Raisio plc Half-Year Financial Report 2017: Raisio’s April-June comparable EBIT EUR 13.1 million

Raisio plc        Half-Year Financial Report 9 August 2017 at 8:30 a.m. Finnish time

RAISIO’S APRIL-JUNE COMPARABLE EBIT EUR 13.1 MILLION

April-June 2017

• The Group’s comparable net sales totalled EUR 104.3 (124.1) million.
• The Group’s comparable EBIT was EUR 13.1 (15.0) million, accounting for 12.5 (12.1)% of net sales.
• The Brands Division’s comparable EBIT totalled EUR 12.3 (14.2) million, accounting for 16.9 (16.1)% of net sales.
• Raisioagro’s EBIT was EUR 1.3 (1.4) million, accounting for 3.7 (3.8)% of net sales.

January-June 2017

• The Group’s comparable net sales totalled EUR 196.8 (238.1) million.
• The Group’s comparable EBIT was EUR 23.6 (24.7) million, accounting for 12.0 (10.4)% of net sales.

• The Brands Division’s comparable EBIT totalled EUR 24.3 (25.6) million, accounting for 16.8 (14.3)% of net sales.
• Raisioagro’s EBIT was EUR 0.9 (1.4) million, accounting for 1.6 (2.2)% of net sales.

CEO Jarmo Puputti’s review

“Raisio’s EUR 13.1 million comparable EBIT for April-June was a satisfactory performance as the profitability of the UK confectionery business decreased substantially with the continued operational and commercial challenges at the Leicester confectionery plant and with the declining pound.

During the spring and summer, we have started to solve operational problems at the Leicester confectionery plant. Tackling the commercial challenges will take more time than expected. The Czech confectionery business continued its steady performance, in terms of both net sales and profitability.

In June, Raisio made an important deal and divested its Southall industrial property near London. The purchase price paid by the buyer was approximately EUR 40 million. Southall is one of the most important urban development areas in London.

Net sales for the Benecol business remained at the comparison period level without the pound’s currency impact. Sales growth continued in Elovena products.

The fish feed season has passed well despite the delayed introduction of the new fish feed production line. Sales in Raisioagro’s cattle feeds were lower than in the comparison period.

Raisio’s Board of Directors approved the renewed business strategy in April and the Group strategy in early summer. Both the strategies are for the years 2017 – 2022. The strategy emphasising wellbeing is based on the company’s strong competence areas: plant-based and functional foods, effective feeds and value-creating digital services. Responsible way of operating covers all Raisio’s businesses and is a central part of our continuous improvement objective.

The company seeks profitable growth with agile product and brand development, new markets and product categories, digital services, and through acquisitions. The renewed strategy creates a well-targeted and determined operating model for growth. Raisio aims to be a great place to work.”

Raisio Group’s key figures

REVISED OUTLOOK FOR 2017

Raisio revised its 2017 outlook in the stock exchange release published on 21 July 2017. For the full year 2017, the company estimates its comparable EBIT to be approximately EUR 45 million. The outlook revision was due to the prolonged commercial and production problems at the UK confectionery business, lower than expected profitability and weakening of the pound against the euro. Exchange rates will continue to significantly affect Raisio’s net sales and EBIT.

In line with the renewed strategy, Raisio continues to invest in brands, product concepts, sales and marketing, to streamline its operations and expand into new markets in Europe. This will pave the way for future growth and success.

Raisio’s full-year 2017 outlook in February 2017:

In 2017, Raisio will invest in brands, product concepts, sales and marketing, and in the enhancement of its operations. This will pave the way for future growth and success. Raisio estimates its comparable EBIT for 2017 to fall slightly short of comparable EBIT for 2016. Exchange rates will continue to significantly affect Raisio’s net sales and EBIT.

RAISIO PLC

Heidi Hirvonen
Communications and IR Manager
tel. +358 50 567 3060

Further information:
Jarmo Puputti, CEO, tel. +358 50 352 8740
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.

Raisio will publish the Interim Report January-September on 8 November 2017.

The interim 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 2016, the Group's net sales totalled EUR 436 million and comparable EBIT was EUR 50.7 million. The Group employs some 1,400 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