Finnish food group Raisio said today (10 May) that its first-quarter profits were “undermined” by costs relating to a number of growth projects.
The Benecol manufacturer said net income during the quarter ended 31 March fell to EUR1m (US$1.4m) against EUR3m in the same quarter of the previous year.
However, sales grew by almost 47% over the period to reach EUR126.6m, with growth driven by two UK acquisitions and organic growth.
Rasio chief executive Matti Rihko said that with the acquisitions, the company has gained a “solid foothold in the British breakfast and snack market as well as in the confectionery market”, although he added that sweets are not part of the company’s “core strategy”.
Rihko said the company will “continue to be active in the acquisition front”, with its “strong balance sheet” providing a good foundation for growth.