Raisio’s EBIT improved by 20%
Raisio plc Interim Report 7 May 2013 at 8:30 Finnish time
RAISIO’S EBIT IMPROVED BY 20%
January-March 2013, continuing operations
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Group net sales totalled EUR 128.3 (Q1/2012: EUR 135.0) million.
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Group EBIT improved by 20 per cent amounting to EUR 8.0 (Q1/2012: 6.6) million, which is 6.2 (4.9) % of net sales.
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Brands Division’s profitability was good, EBIT 12.5 (11.1) % of net sales.
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Raisioagro’s EBIT was slightly negative despite the clear improvement.
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Benemilk feeds already have a market share of some 10 per cent of dairy cattle feeds in Finland.
Raisio Group’s key figures excluding one-off items
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Q1/2013 |
Q1/2012 |
2012 |
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Results from continuing operations |
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Net sales |
M€ |
128.3 |
135.0 |
584.1 |
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Change in net sales |
% |
-4.9 |
10.9 |
5.7 |
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EBIT |
M€ |
8.0 |
6.6 |
34.6 |
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EBIT |
% |
6.2 |
4.9 |
5.9 |
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Depreciation and impairment |
M€ |
3.9 |
4.1 |
16.6 |
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EBITDA |
M€ |
11.9 |
10.8 |
51.2 |
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Net financial expenses |
M€ |
-0.4 |
-0.3 |
-2.5 |
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Earnings per share (EPS) |
€ |
0.04 |
0.03 |
0.18 |
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Balance sheet |
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|
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Equity ratio |
% |
61.9 |
57.2 |
64.1 |
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Gearing |
% |
8.4 |
0.4 |
4.9 |
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Net interest-bearing debt |
M€ |
26.2 |
1.4 |
16.2 |
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Equity per share |
€ |
2.00 |
2.05 |
2.10 |
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Gross investments* |
M€ |
1.7 |
4.1 |
24.6 |
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Share |
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|
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Market capitalisation** |
M€ |
470.3 |
383.3 |
479.3 |
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Enterprise value (EV) |
M€ |
496.5 |
384.7 |
495.5 |
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EV/EBITDA |
|
9.5 |
7.8 |
9.7 |
* Including acquisitions
** Excluding the company shares held by the Group
Chief Executive’s review
“Raisio started the year strongly with good EBIT. Decline in net sales shows that we have been focusing on more profitable businesses and products. As part of the streamlining measures, we have also given up activities, in which we do not see enough growth potential. On the other hand, we have started activities, in which we know we can add value with our expertise. EBIT was at a strong level, but we would have liked to see more sales.
Raisio acquired a Czech confectionery company Candy Plus in November 2012 and its integration into the Raisio Group has now been completed successfully. We are very pleased with the deal. As part of Raisio, Candy Plus has been able to increase its net sales and improve its profitability.
Confidence in Benemilk feeds has been strongly reflected in Raisioagro’s operations. With Benemilk feeds, we have managed in a few months to achieve a market share of some 10 per cent in Finnish dairy cattle feeds. This demonstrates that Benemilk feeds work and sell well. Almost 70 per cent of the farms testing Benemilk feeds have remained Raisio's customers during the campaign period. I am pleased that more and more milk producers have found through personal experience the efficacy of Benemilk feeds. They have also seen an increase in their milk income.
The Benemilk story has only just begun. After the review period in April, Raisio informed about the establishment of a joint venture in Finland with Intellectual Ventures, the world’s leading invention capital company, specialising in the creation, management and commercialisation of inventions. This cooperation provides us with the best resources and expertise necessary for further development of our Benemilk invention. The joint venture also aims to commercialise the invention internationally, even though our patent application is still pending.”
Outlook 2013
Raisio anticipates moderate net sales growth and expects solid improvements in EBIT over 2012.
RAISIO PLC
Heidi Hirvonen
Communications and IR Manager
Tel. +358 50 567 3060
Further information:
Matti Rihko, CEO, tel. +358 400 830 727
Jyrki Paappa, CFO, tel. +358 50 556 6512
Heidi Hirvonen, Communications and IR Manager, tel. +358 50 567 3060
Events:
A press and analyst event in Finnish will be arranged in Helsinki on Tuesday 7 May 2013 starting at 12.30 pm Finnish time. It will be held at Hotel Scandic Simonkenttä, in the Pavilion meeting room. The address is Simonkatu 9, Helsinki.
Chief Executive’s video in English will be made available on Raisio’s web site at http://www.raisio.com/www/page/8133
Distribution
NASDAQ OMX
Key media
www.raisio.com
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