Raisio / FI. (rg) Finland’s Raisio Group strongly condemns the Russian military attack to Ukraine. Hence Raisio has stopped all exports to Russia.
Raisio PLC does not have own industrial activity on the Russian or Ukrainian markets. War in Ukraine causes significant uncertainty regarding company’s net sales and profitability development in 2022. Due to the geopolitical instability the prices of important grain based raw materials have risen dramatically. In addition to the unforeseen cost effects the situation affects also availability of grain based raw materials.
Raisio PLC has stopped all exports to Russia. This will result in a reduction of approximately 15 percent of company’s sales. Raisio’s exports to Russia has consisted of consumer packed foods as well as fish feed. Most of the turnover generated in Russia has come from the fish feed exports, produced by Raisio’s business unit Raisioaqua. Approximately 65 percent of Raisioaqua’s production has been exported to the northwest Russia. Raisioaqua’s production is significant also for the Finnish fish farming industry and for national security of supply. As this decision has broad overall implications we need to consider very carefully what the implications will be for this business area.
Therefore the Board of Directors of Raisio PLC has decided to withdraw the Company’s financial guidance for 2022. Due to the uncertainties, the Board is not in a position to give a new guidance at this moment.
Earlier guidance from February 09, 2022: In 2022, Raisio estimates that net sales will increase by 5 percent (net sales in 2021: EUR 246.4 million). Our strategy-based growth investments place pressure on our relative profitability in comparison to the previous financial year.