CEO’s review for 2016
“I would like to thank Raisio’s employees for their dedication and work well done. The first few weeks as Raisio’s CEO have clearly shown me the key resources that affect Raisio's success: professional and determined personnel, active partnerships with the customers, consumer- and customer-oriented approach and healthy products supporting sustainable development.
Raisio’s Board of Directors has initiated strategy work which, once completed in May 2017, shows clearly the company's direction. One key theme is to turn the Brands Division’s net sales decline back to growth path. In order to carry out Raisio’s objectives, strengthen the brands and ensure business growth, we need expertise, ideas, commitment and open cooperation of all Raisio employees. With determined and target-oriented work, we can ensure Raisio’s future success and continue to create value for our shareholders.
Raisio’s Board of Directors will propose the Annual General Meeting a dividend of 17 cents per share for 2016. If the proposal is approved by the Meeting, Raisio has increased its dividend for ten consecutive years.
Raisio’s comparable EBIT of EUR 50.7 million was a good performance in a situation where the exchange rate changes of the British pound had a negative impact of almost EUR 3 million on our EBIT and some EUR 20 million on net sales. With comparable exchange rates, Raisio would have reached clearly better comparable EBIT than in 2015. Raisio’s relative profitability and comparable return on investment continued to clearly improve with the structural changes and enhanced operations completed during the year.
Benecol’s market share strengthened in the UK, which is by far the largest market for Benecol products. Elovena products continued to show good growth in Finland.
The performance of the Czech confectionery business remained strong and in the UK, Nimbus, a producer of inclusions and toppings, also continued to perform well. As a result of production challenges at the Leicester plant, the result of the UK’s confectionery business was down from the comparison period.
Over the last few years, Raisioagro has carried out changes resulting in wide range of value-added products and services, and in improved operational efficiency and business profitability.”