Raisio Improve Profitability in 2008

Net sales increased in the last quarter by 17% over the comparison period, totalling EUR 127.8 million (EUR 109.2 million). Operating result was EUR 5.7 million (EUR 1.7 million), accounting for 4.5% of net sales.

12/02/09 In 2008, Raisio’s net sales increased by nearly 20% to EUR 504.0 million (EUR 421.9 million in 2007). The Group’s operating result was EUR 28.3 million (EUR 10.6 million). Operating result excluding one-off items totalled EUR 24.1 million (EUR 9.9 million), which represents 4.8% of net sales. All of Raisio’s divisions recorded a profitable operating result. Cash flow from operations was EUR 52.7 million (EUR 15.6 million).

Matti Rihko, CEO of Raisio: “The improvement in Raisio’s profitability was a great achievement under difficult circumstances. Raisio succeeded in reaching its goals to enhance operations and improve profitability positively and quickly, in view of the challenging and continuously changing operating environment.

"Our predictions that ecology would become increasingly important to consumers and that trade would be affected by volatile grain prices proved to be right, and we were able to focus on these key issues. In addition, Raisio was one of the first European companies and the first in Finland to introduce a carbon footprint label in a product. The adoption of the CO2 label in Elovena oat flakes may yet turn out to be the single most important action in 2008."

"The year 2009 will also be difficult for the whole food chain and everyone involved in it, despite the defensive nature of the sector. As a pioneer in plant-based, ecological food, and as one of Europe's most innovative grain companies, Raisio is in an extremely good position to answer the new global challenges facing the food chain."

Net sales increased in the last quarter by 17% over the comparison period, totalling EUR 127.8 million (EUR 109.2 million). Operating result was EUR 5.7 million (EUR 1.7 million), accounting for 4.5% of net sales. All of Raisio’s divisions recorded a profitable operating result. Cash flow from operations was EUR 26.4 million (EUR 1.2 million).

Raisio said that volatility in quarterly results and between divisions will become more pronounced, but they will balance out at Group-level over the year 2009. Even if the food consumption and demand remain steady, the unpredictable outcome of an economic crisis may reduce volumes in the short run either directly or indirectly through the food chain infrastructure. Nevertheless, the negative impact on result can be neutralised within a few months, and in the long run the reallocation of capacity will open up new opportunities for Raisio.

Raisio’s main target in 2009 is to maintain its stabilised position under difficult circumstances. Raisio’s volumes are expected to develop moderately in annual terms. The trend in net sales will depend on the price level of crop in 2009. The company’s profitability will also develop moderately, and operating result is predicted to account for 4–5% of net sales. Cash flow from operations in the review period is expected to be clearly positive but below the 2008 level.