RAISIO'S SECOND-QUARTER RESULT IMPROVED OVER THE EARLY PART OF THE
Raisio plc Stock Exchange Release 2 August 2007
RAISIO PLC'S INTERIM REPORT 1 January - 30 June 2007
RAISIO'S SECOND-QUARTER RESULT IMPROVED OVER THE EARLY PART OF THE
YEAR
· Raisio's turnover in April-June totalled EUR 107.0 million
(EUR 108.1 million in April-June 2006).
· Operating result was up on the comparison period, amounting
to EUR 2.5 million (EUR 0.1 million and, including one-off items,
EUR 2.0 million).
· Raisio's operating result for 2007, excluding one-off-items,
is expected to be clearly profitable. The Food Division is
expected to report a break-even result in the last quarter of
2007, but this may be put at risk by the impact that Europe's
exceptional weather conditions have on grain prices. Also the
Ingredients and Feed & Malt Divisions are expected to record
better operating results than last year. Turnover is expected to
grow slightly compared to 2006.
Figures for the comparison period are given in brackets.
Key figures, continuing operations result
4-6/2007 4-6/2006 1-6/20071-6/2006 2006
Turnover, EUR million 107.0 108.1 204.4 201.9 411.8
Operating result,
EUR million 2.5 0.1 3.9 -0.9 -2.5
% of turnover 2.4 0.1 1.9 -0.4 -0.6
Result before taxes,
EUR million 2.6 0.6 4.3 0.1 -0.7
Earnings per share, EUR 0.01 0.00 0.02 0.00 -0.01
Figures for 2006 excluding one-off items
Key figures, balance sheet
30.6.2007 30.6.2006 31.12.2006
Return on investment, % 3.3 1.5 -9.3
Equity ratio, % 78.2 79.5 75.0
Gearing, % -10.1 -14.7 -19.1
Equity per share, EUR 1.71 1.99 1.73
CEO Matti Rihko:
“Raisio's turnover and operating result improved in the second
quarter compared to the early part of the year. Despite the price
increases carried out by the company, the grain raw material price
volatility hampered the improvement of profitability of the Food
and the Feed & Malt Divisions.
The exceptional weather conditions in Europe will also affect the
price level of the next grain crop in Finland even though the
volume and quality of the Finnish crop are expected to be good.
The increasing demand for grain to be used for bioenergy and to
meet Asian needs will, as such, raise prices, but the uncommon
weather will increase fluctuations. This will further emphasise
the need to develop the pricing structure used for purchases and
sales.
The potato business was transferred to its new owner at the
beginning of June. The divestment of Diagnostics has entered its
final stretch, and I expect the deal to be concluded in the
current quarter. Raisio will continue to implement rationalisation
measures and adjust business to the prevailing market situation
according to plans, the goal being to improve profitability."
RESULT FROM CONTINUING OPERATIONS
The Group's turnover in April-June totalled EUR 107.0 million (EUR
108.1 million). The Food Division's turnover amounted to EUR 48.5
million (EUR 49.5 million), while that of Feed & Malt was EUR 53.6
million (EUR 50.3 million) and that of Ingredients EUR 10.7
million (EUR 13.8 million).
Raisio's turnover for January-June amounted to EUR 204.4 million
(EUR 201.9 million), of which turnover from outside Finland
represented 39.4% (40.4%), or EUR 80.6 million (EUR 81.6 million).
Operating result for April-June improved compared to the early
part of the year and the comparison period, amounting to EUR 2.5
million (EUR 0.1 million and, including one-off items, EUR 2.0
million). The operating result of the Food Division was EUR -1.7
million (EUR -2.3 million), the Feed & Malt Division EUR 2.2
million (EUR 1.8 million and, including one-off items, EUR 3.6
million), the Ingredients Division EUR 2.6 million (EUR 2.3
million) and other operations EUR -0.5 million (EUR -1.5 million).
Depreciations, allocated to operations in the income statement,
amounted to EUR 4.5 million (EUR 5.5 million) in April-June and to
EUR 8.8 million (EUR 10.8 million) in January-June. Operating
result in January-June was EUR 3.9 million (EUR -0.9 million and,
including one-off items, EUR 0.9 million).
The second-quarter result before taxes was EUR 2.6 million (EUR
0.6 million and, including one-off items, EUR 2.4 million). The
result before taxes in January-June was EUR 4.3 million (EUR 0.1
million and, including one-off items, EUR 1.9 million). Raisio's
net financial income in April-June totalled EUR 0.1 million (EUR
0.5 million), and EUR 0.7 million in January-June (EUR 1.1
million).
The second-quarter result after taxes was EUR 1.9 million (EUR 0.5
million and, including one-off items, EUR 1.8 million). The result
after taxes in January-June was EUR 3.3 million (EUR 0.1 million
and, including one-off items, EUR 1.4 million). Earnings per share
in April-June amounted to EUR 0.01 (EUR 0.00 and, including one-
off items, EUR 0.01). In January-June EPS were EUR 0.02 (EUR 0.00
and, including one-off items, EUR 0.01). Return on investment
amounted to 3.3% (1.5%).
BALANCE SHEET AND FINANCIAL POSITION
At the end of June, Raisio's balance sheet total was EUR 366.5
million (EUR 387.4 million on 31 December 2006) and shareholders'
equity amounted to EUR 285.9 million (EUR 290.4 million on 31
December 2006). Equity per share at the end of June was EUR 1.71
(EUR 1.73 on 31 December 2006).
The Group's interest-bearing debt at the end of June was EUR 14.9
million (EUR 23.2 million on 31 December 2006). Net interest-
bearing debt totalled EUR -28.8 million (EUR -55.6 million on 31
December 2006).
The equity ratio at the end of June was 78.2% (75.0% on 31
December 2006), and the gearing ratio was -10.1% (-19.1% on 31
December 2006).
Cash flow from operating activities in the second quarter was EUR
7.5 million (EUR 0.8 million) and EUR -11.2 million (EUR -6.7
million) in January-June.
Working capital amounted to EUR 116.7 million at the end of the
review period (EUR 96.7 million on 31 December 2006). It grew as a
result of the increase in inventories, the goal of which is to
ensure the availability of raw materials for the coming crop
season, and the continued rise in grain raw material prices.
Raisio's gross investments in April-June totalled EUR 5.8 million
(EUR 6.6 million), and in January-June EUR 12.2 million (EUR 13.7
million). The biggest single investments targeted the expansion to
the stanol ester plant in Raisio and the construction of the feed
plant in Ylivieska.
CONTINUING OPERATIONS
Food
The Food Division's turnover in April-June dropped slightly from
the comparison period, totalling EUR 48.5 million (EUR 49.5
million). This was mainly due to the distributor sales of products
made by Obory, Raisio's associate, ending in Poland. Excluding the
impact of Obory, the Food Division's turnover improved slightly.
Growth was recorded in the soy-oat and milling businesses, the
Finnish margarine business and Russian operations. Flake sales in
Russia increased considerably from the comparison period, while
margarine sales decreased. The company's market position continued
to deteriorate in Sweden, but development measures have already
been adopted. Their impact will begin to show in 2008. Benecol
margarine sales increased in Poland.
Raisio increased its market share in yellow fats to some 17 per
cent in Finnish retail. In the margarine market, Raisio's market
share rose to 31 per cent. The market share increased in flake
products but decreased in pasta products. Growth in the sales of
GoGreen products developed stronger than the markets in Finland
and Sweden.
Raisio discontinued unprofitable sales to a few major customers,
and codetermination talks were initiated at the mill in Nokia to
adapt production to the changing market situation. The talks will
continue in mid-August and may lead to the mill being closed down.
The Food Division's turnover in January-June totalled EUR 98.3
million (EUR 96.9 million).
Key figures for the Food Division
4-6/2007 4-6/2006 1-6/20071-6/2006 2006
Turnover, EUR million 48.5 49.5 98.3 96.9 196.5
Margarines and
soy-oat products 28.0 30.6 56.9 59.4 118.6
Milling products 20.5 18.0 41.5 37.6 78.1
Other 0.0 0.1 0.0 0.0 0.0
Internal sales 0.0 0.8 -0.1 -0.1 -0.1
Operating result,
EUR million -1.7 -2.3 -2.6 -4.3 -37.9
% of turnover -3.6 -4.7 -2.7 -4.5 -19.3
One-off items,
EUR million 0.0 0.0 0.0 0.0 -27.4
Operating result, excluding
one-off items, EUR million -1.7 -2.3 -2.6 -4.3 -10.5
Investments 1.0 3.9 4.4 7.9 15.3
Net assets - - 97.8 118.8 85.5
The Food Division's operating result in April-June totalled EUR -
1.7 million (EUR -2.3 million). The year-over-year decrease in
operating loss resulted mainly from cost cutting and process
enhancement. Particular attention has been paid to sales and
marketing inputs. The January-June operating result totalled EUR -
2.6 million (EUR -4.3 million).
Grain raw material prices and the company's ability to transfer
price rises to the prices of its end products have a great impact
on profitability. Raisio has managed to transfer some of the
ongoing increase in raw material prices to sales prices.
Raisio will increase its focus on the Russian market and has
initiated business reorganisation. The focus in Russian operations
is on distribution chain development and marketing. As a result,
margarine production will be transferred to a subcontractor at the
beginning of September, and operations at the Istra plant will be
closed down. Raisio will also transfer some of its flake packaging
to a Russian subcontractor in order to reduce production expenses.
The objective of the new brand portfolio, which will be published
at the end of August, is to improve consumer availability, as well
as product and customer profitability, by focusing marketing
efforts on fewer brands. Consumers will begin to see the effects
of the gradual concentration in January 2008.
Feed & Malt
The Feed & Malt Division's turnover in April-June increased by
6.7% to EUR 53.6 million (EUR 50.3 million). The year-over-year
increase in turnover resulted from the rise in raw material prices
being transferred to end product prices and from the development
of the oil milling business. Feed sales volumes were slightly down
on the comparison period, but no significant changes took place in
the market position. Turnover in January-June totalled EUR 94.6
million (EUR 88.9 million).
Key figures for the Feed & Malt division
4-6/2007 4-6/2006 1-6/20071-6/2006 2006
Turnover, EUR million 53.6 50.3 94.6 88.9 186.5
Feeds 44.1 40.8 79.2 76.9 165.3
Malt 8.7 8.5 14.4 10.8 20.0
Other 1.0 1.2 1.2 1.4 1.7
Internal sales -0.1 -0.1 -0.3 -0.2 -0.5
Operating result,
EUR million 2.2 3.6 2.8 4.2 6.3
% of turnover 4.1 7.2 3.0 4.7 3.4
One-off items, EUR million 0.0 1.8 0.0 1.8 0.7
Operating result, excluding
one-off items, EUR million 2.2 1.8 2.8 2.3 5.6
Investments 2.7 1.7 4.7 2.6 5.5
Net assets - - 80.0 63.3 65.3
The Feed & Malt Division's operating result in April-June was EUR
2.2 million (EUR 1.8 million and, including one-off items, EUR 3.6
million). It improved over the comparison period thanks to a
better performance in malt. The considerable rise in the price of
malt results from the growth of malt markets and last year's weak
crop throughout the EU region. The increase in feed raw material
prices has been transferred to end product prices. Operating
result in January-June was EUR 2.8 million (EUR 2.3 million and,
including one-off items, EUR 4.2 million).
The restructuring that has taken place in the Finnish feed
industry will lead to new forms of cooperation in both the feed
and grain trades. As an addition to traditional invoicing methods,
Raisio has adopted direct invoicing of feed mixes for farms. The
objective is to use the most cost-effective method to ensure
competitiveness and improve service. The overall feed volume is
expected to remain at last year's level or to decrease slightly.
The utilisation rate of production capacity in Raisio's malt
business, as well as the market situation, are good this year. The
steep increase in market prices and the related fluctuations will
change the pricing structure in the malt trade.
Raisio and Neste Oil signed an agreement in June according to
which Raisio will supply Neste Oil with 10,000 metric tonnes of
rapeseed oil refined in Finland for use as biodiesel raw material
in 2007. The companies are also negotiating about raw material
cooperation in the coming years.
Ingredients
The Ingredients Division's turnover in April-June fell short of
the comparison period, totalling EUR 10.7 million (EUR 13.8
million). The drop resulted from exceptionally strong seasonal
fluctuation in partners stocks and the decreased volumes in US and
German markets. Of the growth markets, Turkey developed slower
than expected because the use of health claims was prohibited in
marketing. Turnover in January-June totalled EUR 23.1 million (EUR
27.0 million).
Key figures for the Ingredients Division
4-6/2007 4-6/2006 1-6/20071-6/2006 2006
Turnover, EUR million 10.7 13.8 23.1 27.0 49.7
Operating result,
EUR million 2.6 2.3 5.0 4.1 7.8
% of turnover 24.1 16.4 21.8 15.1 15.6
One-off items, EUR million 0.0 0.0 0.0 0.0 0.0
Operating result, excluding
one-off items, EUR million 2.6 2.3 5.0 4.1 7.8
Investments 1.8 0.5 4.1 1.7 4.3
Net assets - - 45.5 40.9 44.5
Operating result in April-June totalled EUR 2.6 million (EUR 2.3
million). The increase resulted from enhanced cost-effectiveness.
The operating result remained over 20 per cent of turnover.
Operating result in January-June totalled EUR 5.0 million (EUR 4.1
million).
The major market potential, in geographical terms, is in Asia.
Raisio is preparing market entry with local partners.
DISCONTINUED OPERATIONS
Raisio concluded the divestment of its potato business, which was
transferred to Profood Oy at the beginning of June.
The divestment of Diagnostics has entered its final stretch and
the deal is expected to be concluded in the third quarter.
RESEARCH AND DEVELOPMENT
As a result of more clearly focused operations, research and
development costs amounted to EUR 1.3 million (EUR 2.5 million) in
the second quarter and to EUR 3.0 million (EUR 4.8 million) in the
January-June period, representing 1.5% (2.4%) of turnover. This is
clearly higher than average in the sector. Research and
development costs decreased from the comparison period due to the
company giving up its research centre in Viikki, among other
things.
PERSONNEL
Raisio employed 1,249 people at the end of June (1,214 on 31
December 2006), 29.7% of whom worked outside Finland (32.8% on 31
December 2006). The headcount includes summer workers but not the
people employed in discontinued operations.
At the end of June, the Food Division had 794, Feed & Malt 317,
Ingredients 75 and service functions 63 employees.
CHANGES IN COMPANY MANAGEMENT
Kirsi Swanljung, LL.M. with court training and M.Sc. (Econ.), has
been appointed Raisio's Executive Vice President, Legal Affairs,
and member of the Group's Executive Committee from 1 September
2007. She succeeds Mikko Korttila in these duties.
Vincent Poujardieu, M.Sc. (Econ.), has been appointed Executive
Vice President, Business Development, and member of the Group's
Executive Committee from 1 September 2007. He will be based in
Brussels.
Vesa Kurula, M.Sc. (Eng.), has been appointed Executive Vice
President, Production, and member of the Group's Executive
Committee. He will take up his post later this autumn.
SHARES AND SHAREHOLDERS
The number of Raisio plc's free shares traded on the Helsinki
Stock Exchange in January-June totalled 23.9 million (28.1
million). The value of trading was EUR 47.4 million (EUR 58.3
million), and the average price was EUR 1.98. The closing price on
30 June 2007 was EUR 2.05.
A total of 0.6 million restricted shares (0.9 million) were traded
in January-June. The value of trading was EUR 1.2 million (EUR 1.8
million), and the average price was EUR 1.96. The closing price on
30 June 2007 was EUR 2.00.
On 30 June 2007, Raisio had 39,231 registered shareholders (40,822
on 31 December 2006). Foreign holding accounted for 16.3% (15.5%
on 31 December 2006) of shares.
Raisio's market capitalisation at the end of June amounted to EUR
325.3 million (EUR 287.1 million on 31 December 2006), excluding
the company shares held by the Group.
At the end of the review period, Raisio plc held 5,553,996 of the
company's free shares and 59,499 of its restricted shares. The
shares were acquired from 2005 to 2007. The company's free shares
account for 4.25% of all free shares and their votes. The
corresponding figure for restricted shares is 0.17%. In all, the
company shares held by the Group represent 3.4 per cent of the
company's overall share capital and 0.82 per cent of overall
votes. The book value of free shares is EUR 934,115 and that of
restricted shares EUR 10,007, or a total of EUR 944,122. Of the
company shares held by the Group, 623,496 free shares and 18,299
restricted shares have been acquired since April 2007 on the basis
of the authorisation granted by the Annual General Meeting.
Raisio plc's subsidiaries did not hold any shares in the parent
company. A share in Raisio or its subsidiary does not entitle the
holder to participate in the Annual General Meeting.
DECISIONS MADE AT THE ANNUAL GENERAL MEETING
Raisio plc's Annual General Meeting approved the financial
statements for the financial year 1 January - 31 December 2006 and
discharged the members of the Supervisory Board and the Board of
Directors, as well as the Chief Executive Officers. The Annual
General Meeting decided to distribute a dividend of EUR 0.03 per
share. The dividend was paid to shareholders on 13 April 2007.
The Board's proposal to amend sections 12, 13, 14, 15 and 17 and
repeal section 20 of the Articles of Association was approved as
presented. According to section 10, approved by the Meeting, the
Annual and Extraordinary General Meetings will be held in Raisio
or Turku. The main amendment to the Articles of Association
transfers the appointment of Board members from the Supervisory
Board to the Annual General Meeting, which will make its first
election of Board members in spring 2008.
The Annual General Meeting authorised the Board of Directors to
decide on the acquisition of a maximum of 3,300,000 free shares
and 875,000 restricted shares. The authorisation expires, at the
latest, on 30 September 2008. In April, the Board of Directors
decided to initiate repurchases of shares through public trading
arranged by the Helsinki Stock Exchange beginning on 10 April
2007. Repurchases will continue until further notice.
The Annual General Meeting also authorised the Board of Directors
to decide on the disposal of company shares. The authorisation
encompasses the 4,930,500 free shares and 41,200 restricted shares
already held by the company, as well as any shares that the
company may acquire based on the new authorisation. The disposal
authorisation expires, at the latest, on 30 March 2012 and has not
been used to date.
Detailed information regarding the amendments to the Articles of
Association, as well as the authorisations, is provided in the
stock exchange release dated 12 February 2007. A stock exchange
release regarding the decisions made by the Annual General Meeting
was published on 30 March 2007.
RISKS AND UNCERTAINTIES IN THE NEAR FUTURE
Considerable price fluctuations in grain raw materials caused by
exceptional weather conditions in Europe, the quality and volume
of domestic crop, as well as the adaptation of production capacity
to the prevailing market situation in order to improve
profitability are risks and uncertainties related to the Group's
business in the near future.
According to the resolution made by the Assessment Adjustment
Board of the Tax Office for Major Corporations in November 2006,
the sales profit from the divestment of Raisio Chemicals,
totalling some EUR 220 million, is free of tax. In February 2007,
Raisio submitted a rejoinder to the appeal filed by the
representative of the Tax Office. The case is still under
consideration in the Helsinki administrative court. Raisio's
stand, supported by the expert statements obtained by the company,
remains the same: the sales profit is free of tax.
OUTLOOK
Raisio's operating result for 2007, excluding one-off-items, is
expected to be clearly profitable. The Food Division is expected
to report a break-even result in the last quarter of 2007, but
this may be put at risk by the impact that Europe's exceptional
weather conditions have on grain prices. Also the Ingredients and
Feed & Malt Divisions are expected to record better operating
results than last year. Turnover is predicted to grow slightly
compared to 2006.
Raisio, 2 August 2007
RAISIO PLC
Board of Directors
Further information:
Matti Rihko, CEO, tel. +358 400 830 727
Jyrki Paappa, CFO, tel. +358 50 5566 512
Heidi Hirvonen, Communications Manager, tel. +358 50 567 3060
A press and analyst event in Finnish will be organised on 2 August
2007 at 10:00 a.m. The event will be held at the Scandic
Simonkenttä hotel, in the Bulsa-Freda meeting room, at Simonkatu
9, Helsinki.
A teleconference in English will be held on 2 August 2007 at 3:30
p.m. We ask participants to call the number +358 20 699 121.
The interim report has not been audited.
INCOME STATEMENT (EUR million)
4-6/07 4-6/06 1-6/07 1-6/06 2006
CONTINUING OPERATIONS:
Turnover 107.0 108.1 204.4 201.9 411.8
Expenses corresponding to
products sold -89.8 -90.6 -171.6 -167.7 -365.7
Gross profit 17.2 17.5 32.8 34.1 46.1
Other operating income and
expenses, net -14.6 -15.6 -29.0 -33.2 -75.3
Operating result 2.5 2.0 3.9 0.9 -29.2
Financial income 0.5 0.9 1.4 1.9 4.8
Financial expenses -0.4 -0.4 -0.8 -0.8 -6.9
Share of result of
associated companies
and joint ventures -0.1 -0.1 -0.2 -0.1 -2.7
Result before taxes 2.6 2.4 4.3 1.9 -33.9
Income tax -0.7 -0.5 -1.0 -0.4 -0.7
Result for the period from
the continuing operations 1.9 1.8 3.3 1.4 -34.6
DISCONTINUED OPERATIONS:
Result for the period from
discontinued operations -0.4 -0.5 -1.1 -1.0 -6.6
RESULT FOR THE PERIOD 1.5 1.3 2.2 0.5 -41.1
Attributable to:
Equity holders of the
parent company 1.4 1.3 2.2 0.2 -41.7
Minority interest 0.0 0.1 0.0 0.3 0.5
Earnings per share from the profit
attributable to equity holders
of the parent company (EUR)
Earnings per share from
continuing operations (EUR) 0.01 0.01 0.02 0.01 -0.22
Earnings per share from
discontinued operations (EUR) 0.00 0.00 -0.01 -0.01 -0.04
BALANCE SHEET (EUR million)
30.6.07 30.6.06 31.12.06
ASSETS
Non-current assets
Intangible assets 11.0 13.8 13.0
Goodwill 2.6 11.7 2.6
Property, plant and equipment 118.3 131.9 117.7
Shares in associated companies
and joint ventures 2.0 4.8 2.4
Financial assets available for sale 0.6 2.2 1.5
Receivables 2.6 8.0 3.1
Deferred tax assets 11.1 13.2 10.7
Total non-current assets 148.2 185.5 151.0
Current assets
Inventories 87.4 77.5 82.1
Accounts receivables and
other receivables 78.9 81.4 75.4
Financial assets at fair value
through profit or loss 32.5 64.6 64.4
Cash in hand and at banks 10.6 9.5 14.5
Total current assets 209.4 233.0 236.4
Non-current assets held for sale 8.9
Total assets 366.5 418.4 387.4
EQUITY AND LIABILITIES
Equity attributable to equity
holders of the parent company
Share capital 27.8 27.8 27.8
Own shares -12.6 -11.4 -11.4
Other equity attributable to equity
holders of the parent company 257.6 302.4 260.7
Equity attributable to equity
holders of the parent company 272.8 318.8 277.1
Minority interest 13.1 13.1 13.3
Total equity 285.9 331.8 290.4
Non-current liabilities
Deferred tax liabilities 8.2 9.1 7.9
Pension liabilities 0.2 0.4 0.2
Non-current interest-bearing liabilities 1.1 5.4 1.4
Other non-current liabilities 1.0 1.0
Total non-current liabilities 10.5 14.9 10.4
Current liabilities
Accounts payable and other liabilities 52.5 52.3 59.8
Reserves 1.9 5.1
Current interest-bearing liabilities 13.1 19.4 21.6
Total current liabilities 67.5 71.7 86.6
Liabilities related to non-current
assets held for sale 2.6
Total liabilities 80.6 86.6 97.0
Total equity and liabilities 366.5 418.4 387.4
CHANGES IN GROUP EQUITY (EUR million)
Shar- Sha- Re- Ot- OwnTrans- Fair Re- To-Mino- To-
re re ser- her sha- lati-value tai- tal rity tal
ca- pre- ve- re- res on re- ned in-
pi- mium fund ser- diffe- ser- ear- te-
tal re- ves ren- ve nings rest
serve ces
Equity at
1.1.2006
27.8 2.9 88.6 0.0 -8.7 1.3 0.0 220.1 332.0 15.3 347.3
Dividend
paid - - - - - - - -8.0 -8.0 -2.5 -10.5
Changes in
translation
differen-
ces - - - - - -2.5 - - -2.5 0.0 -2.5
Repurchase
of own
shares - - - - -2.6 - - - -2.6 - -2.6
Exchange differences
from receivables
considered to be
net investments
from a foreign
unit - - - - - 0.1 - - 0.1 - 0.1
Tax of
previous
- - - - - 0.0 - - 0.0 - 0.0
Cash flow hedges
Transferred to
the equity
with taxes
deducted
- - - - - - -0.2 - -0.2 - -0.2
Transferred to
income statement
with taxes
deducted
- - - - - - 0.0 - 0.0 - 0.0
Net profit
for review
period - - - - - - - 0.2 0.2 0.3 0.5
Other
changes - - - - - - - 0.0 0.0 - 0.0
Equity at
30.6.2006
27.8 2.9 88.6 0.0 -11.4 -1.2 -0.2 212.3 318.8 13.1 331.8
Equity at
1.1.2007
27.8 2.9 88.6 0.0 -11.4 -1.2 0.0 170.4 277.1 13.3 290.4
Dividend
paid - - - - - - - -4.8 -4.8 -0.3 -5.1
Changes in
translation
differen-
ces - - - - - -0.4 - - -0.4 0.0 -0.4
Repurchase
of own
shares - - - - -1.2 - - - -1.2 - -1.2
Net profit
for review
period - - - - - - - 2.2 2.2 0.0 2.2
Other
changes - - - - - - - 0.0 0.0 - 0.0
Equity at
30.6.2007
27.8 2.9 88.6 0.0 -12.6 -1.6 0.0 167.8 272.8 13.1 285.9
CASH FLOW STATEMENT (EUR million)
1-6/07 1-6/06 2006
Cash flow before change
in working capital 11.9 9.5 20.8
Change in working capital -23.8 -17.5 -7.3
Financial items and taxes 0.6 1.4 1.7
Cash flow from business operations -11.2 -6.7 15.1
Investments -13.2 -16.5 -32.2
Proceeds from sale of fixed assets 2.8 0.0 0.3
Loans granted 0.0 -0.6 -1.5
Repayment of loan receivables 1.4 0.0 0.1
Cash flow from investments -8.9 -17.1 -33.3
Change in non-current loans -7.5 -9.3 -12.6
Change in current loans -1.2 -1.3 0.8
Repurchase of own shares -1.2 -2.6 -2.6
Dividends paid to equity holders
of the parent company -4.8 -8.0 -8.0
Dividends paid to minority interests -0.3 -2.5 -2.5
Cash flow from financial operations -14.9 -23.7 -24.9
Adjustment to translation difference -0.2 -0.5 0.1
Change in liquid funds -35.2 -47.9 -43.0
Liquid funds at the
beginning of the period 78.8 122.9 122.9
Impact of change in
market value on liquid funds 0.1 -0.9 -1.0
Liquid funds at the end
of the period 43.7 74.1 78.8
NOTES TO THE INTERIM REPORT
This interim report has been prepared in accordance with the IAS
34 Interim Financial Reporting. The same accounting principles and
calculating methods has been complied in this interim report as in
2006 annual financial statements. The financial statements are
shown in EUR millions.
The Group has adopted the amendment to IAS 1 (Presentation of
Financial Statements - Capital Disclosures). The amendments to the
standard introduce requirements concerning note disclosures about
the company's capital management. Raisio estimates that the
adoption of the standard will mainly affect the notes to the
consolidated financial statements.
The preparation of interim reports requires company management to
use estimates and assumptions that affect the amounts of reported
assets and liabilities, as well as income and expenses. Actual
results may differ from these estimates.
SEGMENT INFORMATION
TURNOVER BY SEGMENT (EUR million)
4-6/07 4-6/06 1-6/07 1-6/06 2006
Food 48.5 49.5 98.3 96.9 196.5
Feed & Malt 53.6 50.3 94.6 88.9 186.5
Ingredients 10.7 13.8 23.1 27.0 49.7
Other operations 0.1 0.1 0.2 0.3 0.6
Interdivisional turnover -5.9 -5.5 -11.7 -11.2 -21.5
Total turnover 107.0 108.1 204.4 201.9 411.8
OPERATING RESULT BY SEGMENT (EUR million)
4-6/07 4-6/06 1-6/07 1-6/06 2006
Food -1.7 -2.3 -2.6 -4.3 -37.9
Feed & Malt 2.2 3.6 2.8 4.2 6.3
Ingredients 2.6 2.3 5.0 4.1 7.8
Other operations -0.5 -1.5 -1.2 -2.9 -5.3
Eliminations 0.0 0.0 -0.1 -0.1 0.0
Total operating result 2.5 2.0 3.9 0.9 -29.2
NET ASSETS BY SEGMENT (EUR million)
30.6.07 30.6.06 31.12.06
Food 97.8 118.8 85.5
Feed & Malt 80.0 63.3 65.3
Ingredients 45.5 40.9 44.5
Other operations, discontinued operations
and unallocated items 62.5 108.9 95.0
Total net assets 285.9 331.8 290.4
INVESTMENTS BY SEGMENT (EUR million)
4-6/07 4-6/06 1-6/07 1-6/06 2006
Food 1.0 3.9 4.4 7.9 15.3
Feed & Malt 2.7 1.7 4.7 2.6 5.5
Ingredients 1.8 0.5 4.1 1.7 4.3
Other operations 0.3 0.6 0.6 1.5 3.2
Eliminations 0.0 0.0 -1.6 0.0 0.0
Total investments 5.8 6.6 12.2 13.7 28.2
TURNOVER BY MARKET AREA (EUR million)
4-6/07 4-6/06 1-6/07 1-6/06 2006
Finland 63.2 62.0 123.9 120.3 252.9
Poland 10.0 11.7 20.7 22.0 41.1
Russia 12.8 11.5 18.5 16.6 33.3
Other Europe 20.1 21.0 38.8 39.8 77.6
ROW 0.9 1.8 2.6 3.2 6.9
Total 107.0 108.1 204.4 201.9 411.8
DISCONTINUED OPERATIONS AND NON-CURRENT ASSETS HELD FOR SALE
Discontinued operations
The Group announced its intention to divest the diagnostics
business on 16 January 2007. The goal is to complete the deal by
the end of the first half of 2007.
On 7 February 2007, the Group signed a preliminary agreement on
the divestment of its food potato business. The contract of sale
was signed on 15 March 2007. The divestment of the potato business
was concluded in the review period and the business was
transferred to the new owner at the beginning of June 2007.
Both the diagnostics and the food potato businesses are treated as
discontinued operations in the Group's income statement. Assets
and liabilities of the diagnostics business, classified as held
for sale, are presented separately in the balance sheet for the
review period.
1-6/07 1-6/06 2006
Result for the discontinued operations
Income from ordinary operations 11.2 12.6 29.3
Expenses -12.3 -13.5 -34.8
Result before taxes -1.0 -0.9 -5.5
Taxes -0.1 -0.1 -1.1
Result after taxes -1.1 -1.0 -6.6
Result from discontinued operations 0.0
Taxes 0.0
Result after taxes 0.0
Result for the discontinued operations -1.1
Cash flow for the discontinued operations
Cash flow from business operations -0.5 -2.9 3.1
Cash flow from investments 2.1 -1.2 -3.0
Cash flow from financial operations -0.2 -0.1 0.1
Total cash flow 1.4 -4.2 0.2
30.6.07
Assets classified as held for sale
Property, plant and equipment 0.8
Intangible assets 1.4
Inventories 1.1
Financial assets available for sale 0.9
Accounts receivables and
other receivables 4.2
Cash in hand and at banks 0.6
Total assets 8.9
Liabilities classified as held for sale
Interest-bearing liabilities 0.5
Accounts payable and other liabilities 2.1
Total liabilities 2.6
TANGIBLE ASSETS
30.6.07 30.6.06 31.12.06
Acquisition cost at the
beginning of the period 450.5 430.0 430.0
Conversion differences -0.3 -2.5 -2.5
Increase 13.0 12.0 26.3
Decrease -33.1 -0.4 -2.9
Reclassifications between items 0.0 -0.1 -0.3
Operations held for sale -3.5
Acquisition cost at the
end of the period 426.6 439.0 450.5
Accumulated depreciation
and write-downs at the
beginning of the period 332.8 299.5 299.5
Conversion difference -0.2 -1.4 -1.5
Decrease and transfers -29.1 -0.3 -2.0
Depreciation for the period 7.5 9.4 19.1
Write-downs 0.0 0.0 17.7
Operations held for sale -2.7
Accumulated depreciation
and write-downs at the
end of the period 308.3 307.1 332.8
Book value at the end
of the period 118.3 131.9 117.7
RESERVES
1-6/07 1-6/06 2006
Provision for the disposal of the
Russian flake mill project
At the beginning of the period 5.1
Increase in provisions 5.1
Provisions used -3.3
At the end of the period 1.9 5.1
BUSINESS ACTIVITIES INVOLVING INSIDERS
30.6.07 30.6.06 31.12.06
Sales to associated companies
and joint ventures 6.1 6.0 12.6
Purchases from associated
companies and joint ventures 2.6 5.1 10.3
Sales to key employees
in management 0.0 0.0 0.1
Purchases from key employees
in management 0.4 0.3 0.4
Short-term receivables from
associated companies and
joint ventures 2.3 2.5 3.7
Liabilities to associated
companies and joint ventures 0.8 1.9 1.5
CONTINGENT LIABILITIES (EUR million)
30.6.07 30.6.06 31.12.06
Assets given for security
For the company
Mortgages on real estate 18.0 16.9 16.9
Securities pledged 0.0 0.0 0.0
Corporate mortgages 33.5 34.2 34.4
Contingent off-balance sheet liabilities
Non-cancelable other leases
Minimum lease payments 2.3 2.3 2.7
Contingent liabilities for the company 1.5 1.5 1.5
Contingent liabilities for
associated companies
Guarantees 3.1 0.0 3.0
Contingent liabilities for others
Guarantees 0.0 0.0 0.0
Other liabilities 2.4 2.1 2.8
Commitment to investment payments 11.4 7.2 16.6
DERIVATIVE CONTRACTS (EUR million)
30.6.07 30.6.06 31.12.06
Nominal values of derivative contracts
Raw material futures 3.3 2.6 5.4
Currency forward contracts 17.6 35.8 25.5
QUARTERLY PERFORMANCE (EUR million)
4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2007 2007 2006 2006 2006 2006
Turnover by segment
Food 48.5 49.8 50.1 49.6 49.5 47.4
Feed & Malt 53.6 40.9 46.7 50.9 50.3 38.6
Ingredients 10.7 12.5 10.1 12.6 13.8 13.2
Other operations 0.1 0.1 0.2 0.2 0.1 0.2
Interdivisional turnover -5.9 -5.9 -5.1 -5.3 -5.5 -5.6
Total turnover 107.0 97.5 101.9 108.0 108.1 93.8
Operating result by segment
Food -1.7 -0.9 -32.2 -1.4 -2.3 -2.0
Feed & Malt 2.2 0.6 -0.5 2.7 3.6 0.5
Ingredients 2.6 2.5 1.5 2.2 2.3 1.8
Other operations -0.5 -0.8 -2.3 -0.1 -1.5 -1.4
Eliminations 0.0 -0.1 0.1 -0.1 0.0 0.0
Total operating result 2.5 1.3 -33.4 3.3 2.0 -1.0
Financial income and
expenses, net 0.1 0.5 -3.5 0.4 0.5 0.6
Share of result of
associated companies -0.1 -0.2 -2.3 -0.2 -0.1 0.0
Result before taxes 2.6 1.7 -39.3 3.5 2.4 -0.5
Income tax -0.7 -0.3 0.8 -1.0 -0.5 0.1
Result for the period from
continuing operations 1.9 1.5 -38.5 2.5 1.8 -0.4
ONE-OFF ITEMS (EUR million)
4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2007 2007 2006 2006 2006 2006
Food
Write-downs -21.7
Withdrawal from
the investment -5.8
Feed & Malt
Write-downs -1.1
Compensation resulting
from the contractual
lease transfer 1.8
Impact on result
for the period 0.0 0.0 -28.5 0.0 1.8 0.0
Financial income
and expenses, net -4.3
Share of result of
associated companies
and joint ventures -2.2
Impact on result
before taxes 0.0 0.0 -35.0 0.0 1.8 0.0
KEY INDICATORS
30.6.07 30.6.06 31.12.06
Return on equity, ROE, % 2.3 0.9 -10.8
Return on investment, ROI, % 3.3 1.5 -9.3
Interest-bearing liabilities
at the end of the period, EURm 14.9 25.2 23.2
Gross investments, EURm 12.2 13.7 28.2
% of turnover 6.0 6.8 6.8
Depreciation, EURm 8.8 10.8 21.8
R & D expenses, EURm 3.0 4.8 9.8
% of turnover 1.5 2.4 2.4
Average personnel 1,194 1,288 1,277
Equity ratio, % 78.2 79.5 75.0
Gearing, % -10.1 -14.7 -19.1
Earnings/share from continuing
operations, EUR 0.02 0.01 -0.22
Cash flow from operations/share, EUR -0.07 -0.04 0.09
Equity/share, EUR 1.71 1.99 1.73
Average number of shares during
the period, in 1,000s*)
Free shares 125,442 126,034 125,843
Restricted shares 34,517 34,526 34,524
Total 159,959 160,560 160,367
Average numer of shares at the end
of the period, in 1,000s*)
Free shares 125,032 125,655 125,655
Restricted shares 34,504 34,522 34,522
Total 159,536 160,177 160,177
Market capitalisation of shares at the end
of the period, EURm*)
Free shares 256.3 208.6 224.9
Restricted shares 69.0 55.9 62.1
Total 325.3 264.5 287.1
*)Number of shares without own shares
CALCULATION OF INDICATORS
Return on Result before taxes - income taxes*)
equity (ROE), % ----------------------------------- x 100
Shareholders' equity (average
over the period)
Return on Result before taxes + interest and
investment (ROI), % other financial expenses*)
------------------------------------------
x 100
Balance sheet total - non-interest-
bearing liabilities (average over
the period)
Equity ratio, % Shareholders' equity
--------------------------------------- x
100
Balance sheet total - advances received
Net interest- Interest-bearing liabilities - liquid
bearing liabilities assets and financial assets recorded
at fair value in the income statement
Gearing, % Net interest-bearing liabilities
--------------------------------- x 100
Shareholders' equity
Earnings per share* Result for the year of parent company
shareholders
---------------------------------------
Average number of shares for the year,
adjusted for share issue
Cash flow from Cash flow from business operations
business operations -------------------------------------------
-
per share Average number of shares for the year,
adjusted for share issue
Shareholders' Equity of parent company shareholders
equity per share ------------------------------------------
Number of shares at the end of the period
adjusted for share issue
Market Closing price, adjusted for issue
capitalisation x number of shares without own shares
at the end of the period
*)The calculation of key indicators uses continuing operations
result
