FINLAND: Raisio FY earnings rise

By Katy Askew | 12 February 2013

  •  Operating profit up 8.8%
  •  EBITDA climbs to EUR51.2m
  •  Sales rise 5.7%
Raisio FY sales, earnings up

Raisio FY sales, earnings up

Finnish snack and ingredient group Raisio has booked higher full-year sales and earnings, as a strong showing from its branded food division boosted the top and bottom lines.

The company today (12 February) booked an 8.8% increase in EBIT, excluding one-off items, which rose to EUR34.6m (US$46.4m).

Operating profit at Raisio's consumer foods business rose 11.3% in 2012, more than offsetting lower profitability at the group's agricultural arm, Raisoagro, the company said.

EBITDA rose to EUR51.2m, up from EUR48.8m in fiscal 2011. Group net sales increased 5.7%, climbing to EUR584.1m.

"Raisio's net sales have increased by about EUR240m over three years during the Group's growth phase. At the same time, our EBIT has doubled," CEO Matti Rihko said.

Looking to 2013, Raisio said that it anticipates "moderate" sales growth and "solid" operating profit improvement. 

Check back later for just-food's interview with Rihko, detailing the Benecol maker's global growth ambitions.

Show the press release

 

RAISIO’S RESULTS IMPROVED

January-December 2012:

  • Raisio’s net sales increased to EUR 584.1 million (EUR 552.6 million in 2011), growth of 5.7%.

  • Raisio Group’s EBIT, excluding one-off items, rose to EUR 34.6 million (EUR 31.8 million) accounting for 5.9% (5.8%) of net sales, growth of 8.8%.

  • Brands Division showed good profitability, EBIT 11.3%.

  • Raisioagro’s profitability was low due to losses in feed protein business. Improved profitability already during 2013 through Raisio’s investments in production flexibility and efficiency.

  • Return on investment, excluding one-off items, rose to 8.3 (8.1)%.

  • Equity ratio rose to 64.1 (60.2)%.

  • Earnings per share for continuing operations, excluding one-off items, were EUR 0.18 (EUR 0.16).

  • Board of Directors proposes a dividend of EUR 0.12 (EUR 0.11) per share.

Raisio Group’s key figures excluding one-off items

 

 

Q4/ 2012

Q4/ 2011

Q3/ 2012

Q2/ 2012

Q1/
2012

2012

 
2011

Results from continuing operations

 

 

 

 

 

 

 

 

Net sales

M€

137.5

138.7

161.0

150.6

135.0

584.1

552.6

  Change in net sales

%

-0.9

21.8

13.6

0.1

10.9

5.7

30.5

EBIT

M€

6.6

4.9

10.7

10.6

6.6

34.6

31.8

  EBIT

%

4.8

3.5

6.6

7.1

4.9

5.9

5.8

Depreciation and impairment

M€

4.1

4.5

4.2

4.2

4.1

16.6

17.0

EBITDA

M€

10.8

9.4

14.8

14.8

10.8

51.2

48.8

Net financial expenses

M€

-0.4

-0.3

-1.2

-0.6

-0.3

-2.5

-1.5

Earnings per share (EPS)

0.04

0.03

0.06

0.05

0.03

0.18

0.16

Balance sheet

 

 

 

 

 

 

 

 

Equity ratio

%

-

-

-

-

-

64.1

60.2

Gearing

%

-

-

-

-

-

4.9

-7.5

Net interest-bearing debt

M€

-

-

-

-

-

16.2

-24.8

Equity per share

-

-

-

-

-

2.10

2.13

Dividend per share

-

-

-

-

-

0.12*

0.11

Gross investments**

M€

17.0

2.5

1.7

1.8

4.1

24.6

71.2

Share

 

 

 

 

 

 

 

 

Market capitalisation***

M€

-

-

-

-

-

479.3

372.3

Enterprise value (EV)

M€

-

-

-

-

-

495.5

347.5

EV/EBITDA

 

-

-

-

-

-

9.7

7.1

 

* Board of Directors’ proposal to the Annual General Meeting 
** Including acquisitions
*** Excluding the company shares held by the Group

Figures for the comparison period are given in brackets.

The financial statements review has not been audited.

 

CHIEF EXECUTIVE’S REVIEW OF 2012

During Raisio’s growth phase, we have carried out four acquisitions, the last two in Central Europe in 2012. All acquisitions have rapidly proven to be profitable also in practice and the acquired companies have been systematically integrated into the Raisio Group. We have worked with determination and managed to buy good companies at a good price. At the moment, all the acquired companies are in better shape than at the time of acquisition and Raisio has grown to become a truly global company with a foothold in the Nordic Countries, the UK, continental and Eastern Europe.

Raisio’s net sales have increased by about EUR 240 million over three years during the Group’s growth phase. At the same time, our EBIT has doubled. We have maintained our balance sheet strong with positive cash flow, the company is almost net debt free and the equity ratio is 64 per cent. We have achieved this even though, over the same period, the company has paid EUR 48 million in dividends. Total accumulated investments including acquisitions on debt free basis amounted to EUR 206 million.

Raisio’s new feed innovation Benemilk has attracted great interest. Not only milk producers, but also investors and potential partners have shown interest in the feeds that increase milk yield and improve fat and protein contents. Dairy farmers benefit from higher milk income and healthier animals. The first feed developed on the basis of the new innovation was known as Maituri 12000 E. After the name change, it is now called Benemilk Black. At the moment, the new feed is used at about 600 dairy farms in Finland.

Feeds in the Benemilk product line were launched in January 2013 and, for the being, are sold in Finland only. We want to build a strong home market for our innovation before entering international markets. Finland is an important test and home market for Benemilk feeds. We filed an international patent application at the beginning of 2012. The patent process is not transparent and, therefore, our best estimate is that within a year we will know whether we have the patent.”

EVENTS AFTER THE REVIEW PERIOD

FDA acknowledged new GRAS status of plant stanol ester in Benecol products

The American Food and Drug Administration, FDA, acknowledged the new GRAS (Generally recognized as safe) status of Raisio’s cholesterol-lowering ingredient, plant stanol ester, for use of multiple food products. This means that a wider range of foods with added plant stanol ester can be marketed in the USA with a disease risk reduction health claim. The status concerns such new food products as beverages and various milk and grain products. The earlier GRAS status of plant stanol ester concerned only a limited number of food products.

The GRAS procedure included a comprehensive review of the scientific safety documentation for plant stanol ester. The statement signed by an external expert panel was submitted to the FDA for review in summer 2012, and in January 2013, the FDA acknowledged a GRAS status for plant stanol ester to be used in a wide range of food products. 
 

Benemilk product line launched in Finland

At the beginning of 2012, Raisio introduced in Finland a complete feed improving milk yield and the contents of milk. The feed was known by the name of Maituri 12000 E. In January 2013,Raisio launched Benemilk product line in the Finnish market. The line is based on the same feed innovation. All Benemilk feeds have very high energy levels and a strong impact on the volume and on fat and protein contents of milk. Benemilk product line includes three complete feeds and one semi-concentrate. The feeds are easily identified on the basis of colour, as colours Black, Red and Blue on the product names relate to the product properties.

Already over 600 Finnish farms have user experiences of Benemilk Black feeds. Milk producers have confirmed that milk yield has increased and contents of milk have risen. Milk yield on the farms has typically increased by 2-3 litres per cow per day. Milk protein content typically rises by 1-3 tenths of a percent, fat may increase by 3-5 tenths of a percent and, at best, even higher increases have been recorded. The feeding test conducted in the Maaninka research barn of MTT Agrifood Research Finland in spring 2012 confirmed scientifically the user experience.

GUIDANCE 2013

Raisio anticipates a moderate growth in net sales and expects solid EBIT improvement from 2012

 

Original source: Raisio

Sectors: Cereal, Commodities & ingredients, Confectionery, Dairy, Financials, Health & wellness, Snacks

Companies: Raisio

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