Raisio's EBIT EUR 10.7 million, improvement of +70%
Raisio plc Interim report 8 November 2011 at 8:30 Finnish time
RAISIO’S EBIT EUR 10.7 MILLION, IMPROVEMENT OF +70%
July-September 2011, continuing operations
Net sales growth +28%, net sales EUR 141.7 million (Q3/2010: EUR 111.0 million).
- EBIT EUR 10.7 million (Q3/2010: EUR 6.3 million) accounting for 7.5% (5.7%) of net sales.
- Due to strong cash flow, Raisio is again a net debt free company.
- Good profitability in the Brands Division, EBIT 12.8% (10.3%) of net sales.
- Business to Business Division is now Raisioagro following the renewal of legal and operational structures. Raisioagro includes feeds, grain trade, protein meals and plant oils, production inputs and bioenergy.
- Raisioagro's profitability improved slightly, EBIT 0.7% (0.5%) of net sales.
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
| Q3/ 2011 | Q3/ 2010 | Q1-Q3/ 2011 | Q1-Q3/ 2010 | 2010 | ||
| Results from continuing operations | ||||||
| Net sales | M€ | 141.7 | 111.0 | 413.9 | 309.7 | 423.6 |
| Change in net sales | % | 27.6 | 22.2 | 33.6 | 17.0 | 21.0 |
| EBIT | M€ | 10.7 | 6.3 | 26.9* | 16.6 | 19.2 |
| EBIT | % | 7.5 | 5.7 | 6.5* | 5.3 | 4.5 |
| Depreciation and impairment | M€ | 4.5 | 4.0 | 12.5 | 11.2 | 15.1 |
| EBITDA | M€ | 15.2 | 10.2 | 39.4* | 27.7 | 34.3 |
| Net financial expenses | M€ | -0.2 | 0.8 | -1.2* | -2.2 | -1.9 |
| Earnings per share (EPS) | € | 0.05 | 0.03 | 0.13* | 0.07 | 0.08 |
| Earnings per share (EPS), diluted | € | 0.05 | 0.03 | 0.13* | 0.07 | 0.08 |
| Balance sheet | ||||||
| Equity ratio | % | - | - | 60.5 | 69.0 | 67.6 |
| Gearing | % | - | - | -0.2 | -18.3 | -22.5 |
| Net interest-bearing debt | M€ | - | - | -0.7 | -58.7 | -72.9 |
| Equity per share | € | - | - | 2.08 | 2.04 | 2.06 |
| Gross investments | M€ | 1.9 | 3.2 | 68.6** | 45.8** | 48.5** |
| Share | ||||||
| Market capitalisation*** | M€ | - | - | 374.4 | 470.7 | 439.1 |
| Enterprise value (EV) | M€ | - | - | 373.7 | 397.0 | 356.1 |
| EV/EBITDA | - | - | 8.1 | 11.4 | 10.4 |
* 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 reported all-time best quarterly result in the third quarter of 2011. The Brands Division’s EBIT improved by over 60% from the comparison period. Raisio has grown through the acquisitions completed in the UK. In Finland, the market situation is tight, which is also reflected in profitability. Despite the global economic instability, Benecol’s profitability remained at its ordinary, good level.
After the three first quarters of 2011, the Brands Division's EBIT was at its normal, full-year target level, or 10% of net sales. Raisioagro’s profit target, EUR 10 million annually, will not be achieved this year, but the direction is correct.
After the acquisition of Big Bear Group carried out last February and the divestment of malt business completed last summer, Raisio is again a net debt free company due to our strong cash flow. This further strengthens our ability to continue the growth phase through acquisitions. After the first quarter, our interest bearing net debt amounted to EUR 50.7 million, now it is EUR -0.7 million.
As a significant partner for Finnish livestock and grain farms, we have been looking for ways to improve competitive conditions and profitability in the long term. Raisio renewed its operational and legal structures by centralising feeds and feed components, grain trade, inputs and bioenergy under the same Division. At the same time, Raisio Feed Ltd became Raisioagro Ltd. Officially, the new company name will be introduced on 1 January 2012, but our new way to operate, centralised production and reformed organisation are already in use. With the restructuring, we aim at cost-effective services and close customer cooperation.
Raisio continues the implementation of the growth phase according to plan. Our target is to become the leading snack company in Northern Europe. With the completed acquisitions, Raisio has shown its ability to grow profitably in line with its strategy.”
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
Events:
A press and analyst event in Finnish will be arranged in Helsinki on 8 November 2011 starting at 1.00 p.m. Finnish time. It will be held Hotel Scandic Simonkenttä, in the Pavilion meeting room. The address is Simonkatu 9, Helsinki.
A teleconference in English will be held on 8 November 2011 at 3.00 p.m. Finnish time.
Participants are requested to call the number +358 (0)9 8248 6281, PIN code 9745.