Raisio plc Interim Report 12 August 2014 at 8:30 Finnish time
RAISIO’S EBIT EUR 8.5 MILLION; FULL YEAR FORECAST LOWERED
April-June 2014, excluding one-off items
January-June 2014, excluding one-off items
Raisio Group’s key figures excluding one-off items
|Results from continuing operations|
|Change in net sales||%||-10.9||-1.3||-10.0||-3.0||-4.5|
|Depreciation and impairment||M€||3.6||3.7||7.5||7.6||14.9|
|Net financial expenses||M€||0.0||-0.8||-0.3||-1.2||-1.8|
|Earnings per share (EPS)||€||0.04||0.05||0.07||0.09||0.20|
|Net interest-bearing debt||M€||-||-||6.4||25.5||-28.5|
|Equity per share||€||-||-||2.03||2.04||2.13|
|Enterprise value (EV)||M€||-||-||694.6||567.6||654.6|
* Excluding the company shares held by the Group
CEO Matti Rihko’s review
"Raisio Group improved its second-quarter EBIT from the previous year by 600,000 euros, excluding the UK's cereals and snacks business, which also showed improvement and the loss was cut in half compared to the first quarter of this year. The extended snack bar factory in Newport was able to improve its service level in June. Sales decline in Honey Monster cereals compared to the beginning of the year was stopped, but net sales were lower than a year before. Raisio has taken steps to renew the Honey Monster brand but the recovery in cereal sales expected to be slow.
Raisio’s brand activities in Russia and Ukraine are using a flexible business model, which proved effective in the current situation. In Russia, sales volume was stable, EBIT improved and was clearly positive. In Ukraine, volume declined considerably, but EBIT was not negative. In Finland, retail sales of Raisio’s branded products continued to grow.
Benemilk Ltd’s operations entered a new phase when a permanent organisation was built for the company and Tim Londergan was appointed as its CEO. He came to Benemilk Ltd from Intellectual Ventures and has been working with the Benemilk innovation since the beginning of our cooperation. R&D of Benemilk feeds will continue in Finland, but the commercial team will be managed from Seattle, USA. Tim Londergan as well as Connie Wan, Chief Technology Officer, and Mark Handfelt, General Counsel, will be working from Seattle.
At Raisioagro, an extensive restructuring of activities will be carried out during the end of this year. The company will focus on cattle and fish feeds, grain trade as well as online sales of farming supplies, and will terminate the production of pig and poultry feeds. The company doubled its EBIT from last year during the first half of 2014. Raisioagro aims to be the leading operator in the agricultural sectors where success is based on feeding and plant cultivation expertise and on innovations.”
Raisio estimates its EBIT for 2014 to remain below the level of 2013.
Previous guidance in May 2014
Raisio’s aim to continue the improvement of its EBIT through organic growth seems more challenging than expected, although the improvement was estimated to focus on the second half of 2014 when the ongoing streamlining projects are completed.
Communications and IR Manager
Tel. +358 50 567 3060
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
An analyst event in Finnish will be arranged on Tuesday 12 August 2014 at 1:30 p.m. Finnish time in Helsinki. It will be held at Hotel Scandic Simonkenttä, in the Espa meeting room. The address is Simonkatu 9, Helsinki.
Chief Executive’s video in English will be made available http://www.raisio.com/www/page/8133
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.