Raisio plc, Interim Report 8 May 2019 at 8:30 a.m. Finnish time
RAISIO'S INTERIM REPORT 1 JANUARY - 31 MARCH 2019: RAISIO STARTED THE IMPLEMENTATION OF ITS NEW STRATEGY, NET SALES DECLINE STOPPED
Financial development in brief, continuing operations
- The Group’s net sales totalled EUR 49.9 (49.7) million. Comparable EBIT was EUR 5.0 (6.3) million, accounting for 10.0 (12.6) % of net sales. EBIT was EUR 5.0 (4.4) million, accounting for 10.0 (8.8) % of net sales.
- As from January 2019, Raisio’s reportable segments are Healthy Food and Healthy Ingredients.
- The Healthy Food Unit’s net sales totalled EUR 34.7 (35.1) million. Comparable EBIT was EUR 4.0 (5.0) million, accounting for 11.5 (14.1) % of net sales. EBIT was EUR 4.0 (4.8) million, accounting for 11.5 (13.7) % of net sales.
- The Healthy Ingredients Unit’s net sales totalled EUR 21.8 (21.3) million. EBIT was EUR 1.3 (2.4) million, accounting for 6.2 (11.0) % of net sales.
- The Group’s cash flow from business operations after financial items and taxes were EUR 4.5 (-0.8) million.
- The Group's outlook for 2019 remains unchanged.
Key figures of the Group
| 1-3/2019 | 1-3/2018 | 1-12/2018 | ||
| Net sales, | M€ | 49.9 | 49.7 | 228.2 |
| Change in net sales | % | 0.4 | -4.1 | -2.7 |
| Comparable EBIT | M€ | 5.0 | 6.3 | 25.6 |
| Comparable EBIT of net sales | % | 10.0 | 12.6 | 11.2 |
| EBIT | M€ | 5.0 | 4.4 | 16.6 |
| EBIT of net sales | % | 10.0 | 8.8 | 7.3 |
| Comparable EBITDA | M€ | 6.6 | 7.7 | 31.3 |
| EBITDA | M€ | 6.6 | 5.8 | 31.0 |
| Comparable earnings per share | € | 0.03 | 0.03 | 0.12 |
| Earnings per share | € | 0.03 | 0.02 | 0.08 |
PRESIDENT AND CEO PEKKA KUUSNIEMI:
It has now been 80 years since Raisio was founded. In 2019, our completely reorganised company is living the year zero, with a clear focus. Last year, we built basic pillars for our operations: purpose, values and strategy with a closely related responsibility programme. Based on these pillars, the company structure has been thoroughly examined and transformed to support the growth goals of the future. The strategy is built on the company’s long-term, strong areas of knowledge, i.e., the cholesterol-lowering market leader Benecol and strongly megatrend-driven oats with related expertise and innovations of the company.
Responsibilities of our business units, Healthy Food and Healthy Ingredients, corresponding to the new structure are based on a clear division between the business ideas. Healthy Food focuses on the branded consumer products with European retail chains as customers. The Healthy Ingredients organisation operates in the global B-to-B field with ingredients creating added value to Raisio’s customers. With this business division, we make our operations considerably more customer-oriented and transparent, organic growth being our main goal.
Implementation of the strategy started immediately after its release. I am happy to say that the strategy was well received by the whole organisation; the staff have started its determined implementation in the review period. One of the major events during the review period was the signing of a frame agreement with an Italian Dr. Schär, a global leader in gluten-free foods. Combined expertise of the companies opens new interesting business opportunities for both far into the future.
In the review period, we continued our product price increases due to rapid, unprecedented rise in raw material prices last autumn. The latest price increases will be fully effective in the second quarter while the impact of the rise in raw material prices can still be seen in the comparable EBIT of the review period. However, the margin has developed to the right direction during the review period and we will see, already in the second quarter, a positive effect on the company’s full-year performance.
The setbacks Raisioaqua faced last year are behind us now. Customer loyalty has remained at a good level and with our competitive advantages, such as the Baltic Blend feeds and Benella brand, we expect strongly upbeat performance. In the Q1s, there is hardly any demand for fish feeds. However, expenses are arising as the business is preparing for the season. As the year progresses and the waters warm up, the investments start to produce when the fish start to eat again. In terms of sales, the Q3 is typically the best of the season.
The ongoing uncertainty with the Brexit solution keeps our organisation busy. A significant part of the Benecol brand net sales is generated in the UK and we are maintaining our ability to secure uninterrupted availability of products to the Benecol consumers in the event of possible import-related delays.
OUTLOOK FOR 2019
The Group’s outlook remains unchanged. In 2019, Raisio expects its net sales for continuing operations to grow (2018: EUR 228.2 million) and comparable EBIT to be over 10 per cent of net sales.
Raisio will continue its investments in the brands, R&D and the company’s own production in its most important product categories.
In Raisio, 8 May 2019
Raisio plc
Board of Directors
Further information:
Pekka Kuusniemi, President and CEO, tel. +358 50 537 3883
Toni Rannikko, CFO, tel. +358 40 078 8812
Heidi Hirvonen, Communications and IR Manager, tel. +358 50 567 3060
CEO’s video in English is available on Raisio’s web site at www.raisio.com.
Raisio’s financial releases in 2019
- Interim Report for January-June published 7 August 2019
- Interim Report for January-September 6 November 2019
The interim report has not been audited.
Raisio plc
Raisio is an international company specialised in healthy, responsibly produced food. Our well-known brands include, for example, Benecol, Elovena, Nalle and Sunnuntai. In Raisio’s products, the focus is on well-being, health, good taste and sustainable development. Profitable growth is ensured through our strong expertise and passion for creating new. Raisio’s shares are listed on Nasdaq Helsinki Ltd. In 2018, the Group’s net sales for continuing operations totalled EUR 228 million and comparable EBIT was EUR 26 million. Our food is good for Health, Heart and Earth. For more information on Raisio go to www.raisio.com.
Distribution
Nasdaq
Key media
www.raisio.com
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