Raisio Turnover Up in Q1

05/05/08 Raisio’s turnover in January-March increased by more than 20 per cent year-over-year, amounting to EUR 118.9 million (EUR 96.8 million in January-March 2007).

The operating result was EUR 4.2 million (EUR 1.2 million) and, including one-off items, EUR 8.4 million (EUR 1.2 million). Raisio booked a one-off income item of EUR 4.2 million from the dissolution of joint ventures with Lantmännen, a Swedish corporation.

With the Food Division turning profitable, all of Raisio’s Divisions posted a profitable operating result. The improvement in operating profits resulted from the implementation of flexible pricing systems, growth and cost-effective operations.

Raisio’s forecast for the Group’s outlook in 2008 is unchanged. Raisio’s turnover is expected to increase and the operating result from continuing operations in 2008, excluding one-off items, is expected to improve from the previous year. All divisions are expected to post profitable annual operating results although the pressure on profitability will continue in feed. The overall operating result in the Food Division is expected to be profitable, although the target operating result rate of 5 per cent will probably not be achieved due to increased marketing inputs, new product launches and preparations for entry into new markets. The Ingredients Division is expected to increase turnover and improve profitability from the previous year.

CEO Matti Rihko said: “Raisio’s financial performance in the first quarter indicates that the measures the company took last year to improve profitability were the right ones and that their impact is now beginning to show. What most improved the operating result were the divestment of unprofitable operations, enhancement of business model, cost-effectiveness and new, flexible pricing systems. After a long, unprofitable period the Food Division posted a profitable result, which speaks of a healthier cost structure and a new approach in business operations.

Raisio is at the core of the food business, as grain is considered to be a basic ingredient in the field, whether processed into food or feed. The rising standard of living in Asia, climate change, increasing production of biofuels, urbanization and contamination threaten to reduce the size of food production areas. This will make global supply and demand more challenging both ecologically and ethically. The food industry must develop ecological and healthy food without the consumer having to compromise on flavour or convenience.

As a European pioneer, Raisio added a label to its Elovena oat package that shows the CO2 emissions and created a new labelling indicator. Consumers want information about the environmental impact of foods when making purchasing decisions. Raisio answers this need with the introduction of the CO2 label. In the future, CO2 emissions labels that show the environmental impact of the product will become increasingly more common on food packages alongside price and nutritional information labels.

Raisio continues its measures to develop the entire grain chain. The solution to the clear imbalance between food supply and demand lies in plant-based, locally produced food. I believe that Raisio, as a pioneer in ecological, plant-based food and as one of Europe's most innovative grain companies, is in an extremely good position to answer the new challenges facing the food industry."