Raisio Plc's Interim Report, May 7th, 2024 at 8.30 a.m. Finnish time
Net sales and profitability at the level of the comparison period, cash flow continued to strengthen
FINANCIAL DEVELOPMENT IN BRIEF
JANUARY-MARCH 2024, CONTINUING OPERATIONS
• The Group's net sales totalled EUR 55.5 (56.5) million, which signified a decrease of 1.7%.
• Comparable EBITDA was EUR 6.8 (6.7) million, which accounted for 12.3 (11.9) per cent of net sales.
• EBITDA was EUR 6.1* (6.5*) million, which accounted for 11.0 (11.5) per cent of net sales.
• Comparable EBIT was EUR 4.2 (4.2) million, accounting for 7.6 (7.5) per cent of net sales.
• EBIT was EUR 3.6* (4.0*) million, which accounted for 6.4 (7.1) per cent of net sales.
• The Group's cash flow from continuing operations after financial items and taxes totalled EUR 8.5 (3.3) million.
• The comparable return on invested capital (ROIC) was 7.4 (6.4) per cent and the return on invested capital (ROIC) was 6.3 (6.0) per cent.
• Comparable earnings per share were EUR 0.03 (0.02) per share.
• Earnings per share were EUR 0.02 (0.02) per share.
*EBITDA and EBIT include EUR 0.6 million in costs related to business expansion and EUR 0.1 million in costs related to reorganisation. EBITDA and EBIT for the comparison period include EUR 0.2 million in costs related to business expansion.
CEO PEKKA KUUSNIEMI:
The market environment has begun to show signs of stabilisation during the first quarter of the year. Volumes have stopped falling and, especially in the B2B sector, we are seeing a gradual increase in order volumes. Uncertainty is sustained by the protracted war in Ukraine and other regrettable unrest in recent times.
Net sales were practically on a par with the previous year, EUR 55.5 (56.5) million, with Easter being in March this year. Our comparable EBIT was EUR 4.2 (4.2) million, which accounted for 7.6 (7.5) per cent of net sales. Marketing costs were clearly higher than in the comparison period due to entering the Dutch and Belgian markets and a high number of new product launches. Profitability differences between segments were accentuated during the period, with Healthy Food improving both sales and profit, while Healthy Ingredients saw reduced sales value and profitability due to price competition.
Cash flow improved significantly, reaching EUR 8.5 (3.3) million. The comparable return on invested capital (ROIC) also continued to develop positively, reaching 7.4 (6.4) per cent. As the times of crisis have somewhat subsided, we have been better able to optimise our working capital and have set clear targets for it going forward.
The cholesterol-lowering category has seen fierce price campaigning as consumers become more price-conscious. For Benecol® products, the first quarter was cautiously positive as the volume decline levelled off. Raisio is increasingly collaborating with healthcare professionals to raise awareness of Benecol® products. The UK, a key market for Raisio, has been given special attention when refining the strategy.
Sales of oat products have increased in both the B2C and B2B markets. Elovena®, which will celebrate its centenary next year, has entered the Dutch and Belgian markets during the period, in addition to its previous foreign markets in Poland, Ukraine, the Baltic countries and Sweden. To consolidate our position in the market, we are ready to invest substantially to establish the brand and further expand the range of products we sell.
The iconic Elovena® received a great recognition in March: According to the Sustainable Brand Index, consumers rank Elovena® as the most sustainable brand in Finland. In April, after the review period, Finland Chamber of Commerce selected Elovena® as the winner of the Brand of the Year 2024 competition. The jury's reasons for the choice included the successful renewal of the Elovena® brand and the development of the product range in line with today's trends. The benefits of the brand have been successfully integrated into the business and its development.
The plant protein category has fared poorly under the pressures of COVID-19 and inflation. This phenomenon is not limited to the Finnish market, where Härkis® is the leading brand; Europe has also seen a decline in demand on a broad front. It is clear that in the short term it is a question of taste and price compared to meat proteins, which is why we must persevere with our development work.
As the economy improves, the food market will certainly return to normal. Raisio has overcome difficult times before, staying true to its strategy. Our employees have embraced the company's purpose and values as part of their daily work and are each developing the company in line with the strategy. My heartfelt thanks to all of you!
OUTLOOK 2024
Raisio projects the comparable EBIT for the financial year 2024 to be at the level of 2023 or slightly higher. Raisio's comparable EBIT in 2023 was EUR 22.7 million.
In Raisio, Finland 06 May 2024
Raisio plc
Board of Directors
Further information:
Pekka Kuusniemi, CEO, tel. +358 50 537 3883
Mika Saarinen, CFO, tel. +358 40 072 6808
The CEO's webcast in Finnish of the Q1 results will start on 7 May 2024 at 12 noon, Finnish time. This is the direct link to the webcast: https://raisio.videosync.fi/q1-2024.
Future financial releases of Raisio plc in 2024:
• Raisio's Half-Year Financial Report for January-June will be published on 7 August 2024.
• Raisio's Interim Report for January-September will be published on 5 November 2024.
RAISIO PLC
At Raisio, we make food from the heart, with the aim of bringing health to ourselves and the Earth. We keep creating better plant-based and heart-healthy products so that eating healthily and within the Earth's ecological capacity can be a pleasure. Our strong brands, such as Benecol®, Härkis® and Elovena®, turn our ambitions into reality. Through our responsibility work, we make the hard choices for consumers, so that they can choose Raisio products with confidence. We have around 350 healthy food colleagues in seven countries and export to more than 40 markets around the world. Raisio's shares are listed on Nasdaq Helsinki Ltd. In 2023, the Group's comparable net sales for continuing operations were EUR 219.5 million and the comparable EBIT was EUR 22.7 million. www.raisio.com
