CEO's review Q1/2016
"Raisio continued to deliver strong results in the first quarter of 2016. The Group's EBIT of EUR 9.7 million was a good performance in the challenging and rapidly changing international markets. The Group's EBIT margin rose to 8.5 per cent.
Benecol's good development continued in our home markets for consumer products. In the UK, the largest market for Benecol products, the sale of spreads increased significantly. Benecol product sales developed well also in Ireland and Poland.
Confectionery business continued to show strong performance. Particularly good sales growth was seen in our own confectionery brands in the UK and Czech Republic.
Raisio's long-term work to expand the range of healthy snacks in line with consumer needs resulted in sales growth. Elovena snack biscuits, snack bars and instant porridges sold particularly well. Sales also grew in gluten-free products sold under the Provena brand.
In April after the review period, Raisio licensed its Honey Monster brand to the British cereal producer Brecks. Raisio is focusing on healthy, ecological snacks in line with its strategy. Brecks will start the production, marketing and sales of Honey Monster cereals from the beginning of July 2016.
Benemilk Ltd's sales to China increased but the company's EBIT and cash flow were negative. The Benemilk Ltd's fundraising is expected to be completed in such a way that we could decide on the possible implementation of financing arrangements during the summer 2016."