Raisio plc Interim Report January-June 2015: Raisio’s EBIT EUR 14.0 million, raised outlook for the financial year

Raisio plc       Interim Report 11 August 2015 at 8:30 Finnish time

RAISIO’S EBIT EUR 14.0 MILLION, RAISED OUTLOOK FOR THE FINANCIAL YEAR

April-June 2015, excluding one-off items

• The Group EBIT amounted to EUR 14.0 (8.5) million, accounting for 9.9 (6.4)% of net sales.
• The Brands Division’s EBIT totalled EUR 14.3 (8.2) million, accounting for 14.6 (11.1)% of net sales.
• Raisioagro’s EBIT was EUR 1.4 (1.4) million, accounting for 3.1 (2.2)% of net sales.
• Net sales for the Group totalled EUR 141.5 (132.5) million.
• One of the world’s strongest cattle feed patent portfolios developed for Benemilk during 2015. 
• New guidance: Raisio expects its EBIT to return on its long-term upward trend. Raisio estimates its net sales of 2015 to increase from last year and EBIT margin, excluding one-off items, to be clearly higher than the 7.0 per cent of 2014.

January-June 2015, excluding one-off items

• The Group EBIT amounted to EUR 23.7 (13.8) million, accounting for 9.0 (5.6)% of net sales.
• The Brands Division’s EBIT totalled EUR 25.6 (14.6) million, accounting for 13.4 (10.0)% of net sales.
• Raisioagro’s EBIT was EUR 1.5 (1.4) million, accounting for 1.9 (1.2)% of net sales.
• The Group’s net sales totalled EUR 264.0 (249.1) million.

Raisio Group’s key figures excluding one-off items

* Including acquisitions

CEO Matti Rihko’s review

“Raisio continued its strong performance in an intense competitive situation. Raisio’s EBIT of EUR 14 million is the fourth consecutive quarterly result better than the comparison period and also the best quarterly result for the current Raisio. 

The most significant part of the improved EBIT results from the acquisition of Benecol consumer product business in the UK, Ireland and Belgium in November 2014. In Poland, profitability of the Benecol business improved due to our streamlining efforts. Benecol's launch in China, in turn, opened the door to the market of the world's most populated country. It also supports Benecol’s strategically important expansion to new and growing markets of Asia after the South-Korean launch in February 2015.

EBIT for the UK Cereal & Snack business was positive and clearly better than in the comparison period. We continue to assess the operating conditions for the UK cereal business so that we could improve its profitability and study its future alternatives. In the review period, the production of savoury snacks was discontinued at the Southall factory, which will ensure better focus on the product range in line with the strategy. 

During 2015, we have carried out significant development work at Benemilk to expand and strengthen its IPR. Currently, the portfolio contains nearly 30 patent applications, which makes it one of the world’s strongest patent portfolios in cattle feed. With the Science Advisory Board that started in spring 2015, Benemilk team involves some of the world’s best scientific experts.
Our good activity level with partner candidates continued and Benemilk is preparing to carry out a number of feeding trials by the end of 2015.”

GUIDANCE 2015

Raisio expects its EBIT to return on its long-term upward trend. Raisio estimates its net sales of 2015 to increase from last year and EBIT margin, excluding one-off items, to be clearly higher
than the 7.0 per cent of 2014.

Previous guidance in February 2015

Raisio expects its EBIT to return on its long-term upward trend.

RAISIO PLC

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

Further information:
Matti Rihko, CEO, tel. +358 400 830 727
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 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 OMX Helsinki Ltd. Raisio’s turnover in 2014 was EUR 494 million. The Group employs some 1,900 people. Raisio’s best-known brands are Benecol, Benemilk, Elovena Honey Monster, 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 OMX
Key media
www.raisio.com