Raisio plc, Net sales of Raisio's Brands Division increased 68%
Raisio plc Interim report 10 May 2011 at 8.30 Finnish time
INTERIM REPORT 1 JANUARY - 31 MARCH 2011
NET SALES OF RAISIO’S BRANDS DIVISION INCREASED 68%
January-March 2011
- Net sales grew by nearly 47% from the comparison period amounting to EUR 126.6 million
(Q1/2010: EUR 86.4 million). - The EBIT excluding one-off items was EUR 5.7 million (Q1/2010: EUR 4.3 million) accounting for
4.5% (5.0%) of net sales. - Raisio’s growth continued with the acquisition of British Big Bear Group in February.
- Net sales of the Brands Division increased by 68% year-over-year.
- The market situation in feed and malt businesses continued challenging. EBIT of the feed protein business was profitable.
- New research evidence showed that plant stanol ester in Benecol products has double cholesterol-lowering efficacy compared to plant sterol ester.
Outlook remains unchanged
Raisio continues implementing the growth phase according to plan. We expect net sales growth for 2011, especially for the Brands Division. In terms of the Group’s development, it remains essential to pay attention to the impact of raw material price volatility on net sales. Our activeness in growth projects brings extensive costs in relation to the company size, thus undermining profitability in the short term. The Group’s target is to maintain the earlier profitability level of 4-5% also during the growth phase.
Raisio Group’s key figures
| Q1/2011 | Q1/2010 | 2010 | ||
| Results from continuing operations | ||||
| Net sales | M€ | 126.6 | 86.4 | 443.0 |
| Change in net sales | % | 46.5 | -5.2 | 17.9 |
| EBIT | M€ | 5.7* | 4.3 | 19.4 |
| EBIT | % | 4.5* | 5.0 | 4.4 |
| Depreciation and impairment | M€ | 4.1 | 3.5 | 15.9 |
| EBITDA | M€ | 9.8* | 7.8 | 35.3 |
| Net financial expenses | M€ | -0.1* | -0.1 | -1.9 |
| Earnings per share (EPS) | € | 0.03* | 0.02 | 0.08 |
| Earnings per share (EPS), diluted | € | 0.03* | 0.02 | 0.08 |
| Balance sheet | ||||
| Equity ratio | % | 56.7 | 70.5 | 67.6 |
| Gearing | % | 16.5 | -40.2 | -22.5 |
| Net interest-bearing debt | M€ | 50.7 | -125.4 | -72.9 |
| Equity per share | € | 1.95 | 2.00 | 2.06 |
| Gross investments | M€ | 65.5** | 1.5 | 49.1** |
| Share | ||||
| Market capitalisation*** | M€ | 411.3 | 435.2 | 439.1 |
| Enterprise value (EV) | M€ | 451.8 | 280.0 | 356.1 |
| EV/EBITDA | 12.1 | 7.6 | 10.1 |
* Excluding one-off items
** Including acquisitions
*** Excluding the company shares held by the Group
The figures for the comparison period are given in brackets in the text.
CHIEF EXECUTIVE’S REVIEW
“Raisio is in the middle of the growth phase and our key targets are now net sales increase and internationalisation. During the growth phase, we have acquired two companies in the UK. According to outside estimates, both the companies were affordable in relation to their profit level since EBITDA multiples were at the level seven. With the acquisitions and through organic growth, the Group’s net sales have increased by nearly 50% in a year. At the same time, we have been able to maintain our earlier profitability level in rapidly changing markets.
With the acquisitions, we have gained a solid foothold in the British breakfast and snack market as well as in the confectionery market although sweets are not in Raisio’s core strategy. Big Bear acquired in February 2011 complements our earlier acquisition of Glisten extremely well and brings the necessary critical mass for the future in the UK market.
Raisio will continue to be active in the acquisition front and to carry out the growth phase as planned. The Group’s strong balance sheet provides a good foundation for growth as far as there are suitable companies available fitting Raisio’s strategy and meeting our preset criteria. Carefully considered acquisitions ensure profitable growth and target achievement in the long run. They also create shareholder value.
The first quarter of 2011 went as expected although our operations were also impacted by rapid market changes and, additionally, the outlook did not improve in all our businesses from the year-end situation. Sales of plant stanol ester of Benecol products did not reach the level of unexceptionally strong comparison period but remained at the level characteristic of the business. Sales of consumer products continued their upward trend in the UK. Food sales in Russia, Ukraine and Poland developed well and the rise in grain raw material prices could be passed on to product prices.
Business environment of the Business-to-Business Division remained unchanged. Deliveries of rapeseed oil surplus from the food chain to Neste Oil are in full swing. The oil is used as raw material for renewable diesel. Price competition in the feed and malt markets remained tight.”
RAISIO PLC
Heidi Hirvonen
Communications and IR Manager
Tel. +358 50 567 3060
Further information:
Matti Rihko, CEO, tel. +358 400 830 727
Jyrki Paappa, CFO, tel. +358 50 5566 512
Heidi Hirvonen, Communications and IR Manager, tel. +358 50 567 3060
A press and analyst event will be arranged in Helsinki on 10 May 2011 starting at 1.00 p.m. Finnish time. It will be held at Hotel Scandic Simonkenttä, in the Pavilion meeting room. The address is Simonkatu 9, Helsinki.
A teleconference in English will be held on 10 May 2011 at 2:30 p.m. Finnish time. Participants are requested to call the number +358 9 8248 2842, PIN code 27929.