Raisio's EBIT EUR 10.2 million, an improvement of 73%

Raisio plc      Interim Report      16 August 2011 at 8:30 a.m. Finnish time

INTERIM REPORT 1 JANUARY - 30 JUNE 2011

RAISIO’S EBIT EUR 10.2 MILLION, AN IMPROVEMENT OF 73%

April-June 2011, continuing operations

• Raisio’s net sales grew 30% on the comparison period amounting to EUR 150.5 million (Q2/2010: EUR 115.7 million).
• EBIT from continuing operations totalled EUR 10.2 million (Q2/2010: EUR 5.9 million) accounting for 6.8% (5.1%) of net sales.
• Profitability of the Brands Division was ordinary, EBIT 10.3% of net sales.
• Profitability of the Business to Business Division improved, EBIT 3.2% of net sales
• In June, Raisio divested its malt business to Viking Malt recording a capital gain of
  EUR 4.8 million in the result of discontinued operations.

 Outlook remains unchanged

Raisio continues implementing its growth phase according to plan. We expect net sales growth for 2011, especially for the Brands Division. In terms of the Group’s development, it remains essential to pay attention to the impact of raw material price volatility on net sales. Activeness in growth projects brings extensive costs in relation to the company size, thus undermining profitability in
the short term. The Group’s target is to maintain the earlier profitability level of 4-5% also during the growth phase.

Raisio Group’s key figures 

* Excluding one-off items
** Including acquisitions
*** Excluding the company shares held by the Group
The figures for the comparison period are given in brackets in the text.

Chief Executive’s review

“Raisio’s second quarter of 2011 was completed as planned without disturbances affecting the business in our market areas. The integration of acquisitions has proceeded well, which reflects positively both on the result and outlook. Economic crisis also opens up interesting prospects for future acquisitions.

The divestment of our malt business to Viking Malt in June streamlined the operations of Business to Business Division that now includes feeds, feed components, bioenergy and direct sales of agricultural inputs. After the transaction, Raisio continues as a malting barley trader and thus also as a partner to Viking Malt. The unprofitable malt business was sold because it is increasingly difficult for an individual malt house to succeed in the competition with large international players as energy and water costs are constantly rising. Raisio recognised a one-off gain of nearly
EUR 5 million on the transaction as discontinued operations for the results of the malt business examined in this review.

The profitability of livestock production, particularly pork production, declined on the comparison period in Finland, which resulted in a slight decrease in Raisio’s total feed volume. We saw growth in fish and chicken feeds. Profitability problems are expected to continue in livestock production until the product pricing is cost-based.

Our main brands continued to grow in all Raisio’s market areas. A major reorganisation was carried out in the UK, which allows us to develop our activities and secure growth. EBIT of the Brands Division rose to the target level in the review period, 10% of net sales, which is a good achievement. Benecol’s sales growth remained strong in our largest market, the UK, even though sales varied widely between different European countries.”

RAISIO PLC

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

Further information:

Matti Rihko, CEO, tel. +358 400 830 727
Jyrki Paappa, CFO, tel +358 50 556 6512
Heidi Hirvonen, Communications and IR Manager, tel. +358 50 567 3060

A press and analyst event in Finnish will be arranged in Helsinki on 16 August 2011
starting at 1.00 p.m. Finnish time. It will be held at Hotel Scandic Simonkenttä, in the Pavilion meeting room. The address is Simonkatu 9, Helsinki.

A teleconference in English will be held on 16 August 2011 at 3.00 p.m. Finnish time.
Participants are requested to call the number +358 (0)9 8248 4795, PIN code 1523.