Raisio Planning Growth Phase

For the full year, Raisio’s net sales were EUR 375.9 million (EUR 463.2 million). EBIT, excluding one-off items, was EUR 20.5 million (EUR 20.2 million), or 5.5% (4.4%) of net sales.

12 Feb 2010 --- Raisio has reported net sales totalled EUR 91.5 million (EUR 118.5 million) in Q4 2009. EBIT was EUR 4.2 million (EUR 3.8 million), accounting for 4.6% (3.2%) of net sales. Cash flow from operations was EUR 23.9 million (EUR 26.4 million).
 
For the full year, Raisio’s net sales were EUR 375.9 million (EUR 463.2 million). EBIT, excluding one-off items, was EUR 20.5 million (EUR 20.2 million), or 5.5% (4.4%) of net sales. Cash flow from operations was EUR 51.5 million (EUR 52.7 million).Earnings per share, excluding one-off items, were EUR 0.09 (EUR 0.10). The Board of Directors proposes raising the dividend to EUR 0.09 (EUR 0.07) per share.

In 2010—2011, Raisio will move to a growth phase. We expect a considerable increase in net sales in 2010. The cost of growth projects is predicted to impact the Group’s profitability, especially in the early part of the year. The target EBIT of 10 per cent for the Brands Division and 5 per cent for the Business to Business Division will not yet be achieved in 2010. Our target is to maintain the existing level of profitability at the beginning of the growth phase.
 
The company’s decision to divest the margarine business was a very profitable one, but also a responsible from shareholders point of view. Rather than a high selling price, however, the main reason for the divestment was the fact that margarine consumption is not increasing in Europe or Finland and there is more and more competition. A company of Raisio’s size is better to focus on small and growing product categories and reduce business risk in mature categories, in which the company cannot be actively involved in the consolidation process due to its size. Margarine would not have been a growth engine for Raisio, so we decided to let go of it in order to grow elsewhere.
 
The Group’s 2009 EBIT was very good. Under difficult circumstances, the Business to Business Division reported a positive result, which was well done. The strong positive undertone for the Brands Division lies in the daily renewal of orders also in the future as people are eating daily. Basic demand is stable, and a company that offers pleasure, healthiness, environmental friendliness, high quality and an attractive price has excellent future prospects.
 
Consumers are showing an increasing need for information, which has put strong emphasis on the ecological aspects of products and responsible business operations. This development trend proves that Raisio, as a pioneer, is heading in the right direction. The Group’s Business to Business Division boosts the competitiveness of the Finnish food chain by offering more environmentally friendly solutions to the milk and meat chain in order to meet the consumers’ growing needs, thus making the entire Finnish farm animal chain more competitive against international imports. Raisio grows by combining ecology, healthiness and nutrition suitable for a mobile lifestyle in a way that satisfies the needs of consumers and customers.”