LIABILITIES
0 0 Liabilities to credit institutions 12 796,244 800,216
30,288 0 Other long-term liabilities 0 0
30,288 0 Total long-term liabilities 796,244 800,216
CURRENT LIABILITIES
0 0 Liabilities to credit institutions 12 35,200 63,925
805,162 690,608 Trade payables 7 1,070,291 1,169,426
14,912 652 Tax payable 9 96,801 168,869
28,769 32,034 Public charges payable 137,328 145,333
275,000 250,000 Proposed dividend 10 287,302 338,870
471,980 556,885 Other current liabilities 7 1,168,069 1,219,934
1,595,823 1,530,179 Total current liabilities 2,794,991 3,106,357
1,792,691 1,684,659 Total liabilities 3,741,518 4,096,659
2,613,363 2,509,865 Total equity and liabilities 4,979,634 5,157,103
43
Statement of cash flowfor the period 1 Jan–31 Dec
PARENT COMPANY GROUP
2015 2016 NOK ‘000 2016 2015
CASH FLOW FROM OPERATING ACTIVITIES
283,713 252,988 Profit before tax 650,318 660,064
-10,587 -14,873 Taxes paid in the period -233,399 -125,533
-1,835 -2,160 Profit/loss on sale of non-current assets -5,840 -26,180
37,592 36,978 Depreciation and amortisation 338,607 315,602
-13,231 13,612 Change in inventories -32,903 -30,386
59,189 -50,507 Change in trade receivables -59,533 -8,280
49,056 -114,554 Change in trade payables -99,135 116,607
60,688 89,682 Change in other accruals and prepayments -46,978 3,918
464,584 211,166 Net cash flow from operating activities 511,137 905,812
CASH FLOW FROM INVESTING ACTIVITIES
-34,962 -68,186 Investments in property, plant and equipment -273,945 -513,023
7,493 7,100 Sale of non-current assets 10,874 132,416
-12,304 104,537 Change in other investments -19,537 -16,468
-39,774 43,451 Net cash flow from investing activities -282,608 -397,075
CASH FLOW FROM FINANCING ACTIVITIES
0 -30,288 Change in long-term liabilities -3,972 72,580
-205,000 -275,000 Dividends paid -338,870 -261,318
-205,000 -305,288 Net cash flow from financing activities -342,842 -188,738
219,811 -50,671 Total change in cash and cash equivalents -114,313 319,999
37,876 257,687 Cash and cash equivalents 1 Jan 797,670 477,671
257,687 207,016 Cash and cash equivalents 31 Dec 683,357 797,670
44 FINANCIAL STATEMENTS ANNUAL REPORT 2016
Accounting policies
Note 1 Sales revenues
Note 2 Salaries
Note 3 Financial items
Note 4 Pensions
Note 5 Property, plant and equipment/Intangible assets
Note 6 Shareholdings
Note 7 Intragroup balances
Note 8 Long-term receivables
Note 9 Taxes
Note 10 Equity
Note 11 Share capital and shareholder information
Note 12 Long-term liabilities
Note 13 Restricted funds
Note 14 Related parties
Note 15 Forward exchange contracts and interest swaps
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Contents
The annual financial statements have been prepared in accordance with the provisions of the Norwegian Accounting Act and gener-ally accepted accounting practice in Norway.
REORGANISATIONAll spin-offs and mergers were implemented with accounting and tax continuity.
USE OF ESTIMATESThe preparation of financial statements in accordance with the Norwegian Accounting Act requires the use of estimates. It also requires management to exercise its judgement in the process of applying the company’s accounting policies. Areas which make extensive use of judgements or involve a high degree of complexity, or areas where assumptions and estimates are material to the consolidated financial statements, are described in the notes.
FOREIGN CURRENCYReceivables and payables in foreign currencies are valued at the exchange rate at the balance sheet date.
Exchange gains and losses relating to sales and purchases in foreign currencies are recognised as financial items.
SALES REVENUESRevenues from the sale of goods and services are recognised at the fair value of the con-sideration received, net of Value Added Tax, returns, rebates and other discounts. Sales of goods are recognised in income when a unit within the Group has delivered its products to the customer and there are no unfulfilled obligations that could affect the customer’s acceptance of the delivery. Services are rec-ognised in income as they are performed.
TAXThe tax expense in the income statement comprises both tax payable for the account-
ing period and changes in deferred tax. De-ferred tax is calculated at the rate of 24 per cent on the basis of temporary differences between the carrying amounts and tax base, as well as any tax losses carried forward at the close of the financial year. Tax-increasing and tax-reducing temporary differences that reverse or may reverse in the same period are offset. Deferred tax assets are recog-nised in the balance sheet to the extent that it is probable that these may be utilised.
CLASSIFICATION AND VALUATION OF BALANCE SHEET ITEMSCurrent assets and current liabilities include items that fall due for payment within one year of the time of acquisition and items relating to the goods circulation. Other items are classified as non-current assets/long-term liabilities.
Current assets are valued at the lower of cost and fair value. Current liabilities are recognised at nominal value in the balance sheet on the date they are incurred.
Long-term liabilities are recognised at nominal value in the balance sheet on the date they are incurred.
RESEARCH AND DEVELOPMENTDevelopment costs are recognised in the balance sheet to the extent that a future financial benefit can be identified as deriving from the development of an identifiable intangible asset and the expenses can be reliably measured. Otherwise costs are expensed on an ongoing basis. Development costs recognised in the balance sheet are amortised on a straight-line basis over their useful economic lives. Research costs are expensed on an on-going basis.
The cost of software and expenses relating to the implementation and adaptation of the Group’s logistics and management systems are recognised in the balance sheet and amortised on a straight-line basis over their useful economic lives.
PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment is recognised in the balance sheet and depreciated over its estimated useful life. Direct maintenance of operating assets is expensed under operating expenses, whereas improvements and upgrades are assigned to the operating asset’s cost and depreciated in line with the asset. If the recoverable amount of the operating asset is lower than its book value, the asset is written down to its recoverable amount. The recoverable amount is the higher of the net sales price and value in use. The value in use is the present value of the future cash flows that the asset is expected to generate.
FORWARD CONTRACTS AND INTEREST SWAPSForward contracts that hedge future receipts/payments are not recognised in the financial statements. Realised gains/losses on interest swaps are recognised in the income statement.
SHARES IN SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES Subsidiaries are companies over which the parent company exercises control, and thus a controlling influence over the entity’s financial and operating strategy, normally through ownership of more than half of the voting rights. Investments of 20–50 per cent of voting rights and significant influence are recognised as investments in associates.
Investments in subsidiaries and associates are recognised in accordance with the cost method in single entity financial statements. The cost is increased when funds are added as a result of capital increases, or when subsidiaries receive Group contributions. Dividends received are essentially recognised as income in the income statement. Dividends that exceed the share of retained earnings after the purchase are recognised as a cost reduction. Dividends/Group contributions from subsidiaries are
ACCOUNTING POLICIES(ALL FIGURES IN NOK ’000)
46 NOTES TO THE FINANCIAL STATEMENTS ANNUAL REPORT 2016
recognised in the same year in which the subsidiary provides for the relevant amount.
Dividends from other companies are recognised as financial income once the dividend has been approved.
Investments in associates are recognised in the consolidated financial statements in accordance with the equity method. The ap-plication of this method results in the book value in the balance sheet corresponding to the share of the equity in the associates, adjusted for any residual excess values aris-ing on the purchase and unrealised internal profits. The share of results in the income statement is based on the share of the result after tax in the associates, adjusted for any amortisation of excess values and unrealised profits. The share of results is recognised in the income statement under financial items.
Arctic Spółka z o.o., Poland, is defined as a joint venture and recognised in accordance with the gross method.
INVENTORIES Bought-in goods are valued at the lower of cost and estimated sales price less costs to sell.
Goods produced in-house are valued at full cost of manufacture written down for potential obsolescence in accordance with generally accepted accounting practice.
RECEIVABLES Trade and other receivables are recognised in the balance sheet at nominal value less provisions for bad debts. Provisions for bad debts are made on the basis of individual assessments of the relevant receivables.
CURRENT INVESTMENTS Current investments (shares and share-holdings deemed to be current assets) are valued at market value at the balance sheet date.
Dividends and other distributions received from the companies in which investments are made are recognised in income as other financial income.
PENSIONS The parent company and the subsidiaries are obliged to operate occupational pension schemes in accordance with the Norwegian Act on Mandatory Occupational Pension Schemes. The companies’ pension schemes satisfy the requirements of the above Act and the Group operates both defined contribution and defined benefit schemes. For companies with defined contribution schemes, the pension expense for the year equates to paid-in contributions.
In the case of defined benefit schemes, the pension expense and pension liabilities are calculated in accordance with the linear earnings method based on the expected final salary. The calculation is based on a number of assumptions, including those relating to discount rates, future wage adjustments, pensions and other payments from the National Insurance Scheme, the future return on pension assets and actuarial assumptions for deaths and voluntary departures. Pension assets are valued at fair value and deducted from net pension liabilities in the balance sheet. Changes in pension liabilities due to changes in pension schemes are recognised over the estimated residual vesting period.
Changes in the liability and pension assets attributable to changes and deviations in calculation assumptions (estimate changes) are allocated over the expected average residual vesting period if the deviations at the start of the year exceed 10 per cent of the higher of gross pension liabilities and pension assets.
STATEMENT OF CASH FLOW The statement of cash flow has been prepared in accordance with the indirect method. Cash and cash equivalents include
cash, bank deposits and other current, liquid investments.
BASIS OF CONSOLIDATION Subsidiaries are consolidated from the time control is transferred to the Group. In the consolidated financial statements, the item shares in subsidiaries is replaced with the subsidiary’s assets and liabilities. The consolidated financial statements are prepared as if the Group were a single economic entity. Transactions, unrealised profits and intercompany balances are eliminated on consolidation.
Acquired subsidiaries are recognised in the consolidated financial statements based on the parent company’s cost. Cost is allocated to identifiable assets and liabilities in the subsidiary and recognised in the consolidated financial statements at fair value at the time of acquisition.
Any excess values other than those that can be allocated to identifiable assets or liabilities are recognised in the balance sheet as goodwill. Goodwill is recognised as a residual in the balance sheet in the percentage observed in the acquisition transaction. Excess values are amortised over the expected lifetime of the purchased assets in the consolidated financial statements. Minority interests are recognised in the balance sheet on a separate line as the minority’s share of net assets and liabilities.
The minority’s share is recognised in consolidated equity.
The balance sheet and income statement of foreign subsidiaries are translated at the balance sheet rate and average rate respectively. Any material transactions are translated at the daily transaction rate. All translation differences are recognised directly in equity.
47
BAMA Gruppen AS
BAMA Gruppen AS
BAMA Gruppen AS
BAMA Gruppen AS
BAMA Gruppen AS
BAMA Gruppen AS
BAMA Gruppen AS
BAMA Gruppen AS
BAMA Gruppen AS
BAMA Gruppen AS
BAMA Gruppen AS
BAMA Gruppen AS
BAMA Gruppen AS
BAMA Gruppen AS
BAMA Gruppen AS
BAMA Gruppen AS
BAMA Gruppen AS
BAMA Gruppen AS
BAMA Pakkerier AS
BAMA Pakkerier AS
BAMA Pakkerier AS
BAMA Pakkerier AS
BaRe Frukt & Grønt AS
BaRe Frukt & Grønt AS
BAMA Eiendom AS
BAMA Eiendom AS
BAMA Eiendom AS
BAMA Eiendom AS
BAMA Eiendom AS
BAMA Eiendom AS
BAMA Eiendom AS
BAMA Dagligvare AS
BAMA Dagligvare AS
BAMA Dagligvare AS
BAMA Dagligvare AS
BAMA Dagligvare AS
BAMA Storkjøkken AS
BAMA Storkjøkken AS
BAMA Storkjøkken AS
BAMA Blomster Holding AS
BAMA Blomster Holding AS
Oslo
Oslo
Oslo
Oslo
Oslo
Oslo
Skien
Oslo
Oslo
Oslo
Oslo
Oslo
Oslo
Oslo
Oslo
Oslo
Skien
Oslo
Steinsholt
Grue
Larvik
Stange
Mo i Rana
Skien
Steinsholt
Oslo
Oslo
Oslo
Oslo
Oslo
Tønsberg
Oslo
Lier
Ålesund
Larvik
Tromsø
Sem
Oslo
Skien
Asker
Asker
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
92.10%
51.04%
50.00%
87.37%
67.15%
50.00%
50.00%
92.28%
51.04%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
75.00%
100.00%
93.35%
62.13%
61.53%
50.00%
100.00%
69.48%
51.04%
100.00%
100.00%
5 Om Dagen AS
BAMA Gr. Blomster Holding AS
Rågodt AS
Jobbfrukt AS
Fruktengros AS
BAMA International AS
BAMA Telemark Holding AS
BAMA Torgfrisk AS
BAMA Dagligvare AS
BAMA Storkjøkken AS
BaRe Frukt & Grønt AS
BAMA Eiendom AS
BAMA Pakkerier AS
BAMA Ferske Drikker AS
BAMA Blomster Holding AS
BAMA Industri AS
BAMA Logistikk AS
BaRe AS
Lågen Potetpakkeri AS
Hvebergsmoen Potetpakkeri AS
Larvik Løk AS
Mjøsgrønt AS
BaRe Nord AS
Bare Frukt og Grønt Telemark AS
Lågendalspakkeriet AS
Frier Eiendom AS
Nyland Syd AS
Kildehaugen 10 AS
Silovegen 10 AS
Nedre Rommen AS
BaGa Eiendom AS
Alsaker Frukt og Grønt AS
Frukt Grønt Spesialisten AS
BAMA Ålesund AS
BAMA Dagligvare Larvik AS
Olav Aakre AS
BAMA Storkjøkken Vestfold AS
BAMA Storkjøkken Oslo AS
BAMA Storkjøkken Telemark AS
BAMA Blomster Trading AS
BAMA Blomster AS
The following companies are included in the consolidated financial statements. The shareholdings reflect the Group’s direct and indirect shareholdings:
PARENT COMPANY SUBSIDIARY REGISTERED OFFICE SHAREHOLDING
48 NOTES TO THE FINANCIAL STATEMENTS ANNUAL REPORT 2016
BAMA Blomster Holding AS
BAMA Blomster Holding AS
BAMA Blomster AS
BAMA Blomster Trading AS
BAMA Industri AS
BAMA Industri AS
BAMA Logistikk AS
BAMA Logistikk AS
BAMA Storkjøkken Oslo AS
BAMA Storkjøkken Oslo AS
BAMA Storkjøkken Oslo AS
BAMA Storkjøkken Oslo AS
BAMA Telemark Holding AS
BAMA Ferske Drikker AS
BAMA International AS
BAMA International AS
Rudsflata 3 AS was sold to a non-Group company.
BAMA Blomster Holding AS has reduced its shareholding in Floriss Drift AS from 63.00 per cent to 16.69 per cent. Consequently, Floriss Drift AS and the subsidiaries Floriss Lambertseter AS and Sjøsiden Blomster AS have been excluded from the scope of consolidation since 2016.
Sørblomst AS has merged with the parent company BAMA Blomster Holding AS.
BAMA Dagligvare Vestfold AS and BAMA Dagligvare Telemark AS have merged to become BAMA Dagligvare Larvik AS, which is consolidated at 61.53 per cent.
Properties formerly belonging to BAMA Gruppen AS have been spun off to the subsidiaries Kildehaugen 10 AS and Silovegen 10 AS, which are owned by BAMA Eiendom AS.
Some of BAMA Storkjøkken AS’ business has been spun off to be merged with BAMA Storkjøkken Oslo AS and BAMA Storkjøkken Vestfold AS.
Ownership of shares in BaRe Nord AS and BaRe Frukt og Grønt Telemark AS has been transferred to BaRe Frukt & Grønt AS.
Ownership of shares in Hvebergsmoen Potetpakkeri AS, Lågen Potetpakkeri AS, Larvik Løk AS and Mjøsgrønt AS has been transferred to BAMA Pakkerier AS.
Oslo
Netherlands
Os
Netherlands
Oslo
Grue
Notodden
Rygge
Oslo
Oslo
Oslo
Oslo
Skien
Oslo
Sweden
Netherlands
100.00%
70.11%
50.00%
100.00%
100.00%
66.67%
100.00%
100.00%
69.48%
69.48%
69.48%
61.47%
51.04%
50.00%
100.00%
99.00%
Bare Blomster AS
Xpol B.V.
Lyssand Blomstersalg AS
BAMA Bloemen Holland B.V.
Nordic Lunch AS
PotetPartner AS
Sandvik Transport AS
K. Skovly Transport AS
Augusta Arnesen AS
Carl Heftye AS
Carl Heftye Cash & Carry AS
W. Køltzow AS
BAMA Telemark AS
Nordic Juices AS
Nordic Lunch AB
Nature’s Management B.V.
PARENT COMPANY
THE FOLLOWING REORGANISATIONS WERE IMPLEMENTED IN THE GROUP IN 2016:
SUBSIDIARY REGISTERED OFFICE SHAREHOLDING
49
NOTE 1 SALES REVENUES(ALL FIGURES IN NOK ’000)
NOTE 2 SALARIES AND PAYROLL COSTS, NUMBER OF EMPLOYEES, REMUNERATION, EMPLOYEE LOANS, ETC.
The CEO has an agreement providing two years’ severance pay with additional benefits on termination and a bonus agreement comprising a fixed and a performance-related element. On retirement at the age of 62 in accordance with the pension agreement, the fixed element of the bonus remains payable until the age of 67. Benefits in addition to the general scheme are financed through the company’s operations and are unfunded. We refer to Note 4.
LOANS TO EMPLOYEES Total loans to employees amount to NOK 7,412 in the parent company and NOK 14,752 for the Group.
PARENT COMPANY
PARENT COMPANY
PARENT COMPANY
GROUP
GROUP
GROUP
GEOGRAPHIC ALLOCATION 2016 2015 2016 2015
Norway 8,479,952 8,174,666 13,826,219 13,218,173
Rest of Europe 0 0 2,622,281 2,162,362
Total 8,479,952 8,174,666 16,448,500 15,380,535
BENEFITS PAID TO SENIOR EXECUTIVES CEO THE BOARD
Salary/Directors’ fees 7,759 1,050
Share of pension premium 95 0
Other benefits 248 0
REMUNERATION PAID TO AUDITORS 2016 2015 2016 2015
Statutory auditing 400 486 3,057 3,048
Accounting and tax consultancy 506 510 1,722 2,261
Other consultancy 156 129 671 368
SALARIES AND PAYROLL COSTS 2016 2015 2016 2015
Salaries 295,584 291,744 1,434,958 1,382,451
Employer’s national insurance contributions 56,959 54,087 218,445 203,434
Pension costs etc. 18,501 48,073 40,652 80,490
Other benefits 47,483 44,324 110,143 104,363
Total 418,527 438,228 1,804,198 1,770,738
Average number of full-time equivalents 474 464 2,638 2,575
50 NOTES TO THE FINANCIAL STATEMENTS ANNUAL REPORT 2016
NOTE 3 FINANCIAL ITEMS
NOTE 4 PENSIONS
The Group operates both defined contribution and defined benefit pension schemes.
The parent company operates defined benefit pension schemes covering 465 current employees and 151 pensioners. The corresponding figures for the Group are 1,431 and 240 respectively. The schemes provide the right to defined future benefits.
The new AFP scheme is a defined benefit multi-entity scheme. The companies covered by the LO–NHO agreement have an actual financial liability as a result of the agreement on the new AFP scheme. However, there is insufficient information to facilitate inclusion of the liability in the annual financial statements. Consequently, no liability has been recognised in the balance sheet in respect of the new AFP scheme.
The parent company operates a pension scheme for 11 employees and 3 pensioners that is financed from the company’s operations.
PARENT COMPANY
PARENT COMPANY
GROUP
GROUP
FUNDEDSCHEME
UNFUNDEDSCHEME
FUNDEDSCHEME
UNFUNDEDSCHEME
Present value of accrued pension entitlements for the year 20,424 8,800 40,828 8,800
Interest expense on pension liabilities 7,179 3,738 12,530 3,738
Yield on pension assets -7,412 0 -12,222 0
Actuarial losses/(gains) recognised in the income statement -7,982 1 -7,583 1
Plan change effect and curtailment recognised in income statement 0 0 -17,460
Adm. expenses, employer’s national insurance contributions 5,691 10,428 0
Net pension costs 17,901 12,539 26,521 12,539
Estimated pension liabilities -313,395 -175,571 -554,149 -175,956
Pension assets (at market value) 259,675 0 469,045 0
Actuarial losses/(gains) not recognised in the income statement 64,947 36,494 105,160 17,438
Employer’s national insurance contributions -7,574 -19,056 -11,821 0
Prepaid pensions (net pension liability) 3,652 -158,132 8,235 -158,518
OTHER FINANCIAL INCOME 2016 2015 2016 2015
Interest income 7,044 6,620 19,100 24,414
Interest income from Group companies 5,051 7,039 0 0
Other financial income 13,874 117 37,117 10,180
Total other financial income 25,968 13,776 56,217 34,594
OTHER FINANCIAL EXPENSES 2016 2015 2016 2015
Interest expenses 1,837 1,572 28,781 32,375
Interest expenses Group companies 0 838 0 0
Other financial expenses 404 3,899 12,825 8,891
Total other financial expenses 2,241 6,309 41,606 41,266
51
NOTE 5 PROPERTY, PLANT AND EQUIPMENT/INTANGIBLE ASSETS
ECONOMIC ASSUMPTIONSDiscount rate 2.10%Projected yield on fund assets 3.00%Forecast salary increase 2.25%Expected adjustment in the National Insurance Scheme’s Basic Amount (G) 2.00%Forecast adjustment of current pension 2.00%
Standard insurance industry assumptions have been used as actuarial assumptions for demographic factors and departures.
LOGISTICS AND MAN-AGEMENT
SYSTEMS LANDBUILDINGS,
FITTINGS, ETC.
MACHINERY, EQUIPMENT,
TRANSPORTATION MEANS TOTAL
Cost 1 Jan 2016 304,155 435 45,878 163,165 513,633
Additions, purchased operating assets 0 0 49,045 19,142 68,186
Disposals 0 0 0 -18,690 -18,690
Disposals on spin-off 0 -435 -11,132 -5,795 -17,361
Cost 31 Dec 2016 304,155 0 83,791 157,822 545,768
Accumulated dep., amort. & impair. 31 Dec 2016 -149,296 -30,725 -88,263 -268,285
Book value 31 Dec 2016 154,859 0 53,066 69,559 277,484
Depreciation and amortisation for the year 17,207 0 5,211 14,561 36,978
Total depreciation and amortisation for the year 36,978
Useful economic life 10 years 5–25 years 3–10 years
Depreciation/amortisation method Straight-line Straight-line Straight-line
LANDBUILDINGS,
FITTINGS, ETC.
MACHINERY, EQUIPMENT,
TRANSPORTATION MEANS TOTAL
Cost 1 Jan 2016 241,907 1,653,968 1,460,708 3,356,583
Additions, purchased operating assets 0 139,173 134,772 273,945
Disposals -1,623 -16,850 -48,563 -67,036
Cost 31 Dec 2016 240,284 1,776,291 1,546,917 3,563,492
Accumulated dep. & impairments 31 Dec 2016 -564,967 -951,779 -1,516,746
Book value 31 Dec 2016 240,284 1,211,324 595,138 2,046,746
Depreciation for the year 0 84,209 162,590 246,799
Amortisation intangible assets, see below 91,808
Total depreciation and amortisation for the year 338,607
Useful economic life 5–25 years 3–10 years
Depreciation method Straight-line Straight-line
PARENT COMPANY
GROUP
52 NOTES TO THE FINANCIAL STATEMENTS ANNUAL REPORT 2016
NOTE 6 SHARES IN SUBSIDIARIES AND OTHER COMPANIES
Investments in subsidiaries are valued in accordance with the cost method in the parent company, and written down in the event of impairments not deemed to be temporary in nature.
LOGISTICS AND MANAGEMENT
SYSTEMS GOODWILL TOTAL
Cost 1 Jan 2016 318,256 708,941 1,027,197
Additions 216 9,271 9,487
Disposals 0 -11,391 -11,391
Cost 31 Dec 2016 318,472 706,821 1,025,293
Accumulated amortisation and impairments 31 Dec 2016 -160,376 -506,070 -666,446
Book value 31 Dec 2016 158,096 200,751 358,847
Amortisation for the year 19,805 72,003 91,808
Impairments for the year 0 0 0
Useful economic life 10 years 5 years
Amortisation method Straight-line Straight-line
COMPANY NAMEREGISTERED
OFFICESHARE-
HOLDINGVOTING
SHARE BOOK VALUE
RECORDED EQUITY 31 DEC
PROFIT/LOSS2016
Rågodt AS Oslo 100.00% 100.00% 5,406 289 -4
BAMA Ferske Drikker AS Oslo 100.00% 100.00% 12,252 3,404 2,697
BAMA Gruppen Blomster Holding AS Oslo 100.00% 100.00% 3,564 5,357 0
Jobbfrukt AS Oslo 100.00% 100.00% 13,860 5,944 32
Fruktengros AS Oslo 100.00% 100.00% 1,150 2,204 13
BAMA Dagligvare AS Oslo 100.00% 100.00% 340 69,143 106,357
BAMA Storkjøkken AS Oslo 100.00% 100.00% 62,093 146,679 11,633
BaRe Frukt & Grønt AS Oslo 100.00% 100.00% 240 39,844 77,426
BAMA Eiendom AS Oslo 100.00% 100.00% 294,023 295,537 36,067
BAMA Pakkerier AS Oslo 100.00% 100.00% 23,229 27,479 4,282
5 Om Dagen AS Oslo 100.00% 100.00% 120 84 -6
BAMA International AS Oslo 100.00% 100.00% 54,514 420,999 51,705
BAMA Telemark Holding AS Oslo 100.00% 100.00% 13,175 22,486 8,070
BAMA Torgfrisk AS Oslo 100.00% 100.00% 122 104 -4
BAMA Blomster Holding AS Oslo 96.00% 96.00% 115,164 75,825 28,489
BAMA Industri AS Oslo 92.10% 92.10% 62,327 212,398 62,367
BAMA Logistikk AS Skien 51.04% 51.04% 7,512 18,981 4,417
BaRe AS Oslo 50.00% 50.00% 50 28 -7
Total investments in subsidiaries 669,141 1,346,784 393,533
53
ASSOCIATES IN THE PARENT COMPANY VALUED IN ACCORDANCE WITH THE COST METHOD
ASSOCIATES IN GROUP
PARENT COMPANY – OTHER SHARES AND SHAREHOLDINGS
Other investments are valued at the lower of cost and fair value.
COMPANY NAMEREGISTERED
OFFICESHARE-
HOLDINGVOTING RIGHTS BOOK VALUE
RECORDED EQUITY 31 DEC
PROFIT2016
Tromspotet AS Silsand 34.00% 34.00% 1,840 6,767 315
COMPANY NAMEREGISTERED
OFFICESHARE-
HOLDINGCOST
31 DECBOOK VALUE
1 JAN 2016
Tromspotet AS Lenvik 40.69% 2,202 2,594
Grofondet AS Oslo 33.33% 55,331 43,491
Meum Frukt og Grønt AS Sandefjord 49.00% 8,000 977
Telefrukt AS Sauherad 45.00% 1,800 5,240
Blomstertorget AS Porsgrunn 50.00% 0 463
Kara Transport AS Vågsøy 50.00% 1,852 499
Total 69,185 53,264
COMPANY NAMESHARE OF
PROFIT/LOSSDIVIDENDS/
OTHER CHANGES
BOOK VALUE IN CON-SOLIDATED FINANCIAL
STATEMENTS 31 DEC 2016
Tromspotet AS 128 31 2,753
Grofondet AS -491 16,520 59,520
Meum Frukt og Grønt AS 880 -147 1,710
Telefrukt AS 1,105 90 6,435
Blomstertorget AS (Sold 2016) 0 0 0
Kara Transport AS 181 0 680
Total 1,803 16,494 71,098
COMPANY NAME BOOK VALUE
Økern Torghall SA 5,246
Norwegian Fruit and Vegetables Promotion Board 20
Total 5,266
54 NOTES TO THE FINANCIAL STATEMENTS ANNUAL REPORT 2016
GROUP – OTHER SHARES AND SHAREHOLDINGS
NOTE 7 INTRAGROUP BALANCES
TRADE RECEIVABLES
TRADE PAYABLES
TRADE PAYABLES
OTHER CURRENT RECEIVABLES
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES
PARENT COMPANY
NOTE 8 RECEIVABLES FALLING DUE AFTER MORE THAN ONE YEAR
COMPANY NAME BOOK VALUE
Økern Torghall SA 5,246
Floriss Drift AS 1,897
Interfrukt SA 430
Art Nor AS 225
Naustveien 17 AS 100
Misc. other shares and shareholdings 508
Total 8,406
2016 2015 2016 2015
Group companies 666,715 630,867 175,092 300,749
Other 40,768 26,109 143,280 22,173
Total 707,483 656,977 318,372 322,922
2016 2015 2016 2015
Group companies 148,953 209,882 181,172 207,090
Other 541,655 595,280 375,713 264,890
Total 690,608 805,162 556,885 471,980
2016 2015 2016 2015
Other long-term receivables 0 0 2,760 5,339
Intragroup loans 177,767 185,727 0 0
55
NOTE 9 TAXES
TAX IN PARENT COMPANY
2016 2015
THE TAX EXPENSE FOR THE YEAR COMPRISES THE FOLLOWING:
Corporation tax payable 2,280 20,796
Change in deferred tax -3,825 -15,415
Total tax expense for the year -1,545 5,381
BREAKDOWN OF DEFERRED TAX BASIS 31 DEC 2016 31 DEC 2015
DIFFERENCES THAT ARE SET OFF:
Non-current assets -67,985 -101,343
Current assets 0 0
Liabilities -378,541 -309,494
Other differences 68 -1,761
Total -446,458 -412,598
Deferred tax assets in balance sheet 107,150 103,150
Tax rate 24% 25%
RECONCILIATION OF TAX EXPENSE AND TAX CALCULATED AT NOMINAL TAX RATE:
Total tax expense for the year -1,545 5,381
Tax calculated at nominal tax rate of 25% (27%) of the profit/loss before tax 63,247 76,602
Difference -64,792 -71,221
TAX PAYABLE IN THE BALANCE SHEET COMPRISES:
Tax payable on profit for the year 2,280 20,796
Tax effect of Group contributions paid -1,055 -5,884
Tax effect of SkatteFUNN tax credit scheme for R&D projects -573 0
Tax payable in the balance sheet 652 14,912
TAX PAYABLE FOR THE YEAR COMPRISES:
Profit on ordinary activities before tax 252,988 283,713
Permanent differences -279,894 -294,346
Change in temporary differences 36,026 87,656
Basis for tax payable 9,121 77,023
Tax, 25% (27%) 2,280 20,796
THE DIFFERENCE IS ATTRIBUTABLE TO THE FOLLOWING:
Change in deferred tax on spin-off 717 0
Tax on permanent differences -69,973 -79,473
Effect of change in tax rate 4,465 8,252
Total difference -64,792 -71,221
56 NOTES TO THE FINANCIAL STATEMENTS ANNUAL REPORT 2016
TAX IN CONSOLIDATED FINANCIAL STATEMENTS
2016 2015
THE TAX EXPENSE FOR THE YEAR COMPRISES THE FOLLOWING:
Corporation tax payable 156,465 222,770
Other changes 2,906 416
Gross change in deferred tax in balance sheet 27,068 -24,952
Total tax expense for the year 186,440 198,233
RECONCILIATION OF TAX EXPENSE AND TAX CALCULATED AT NOMINAL TAX RATE:
Total tax expense for the year 186,440 198,235
Tax calculated at nominal tax rate (25%/27%) of the profit/loss before tax 162,580 178,217
Difference 23,860 20,016
TAX PAYABLE IN THE BALANCE SHEET COMPRISES:
Profit on ordinary activities before tax 650,318 660,064
Permanent differences 61,102 23,204
Change in temporary differences -75,360 142,113
Change in tax loss carryforward -10,199 -303
Basis for tax payable 625,861 825,078
Tax payable, 25% 156,465 222,770
Prepaid tax -59,664 -53,901
Tax payable as of 31 December 2016 96,801 168,869
THE DIFFERENCE IS ATTRIBUTABLE TO THE FOLLOWING:
Tax on permanent differences 15,276 6,265
Tax on deferred tax assets not recognised in balance sheet 2,054 422
Change in tax rate 5,861 13,680
Effect of differing tax rates -390 -1,343
Tax relating to previous years 2,223 0
Currency and other differences -1,164 992
Total difference 23,860 20,016
57
NOTE 10 EQUITY
BREAKDOWN OF DEFERRED TAX BASIS 31 DEC 2016 31 DEC 2015
DIFFERENCES THAT ARE SET OFF:
Non-current assets -24,311 -44,485
Current assets -2,667 -6,156
Liabilities -552,392 -603,435
Other differences 8,379 7,725
Total reversing temporary differences -570,991 -646,351
TOTAL NON-REVERSING TEMPORARY DIFFERENCES:
Tax loss carryforward -23,687 -33,886
Tax loss carryforward not recognised in the balance sheet 8,598 9,327
Total non-reversing temporary differences -15,089 -24,559
Total temporary differences -586,079 -670,909
Deferred tax assets 140,659 167,727
Tax rate 24% 25%
PARENT COMPANY
GROUP
SHARE CAPITAL
SHARE PREMIUM OTHER EQ TOTAL
Equity 1 January 2016 909 356,250 463,513 820,672
Net profit for the year 254,534 254,534
Proposed dividend -250,000 -250,000
Equity 31 December 2016 909 356,250 468,047 825,206
SHARE CAPITAL
SHARE PREMIUM OTHER EQ
MINORITYINTERESTS TOTAL
Equity 1 January 2016 909 356,250 584,082 119,203 1,060,444
Changes in equity, translation differences, etc. 18,520 -17,542 978
Net profit for the year 409,487 54,391 463,878
Proposed dividend -250,000 -37,184 -287,184
Equity 31 December 2016 909 356,250 762,089 118,868 1,238,116
58 NOTES TO THE FINANCIAL STATEMENTS ANNUAL REPORT 2016
NOTE 11 SHARE CAPITAL AND SHAREHOLDER INFORMATION
The company’s share capital of NOK 909,000 comprises 303 shares each with a nominal value of NOK 3,000.
Banan II AS is fully controlled by the Board Chairman Kristian Nergaard and his related parties.Macase AS is fully controlled by the CEO Stein Rune Flaen.
The parent company has issued a negative pledge for its total exposure with DNB.The companies that participate in the group account scheme are jointly and severally liable for a guarantor declaration with a nominal value of MNOK 75. Nyland Syd AS has pledged a first-priority mortgage on property. K. Skovly Transport AS has issued a transport guarantee in favour of Østfold Fylkeskommune in the amount of NOK 335.BAMA Logistikk AS has issued a transport guarantee in favour of Telemark Fylkeskommune in the amount of NOK 747.Skovly Transport AS has issued a transport guarantee in favour of the Norwegian Public Roads Administration (NPRA) in the amount of NOK 1,672.Nature’s Management B.V. has also mortgaged future rental income from the company’s properties, and balances with other companies in the Nature’s Group. Further guarantees have been pledged in connection with changes in the company’s ownership.
NOTE 12 LONG-TERM LIABILITIES – MORTGAGES AND GUARANTEES
OWNERSHIP STRUCTURE OFFICE MUNICIPALITY SHAREHOLDING
NorgesGruppen ASA Oslo 45.55%
Banan II AS Oslo 33.66%
Rema Industrier AS Oslo 19.80%
Macase AS Oslo 0.99%
PARENT COMPANY
PARENT COMPANY
GROUP
GROUP
2016 2015 2016 2015
Liabilities maturing after more than five years 0 0 580,825 624,975
Liabilities maturing in less than five years 0 0 211,546 175,241
Liabilities to credit institutions 0 0 792,371 800,216
LIABILITIES SECURED BY MORTGAGES ETC.
Liabilities to credit institutions (including current) 0 0 831,444 864,141
BOOK VALUE OF MORTGAGED ASSETS 2016 2015 2016 2015
Land and buildings 0 0 1,100,137 1,081,645
Machinery, equipment, etc. 0 0 100,632 103,618
Trade receivables 0 0 315,966 302,995
Inventories 0 0 58,656 50,446
Total 0 0 1,575,390 1,538,704
59
NOTE 13 RESTRICTED FUNDS
NOTE 14 RELATED PARTIES
NOTE 15 FORWARD EXCHANGE CONTRACTS AND INTEREST SWAPS
The item bank deposits includes restricted funds of NOK 18,905 for the parent company and NOK 58,296 for the Group.
All transactions with Group companies, associates and other related parties are conducted on commercial terms and principles.
The parent company’s sales primarily comprise sales of goods and services to the subsidiaries.
The Group sells a significant volume of goods to some of its owner companies and their related companies.
FORWARD EXCHANGE CONTRACTSThe Group hedges material income and expense flows in foreign currency through hedging transactions, primarily forward exchange contracts.
The Group has entered into forward exchange contracts to reduce currency risk, primarily for EUR and USD transactions. Unrealised gains as of 31 December 2016 amounted to MNOK 3.15. All forward exchange contracts expire during the next accounting year.
INTEREST SWAPSNature’s Management B.V. has long-term loans which are primarily exposed to variable interest and thus to fluctuations in short-term interest rates. The company hedges long-term liabilities against
fluctuations in interest rates through interest swaps, which convert variable interest rates to fixed interest rates.
As of 31 December 2016, Nature’s Management B.V. had four interest swaps with a negative fair value of MNOK 11. The loan’s variable interest rates linked to EURIBOR have been converted to a fixed interest rate of 3 per cent linked to a nominal amount of MNOK 185.8 at the year end. The interest swaps were entered into in 2013 and 2015 and have maturities of five to ten years. Payment and other terms are similar to those for the underlying loan agreement. The realised loss in 2016 was recognised in profit or loss. Unrealised losses on interest swaps will be carried forward to 2017 and will not be recognised in income until they have been finally realised.
60 NOTES TO THE FINANCIAL STATEMENTS ANNUAL REPORT 2016
Auditor’s report Pages 62–64
62 BAMA ANNUAL REPORT 2016
63
64 BAMA ANNUAL REPORT 2016
Making Norway fresher and healthier.
BAMA GRUPPEN AS PO Box 263 AlnabruNO-0614 Oslo, Norway Tel. no.: +47 22 88 05 00www.bama.no
DESIGNER:
Nucleus AS
PHOTO:
Ole Walter JacobsenRune KongsroBaard HenriksenBilly BonkersMorten BrakestadMathias FossumScanpixiStockphotoBAMA archive
PRINTERS:
Konsis Grafisk
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