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Raisio: Financial Statements Bulletin 2016

Raisio / FI. (rg) Finland’s Raisio Group announced its financial statements for the full year and fourth quarter 2016 as follows:

January to December 2016

  • Raisio Group’s comparable Ebit amounted to EUR 50.7 (51.7) million, accounting for 11.6 (9.9) percent of net sales.
  • Brands Division’s comparable Ebit totalled EUR 50.5 (55.4) million, accounting for 15.8 (14.4) percent of net sales.
  • Raisioagro’s comparable Ebit was EUR 3.7 (2.8) million, accounting for 2.9 (1.9) percent of net sales.
  • The Group’s net sales totalled EUR 436.3 (521.2) million.
  • The Board’s dividend proposal is EUR 0.17 (0.16) per share.

October to December 2016

  • Raisio Group’s comparable Ebit amounted to EUR 12.0 (12.0) million, accounting for 12.6 (9.8) percent of net sales.
  • Brands Division’s comparable Ebit totalled EUR 13.8 (13.9) million, accounting for 18.9 (14.3) percent of net sales.
  • Raisioagro’s comparable Ebit totalled EUR 0.0 (0.0) million.
  • The Group’s net sales totalled EUR 95.4 (122.7) million.

CEO’s Review for 2016

«I would like to thank Raisio’s employees for their dedication and work well done. The first few weeks as Raisio’s CEO have clearly shown me the key resources that affect Raisio’s success: professional and determined personnel, active partnerships with the customers, consumer- and customer-oriented approach and healthy products supporting sustainable development.

Raisio’s Board of Directors has initiated strategy work which, once completed in May 2017, shows clearly the company’s direction. One key theme is to turn the Brands Division’s net sales decline back to growth path. In order to carry out Raisio’s objectives, strengthen the brands and ensure business growth, we need expertise, ideas, commitment and open cooperation of all Raisio employees. With determined and target-oriented work, we can ensure Raisio’s future success and continue to create value for our shareholders.

Raisio’s Board of Directors will propose the Annual General Meeting a dividend of 17 cents per share for 2016. If the proposal is approved by the Meeting, Raisio has increased its dividend for ten consecutive years.

Raisio’s comparable Ebit of EUR 50.7 million was a good performance in a situation where the exchange rate changes of the British pound had a negative impact of almost EUR 3 million on our Ebit and some EUR 20 million on net sales. With comparable exchange rates, Raisio would have reached clearly better comparable Ebit than in 2015. Raisio’s relative profitability and comparable return on investment continued to clearly improve with the structural changes and enhanced operations completed during the year.

Benecol’s market share strengthened in the UK, which is by far the largest market for Benecol products. Elovena products continued to show good growth in Finland.

The performance of the Czech confectionery business remained strong and in the UK, Nimbus, a producer of inclusions and toppings, also continued to perform well. As a result of production challenges at the Leicester plant, the result of the UK’s confectionery business was down from the comparison period.

Over the last few years, Raisioagro has carried out changes resulting in wide range of value-added products and services, and in improved operational efficiency and business profitability».

Raisio Group’s Key Figures

 EUR in million except per share data Q4/ 2016 Q4/ 2015 Q3/ 2016 Q2/ 2016 Q1/ 2016 2016  2015
Result
Net sales EUR 95.4 122.7 102.8 124.1 114.0 436.3 521.2
Change in net sales % -22.3 4.2 -23.5 -12.3 -6.9 -16.3 5.5
Ebit EUR 11.5 5.7 13.9 -6.2 9.7 28.9 42.4
   Ebit % 12.1 4.7 13.6 -5.0 8.5 6.6 8.1
Items affecting comparability EUR 0.5 6.3 0.1 21.2 0.0 21.8 9.2
Comparable Ebit EUR 12.0 12.0 14.0 15.0 9.7 50.7 51.7
   Comparable Ebit % 12.6 9.8 13.6 12.1 8.5 11.6 9.9
   -Depreciations EUR -2.6 -2.5 -2.6 -3.1 -3.1 -11.3 -14.1
   -Impairment EUR 0.3 -4.7 0.5 -17.0 0.0 -16.1 -7.0
Depreciations and impairment, in total EUR -2.3 -7.1 -2.1 -20.0 -3.1 -27.4 -21.1
Items affecting comparable depreciations and impairment EUR -0.3 3.7 -0.5 17.0 0.0 16.1 4.7
Comparable depreciations and impairment EUR -2.6 -3.5 -2.6 -3.1 -3.1 -11.3 -16.5
Ebitda EUR 13.8 12.8 16.0 13.9 12.7 56.3 63.6
Items affecting comparable Ebitda EUR 0.9 2.6 0.6 4.2 0.0 5.7 4.6
Comparable Ebitda EUR 14.6 15.4 16.6 18.1 12.7 62.0 68.1
Financial items EUR 0.2 -1.0 -0.5 -0.9 -0.9 -2.2 -2.5
Earnings per share (EPS) EUR 0.06 0.04 0.07 -0.05 0.05 0.12 0.22
Comparable earnings per share (EPS) EUR 0.06 0.06 0.07 0.07 0.05 0.25 0.26
Balance sheet
Equity ratio % 66.8 62.3
Gearing % 8.5 12.1
Net interest-bearing debt EUR 26.7 42.2
Equity per share EUR 1.99 2.23
Dividend per share EUR 0.17* 0.16
Investments EUR 5.0 3.3 5.1 4.3 4.0 18.3 11.0

* Board of Directors’ proposal to the Annual General Meeting

Guidance for 2017

In 2017, Raisio will invest in brands, product concepts, sales and marketing and in the enhancement of its operations. This will pave the way for future growth and success. Raisio estimates its comparable Ebit for 2017 to fall slightly short of comparable Ebit for 2016. Exchange rates will continue to significantly affect Raisio’s Ebit.