Raisio CEO Hails Record as “Pretty Exceptional” as He Quits for New Challenge
03 Jan 2017 --- The CEO of Raisio Matti Rihko is standing down from the role with the Finnish animal feed maker and cereal company after 10 years, hailing his record as “pretty exceptional”. Raisio’s managing director of its agriculture business Jarmo Puputti is to replace him on an interim basis. Puputti will continue to work as managing director of Raisioagro on top of his new role.
The Finnish company said it will begin the hunt for a new CEO to replace Rihko who is standing down immediately.
Speaking to FoodIngredientsFirst, Rihko said he is leaving now as he has a new job which he is set to begin in August this year.
“I need to give the announcement now in order to be available in August,” he said, though would not disclose what his new job was.
Rihko painted a positive picture of his tenure as CEO at the Finnish cereal product and animal feed maker.
He said: “In this decade, Raisio has been taking a grand transition into a highly profitable and international brand house it is now. The shareholders have nearly tripled the value of their investment due to the share price development and nine years increase of dividend. I think my track record in food sector is pretty exceptional.”
However, the last few years has seen Raisio face considerable challenges, such as the “crisis” in the dairy business, and tough trading conditions.
Rihko has looked to reshape the business to help improve its performance.
In July this year, Raisio sold its UK snack bar business to Dutch investors Nimbus, sustaining a loss of $21m.
In April, it struck a licensing deal with UK food manufacturer Brecks Company to market and sell its Honey Monsters cereal brand.
It has also suspended investment in its Benemilk licensing business due to the "crisis facing the dairy market" while two executives exited the business in a reorganization.
According to its latest financial figures, Raisio reported sales were down year-on-year from €398.5m ($414m) to €340.9m ($355m) in the nine months to September while earnings before tax, depreciation and amortization was down from €50.7m ($53m) to €42.6m ($44m), as it was hurt by the weakness of the pound.
Matti Perkonoja, chairman of the Board of Directors said: “The Board of Directors wants to thank Matti Rihko for his ten years’ term and his excellent work for Raisio’s renovation and internationalization.”
“Since 2006 Raisio shareholders have nearly tripled the value of their investment due to the share price increase and the nine years of increased dividends. We wish Matti Rihko the best of success in his future endeavours.”
Puputti joined Raisio in 2013 prior to which he world at Nokian Heavy Tyres and Patria Land & Armament Oy.
Benemilk feeds and their manufacturing method have been granted a patent in Finland. After a thorough investigation, the Finnish Patent Authority has determined that the Benemilk innovation meets the criteria for patentability; it is new, inventive and industrially applicable.
The patent application related to the Benemilk feeds proceeded as an ordinary process, including a number of interim decisions and commenting rounds. In Finland, the first patent applications were filed in January 2012.
Several scientific studies have been conducted on the Benemilk feeds by various universities and internationally recognised research institutes. These studies together with five years’ commercial experience in Finland and long-term farm monitoring program confirm the efficacy of Benemilk feeds. Benemilk feeds help cows make better use of the energy in the feed. As a result, milk yield is significantly higher and milk fat and protein content has increased.
In Finland and Russia, Benemilk feeds are sold and marketed by Raisioagro. In Finland, Benemilk feeds already have a well-established customer base and market position.
In addition, patent authorities in New Zealand have examined the patent applications, and granted patents for the Benemilk feeds and their manufacturing method as well as for the milk produced by Benemilk fed cows.
by John Reynolds
