Raisio: Profitability stronger than expected

Raisio / FI. (rg) Finnish Raisio Group has moved to a growth phase that covers the years 2010 and 2011, the company said in its Interim Report for the first quarter 2010. Raisio expects a considerable increase in net sales in 2010. The target is to maintain the earlier level of profitability at the beginning of the growth phase even though the costs of growth projects impact the Group´s result. The market situation in the Business to Business Division will probably continue to be challenging. Some Q1/2010 highlights:

• Raisio´s net sales totalled 86,4 million EUR (Q1/2009: 91,2 million EUR).
• EBIT was 4,3 million EUR (4,5 million EUR) accounting for 5,0 percent (5,0 percent) of net sales.
• Glisten PLC became a part of Raisio Group after the review period in April 2010 (see b:eu on 2010-03-02).
• Expenses of approximately 1,1 million EUR resulting from the acquisition of Glisten are included in the first-quarter figures.

Raisio Group´s key figures		1-3/2010	1-3/2009	2009
Results from continuing operations
Net sales	million EUR	86,4	91,2	375,9
Change in net sales	percent	-5,2	-16,5	-18,8
EBIT	million EUR	4,3	4,5	20,5*
EBIT	percent	5,0	5,0	5,5*
Depreciation and impairment	million EUR	3,5	4,1	17,0*
EBITDA	million EUR	7,8	8,6	37,5*
Net financial expenses	million EUR	-0,1	-0,3	-0,5*
Earnings per share(EPS)	EUR	0,02	0,02	0,09*
Earnings per share(EPS),diluted	EUR	0,02	0,02	0,09*
Balance sheet
Equity ratio	percent	70,5	75,5	73,4
Gearing	percent	-40,2	-22,9	-46,6
Net interest-bearing debt	million EUR	-125,4	-62,2	-150,2
Equity per share	EUR	2,00	1,74	2,06
Gross investments	million EUR	1,5	1,2	10,0
Share
Market capitalisation**	million EUR	435,2	235,9	417,4
Enterprise value (EV)	million EUR	280,0	173,7	257,1
EV / EBITDA		7,6	4,5	6,9
* Excluding one-off items ** Excluding own shares held by the Group

Chief Executive´s Review

«In 2010 and 2011 Raisio´s main target is to increase its net sales. We are looking for growth through acquisitions in Europe and by expanding into small and growing product categories and new market areas. Raisio´s growth phase had a good start when the first acquisition was completed at the beginning of the year. Raisio will continue to seek growth by acquisitions that support the achievement of the company´s strategy and create added value to owners», said CEO Matti Rihko in the company´s statement.

«The acquisition of the British Glisten offers both the parties good opportunities for growth and expansion into new product categories and new market areas (see b:eu on 2010-03-02). Raisio has already started the work to launch its products to UK market and Glisten´s products to Finnish and neighbouring markets.

At the beginning of the year, Raisio´s profitability was stronger than expected even though the implementation of growth projects impact the Group´s profitability. At the beginning of the year, the strong demand for brand products continued. In the challenging market situation, Business to Business Division reported a profitable EBIT even though the production of rapeseed meal,an important protein source of feeds, was not profitable due to the scarcity of domestic rapeseed and to the market situation of oil generated as a by-product.

The ability to see opportunities and to take advantage of them quickly and efficiently will be crucial for Raisio´s success also in the future. In additionto its expansionary policy, the Group participates strongly in the developing work of a sustainable food chain and introduces new ecological products and solutions».

Info: The complete statement about Raisio´s Q1/2010 is available here.