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.”
Outlook
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.
