An improved financial performance from Raisio’s agribusiness arm offset lower revenue and flat earnings from brands to give the Benecol owner an increase in first-half profits.
Finland-based Raisio booked EBIT of EUR18.4m (US$24.5m) for the first six months of the year, up from EUR17.3m last year.
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The company’s Raisioagro business posted an operating profit of EUR700,000, compared to an operating loss of EUR1.4m in the first half of 2012. Raisioagro sales increased 4.2% to EUR124.4m.
However, EBIT from Raisio’s brand division, which supplies products including Honey Monster cereal, dipped from EUR20m in the first half of last year to EUR19.9m. Excluding a one-off charge related to the sale of its non-dairy business to Kavli in March, EBIT from brands would have stood at EUR20.5m.
Raisio said its branded sales fell 8% to EUR153.3m. The company said it had cut some SKUs and participated less in “retailers’ low-profitable promotional activities”.
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Taking in what Raisio called “other operations”, its group EBIT was up 6.4% to EUR18.4m. Sales were down 3% at EUR276.9m.
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By GlobalDataThe company’s net profit, benefiting from a steep fall in finance costs, was up from EUR2.2m last year to EUR13.2m.
Shares in Raisio were down 1.08% at EUR3.67 at 12:59 CET.
Click here for the full statement from Raisio.
