Raisio PLC: lowers its outlook on 2018 Ebit

Raisio / FI. (rg) Finland’s Raisio Group lowers its outlook on 2018 comparable Ebit for continuing operations, expecting it to be some 11 percent of net sales. The Ebit decline was primarily due to the exceptionally strong changes in the prices of Raisio’s main raw materials. Long-term contracts particularly with industrial customers have slowed down the passing of increased raw material costs on to product prices. It should also be noted that due to the import ban on fish feeds, imposed on 04 August 2018 and lifted on 06 December 2018 by Russian authorities, Raisioaqua has not been able to deliver fish feeds to its Russian customers from the beginning of August. Already between July and September 2018, the impact of interrupted exports on Raisioaqua’s Ebit was EUR -1.8 million compared with the comparison period. Raisio expects net sales of the Group’s continuing operations to total some EUR 230 million in 2018. The company estimates that the comparable Ebit for the Group’s continuing operations is some 12 percent of net sales. Exchange rates will continue to significantly affect Raisio’s net sales and Ebit. In addition to foods and fish feed sales, Raisio’s net sales for continuing operations consist of grain trade.