Raisio’s Q1 net sales reach €67.8m as company focuses on healthy food 


07 May 2018 --- Finnish food group Raisio has published its interim report for the first quarter of 2018 stating net sales of €67.8 million while comparable EBIT was €7.4 million, accounting for 10.9 percent of net sales. The company, which is behind the brands Benecol, Elovena, Nalle and Sunnuntai, has gone through some group structure renewals, including two divestments in confectionery and cattle feeds business. 

Late last year, Raisio agreed to sell its candy business to Valeo Foods, and it has recently signed an agreement to sell its cattle feed business to Lantmännen Agro Oy. 

With a renewed focus on its Health Food Division, CEO Pekka Kuusniemi says the company has a clear focus and early this year has implemented “a significant reorganization 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 organizational structure and started the resource allocation to support the profitable growth of the Healthy Food Division,” Kuusniemi says. 

The Healthy Food Division’s net sales amounted to €48.1 million, and comparable EBIT was €8.3 million, accounting for 17.2 percent of net sales. Net sales for the Raisioagro Division were €19.7 million.

After the review period, Raisio revised its full-year outlook for net sales on April 26, 2018. In terms of EBIT, the full-year outlook remains unchanged.

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, while sales and business profitability weakened in Poland, Russia, Ireland and Belgium, mainly due to challenges in sales volumes, says the company.
Net sales and sales volume for the UK operations were also slightly down from the comparison period. Raisio says it has identified the main problems and initiated corrective 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,” adds Kuusniemi.

“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 percent of net sales. Exchange rates will continue to significantly affect the company’s net sales and EBIT.

In addition to foods and feeds, Raisio’s net sales consist of exports of raw materials, such as grains.

The company has targeted resources to support the medium-term growth of the new Healthy Food Division which, it says, is expected to grow organically and through acquisitions, thanks to a “strong balance sheet” which allows acquisitions that suit the company’s core business.

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Food Ingredients News

Sensient execs on Mazza buy: “We want to take everything out of the botanical”

20 Jul 2018 --- Sensient is eyeing the newly acquired botanical extraction company Mazza Innovation as a strategic pillar for all of its business operations, including colors and flavors. Presented under the new name of “Sensient Natural Extraction” and continuing to operate out of Canada, the new business unit provides a clean extraction opportunity for Sensient Technologies Corp. The acquisition will offer opportunities in sustainability, cost reduction and clean label, as the entire botanical being used can be broken down and distributed among the diverse companies that comprise Sensient.

Food Ingredients News

Weekly Digest: Symrise nominated for Sustainability Award, innovation in cricket protein flours

20 Jul 2018 --- Symrise has been nominated for the German Sustainability Award. Cricket protein brand Seek, has launched a new line of high protein and sustainable baking flours. Michel Burla, Managing Director of the Cereals and Ingredients Division of the Hochdorf Group, is to step down at the end of this year and GEA has been working with Almarai Company in Saudi Arabia to build the nation’s largest and most modern dairy processing facility.

Food Ingredients News

Nestlé strengthens coffee investment with Nescafé Dolce Gusto production in Vietnam

19 Jul 2018 --- Nestlé has inaugurated a new Nescafé Dolce Gusto capsule production line in Dong Nai Province, Vietnam which will ramp up processing to 2,500 tons of coffee per year (equivalent to 130 million capsules), using high-quality coffee beans from Vietnam. And over the next few years, the volume is expected to grow further.

Food Ingredients News

Nuts, grains & pulses: Plant-based eating trends boost alternative proteins

17 Jul 2018 --- Consumers’ quest for alternative protein is driving innovation across several categories involving nuts, seeds, grains and pulses, backed-up by a rise in vegan and vegetarian trends and an overall growth in meat-free food. People want products with alternative sources of protein as they turn away from traditional meat sources and one of the categories where plant-based inspired eating is driving innovation in snacking. Plant proteins fit some of today’s most significant trends in food and beverage product development – non-GMO, organic, sustainable, vegan, big 8-free, allergen-free and label-friendly. They’re also versatile and functional and that combination of attributes is why we see plant proteins in everything from beverages to bakery products.

Food Ingredients News

Barry Callebaut hails volume growth “significantly above global chocolate confectionery market”

16 Jul 2018 --- Barry Callebaut has released its nine-month key sales figures for the fiscal year 2017/18 which has shown good group momentum and volume growth that is significantly above the global chocolate confectionery market, according to the company. In the first nine months of fiscal year 2017/18 (ended May 31, 2018), the manufacturer of high-quality chocolate and cocoa products grew its sales volume by 6.9 percent to 1,512,853 tons.

More Articles