Raisio’s comparable EBIT totalled EUR 10.6 million
“Raisio’s comparable EBIT amounted to EUR 10.6 million which means an improvement of EUR 0.9 million from the comparison period. Despite the decline in net sales, Raisio’s relative profitability increased to 11.4 per cent compared to 8.5 per cent of Q1/2016. The key drivers of the improvement in earnings were the divestment of loss-making UK snack bar business and organic growth in the Healthy Snacks business.
Net sales and EBIT for the UK Benecol and Confectionery businesses decreased because of the weaker pound. Benecol’s price increases in the UK retail trade did not fully compensate for the negative effects of the currency and raw material price increases. In the UK, the profitability of Confectionery business fell due to a sales decline in our own branded products and delivery difficulties. To ensure Raisio’s future success, it is essential that we take resolute action to remedy and improve the situation.
During the first months of this year, we have been working on our business strategies and identified several growth opportunities. We have also looked critically at our opportunities and taken account of the increasingly rapid changes in the operating environment. Through our strong balance sheet, we also have an opportunity to be an active player in M&A.
The focus of Raisio’s renewed business strategy is on wellbeing and sustainable growth. The core of Raisio’s strategy consists of plant-based, healthy and responsible branded products that meet the needs of consumers and customers. The renewed strategy is based on our strengths. I find this very good since it means that we have long been on the right track and identified the key trends for the future. What is new in our strategy is our determination to expand into new markets and new product categories as well as the ability to launch new products faster. With these measures, we ensure profitable growth.
I am convinced that we have the ability and desire to succeed at Raisio. Making use of our staff expertise and enthusiasm plays a crucial role in the implementation of our strategy. We have also started improving the efficiency of operations in line with the lean philosophy. We will invest in our brands in order to support growth. We will be able to finance a significant part of investments with the benefits of improved efficiency.”