News

Raisio reports "satisfactory" 1Q sales, EBIT

8 May 2018

Raisio has reported first quarter sales of €67.8m, down slightly on the previous year. EBIT also declined slightly. The company described this as “satisfactory”.

Raisio has reported first quarter sales of €67.8m, down slightly on the previous year. EBIT also declined slightly. The company described this as “satisfactory”. It did, however, raise its full-year outlook for net sales, but the full-year outlook for EBIT remains unchanged.

“With the divestment of our confectionery and cattle feed businesses, Raisio is at the beginning of the new,” said CEO Pekka Kuusniemi. “The company has a clear focus: responsibly produced healthy food. In early 2018, we have implemented a significant reorganisation of operations. The main change was the integration of all Raisio’s food brands and businesses into the Healthy Food Division. We have already taken the first steps following the change in the organisational structure and started the resource allocation to support the profitable growth of the Healthy Food Division.”

“Raisio’s net sales and EBIT for January-March 2018 were at satisfactory levels. Moderate sales growth for Benecol and Elovena products continued in Finland. Sales and business profitability weakened in Poland, Russia, Ireland and Belgium, mainly due to challenges in sales volumes. Net sales and sales volume for the UK operations were also slightly down from the comparison period. Raisio has identified the main problems and initiated corrective measures. We have set an ambitious but realistic time-frame for these measures.”

“Raisio has combined the Group’s Vision and Mission into a Purpose. The Purpose published in April 2018 sets ambitious goals for Raisio and it will guide us in the right direction. We have always known what kind of food is healthy and good for the heart. In addition, we want to continue as a pioneer in corporate responsibility. Raisio’s Purpose in brief: Food for Health, Heart and Earth.”

Raisio expects the net sales of the Group’s continuing operations to be approximately at the 2017 level. The company estimates that the comparable EBIT for the Group’s continuing operations is over 10 per cent of net sales. Exchange rates will continue to significantly affect Raisio’s net sales and EBIT.

In addition to foods and feeds, Raisio’s net sales consist of exports of raw materials, such as grains. Raisio has identified the concerns and initiated corrective measures in the markets where the net sales development did not meet the expectations in early 2018.

Raisio said its key strategic target is to grow its Healthy Food business both organically and through acquisitions. With its structural reforms completed, Raisio has targeted all the resources to support the medium-term organic growth of the new Healthy Food Division. Raisio also seeks growth through acquisitions. The company is net debt free and has a strong balance sheet, which allows acquisitions that suit the company’s core business.