RAISIO’S NET SALES AND OPERATING RESULT INCREASED IN JULY–SEPTEMBER
INTERIM REPORT 1 JANUARY– 30 SEPTEMBER 2008
• In July–September, Raisio’s net sales increased by 22.5 per cent year-over-year, amounting to EUR 134.5 million (EUR 109.8 million in July–September 2007).
• Operating result in July–September doubled to EUR 7.6 million, excluding one-off items (EUR 3.7 million), accounting for 5.6 per cent of net sales.
• All divisions improved their operating result.
• Cash flow from business operations in July–September totalled EUR 36.3 million (EUR 25.6 million).
• Raisio’s forecast of the Group’s outlook for 2008 remains unchanged.
RISKS AND SOURCES OF UNCERTAINTY IN THE NEAR FUTURE
The external environment will remain challenging due to the general economic uncertainty, the changes in the food industry, as well as the increasing cost pressure affecting trade, industry and producers.
The Helsinki Administrative Court has handled the appeal filed by the representative of the Tax Office for Major Corporations concerning the taxation of the sales profit resulting from the divestment of Raisio Chemicals in 2004. The Administrative Court’s decision coincides with the original decision made by the Tax Office for Major Corporations in the company’s regular taxation, as well as that later made by the Assessment Adjustment Board. According to the decision, the sales profit of approximately EUR 220 million is free of tax. The Administrative Court’s decision will take legal effect within 60 days from its announcement, unless the representative of the tax recipients applies for leave to appeal and amendment from Supreme Administrative Court.
Raisio’s forecast of the Group’s outlook in 2008 remains unchanged. Raisio’s net sales are 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 its net sales and improve profitability from the previous year.
Matti Rihko, CEO, tel. +358 400 830 727
Jyrki Paappa, CFO, tel. +358 50 5566 512
Heidi Hirvonen, Communications Manager, tel. +358 50 567 3060
A press and analyst event will be arranged on 31 October 2008 at 10:00 a.m. in Helsinki. It will be held at Hotel Scandic Simonkenttä, in the Bulsa-Freda meeting room. The address is Simonkatu 9, Helsinki.
A teleconference in English will be held on 31 October 2008 at 4:00 pm Finnish time, tel. +358 (0)9 8248 6504, PIN code 9373.