Raisio plc, Stock Exchange Release, 16 April 2014, at 2 p.m.
RAISIOAGRO TO FOCUS ITS OPERATIONS WITH EMPHASIS ON INNOVATION
Due to production and financial reasons, Raisioagro has begun statutory cooperation negotiations as part of its programme related to the identification of new growth potential and improvement of operations and profitability. With the arrangement, Raisioagro aims to focus its resources on areas in which the added value created through new business and product innovations is the highest. The priority areas are, above all, cattle feeds and fish feeds. In addition, Raisioagro will focus on export activity to the neighbouring countries, particularly in feeds for fish and cattle.
The competitive situation in Finland has intensified due to new operators and additional capacity built in the industry while farm sizes are growing and livestock farms are transferring from complete feeds to component feeding. Sales volume in Raisioagro’s pig and poultry feeds has decreased and profitability weakened due to years of intense price competition.
Raisioagro started cooperation negotiations concerning all functions, excluding the Ylivieska-based feed factory producing cattle feeds as well as sales of fish feeds and feed export. For pig and poultry feeds, the company will examine alternatives to reduce, terminate or sell the business. Approximately 150 employees are in scope of the negotiations and the possible reduction need is estimated to be 50 persons. The negotiations are expected to be completed before the Midsummer.
Jarmo Puputti, Raisioagro’s Managing Director, says the company will carefully assess the operating environment and future success factors. Raisioagro aims to provide added value to the customers through cost-effective operations and investments in feeding expertise and in product range that meets customer needs. Raisioagro will develop and productise innovations that help improve the efficiency and profitability of livestock production and crop growing.
Communications and IR Manager
tel. +358 50 567 3060
Jarmo Puputti, Managing Director, Raisioagro, tel. +358 50 352 8740
Raisio Group briefly
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, Ukraine, Poland, Estonia and Sweden. Raisio plc’s shares are listed on NASDAQ OMX Helsinki Ltd. In 2013, the Group's net sales totalled EUR 558 million and EBIT was EUR 39 million. The Group employs some 1,900 people. Raisio’s best-known brands are Benecol, Honey Monster, Elovena, Fox’s, Dormen, Juicee Gummee, Poppets and Benemilk.