Raisio plc’s Interim Report January−September 2023
Raisio Plc’s Interim Report, November 1st, 2023 at 8.30 a.m. Finnish time
Result continued to strengthen, operating environment remains challenging
FINANCIAL DEVELOPMENT IN BRIEF
July–September 2023, continuing operations
- The Group’s net sales totalled EUR 56.1 (56.5) million, which signified a decrease of 0.7%.
- Comparable EBITDA was EUR 9.9 (8.9) million, which accounted for 17.6 (15.8) per cent of net sales.
- EBITDA was EUR 9.6* (8.7*) million, which accounted for 17.0 (15.3) per cent of net sales.
- Comparable EBIT was EUR 7.4 (6.5) million, accounting for 13.1 (11.4) per cent of net sales.
- EBIT was EUR 7.0* (6.2*) million, which accounted for 12.5 (10.9) per cent of net sales.
- The Group’s cash flow from continuing operations after financial items and taxes totalled EUR 15.0 (1.8) million.
- Comparable earnings per share were EUR 0.04 (0.03) per share.
- Earnings per share were EUR 0.04 (0.03) per share.
*EBITDA and EBIT include EUR 0.2 million in costs related to business expansion and EUR 0.1 million in costs related to reorganisation. EBITDA and EBIT for the comparison period include EUR 0.3 million in costs related to business expansion.
January–September 2023, continuing operations
- The Group's net sales totalled EUR 165.3 (165.2) million, which signified a growth of 0.0%.
- Comparable EBITDA was EUR 24.8 (19,8**) million, which accounted for 15.0 (12.0) per cent of net sales.
- EBITDA was EUR 23.5* (19.5*) million, which accounted for 14.2 (11.8) per cent of net sales.
- Comparable EBIT was EUR 17.3 (12.3**) million, accounting for 10.4 (7.5) per cent of net sales.
- EBIT was EUR 16.0* (12.0*) million, which accounted for 9.7 (7.3) per cent of net sales.
- The Group’s cash flow from continuing operations after financial items and taxes totalled EUR 28.0 (0.4) million.
- Comparable return on invested capital (ROIC) was 8.7 (4.4) per cent and the return on invested capital (ROIC) was 8.1 (4.3) per cent.
- Comparable earnings per share were EUR 0.09 (0.05) per share.
- Earnings per share were EUR 0.09 (0.05) per share.
*EBITDA and EBIT include EUR 0.7 million in costs related to business expansion and EUR 0.5 million in costs related to reorganisation. EBITDA and EBIT for the comparison period include EUR 0.3 million in costs related to business expansion.
**The comparable EBITDA and EBIT for the comparison period include a return of EUR 1.1 million in pension fund surplus from previous years.
KEY FIGURES OF THE GROUP, continuing operations
|
|
|
7–9/2023 |
7–9/2022 |
Change |
1–9/2023 |
1–9/2022 |
Change |
1–12/2022 |
|
Net sales |
M€ |
56.1 |
56.5 |
-0.7% |
165.3 |
165.2 |
0.0% |
220.8 |
|
Comparable EBITDA |
M€ |
9.9 |
8.9 |
10.2% |
24.8 |
19.8 |
25.1% |
28.3 |
|
Comparable EBITDA as a percentage of net sales |
% |
17.6 |
15.8 |
|
15.0 |
12.0 |
|
12.8 |
|
EBITDA |
M€ |
9.6 |
8.7 |
10.4% |
23.5 |
19.5 |
20.7% |
27.8 |
|
EBITDA as a percentage of net sales |
% |
17.0 |
15.3 |
|
14.2 |
11.8 |
|
12.6 |
|
Comparable EBIT |
M€ |
7.4 |
6.5 |
13.9% |
17.3 |
12.3 |
40.1% |
18.4 |
|
Comparable EBIT as a percentage of net sales |
% |
13.1 |
11.4 |
|
10.4 |
7.5 |
|
8.3 |
|
EBIT |
M€ |
7.0 |
6.2 |
14.3% |
16.0 |
12.0 |
33.3% |
17.9 |
|
EBIT as a percentage of net sales |
% |
12.5 |
10.9 |
|
9.7 |
7.3 |
|
8.1 |
|
Comparable earnings per share |
€ |
0.04 |
0.03 |
31.5% |
0.09 |
0.05 |
83.6% |
0.08 |
|
Earnings per share |
€ |
0.04 |
0.03 |
29.4% |
0.09 |
0.05 |
89.9% |
0.08 |
|
Average personnel |
FTE |
348 |
342 |
1.8% |
348 |
343 |
1.5% |
342 |
|
Investments, continuing operations |
M€ |
2.4 |
1.0 |
151.0% |
7.4 |
3.6 |
106.1% |
5.2 |
|
Cash flow from business operations after financial items and taxes, continuing operations |
M€ |
15.0 |
1.8 |
|
28.0 |
0.4 |
|
11.2 |
|
Equity ratio |
% |
|
|
|
79.5 |
79.2 |
|
79.2 |
|
Net gearing |
% |
|
|
|
-18.5 |
-10.7 |
|
-15.7 |
|
Net interest-bearing debt |
M€ |
|
|
|
-47.5 |
-27.8 |
|
-41.2 |
|
Equity per share |
€ |
|
|
|
1.62 |
1.63 |
|
1.66 |
|
Comparable return on invested capital (ROIC), continuing operations |
% |
|
|
|
8.7 |
4.4 |
|
5.6 |
|
Return on invested capital (ROIC), continuing operations |
% |
|
|
|
8.1 |
4.3 |
|
5.5 |
CEO PEKKA KUUSNIEMI:
The third quarter continued largely along the same lines as the previous one, with consumers’ purchasing behaviour remaining very cautious as a result of inflation and the uncertain economic situation. However, during the summer and early autumn, the demand situation in the Finnish consumer market improved somewhat for Raisio, while in our other main market, the UK, the cost of living crisis continued to challenge the sales volume of Benecol® products. The challenging market situation of B2B customers is also still reflected in the development of Raisio’s net sales.
The 2023 grain harvest in Finland was the third worst of the millennium. However, prices have not yet shown any significant changes, and I do not believe that we will be seeing the massive price increases that we witnessed two years ago. In any case, procurement prices are facing upward pressure because both the quantity and quality of the harvest are woefully low.
During the review period, the company’s net sales remained similar to the comparison period at EUR 56.1 (56.5) million. In the previous year, most of the price increases had already been made during the second quarter, so comparability is already quite good. Performance improved significantly, with comparable EBIT rising to EUR 7.4 (6.5) million, accounting for 13.1 (11.4) per cent of net sales. Cash flow after financial items and taxes was remarkably strong at EUR 15.0 (1.8) million. With the change programme launched in August last year, our operations are evolving in different areas and will gradually be reflected in our performance indicators.
Over the past two years, we have significantly upgraded our production capabilities, with a brand new plant for drinkable and spoonable plant-based products launched in autumn 2021 at our carbon-neutral industrial area in Raisio and a completely renewed pasta production line completed this summer. The commissioning of both of these new investments, worth over EUR 50 million in total, has gone well and the payback of the investments has started well. With regard to the new plant, it should be noted that Raisio had no market share in these categories before, and today we are a powerful player in the Finnish market, strongly challenging the market leader. The Elovena® brand has thus proven its strength also in new product areas and brought significant growth to our sales in Finland.
During the summer and early autumn, the availability of pasta in Finland has come up in the public debate, somewhat unexpectedly. The installation and commissioning of the Raisio pasta line coincided with supply problems in the industry, resulting in gaps on shop shelves. At the moment, demand has exceeded expectations and the factory employees are doing their best to ensure that Finnish consumers have enough good Finnish pasta. In our strategy, we have placed the Torino® pasta brand in the ‘local hero’ category, and its role is to contribute to a steady cash flow for the company and help ensure Finnish security of supply.
We have paved the way for international sales of oat products by carefully researching the European markets and working with customers in the most attractive geographical areas. We aim to establish a permanent position in markets much larger than Finland, and achieving this position will require a great deal of work and money. Achieving market positions in competitive consumer markets is expensive and even risky, but we believe that the strong Elovena® brand, which will soon be a century old, will also flourish on a global scale.
I wish to extend my sincere thanks to Raisio's employees for their great work in the ever-changing market situation.
OUTLOOK 2023
Raisio announced on 10 July 2023 that it had updated its financial outlook for 2023. Previously, the company had estimated that its outlook for 2023 would show an increase in comparable net sales and profit compared to the previous year.
New guidance for 2023: Raisio expects comparable net sales to be at or slightly below the previous year’s level. Comparable profit is expected to increase from the previous year, to between EUR 21 and 23 million (EUR 18.4 million in 2022).
In Raisio, Finland, 1 November 2023
Raisio plc
Board of Directors
Further information:
Pekka Kuusniemi, CEO, tel. +358 50 537 3883
Mika Saarinen, CFO, tel. +358 40 072 6808
The information in the Interim Report is unaudited.
The Finnish-language webcast concerning the Q3 result will take place at 12 noon on 1 November 2023. Raisio’s interim report will be presented by CEO Pekka Kuusniemi. The webcast is available via a link on the Raisio website. This is the direct link to the webcast: https://raisio.videosync.fi/q3-2023.
Raisio will publish the 2023 Financial Statements Bulletin on 13 February 2024.
RAISIO PLC
At Raisio, we make food from the heart, with the aim of bringing health to ourselves and the Earth. We keep creating better plant-based and heart-healthy products so that eating healthily and within the Earth’s ecological capacity can be a pleasure. Our strong brands, such as Benecol®, Härkis® and Elovena®, turn our ambitions into reality. Through our responsibility work, we make the hard choices for consumers, so that they can choose Raisio products with confidence. We have around 350 healthy food colleagues in six countries and export to more than 40 markets around the world. Raisio's shares are listed on Nasdaq Helsinki Ltd. In 2022, the Group’s comparable net sales for continuing operations were approximately EUR 221 million and the comparable EBIT was approximately EUR 18 million. www.raisio.com