Raisio PLC: announces half-year results for 2021

Raisio / FI. (rg) Finland’s Raisio Group announced its financial results for the first half 2021, the period from January to June. Raisio is on the verge of a new growth, the Group says in its statement. Highlights:

April-June 2021

  • The Group’s net sales totalled EUR 66.7 (59.9) million, which signified a growth of 11.3 percent.
  • Comparable Ebit was EUR 5.3 (7.0) million, accounting for 7.9 (11.6) percent of net sales. Comparable Ebit decreased by -24.7 percent in relation to the comparison period.
  • Ebit was EUR 4.5* (7.0) million, which accounted for 6.8 (11.6) percent of net sales.
  • The Healthy Food Segment’s net sales totalled EUR 34.7 (31.6) million. Comparable Ebit was EUR 4.1 (4.0) million, accounting for 11.7 (12.7) percent of net sales. Ebit was EUR 3.9 (4.0) million, which accounted for 11.3 (12.7) percent of net sales.
  • The Healthy Ingredients Segment’s net sales totalled EUR 38.9 (34.3) million. Comparable Ebit was EUR 2.3 (3.7) million, accounting for 5.9 (10.9) percent of net sales. Ebit was EUR 1.7 (3.7) million, which accounted for 4.4 (10.9) percent of net sales.
  • The Group’s cash flow from business operations after financial items and taxes totalled EUR 12.2 (6.0) million.
  • The overall effect of currency conversions was EUR 0.1 (-0.5) million on net sales, EUR 0.1 (-0.1) million on comparable Ebit and EUR 0.1 (-0.1) million on Ebit.

*Ebit includes EUR 0.7 million in expenses related to the corporate acquisition.

January-June 2021

  • The Group’s net sales totalled EUR 116.6 (114.6) million, which signified a growth of 1.7 percent.
  • Comparable Ebit was EUR 9.9 (13.6) million, accounting for 8.5 (11.8) percent of net sales. Comparable Ebit decreased by -26.8 percent in relation to the comparison period.
  • Ebit was EUR 12.0* (13.6) million, which accounted for 10.3 (11.8) percent of net sales.
  • The Healthy Food Segment’s net sales totalled EUR 69.1 (68.9) million. Comparable Ebit was EUR 8.9 (9.3) million, accounting for 12.9 (13.5) percent of net sales. Ebit was EUR 8.8 (9.3) million, which accounted for 12.7 (13.5) percent of net sales.
  • The Healthy Ingredients Segment’s net sales totalled EUR 61.2 (59.9) million. Comparable Ebit was EUR 2.9 (5.9) million, accounting for 4.8 (9.9) percent of net sales. Ebit was EUR 5.2 (5.9) million, which accounted for 8.4 (9.9) percent of net sales.
  • The Group’s cash flow from business operations after financial items and taxes totalled EUR 15.4 (9.9) million.
  • The comparable return on investments (ROIC) was 6.6 (9.8) percent and the return on investments (ROIC) was 8.9 (9.8) percent.
  • The overall effect of currency conversions was EUR -0.9 (-0.2) million on net sales, EUR 0.0 (0.0) million on comparable Ebit and EUR 0.0 (0.0) million on Ebit.

*Ebit includes EUR 2.8 million in other operating income for the sale of the receivable and EUR 0.7 million in expenses related to the corporate acquisition.

Outlook2021

Raisio’s guidelines: In 2021, Raisio estimates that net sales will increase (net sales in 2020: EUR 233.6 million). The costs accrued as a result of our front-loaded growth investments will put pressure on our profitability in 2021 in comparison to the situation in 2020.

Key Figures of the Group

4-6/2021 4-6/2020 1-6/2021 1-6/2020 1-12/2020
Net sales Mio.EUR 66.7 59.9 116.6 114.6 233.6
Change in net sales percent 11.3 -4.5 1.7 1.8 -1.2
Comparable Ebitda Mio.EUR 7.1 8.5 13.3 16.7 33.9
Ebitda Mio.EUR 6.4 8.5 15.4 16.7 35.1
Comparable Ebit Mio.EUR 5.3 7.0 9.9 13.6 27.7
Comparable Ebit of net sales percent 7.9 11.6 8.5 11.8 11.9
Ebit Mio.EUR 4.5 7.0 12.0 13.6 28.9
Ebit of net sales percent 6.8 11.6 10.3 11.8 12.4
Comparable earnings per share EUR 0.03 0.05 0.05 0.06 0.14
Earnings per share EUR 0.03 0.05 0.06 0.06 0.15

Commentary:

President and CEO Pekka Kuusniemi: «The planning for the next strategy period got underway at Raisio at the beginning of the year. The implementation of the internationalization plans for the current strategy period 2019-2021 met with notable delays as a result of obstacles caused by the pandemic. The chosen focus on plant-based value added products has, however, proven to be the right decision and Raisio Group will continue to pursue this chosen path. In June, we announced that Raisio would be targeting three areas of focus for the strategy period leading up to 2025. Benecol® and plant stanol ester solutions, value added oat products and plant-based products will form the core of the company’s operations. The production facility, which was completed on time and within budget, and the Verso Food acquisition in April both support the company’s advancement within these rapidly growing plant-based food markets.

«The pandemic that took hold the previous spring has caused considerable anomalies in Raisio’s market environment, and fluctuations in certain market and customer segments have been unprecedentedly large. During the second quarter, net sales grew 11.3 percent from the comparison period to a total of EUR 66.7 (59.9) million. Comparable Ebit was EUR 5.3 (7.0) million during the spring quarter and accounted for 7.9 (11.6) percent of net sales. The company’s financial performance was burdened by costs from the start-up of the new production facility and the as yet unprofitable Ebit of Verso Food Oy, which was acquired in April. The cash flow from operations was strong at EUR 12.2 (6.0) million.

«During the last three years Raisio has invested strongly in its capabilities to develop and produce plant-based value added products. The investments have totalled as much as around EUR 65 million over the past few years. The investments of the second quarter totalled EUR 6.0 (7.2) million, or 9.0 (12.1) per cent of net sales. The investments of the first half-year totalled EUR 12.5 (12.9) million, thereby representing 10.7 (11.3) per cent of net sales. At our Capital Markets Day event, we talked about our goals and the means to reach them, whereby we intend to capitalise on the possibilities offered by our strong investments within these compelling markets.

«The ever-changing pandemic situation within the different markets has continued to have an impact on demand, but in the UK market, for example, we managed to adapt to the new situation, particularly through changes in distribution, and the resulting development has been positive in relation to the comparison period. On the whole, the demand situation within the markets in which Raisio operates has stabilised in terms of volume fluctuations, but, as I see it, the effects of the pandemic, such as the strong growth in online shopping, will permanently affect market dynamics.

«As a result of the corporate acquisition realised in April, the operations of Verso Food Oy have been incorporated into Raisio’s existing operations and its personnel into our operational organisation. We promptly realised a value creation programme to ensure continued growth and improved profitability for this strategic area of focus. In the course of the value creation programme, it became clear that our acquisition has boosted the enthusiasm of Raisio’s entire personnel, and I would like to take this opportunity to thank our personnel as we advance along the road towards new growth.»

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