Raisio PLC: Interim Report Q1-2023

Raisio / FI. (rg) Finland’s Raisio Group announced its First Quarter Interim Report January to March (Q1-2023). The Group announces strong recovery in profitability in challenging conditions. Financial highlights:

  • The Group’s net sales totalled EUR 56.5 (53.2) million, which signified a growth of 6.1 percent.
  • Comparable Ebitda was EUR 6.7 (3.9) million, which accounted for 11.9 (7.4) per cent of net sales.
  • Ebitda was EUR 6.5 (3.9) million, which accounted for 11.5 (7.4) per cent of net sales.
  • Comparable Ebit was EUR 4.2 (1.5) million, which accounting for 7.5 (2.7) per cent of net sales.
  • Ebit was EUR 4.0 (1.5) million, which accounted for 7.1 (2.7) per cent of net sales.
  • The Healthy Food Segment’s net sales totalled EUR 37.0 (35.6) million. Ebit was EUR 3.3 (2.7) million, which accounted for 9.0 (7.6) per cent of net sales.
  • The Healthy Ingredients Segment’s net sales totalled EUR 28.6 (27.6) million. Comparable Ebit was EUR 1.8 (0.0) million, accounting for 6.4 (0.1) per cent of net sales. Ebit was EUR 1.8 (0.0) million, which accounted for 6.4 (0.1) per cent of net sales.
  • The Group’s cash flow from continuing operations after financial items and taxes totalled EUR 3.3 (-1.2) million.
  • The comparable return on invested capital (ROIC) was 6.4 (-0.1) per cent and the return on invested capital (ROIC) was 6.0 (-0.1) per cent.
  • The overall effect of currency conversions was EUR -0.9 (0.6) million on net sales, EUR -0.1 (0.1) million on the comparable Ebit and EUR -0.1 (0.1) million on Ebit.

Chief Executive’s Commentary

CEO Pekka Kuusniemi: «Exceptional times in the food chain continue. The strong turbulence in raw material prices that started as a result of Russia’s war of aggression continues, with grain prices fluctuating significantly and other production costs continuing to rise. During the first quarter, the sharp rise in prices led to changes in consumers’ purchasing habits, and volumes have fallen across the board. The inflationary shock has been exceptionally severe. With food purchases, consumers have control over the quantity of products they buy, unlike many other purchases that generate direct costs. This has been clearly reflected in all our markets.

«Despite the market turmoil, Raisio’s net sales increased by 6.1 per cent to EUR 56.5 (53.2) million. Volumes fell across the board. However, what is most important is that we were able to maintain our market share in terms of value in key categories, and in some categories we were even able to increase our share. Our comparable Ebit increased from the exceptional comparison period, reaching EUR 4.2 (1.5) million and 7.1 (2.7) per cent of net sales. The euro conversion of our trading currencies had a negative impact on both net sales and Ebit compared to the comparison period.

«In a turbulent market, new products seem to gain even more importance, and Raisio’s fast pace of product development is paying off. Many new oat-based products were launched during the review period, and their excellent reception in the market is encouraging. Our investments in sales and marketing increased clearly from the comparison period. As a company focused on healthy plant-based foods, our future is strongly innovation-driven, and in March we appointed a Chief Innovation Officer with a strong track record.

«The sale of Raisioaqua, launched at the beginning of last summer, was completed at the end of February after a lengthy process. I am pleased with the outcome: the company found an owner focused on the fish farming business, the committed personnel were transferred to the new owner as old employees and industrial activity will continue at Raisionkaari Industrial Park. The continuation of the operations is also important for Finland’s security of supply, as the fish feed factory is the only one of its kind in Finland.

«The exceptional period in the food system that started in autumn 2021 is still ongoing. Strong brands, innovative new products and planned but agile operations are key success factors for Raisio in these exceptional circumstances. A resilient balance sheet and the ability to invest and pursue potential acquisitions are strong competitive factors in the current operating environment. A heartfelt thank you to Raisio’s employees for their good work this spring.»

For additional information please read the company’s PDF file below (214 KB):

20230503-RAISIO-Q1-2023.