Financial responsibility 2012
We aim to achieve our financial responsibility goals by producing added value for stakeholders and by securing our good financial standing. Effective internal monitoring and risk management are also important means. In 2012, we paid particular focus on quick risk management and securing our financial position.
Effects on stakeholders
In 2012, Edita sold products and services to its customers and other stakeholders for the total amount of EUR 115.5 million (107.6) and spent EUR 58.6 million (50.4) on buying goods and services from suppliers. Edita created financial value for its stakeholders totaling EUR 59.1 million (55.6). Most of this value, EUR 51.3 million (48.8), was distributed to the staff in the form of salaries, pensions and social costs.
The digitalization of communication and the decrease in demand for printed products continued in 2012. We increased our expertise in digital communication through corporate acquisitions and recruiting, while the operations of our Print & Distribution and Editorial Communication business areas were adjusted to suit the level of demand.
In 2012, we invested a total of EUR 7.4 million (5.0), most of which was for corporate acquisitions and compensate investments in printing operations.
Financial position
In 2012, Edita had a negative result due to one-time expenses and depreciations of goodwill. The Group’s operating loss was EUR 4.1 million (profit: EUR 2.2 million) and the equity-to-assets ratio decreased to 36.8 percent (42.7 percent). Cash and cash equivalents totaled the EUR 6.7 million (6.2) and net indebtedness improved to 46.0 percent (48.5 percent).
The strong balance sheet and cash situation were made possible by the adjustment measures of the previous year. Despite the result, the cash situation remained at a reasonable level. Edita amortized its loan installments according to plan, and new long-term financing was not needed.
The savings was performed by increasing the efficiency of our administrative functions, and the support functions of all of the companies acquired during 2012 were integrated into Edita’s processes. Also group-level competitive bidding project was carried out which increased cost-effectiveness.
Internal control and risk management
Edita carries out an extensive risk analysis twice a year. New risks are reported and dealt with immediately, and internal auditing helps us recognize and predict future risks.
The continuous and rapid changes in the communications market put pressure on financial reporting: business operations require up-to-date and reliable information in order to ensure a quick reaction time.
In 2012, we improved our reporting process to be more efficient and to better serve the business sectors.
Goals for 2013
In 2012, more attention was given to setting the goals and indicators for 2013 than in previous years. The purpose is to set a goal for each Edita employee that is derived from the goals of the Group and of the business areas. Increased efficiency and unifying processes and reporting continue to be targets for development.
Added value for stakeholders
| Stakeholder | Indicator | 2012 | 2011 | 2010 |
|---|---|---|---|---|
| Customers | Sales | 115 491 | 107 611 | 110 882 |
| Suppliers | Cost of goods, materials and services purchased | 58 634 | 50 443 | 50 745 |
| Added value created | 56 857 | 57 168 | 60 137 | |
| Stakeholder | Indicator | 2012 | 2011 | 2010 |
| Employees | Wages and salaries, pensions, social costs | 51 273 | 48 798 | 50 342 |
| Public sector | Direct taxes | -255 | -40 | 244 |
| Financers | Net financing costs | 600 | 707 | 923 |
| Charitable organizations | Donations | 125 | 119 | 128 |
| Owners | Dividends | 0 | 990 | 1 740 |
| Investors | Investments | 7 368 | 5 017 | 3 312 |
| Total added value distributed to stakeholders | 59 111 | 55 591 | 56 689 | |
| Value added remaining in the company | -2 254 | 1 577 | 3 448 | |
| Added value created / FTE (tEUR) | 81 | 77 | 73 | |
Result 2012
Satisfactory operative result in a difficult market situation
Edita Group’s net revenue increased by EUR 7.4 million. The Group’s operating profit, including one-time items, was EUR -4.1 million. The operating profit without one-time items was EUR 2.1 million.
Read about Edita's result 2012 »