Raisio plc Half-year financial report 2016: Raisio’s comparable EBIT continued to improve, totalling EUR 15.0 million
Raisio plc Half-year financial report 10 August 2016 at 8:30 a.m. Finnish time
RAISIO’S COMPARABLE EBIT CONTINUED TO IMPROVE, TOTALLING EUR 15.0 MILLION; OUTLOOK FOR 2016 SPECIFIED
April-June 2016
- The Group’s comparable EBIT totalled EUR 15.0 (14.0) million, accounting for 12.1% (9.9%) of net sales.
- The Brands Division’s comparable EBIT was EUR 14.2 (14.3) million, accounting for 16.1% (14.6%) of net sales.
- Raisioagro’s EBIT was EUR 1.4 (1.4) million, accounting for 3.8% (3.1%) of net sales.
- The Group’s net sales totalled EUR 124.1 (141.5) million.
- The outlook for 2016 has been specified. Despite the weakened visibility and difficult market conditions, Raisio expects its comparable EBIT to improve in 2016.
January-June 2016
- The Group’s comparable EBIT totalled EUR 24.7 (23.7) million, accounting for 10.4% (9.0%) of net sales.
- The Brands Division’s comparable EBIT was EUR 25.6 (25.6) million, accounting for 14.3% (13.4%) of net sales.
- Raisioagro’s EBIT was EUR 1.4 (1.5) million, accounting for 2.2% (1.9%) of net sales.
- The Group’s net sales totalled EUR 238.1 (264.0) million.
Raisio Group’s key figures
| 4–6/ 2016 | 4–6/ 2015 | 1–6/ 2016 | 1–6/ 2015 | 2015 | ||
| Result | ||||||
| Net sales | M€ | 124.1 | 141.5 | 238.1 | 264.0 | 521.2 |
| Change in net sales | % | -12.3 | 6.8 | -9.8 | 6.0 | 5.5 |
| EBIT | M€ | -6.2 | 11.1 | 3.5 | 20.7 | 42.4 |
| EBIT-% | % | -5.0 | 7.8 | 1.5 | 7.9 | 8.1 |
| Items affecting comparability | 21.2 | 2.9 | 21.2 | 2.9 | 9.2 | |
| Comparable EBIT | M€ | 15.0 | 14.0 | 24.7 | 23.7 | 51.7 |
| Comparable EBIT-% | % | 12.1 | 9.9 | 10.4 | 9.0 | 9.9 |
| -Depreciations | M€ | -3.1 | -3.6 | -6.1 | -7.1 | -14.1 |
| -Impairment | M€ | -17.0 | -3.3 | -17.0 | -3.3 | -7.0 |
| Depreciation and impairment, in total | M€ | -20.0 | -6.9 | -23.1 | -10.5 | -21.1 |
| Items affecting comparable depreciations and impairment | M€ | 17.0 | 1.0 | 17.0 | 1.0 | 4.7 |
| Comparable depreciations and impairment | M€ | -3.1 | -5.9 | -6.1 | -9.5 | -16.5 |
| EBITDA | M€ | 13.9 | 18.0 | 26.6 | 31.2 | 63.6 |
| Items affecting comparable EBITDA | M€ | 4.2 | 2.0 | 4.2 | 2.0 | 4.6 |
| Comparable EBITDA | M€ | 18.1 | 20.0 | 30.8 | 33.2 | 68.1 |
| Financial items | M€ | -0.9 | -0.4 | -1.8 | -0.8 | -2.5 |
| Earnings per share (EPS) | € | -0.05 | 0.05 | -0.01 | 0.10 | 0.22 |
| Comparable earnings per share (EPS) | € | 0.07 | 0.07 | 0.12 | 0.12 | 0.26 |
| Balance sheet | ||||||
| Equity ratio | % | - | - | 61.4 | 57.5 | 62.3 |
| Gearing | % | - | - | 19.7 | 22.4 | 12.1 |
| Net interest-bearing debt | M€ | - | - | 59.6 | 75.6 | 42.2 |
| Equity per share | € | - | - | 1.92 | 2.15 | 2.23 |
| Investments | M€ | 4.3 | 3.0 | 8.3 | 5.1 | 11.0 |
CEO Matti Rihko’s review
“Raisio continued to improve its operational result during the second quarter. Our comparable EBIT grew by 7 per cent totalling EUR 15 million. Our relative profitability increased from some 10 per cent to 12 per cent of net sales.
In April, we licensed our Honey Monster brand to the British cereal producer Brecks. Brecks started the production, marketing and sales of Honey Monster cereals on 1 July 2016. In July after the review period, we also divested our Newport snack bar business to the Dutch equity investor Nimbus.
Both Honey Monster and Newport were loss-making so the divestment will improve our operational cash flow. In Southall, we still own the land of over three hectares located in one of the most important urban development areas in London.
In the short term, Brexit affects particularly through exchange rates but the pound, even weakened, is still within its ten-year currency range. So it is essential to manage the company’s own operative business well. Long-term effects are difficult to predict and therefore, it is important to maintain the ability to be flexible in changing situations. In all scenarios, the UK will continue to be the second largest consumer market in Europe.
With Benemilk’s international licensing, we decided to take a time out because, due to the crisis facing the dairy market, it seems that customers are not ready to change their feeding models within the next couple of years. Even though Benemilk Ltd is now becoming dormant, the consolidation of its IP portfolio continues; the portfolio will be made a ready, strong package. In Australia, we had an encouraging proof of the IP’s strength as the Benemilk feed and the milk produced through Benemilk feeding were granted a patent in July. In Finland, Benemilk has made a breakthrough and Raisioagro will continue its sale as usual.”
OUTLOOK 2016
Despite the weakened visibility and difficult market conditions, Raisio expects its comparable EBIT to improve in 2016.
Previous statement on outlook on 15 February 2016:
Despite the weakened visibility and difficult market conditions, Raisio expects its EBIT to improve in 2016.
RAISIO PLC
CEO Matti Rihko
Further information:
Matti Rihko, CEO, tel. +358 400 830 727
Antti Elevuori, CFO, tel. +358 40 560 4148
Raisio’s financial reviews in 2016
- Interim Report January-September on 9 November 2016
Chief Executive’s video in English will be available on Raisio’s web site at www.raisio.com.
The half-year financial report has not been audited.
Raisio plc
Raisio plc is an international specialist in plant-based nutrition. Raisio’s operations are divided into two divisions: Brands and Raisioagro. The Group’s key market areas are Finland, Great Britain, the Czech Republic, Russia and Poland. Markets for cholesterol lowering Benecol products are global. Raisio plc’s shares are listed on Nasdaq Helsinki Ltd. In 2015, the Group's net sales totalled EUR 521 million and EBIT was EUR 51.7 million excluding one-off items. The Group employs some 1,500 people. Raisio’s best-known brands are Benecol, Benemilk, Elovena, Fox’s and Poppets. Benemilk feeds for milk production and Benecol for cholesterol lowering are Raisio’s top innovations. For more information on Raisio go to www.raisio.com/en
Distribution
Nasdaq
Key media
www.raisio.com