Finland-based food group Raisio today (13 February) reported higher annual profits, helped by improved sales from confectionery arm Candy Plus.
Raisio’s net profit more than doubled from EUR12m (US$16.4m) in 2012 to EUR26.2m in 2013. Its bottom line in 2012 had been hit by a spike in financial expenses.
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The company upped its operating profit despite lower sales. Net sales were down 4.5% at EUR557.6m, in part due to 2012 including businesses Raisio sold over the last year, including a non-dairy division.
However, the Honey Monster owner also pointed to a fall in breakfast cereal sales in the UK due to “low promotional levels” and, notably, “negative publicity related to sugar”.
Nevertheless, EBIT was up from EUR31.7m in 2012 to EUR33.6m in 2013. Raisio said EBIT from its branded business rose from EUR34.9m to EUR35.7m. The company said its acquisition of Candy Plus, struck in November 2012, helped earnings from its business in western Europe.
Sales of Benecol products helped branded profits in northern and eastern Europe. However, Raisio said EBIT from the Benecol business itself fell due to decreased sales volume of plant stanol ester and contract manufacturing.
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By GlobalData
