Raisio 2012 Results Improve With Rise in Net Sales

Raisio has reported that net sales increased to EUR584.1 million (EUR552.6 million in 2011), growth of 5.7% in 2012. Raisio Group’s EBIT, excluding one-off items, rose to EUR34.6 million (EUR31.8 million) accounting for 5.9% (5.8%) of net sales, growth of 8.8%.

12 Feb 2013 --- Brands Division showed good profitability, EBIT 11.3%. Raisioagro’s profitability was low due to losses in feed protein business. Improved profitability already during 2013 through Raisio’s investments in production flexibility and efficiency.

“During Raisio’s growth phase, we have carried out four acquisitions, the last two in Central Europe in 2012. All acquisitions have rapidly proven to be profitable also in practice and the acquired companies have been systematically integrated into the Raisio Group. We have worked with determination and managed to buy good companies at a good price. At the moment, all the acquired companies are in better shape than at the time of acquisition and Raisio has grown to become a truly global company with a foothold in the Nordic Countries, the UK, continental and Eastern Europe,” the company reported.

Raisio’s net sales have increased by about EUR240 million over three years during the Group’s growth phase. At the same time, our EBIT has doubled. “We have maintained our balance sheet strong with positive cash flow, the company is almost net debt free and the equity ratio is 64 per cent. We have achieved this even though, over the same period, the company has paid EUR48 million in dividends. Total accumulated investments including acquisitions on debt free basis amounted to EUR206 million,” the company reported.

Raisio’s new feed innovation Benemilk has attracted great interest. Not only milk producers, but also investors and potential partners have shown interest in the feeds that increase milk yield and improve fat and protein contents. Dairy farmers benefit from higher milk income and healthier animals. The first feed developed on the basis of the new innovation was known as Maituri 12000 E. After the name change, it is now called Benemilk Black. At the moment, the new feed is used at about 600 dairy farms in Finland.

Feeds in the Benemilk product line were launched in January 2013 and, for the being, are sold in Finland only. Raisio want to build a strong home market for our innovation before entering international markets. Finland is an important test and home market for Benemilk feeds. “We filed an international patent application at the beginning of 2012. The patent process is not transparent and, therefore, our best estimate is that within a year we will know whether we have the patent.”

The American Food and Drug Administration, FDA, acknowledged the new GRAS (Generally recognized as safe) status of Raisio’s cholesterol-lowering ingredient, plant stanol ester, for use of multiple food products. This means that a wider range of foods with added plant stanol ester can be marketed in the USA with a disease risk reduction health claim. The status concerns such new food products as beverages and various milk and grain products. The earlier GRAS status of plant stanol ester concerned only a limited number of food products.

The GRAS procedure included a comprehensive review of the scientific safety documentation for plant stanol ester. The statement signed by an external expert panel was submitted to the FDA for review in summer 2012, and in January 2013, the FDA acknowledged a GRAS status for plant stanol ester to be used in a wide range of food products.

At the beginning of 2012, Raisio introduced in Finland a complete feed improving milk yield and the contents of milk. The feed was known by the name of Maituri 12000 E. In January 2013, Raisio launched Benemilk product line in the Finnish market. The line is based on the same feed innovation. All Benemilk feeds have very high energy levels and a strong impact on the volume and on fat and protein contents of milk. Benemilk product line includes three complete feeds and one semi-concentrate. The feeds are easily identified on the basis of colour, as colours Black, Red and Blue on the product names relate to the product properties.

Already over 600 Finnish farms have user experiences of Benemilk Black feeds. Milk producers have confirmed that milk yield has increased and contents of milk have risen. Milk yield on the farms has typically increased by 2-3 litres per cow per day. Milk protein content typically rises by 1-3 tenths of a percent, fat may increase by 3-5 tenths of a percent and, at best, even higher increases have been recorded. The feeding test conducted in the Maaninka research barn of MTT Agrifood Research Finland in spring 2012 confirmed scientifically the user experience.