Raisio plc’s Interim Report January−March 2021

Raisio plc's Interim Report, 5 May 2021 at 8:30 a.m. Finnish time

Raisio is entering the new growth construction phase

FINANCIAL DEVELOPMENT IN BRIEF

January–March 2021

  • The Group’s net sales totalled EUR 50.0 (54.7) million, which signified a decrease of -8.7%.
  • Comparable EBIT was EUR 4.7 (6.6) million, which signified a decrease of -29.0%. That accounted for 9.4 (12.0)% of net sales.
  • EBIT was EUR 7.5* (6.6) million, which accounted for 15.0 (12.0)% of net sales.
  • The Healthy Food Segment’s net sales totalled EUR 34.4 (37.3) million. EBIT was EUR 4.8 (5.3) million, which accounted for 14.1 (14.2)% of net sales.
  • The Healthy Ingredients Segment's net sales totalled EUR 22.3 (25.6) million. Comparable EBIT was EUR 0.7 (2.2) million, which accounted for 3.0 (8.6)% of net sales. EBIT was EUR 3.5 (2.2) million, which accounted for 15.5 (8.6)% of net sales.
  • The Group’s cash flow from business operations after financial items and taxes totalled EUR 3.2 (3.9) million.
  • The comparable return on investments (ROIC) was 6.3 (4.4)% and the return on investments (ROIC) was 11.6 (4.4)%.
  • The overall effect of currency conversions was EUR -1.0 (0.3) million on net sales, EUR -0.1 (0.1) million on the comparable EBIT and EUR -0.1 (0.1) million on EBIT.

*EBIT includes EUR 2.8 million in other operating income resulting from the sale of the company’s receivable.

OUTLOOK 2021

Raisio’s guidelines: In 2021, Raisio estimates that net sales will increase (net sales in 2020: EUR 233.6 million). The costs accrued as a result of our front-loaded growth investments will put pressure on our profitability in 2021 in comparison to the situation in 2020.

KEY FIGURES OF THE GROUP

1–3/2021 1–3/2020 1–12/2020
Net sales M€ 50.0 54.7 233.6
Change in net sales % -8.7 9.7 -1.2
Comparable EBITDA M€ 6.2 8.1 33.9
EBITDA M€ 9.0 8.1 35.1
Comparable EBIT M€ 4.7 6.6 27.7
Comparable EBIT of net sales % 9.4 12.0 11.9
EBIT M€ 7.5 6.6 28.9
EBIT of net sales % 15.0 12.0 12.4
Comparable earnings per share 0.02 0.01 0.14
Earnings per share 0.04 0.01 0.15
 

PRESIDENT AND CEO PEKKA KUUSNIEMI: 

They say that no two years are alike and that description is accurate when we compare Raisio Group's first quarter of 2021 with the same period one year earlier. One year ago, the pandemic caused a completely exceptional barrage of demand that strongly drove up sales in all of Raisio’s consumer markets. The other distinctive factor is the later-than-usual start of Raisioaqua’s 2021 season due to a winter season that extended longer than during the previous year. For the aforementioned reasons, net sales and profitability declined when viewed against the highly exceptional comparison period. 

The Group's net sales totalled EUR 50.0 (54.7) million and the comparable EBIT was EUR 4.7 (6.6) million. EBIT amounted to EUR 7.5 (6.6) million. Currency conversions brought a negative change of one million euro to our net sales.  

The UK was held in the grips of an unsettled political situation ever since June 2016. For Raisio, the trade agreement signed between the EU and the UK was much needed news and marked an end to the years of uncertainty. Benecol products are popular within the UK market and the trade agreement has facilitated for us a completely uninterrupted transition to the new situation. 

Our investments clearly reflect Raisio's long-term strategy, in which plant-based added-value products have been the focus for the past two years. The investments for the first quarter totalled EUR 6.5 (5.7) million, thereby representing 13.1 (10.4) per cent of net sales. The largest share of the investments was allotted to the new development and production facility being built in Raisio's industrial area. Despite exceptional conditions, we have been able to proceed in accordance with the planned timetable and cost estimates for the building and deployment phases. The facility, which is currently preparing for its production phase, will play a significant role in building competitiveness and growth for the future. We will provide more information about this in June when we share our primary areas of focus for the strategy period of 2022–2025. Once the facility is up and running, Raisio will be able to participate in strongly expanding product categories, but the marketing investments for the initial phase, opening depreciations and the initiation of other activities will put pressure amounting to several million euro on profitability.  

During this review period, we prepared for a corporate acquisition that was especially well-suited to our strategy. The acquisition was announced immediately at the start of the new quarter. Raisio acquired Verso Food Oy, which, in a short period of time, has achieved the market leader position within the competitive market for plant protein products in our home market in Finland. This gave us a flying start in this immensely growing future market. According to our estimates, the acquired company will contribute to growing our to line but it will have a negative impact of approximately three million euro on Raisio Group’s EBIT for the current year. Measures intended to create value have been initiated immediately, with a focus on further increasing our sales volumes within the domestic and international markets. 

The ongoing exceptional situation has naturally also tried the coping abilities of our personnel. Despite this, we have managed to work without disruption and to deliver our products on time. I would like to thank the entire personnel of Raisio for its fine work and patience during this challenging time. I would also like to warmly welcome into the service of our company all those new Raisio employees who have joined us by virtue of the corporate acquisition. 

In Raisio, Finland 5 May 2021
Raisio plc
Board of Directors

Further information:

Pekka Kuusniemi, President and CEO, tel. +358 50 537 3883
Toni Rannikko, CFO, tel. +358 40 078 8812
Mika Saarinen, Director of Investor Relations, tel. +358 40 072 6808

The information in this Interim Report is unaudited.

Raisio will hold a Capital Market Day on 10 June 2021, and will publish its Half-Year Report for 2021 on 4 August 2021. 

RAISIO PLC
Raisio is an international company specialized in healthy, responsibly produced food, ingredients and fish feeds. Our well-known brands include, for example, Benecol®, Beanit®, Elovena®, Sunnuntai®, Torino® and Benella®. In Raisio’s products, the focus is on well-being, health, good taste and sustainable development. Profitable growth is ensured through our strong expertise and passion for creating new. 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 380 people. Our food is good for Health, Heart and Earth. For more information on Raisio go to www.raisio.com.

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