Raisio plc Financial Statements Bulletin 2021

Financial Statements Bulletin of Raisio plc, 9 February 2022 at 8:30 a.m. Finnish time

Heading into the strategy period with strong growth

FINANCIAL DEVELOPMENT IN BRIEF

January–December 2021

• The Group’s net sales totalled EUR 246.4 (233.6) million, which signified a growth of 5.5%.
• Comparable EBIT was EUR 22.1 (27.7) million, accounting for 9.0 (11.9)% of net sales. Comparable EBIT decreased by 20.4% in relation to the comparison period.
• EBIT was EUR 23.8* (28.9) million, which accounted for 9.7 (12.4)% of net sales.
• The overall effect of currency conversions was EUR 0.9 (-2,5) million on net sales, EUR 0.3 (-0.4) million on the comparable EBIT and EUR 0.3 (-0.4) million on EBIT.
• The Healthy Food Segment’s net sales totalled EUR 143.4 (135.3) million. Comparable EBIT was EUR 19.5 (18.6) million, accounting for 13.6 (13.7)% of net sales. EBIT was EUR 19.3 (18.6) million, which accounted for 13.4 (13.7)% of net sales.
• The Healthy Ingredients Segment’s net sales totalled EUR 132.9 (125.6) million. Comparable EBIT was EUR 6.1 (12.6) million, accounting for 4.6 (10.0)% of net sales. EBIT was EUR 8.1 (12.6) million, which accounted for 6.1 (10.0)% of net sales.
• The Group’s cash flow from business operations after financial items and taxes totalled EUR 34.5** (34.7) million.
• The comparable return on investments (ROIC) was 8.3 (11.1)% and the return on investments (ROIC) was 8.8 (11.7)%.
• The Board of Director’s dividend proposal for the Annual General Meeting is EUR 0.14 per share, of which EUR 0.10 is the basic dividend in accordance with the company's dividend policy and EUR 0.04 the supplementary dividend.

* EBIT includes EUR 2.8 million in other operating income for the sale of the receivable, EUR 0.6 million in expenses related to the corporate acquisition and altogether EUR 0.5 million in expenses from the corporate reorganisation resulting from negotiations held in accordance with the Act on Co-operation within Undertakings (334/2007).  

** The Group’s cash flow includes EUR 2.8 million in other operating income for the sale of the receivable and EUR 2.3 million in tax refunds related to the UK business.

October–December 2021

• The Group's net sales totalled EUR 60.3 (53.9) million, which signified a growth of 11.8%.
• Comparable EBIT was EUR 3.9 (4.4) million, accounting for 6.5 (8.2)% of net sales. Comparable EBIT decreased by 10.7 % in relation to the comparison period.
• EBIT was EUR 3.5* (5.5) million, which accounted for 5.9 (10.2)% of net sales.
• The overall effect of currency conversions was EUR 1.1 (-1,6) million on net sales, EUR 0.2 (-0.3) million on the comparable EBIT and EUR 0.2 (-0.3) million on EBIT.
• The Healthy Food Segment’s net sales totalled EUR 38.0 (33.9) million. Comparable EBIT was EUR 5.0 (4.2) million, accounting for 13.1 (12.4)% of net sales.  EBIT was EUR 4.9 (4.2) million, which accounted for 12.8 (12.4)% of net sales.
• The Healthy Ingredients Segment’s net sales totalled EUR 30.4 (26.4) million. Comparable EBIT was EUR 0.3 (1.8) million, accounting for 0.8 (7.0)% of net sales. EBIT was EUR 0.0 (1.8) million, which accounted for 0.2 (7.0)% of net sales.

* EBIT includes a total of EUR 0.4 million in expenses from the corporate reorganisation resulting from negotiations held in accordance with the Act on Co-operation within Undertakings (334/2007).  

KEY FIGURES OF THE GROUP

CEO PEKKA KUUSNIEMI:

The year 2021 was a busy one for Raisio Group. During the year, we made a strategic corporate acquisition, we updated our strategy up to the year 2025, we started up a new production facility and we achieved unusually fast sales growth for the food industry already before the new strategy period got underway. The first quarter of the previous year was completely exceptional due to the wave of panic buying, which made it a challenging comparison period for 2021. From spring on, however, growth in terms of the comparison period was especially encouraging.

Our updated strategy draws its strength from megatrends which, as the pandemic eases, seem to be getting increasingly stronger. We have built competitive factors for the company with investments totalling approximately EUR 70 million over a three-year period, with the investment share for the previous year being EUR 24.2. (28.5) million. As we set out to realise the new strategy, I can state that this strong investment phase is behind us and we are now stepping from the sowing phase to the growth phase.

The net sales for the financial year increased to EUR 246.4 (233.6) million, which signified a growth of 5.5%. Growth during the final quarter of the year alone was as much as 11.8 per cent. Comparable EBIT declined due to long-term, systematic future building to EUR 22.1 (27.7) million, which accounted for 9.0 (11.9) per cent of net sales. In addition to the aforementioned measures aimed at growth, the hot summer and accelerated cost inflation during the autumn also put a strain on EBIT during the second half of the year. There are no mitigating means to counter weather conditions, but we are managing to deal with the cost inflation issues, albeit with a slight delay.

The performance of the Health Food Segment was good in all markets and excellent in some. I am especially thrilled about Raisio’s strong return to a growth trend in the UK market, especially under post-brexit conditions. The significant sales growth of Benecol® products achieved in Ireland is the result of a change in our operational model carried out two years earlier. Elovena® continued its strong performance in Finland and has grown by double digits also in terms of its gluten-free product range. This iconic oat brand, which is counted among the TOP 10 brands in Finland, already now represents us within the foreign markets with a particular emphasis on our gluten-free product line.

The Healthy Ingredients Segment has performed reasonably during the challenging year. There has been a continuously increasing demand for gluten-free oats outside of Finland, which is an indication of the increased recognition of this exceptional grain as a healthy raw material for all types of products. The season was especially challenging for Raisioaqua due to the long period of hot weather, and even though the season lasted longer than usual, it was not possible to mend the impact of the unsuccessful high season in terms of result.

Raisio’s operations have expanded considerably with the addition of its two new production facilities. The fava bean production facility in Kauhava and the new facility in the carbon-neutral industrial area of Raisio placed a burden on profitability during the financial year. These investments in our future will need time and persistent efforts before they become profitable. I have all the reason to believe, and a bit of evidence as well, that the facilities supported by these megatrends will be the driving forces behind Raisio’s growth as we move forward.

Raisio’s Corporate Responsibility Report, which will be published in March, will be great to read. Our responsibility programme, the Good Food Plan, is proceeding wonderfully and we have received abundant positive feedback from external sources. Our personnel have adopted responsible operational methods to advance our overall goal of “Food for Health, Heart and Earth”. In order to create a unified, dynamic and winning corporate culture, we initiated the “Walk the Talk” change programme at the end of the financial period. With the programme we are ready to shift onto the path of growth as defined by our strategy.

My warmest thanks to Raisio’s personnel for their fine performance and patience during this epidemic, which continued through the entire financial year. Let’s keep moving forward with the same strength and confidence!
 

OUTLOOK 2022

Raisio’s guidelines: In 2022, Raisio estimates that net sales will increase by 5 % (net sales in 2021: EUR 246.4 million). Our strategy-based growth investments place pressure on our relative profitability in comparison to the previous financial year. 
 

In Raisio, 08 February 2022
Raisio Plc Board of Directors

Further information:
Pekka Kuusniemi, CEO, tel. +358 50 537 3883
Mika Saarinen, CFO, tel. +358 40 072 6808

The Financial Statements Bulletin has not been audited.

Raisio’s financial releases in 2022:

Financial Statements, the Report of the Board of Directors and the Corporate Responsibility Report 2021 will be published 17 March 2022
Interim Report for January-March published 4 May 2022
Half-Year Financial Report for January-June published 3 August 2022
Interim Report for January-September published 2 November 2022

RAISIO PLC
Raisio’s purpose is to make food which is good for Health, Heart and Earth. Our growth drivers and focus areas are Benecol® and plant stanol ester solutions, plant based foods, branded oat products for consumers and oat as raw material for industry. Our strong brands include for example, Benecol®, Beanit®, Elovena®, Sunnuntai®, Torino® and Benella®. In our products the focus is on well-being, health, good taste and responsibility. Raisio's values − courage, fairness and drive − guide us towards our targets. Raisio’s shares are listed on Nasdaq Helsinki Ltd. In 2020, the Group’s net sales totaled EUR 234 million and EBIT was EUR 28 million. Raisio employs about 400 people. www.raisio.com.