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Itella Logistics

Itella Logistics’ net sales grew by 7.8% to EUR 842.3 (781.5) million. Net sales increased particularly in Finland, driven by an acquisition in groupage logistics. In addition, all business operations in Russia developed favorably.

The business group’s operating result before non-recurring items decreased to EUR -19.4 (-12.0) million. Its full-year operating result was EUR -45.9 (-9.5) million, or -5.5% (-1.2%) of net sales. The result was affected by the integration of acquired business operations, the challenging business environment in Scandinavia, lower processing volumes and the optimization of space in warehouse logistics and impairment in goodwill and other non-current assets.

As part of Itella Logistics’ annual testing and restructuring, the business group carried out impairment testing of its goodwill and other assets in the third quarter. Based on the tests, impairment losses of EUR 7.4 million were recorded for Itella Logistics’ goodwill and intangible assets from the company’s earlier acquisitions in air and sea freight operations. In 2013, Itella Logistics recognized a total of EUR 21.0 million in impairment.

A large part of the shelving system in Itella Logistics’ Shushary warehouse in St. Petersburg collapsed in July 2012. Measures to minimize the environmental impact of the collapse were initiated immediately in accordance with instructions issued by the authorities. In January 2014, Itella’s management in Russia were acquitted of charges relating to the inappropriate handling of environmentally hazardous material. The processing of the insurance compensation has progressed, but the amount has not yet been confirmed in full. For this reason, the ultimate effects of the accident are yet to be determined. The indemnity is recognized in other receivables on the balance sheet, and a short-term provision for costs is recognized in liabilities. Related to this, a cost of EUR 1.7 million is recorded in the result for the 2013 financial period.

Itella Logistics’ investments totaled EUR 18.8 (90.4) million. The most significant investments were made in the Pennala logistics center in Orimattila and warehouse services in Russia. The new logistics center was completed in June 2013.