CEO Matti Rihko's review Q3/2014

November 4, 2014

"The Group's EBIT rose to 12.1 million euros, which was slightly higher than in the comparison period; EBIT improved by 3.6 million euros from the second quarter. This is a good performance in challenging market conditions given that our businesses are not in identical situations.

The Brands Division's strong areas further improved their performance and our UK's cereals and snacks business returned to profit. Service level of the extended Newport snack bar factory has continued to improve but is still not at its normal level. Sales volume in Honey Monster cereals has levelled off after the earlier decrease. We are now on the right track but there is still much work to be done to achieve profitability levels and sales consistent with our objectives.

Import restrictions imposed by Russia do not currently apply to Raisio's products. Weakening of the rouble has been compensated by price rises without a decrease in volumes. Raisio's most important export products are Nordic flakes and feeds for fish and cattle. We started the export of Benemilk feeds to St.Petersburg area in August. Northwest Russia is the first market outside Finland for our Benemilk feeds. Raisioagro will continue to focus on increasing the exports of feeds. As part of an extensive restructuring of Raisioagro's activities, the Division's net sales decreased as planned and at the same time, the relative profitability of the business improved.

The number of commercial negotiations for the international commercialisation of the Benemilk innovation has increased and this work is proceeding as expected."