Raisio / FI. (rg) Finland’s Raisio Group announced its interim results for the third quarter 2017 (July to September) respective nine months 2017 (January to September). Raisio’s net sales increased by almost 6 percent in Q3/2017, the Group said in its statement.
July to September – Q3/2017
- The Group’s comparable net sales increased by 5.8 percent, totalling EUR 108.8 (102.8) million.
- The Group’s comparable Ebit was EUR 13.0 (14.0) million, accounting for 12.0 (13.6) percent of net sales.
- Brands Division’s comparable Ebit totalled EUR 10.6 (11.1) million, accounting for 15.0 (16.2) percent of net sales.
- Raisioagro’s Ebit was EUR 3.3 (2.3) million, accounting for 7.9 (6.1) percent of net sales.
January to September – 9M/2017
- The Group’s comparable net sales totalled EUR 305.5 (340.9) million.
- The Group’s comparable Ebit was EUR 36.7 (38.7) million, accounting for 12.0 (11.3) percent of net sales.
- Brands Division’s comparable Ebit totalled EUR 34.9 (36.7) million, accounting for 16.2 (14.9) percent of net sales.
- Raisioagro’s Ebit was EUR 4.2 (3.7) million, accounting for 4.2 (3.6) percent of net sales.
CEO’s review
«Raisio Group’s third-quarter net sales were almost six per cent up from the comparison period. Net sales were driven by Benecol and fish feed business. This year’s now ending farming season was one of the best ever in Raisioagro’s fish feed business. Benecol’s growth was boosted by the good sales development of consumer products in Finland and increased deliveries of plant stanol ester to licensing partners especially in Asia. In addition, the higher world market prices in sterols, Benecol product raw materials, and the currency impact of the weakening British pound were offset by price increases.
Raisio’s EUR 13.0 million Ebit was a reasonable performance in a situation where the UK’s confectionery business profitability continued to weaken. Raisio will continue to work resolutely to address the operational and commercial challenges at the Leicester confectionery plant. This will, however, take clearly longer than expected. The Healthy Food and Czech confectionery businesses continued their good performance. Ebit for both Benecol and Raisioagro improved with increased net sales.
Raisio is again a net debt free company with a strong cash flow. The company seeks growth especially for its Benecol and Healthy Food businesses with good profitability. Raisio’s agile product and brand development, and expansion to new markets and product categories enable organic growth. Raisio will also grow through acquisitions».
Raisio Group’s key figures
| Q3/2017 | Q3/2016 | 9M/2017 | 9M/2016 | 2016 | ||
| Result | ||||||
| Net sales | Mio.EUR | 108.2 | 102.8 | 344.7 | 340.9 | 436.3 |
| Change in net sales | % | 5.2 | -23.5 | 1.1 | -14.4 | -16.3 |
| Items affecting comparability | Mio.EUR | 0.6 | 0.0 | -39.2 | 0.0 | 0.0 |
| Comparable net sales | Mio.EUR | 108.8 | 102.8 | 305.5 | 340.9 | 436.3 |
| Change in comparable net sales | % | 5.8 | -23.5 | -10.4 | -14.4 | -16.3 |
| Ebit | Mio.EUR | 13.0 | 13.9 | 35.0 | 17.4 | 28.9 |
| Ebit | % | 12.0 | 13.6 | 10.2 | 5.1 | 6.6 |
| Items affecting comparability | Mio.EUR | 0.0 | 0.1 | 1.6 | 21.2 | 21.8 |
| Comparable Ebit | Mio.EUR | 13.0 | 14.0 | 36.7 | 38.7 | 50.7 |
| Comparable Ebit | % | 12.0 | 13.6 | 12.0 | 11.3 | 11.6 |
| – Depreciations | Mio.EUR | -2.8 | -2.6 | -8.2 | -8.7 | -11.3 |
| – Impairment | Mio.EUR | 0.4 | 0.5 | -28.9 | -16.5 | -16.1 |
| Depreciations and impairment, in total | Mio.EUR | -2.4 | -2.1 | -37.1 | -25.1 | -27.4 |
| Items affecting comparable depreciations and impairment | Mio.EUR | -0.4 | -0.5 | 28.9 | 16.5 | 16.1 |
| Comparable depreciations and impairment | Mio.EUR | -2.8 | -2.6 | -8.2 | -8.7 | -11.3 |
| Ebitda | Mio.EUR | 15.4 | 16.0 | 72.1 | 42.6 | 56.3 |
| Items affecting comparable Ebitda | Mio.EUR | 0.4 | 0.6 | -27.3 | 4.8 | 5.7 |
| Comparable Ebitda | Mio.EUR | 15.8 | 16.6 | 44.8 | 47.3 | 62.0 |
| Financial items | Mio.EUR | -0.8 | -0.5 | -1.4 | -2.4 | -2.2 |
| Earnings per share (EPS) | EUR | 0.06 | 0.07 | 0.14 | 0.06 | 0.12 |
| Comparable earnings per share (EPS) | EUR | 0.06 | 0.07 | 0.18 | 0.19 | 0.25 |
| Balance sheet | ||||||
| Equity ratio | % | – | – | 69.6 | 63.1 | 66.8 |
| Net gearing | % | – | – | -3.9 | 13.1 | 8.5 |
| Net interest-bearing debt | Mio.EUR | – | – | -11.9 | 39.8 | 26.7 |
| Equity per share | EUR | – | – | 1.93 | 1.93 | 1.99 |
| Investments | Mio.EUR | 1.6 | 5.1 | 9.9 | 13.4 | 18.3 |
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Outlook for 2017
Raisio revised its 2017 outlook in the stock exchange release published on 21 July 2017. For the full year 2017, the company estimates its comparable Ebit to be approximately EUR 45 million. The outlook revision was due to the prolonged operational and commercial problems at the UK confectionery business, lower than expected profitability and weakening of the pound against the euro. Exchange rates will continue to significantly affect Raisio’s net sales and Ebit.
In line with the renewed strategy, Raisio continues to invest in brands, product concepts, sales and marketing, to streamline its operations and expand into new markets in Europe. This will pave the way for future growth and success.
