Raisio plc, Financial Statements Bulletin 2017
Raisio plc Financial Statements Release 12 February 2018
RAISIO PLC, FINANCIAL STATEMENTS BULLETIN 2017
January-December 2017, continuing operations:
- Raisio Group’s net sales totalled EUR 306.8 (336.6) million.
- Raisio Group’s comparable EBIT amounted to EUR 37.8 (38.6) million,accounting for 12.3 (11.5)% of net sales.
January-December 2017, in total including the discontinued operations:
- Raisio Group’s net sales totalled EUR 402.8 (436.3) million.
- Raisio Group’s comparable EBIT amounted to EUR 45.9 (50.7) million,accounting for 11.4 (11.6)% of net sales.
- The Board’s dividend proposal is EUR 0.17 per share.
October-December 2017, continuing operations:
- Raisio Group’s net sales totalled EUR 72.0 (70.7) million.
- Raisio Group’s comparable EBIT totalled EUR 7.5 (9.6) million,accounting for 10.4 (13.6)% of net sales.
October-December 2017, in total including the discontinued operations:
- Raisio Group’s net sales totalled EUR 97.3 (95.4) million.
- Raisio Group’s comparable EBIT totalled EUR 9.2 (12.0) million,accounting for 9.5 (12.6)% of net sales.
CEO’S REVIEW
“After the review period, at the end of January 2018, Raisio announced to consider the divestment of its cattle and fish feed business as one strategic alternative. Raisio has initiated negotiations on the sale of its feed businesses with several operators. At the same time, Raisio moved from a holding-type structure to a model in which all resources are targeted toward organic growth, the strategic objective of the Healthy Food Division.
The confectionery business divestment in December 2017 was Raisio’s first strategic step towards its focus, namely its core business Healthy Food. Together with the already strong balance sheet, the proceeds from the confectionery deal allow extensive acquisitions. Raisio is a net debt free company with net cash of EUR 105 million at the end of 2017. In addition to the organic growth, Raisio seeks growth through acquisitions that suit its core business.
In 2017, Raisio’s successes were its Elovena and Benecol products with sales growth of some 10 per cent in Finland and fish feed exports to Russia showing an increase of almost 30 per cent. Good sales development was also seen in improved EBIT.
The Group’s EBIT, including the confectionery business, was clearly down from the comparison period. EBIT decline was primarily due to the challenges of the UK confectionery business that continued until the end of 2017. Benecol's EBIT was also significantly down from the comparison period due to higher subcontracting costs of consumer products and the sharp world market price increase of sterols used as raw material in Benecol products, since higher costs could not fully be passed on to end product prices. Raisio has secured the availability and price level of sterols required for its production in the coming years.”
RAISIO GROUP’S KEY FIGURES, continuing and discontinued operations
| 2017 | 2016 | |||||
| Continuing | Discontinued | Total | Continuing | Discontinued | Total | |
| Income statement | ||||||
| Net sales, M€ | 306.8 | 96.0 | 402.8 | 336.6 | 99.7 | 436.3 |
| Change in net sales, % | -8.8 | -3.7 | -7.7 | -19.2 | -4.8 | -16.3 |
| Comparable EBIT, M€ | 37.8 | 8.1 | 45.9 | 38.6 | 12.1 | 50.7 |
| Comparable EBIT, % | 12.3 | 8.4 | 11.4 | 11.5 | 12.2 | 11.6 |
| EBIT, M€ | 55.9 | -59.2 | -3.2 | 16.8 | 12.1 | 28.9 |
| EBIT, % | 18.2 | -61.7 | -0.8 | 5.0 | 12.2 | 6.6 |
| Comparable EBITDA, M€ | 45.9 | 11.1 | 57.0 | 46.8 | 15.2 | 62.0 |
| EBITDA, M€ | 71.8 | -27.4 | 44.4 | 41.1 | 15.2 | 56.3 |
| Financial income and expenses, M€ | -1.4 | -0.3 | -1.7 | -2.1 | -0.1 | -2.2 |
| Comparable earnings per share, M€ | 0.18 | 0.04 | 0.22 | 0.19 | 0.06 | 0.25 |
| Earnings per share, M€ | 0.27 | -0.38 | -0.11 | 0.06 | 0.06 | 0.12 |
| Balance sheet | - | - | - | - | - | |
| Equity ratio, % | 73.4 | - | - | 66.8 | - | - |
| Net gearing, % | -39.8 | - | - | 8.5 | - | - |
| Net interest-bearing debt, M€ | -105.1 | - | - | 26.7 | - | - |
| Equity per share, € | 1.68 | - | - | 1.99 | - | - |
| Dividend per share, € | - | - | 0.17* | - | - | 0.17 |
| Investments, M€ | 10.4 | 5.4 | 15.8 | 13.3 | 5.2 | 18.6 |
* Board of Directors’ proposal to the Annual General Meeting
| 10-12/2017 | 10-12/2016 | |||||
| Continuing | Discon-tinued | Total | Continuing | Discontinued | Total | |
| Income statement | ||||||
| Net sales, M€ | 72.0 | 25.3 | 97.3 | 70.7 | 24.7 | 95.4 |
| Change in net sales, % | 1.9 | 2.3 | 2.0 | -25.2 | -12.7 | -22.3 |
| Comparable EBIT, M€ | 7.5 | 1.7 | 9.2 | 9.6 | 2.4 | 12.0 |
| Comparable EBIT, % | 10.4 | 6.7 | 9.5 | 13.6 | 9.7 | 12.6 |
| EBIT, M€ | -1.6 | -36.7 | -38.3 | 9.1 | 2.4 | 11.5 |
| EBIT, % | -2.2 | -145.3 | -39.4 | 12.9 | 9.7 | 12.1 |
| Comparable EBITDA, M€ | 9.7 | 2.5 | 12.1 | 11.5 | 3.2 | 14.7 |
| EBITDA, M€ | 8.3 | -36.1 | -27.7 | 10.6 | 3.2 | 13.8 |
| Financial income and expenses, M€ | -0.3 | 0.0 | -0.3 | 0.1 | 0.1 | 0.2 |
| Comparable earnings per share, € | 0.04 | 0.01 | 0.04 | 0.05 | 0.01 | 0.06 |
| Earnings per share, € | -0.02 | -0.22 | -0.25 | 0.05 | 0.01 | 0.06 |
| Balance sheet | ||||||
| Investments, M€ | 1.8 | 2.7 | 4.6 | 3.8 | 1.4 | 5.1 |
EVENTS AFTER THE REVIEW PERIOD
On 31 January 2018, Raisio announced to consider the divestment of cattle and fish feed businesses as one strategic alternative. The company also renewed its organisational structure and started statutory cooperation negotiations in order to ensure the Group growth, profitability and competitiveness.
Raisio considers the divestment of its feed businesses as a strategic alternative
Raisio is considering a sale of its cattle and fish feed businesses as one strategic alternative. Raisio has initiated negotiations on the sale of its feed business with several operators. During the negotiations, Raisioagro continues business as usual. Raisio’s Grain Trade business is not for sale.
Raisio continues the renewal of the Group structure
Benecol and Foods businesses, which were operating as separate organisations, have been combined into one Healthy Food Division. During the spring 2018, the company will also initiate measures to simplify the Group’s legal corporate structure.
In addition to his CEO role, Pekka Kuusniemi will serve as COO of the Healthy Food Division until a new director is appointed. The new organisational structure has been in force since 1 February 2018.
Raisio Group started statutory cooperation negotiations
To ensure its growth, competitiveness and profitability, Raisio started cooperation negotiations concerning 115 employees on 5 February 2018. Initial estimate of the reduction need is 30 persons. The cooperation negotiations concern the Group services as well as marketing, product development and service functions of the new Healthy Food Division. The aim is to complete the negotiations during March 2018. At the end of 2017, Raisio’s Finnish operations employed a total of 325 people.
GUIDANCE 2018
Raisio estimates the net sales of the Group's continuing operations to slightly increase from 2017. The company estimates the comparable EBIT of the Group's continuing operations account for more than 10 per cent of net sales. Exchange rates will continue to significantly affect Raisio’s net sales and EBIT.
Raisio’s key strategic target is growth, both organically and through acquisitions. To ensure Raisio’s organic growth, the company will move from a holding-type structure to a model in which all resources are targeted toward supporting the strategic objectives of the new Healthy Food Division. Raisio will also seek growth through acquisitions that suit its core business. Raisio is net debt free and has a strong balance sheet, which makes acquisitions supporting its core business possible.
RAISIO PLC
Heidi Hirvonen
Communications and IR Manager
tel. +358 50 567 3060
Further information:
Pekka Kuusniemi, President and CEO, tel. +358 50 537 3883
Antti Elevuori, CFO, tel. +358 40 560 4148
Heidi Hirvonen, Communications and IR Manager, tel. +358 50 567 3060
Chief Executive’s video in English will be available on Raisio’s web site at www.raisio.com
The interim report has not been audited.
Raisio plc
Raisio is an international food and feed company focusing on wellbeing and profitable growth. The core of Raisio’s strategy consists of plant-based, healthy and responsible branded products. Benecol is an international success story in cholesterol lowering. Our well-known local brands include Elovena, Nordic, cattle feed Maituri and Baltic Blend fish feeds. We promote sustainable food chain and develop innovations to enhance wellbeing. Raisio plc’s shares are listed on Nasdaq Helsinki Ltd. In 2016, the Group's net sales totalled EUR 436 million and comparable EBIT was EUR 50.7 million. The Group employs some 400 people. For more information on Raisio go to www.raisio.com/en
Distribution
Nasdaq
Key media
www.raisio.com