Raisio plc: Financial Statements Bulletin 2018

Raisio plc, Financial Statements Bulletin 12 February 2019 at 8.30 Finnish time

RAISIO IS NOW AN INTERNATIONAL BRAND HOUSE FOCUSING ON HEALTHY FOOD

January-December 2018, continuing operations

• The Group’s net sales totalled EUR 228.2 (234.6) million. Comparable EBIT was EUR 25.6 (35.9) million, accounting for 11.2 (15.3) % of net sales. EBIT was EUR 16.6 (54.1) million, accounting for 7.3 (23.0) % of net sales. EBIT for the comparison year includes sales profits of EUR 28.0 million for the Southall factory property.
• The Healthy Food Division’s net sales totalled EUR 201.1 (201.4) million. Comparable EBIT was EUR 29.8 (39.3) million, accounting for 14.8 (19.5) % of net sales. EBIT was EUR 30.8 (38.4) million, accounting for 15.3 (19.0) % of net sales.
• The Raisioaqua Division’s net sales totalled EUR 25.9 (31.8) million. EBIT totalled EUR -0.8 (2.4) million.
• The Board of Directors’ dividend proposal to the Annual General Meeting is EUR 0.16 per share, of which EUR 0.04 as an extra dividend.

October-December 2018, continuing operations

• The Group’s net sales totalled EUR 55.6 (53.7) million. Comparable EBIT was EUR 5.0 (6.7) million, accounting for 9.0 (12.5) % of net sales.
  
  EBIT totalled EUR -2.1 (-2.4) million.
• The Healthy Food Division’s net sales totalled EUR 53.3 (50.6) million. Comparable EBIT was EUR 7.4 (9.5) million, accounting for 13.8 (18.7) % of net sales.
  
  EBIT was EUR 8.5 (8.5) million, accounting for 16.0 (16.9) % of net sales.
• The Raisioaqua Division’s net sales totalled EUR 2.0 (2.7) million.
  
  EBIT totalled EUR -1.1 (-0.7) million.

CEO’S REVIEW

“The year 2018 was a period of strong renewal and construction of the new for Raisio. The company now has a clear focus: healthy food. Our goal is to be an innovative and increasingly international brand house.

We have now built a solid foundation for our next steps. Our purpose and values defined together with the staff create the basis for all our work and guide the decision-making. In line with its strategy, Raisio will focus on securing the growth and profitability of its core operations in 2019.

In 2018, several separate events affected Raisio’s sales and profitability. The most significant impacts on EBIT were the EBIT decrease of EUR 2.5 million on the comparison year due to the Russian fish feed import ban, planned growth of marketing costs and challenges faced in the Russian and Polish consumer product markets. EBIT for Russia and Poland declined by EUR 2 million on the comparison year. Raisio has identified the problem areas in these markets, carried out corrective measures and managed to turn the direction of the businesses. Furthermore, exceptionally poor harvest in Finland together with a grain price increase of up to 60 per cent decreased profitability. Raisio promptly reacted to the situation with price changes.

For Raisioaqua, the second half of 2018 was exceptional as the Russian authorities closed the border in August. After the border was reopened in December, Raisioaqua continued to finalise the 2019 fish feed contracts with its Russian customers, whose confidence in Raisioaqua remains very high.

 

Raisio’s most significant novelty was launched in the autumn: Elovena Muru Oat Mince, a plant-based protein product for versatile cooking. Elovena Muru has been very well received by consumers.

The product has shown its ability to grow the whole category and to compete for the market leadership.

Our Benecol product range expanded into new categories. We increased our marketing investment to boost the sales of novelties and to gain new Benecol consumers. In our key Benecol product markets, we have started long-term work to increase healthcare professionals’ knowledge on cholesterol and on safe and effective Benecol products proven to lower cholesterol.

Raisio’s balance sheet has further strengthened, which enables the company to implement its long-term growth strategy.”

OUTLOOK 2019

In 2019, Raisio expects its net sales for continuing operations to grow (2018: EUR 228.2 million) and comparable EBIT to be over 10 per cent of net sales.

Raisio will continue its investments in the brands, R&D and the company’s own production in its most important product categories.

In Raisio, 12 February 2019

Raisio plc’s Board of Directors

Further information:

Pekka Kuusniemi, President and CEO, tel. 3

Toni Rannikko, CFO, tel. 2

Heidi Hirvonen, Communications and IR Manager, tel. 0

CEO’s video in English will be available on Raisio’s web site at

Raisio’s financial releases in 2019:

- Report of the Board of Directors and Financial Statements for 2018 published 26 February 2019

- Annual Report for 2018 published in week 10 on the company’s website at

- Interim Report for January-March published 8 May 2019, - Half-Year Financial Report for January-June published 7 August 2019 - Interim Report for January-September published 6 November 2019

The interim report has not been audited.

Raisio plc

Raisio is an international company specialised in healthy, responsibly produced food. Our well-known brands include, for example, Benecol, Elovena, Nalle and Sunnuntai. In Raisio’s products, the focus is on well-being, health, good taste and sustainable development. Profitable growth is ensured through our strong expertise and passion for creating new. Raisio’s shares are listed on Nasdaq Helsinki Ltd. In 2017, the Group’s net sales for continuing operations totalled EUR 235 million and comparable EBIT was EUR 36 million. Our food is good for Health, Heart and Earth. For more information on Raisio go to .

Distribution

Nasdaq

Key media

Attachment