Raisio PLC: Group lowers 2018 guidance

Raisio / FI. (rg) The Board of Directors of Finland’s Raisio Group has reassessed its February 2018 full-year outlook related to net sales. As a result of the development of early 2018 and forecast year-end net sales, the Group’s net sales are estimated to be approximately at the 2017 level. In February 2018, Raisio expected its net sales to slightly grow from 2017. In terms of Ebit, the full-year outlook remains unchanged.

Raisio’s new outlook for 2018

Raisio expects the net sales of the Group’s continuing operations to be approximately at the 2017 level. The company estimates that the comparable Ebit for the Group’s continuing operations is over 10 percent of net sales. Exchange rates will continue to significantly affect Raisio’s net sales and Ebit.

In addition to foods and feeds, Raisio’s net sales consist of exports of raw materials, such as grains. Raisio has identified the concerns and initiated corrective measures in the markets where the net sales development did not meet the expectations in early 2018.

Raisio’s key strategic target is to grow its Healthy Food business both organically and through acquisitions. With its structural reforms completed, Raisio has targeted all the resources to support the medium-term organic growth of the new Healthy Food Division. Raisio also seeks growth through acquisitions. The company is net debt free and has a strong balance sheet, which allows acquisitions that suit the company’s core business.

Raisio’s outlook on 12 February 2018

Raisio estimates the net sales of the Group’s continuing operations to slightly increase from 2017. The company estimates the comparable Ebit of the Group’s continuing operations account for more than 10 percent of net sales. Exchange rates will continue to significantly affect Raisio’s net sales and Ebit.

Raisio’s key strategic target is to grow its Healthy Food business both organically and through acquisitions. To ensure Raisio’s organic growth, the company will move from a holding-type structure to a model in which all resources are targeted toward supporting the strategic objectives of the new Healthy Food Division. Raisio will also seek growth through acquisitions that suit its core business. Raisio is net debt free and has a strong balance sheet, which makes acquisitions supporting its core business possible.