Raisio / FI. (rg) Finland’s Raisio Group announced its First Quarter Interim Report January to March (Q1-2024). Net sales and profitability are at the level of the comparison period, cash flow continued to strengthen. Financial development in brief:
Continuing Operations in Q1-2024
- The Group’s net sales totalled EUR 55.5 (56.5) million, which signified a decrease of 1.7 percent.
- Comparable Ebitda was EUR 6.8 (6.7) million, which accounted for 12.3 (11.9) percent of net sales.
- Ebitda was EUR 6.1 (6.5) million, which accounted for 11.0 (11.5) percent of net sales.
- Comparable Ebit was EUR 4.2 (4.2) million, accounting for 7.6 (7.5) percent of net sales.
- Ebit was EUR 3.6 (4.0) million, which accounted for 6.4 (7.1) percent of net sales.
- The Group’s cash flow from continuing operations after financial items and taxes totalled EUR 8.5 (3.3) million.
- The comparable return on invested capital (ROIC) was 7.4 (6.4) percent and the return on invested capital (ROIC) was 6.3 (6.0) percent.
- Comparable earnings per share were EUR 0.03 (0.02) per share.
- Earnings per share were EUR 0.02 (0.02) per share.
Chief Executive’s Commentary
CEO Pekka Kuusniemi: «The market environment has begun to show signs of stabilisation during the first quarter of the year. Volumes have stopped falling and, especially in the B2B sector, we are seeing a gradual increase in order volumes. Uncertainty is sustained by the protracted war in Ukraine and other regrettable unrest in recent times.
«Net sales were practically on a par with the previous year, EUR 55.5 (56.5) million, with Easter being in March this year. Our comparable Ebit was EUR 4.2 (4.2) million, which accounted for 7.6 (7.5) percent of net sales. Marketing costs were clearly higher than in the comparison period due to entering the Dutch and Belgian markets and a high number of new product launches. Profitability differences between segments were accentuated during the period, with Healthy Food improving both sales and profit, while Healthy Ingredients saw reduced sales value and profitability due to price competition.
«Cash flow improved significantly, reaching EUR 8.5 (3.3) million. The comparable return on invested capital (ROIC) also continued to develop positively, reaching 7.4 (6.4) percent. As the times of crisis have somewhat subsided, we have been better able to optimise our working capital and have set clear targets for it going forward.
«The plant protein category has fared poorly under the pressures of Covid-19 and inflation. This phenomenon is not limited to the Finnish market; Europe has also seen a decline in demand on a broad front. It is clear that in the short term it is a question of taste and price compared to meat proteins, which is why we must persevere with our development work.
«As the economy improves, the food market will certainly return to normal. Raisio has overcome difficult times before, staying true to its strategy. Our employees have embraced the company’s purpose and values as part of their daily work and are each developing the company in line with the strategy. My heartfelt thanks to all of you.»
Outlook 2024
Raisio projects the comparable Ebit for the financial year 2024 to be at the level of 2023 or slightly higher. Raisio’s comparable Ebit in 2023 was EUR 22.7 million.
