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Financial Statements Bulletin 2018: Raisio is now an international brand house focusing on healthy food

Pekka Kuusniemi

CEO’S REVIEW  

“The year 2018 was a period of strong renewal and construction of the new for Raisio. The company now has a clear focus: healthy food. Our goal is to be an innovative and increasingly international brand house.

We have now built a solid foundation for our next steps. Our purpose and values defined together with the staff create the basis for all our work and guide the decision-making. In line with its strategy, Raisio will focus on securing the growth and profitability of its core operations in 2019.  

In 2018, several separate events affected Raisio’s sales and profitability. The most significant impacts on EBIT were the EBIT decrease of EUR 2.5 million on the comparison year due to the Russian fish feed import ban, planned growth of marketing costs and challenges faced in the Russian and Polish consumer product markets. EBIT for Russia and Poland declined by EUR 2 million on the comparison year. Raisio has identified the problem areas in these markets, carried out corrective measures and managed to turn the direction of the businesses. Furthermore, exceptionally poor harvest in Finland together with a grain price increase of up to 60 per cent decreased profitability. Raisio promptly reacted to the situation with price changes.

For Raisioaqua, the second half of 2018 was exceptional as the Russian authorities closed the border in August. After the border was reopened in December, Raisioaqua continued to finalise the 2019 fish feed contracts with its Russian customers, whose confidence in Raisioaqua remains very high.

Raisio’s most significant novelty was launched in the autumn: Elovena Muru Oat Mince, a plant-based protein product for versatile cooking. Elovena Muru has been very well received by consumers.

The product has shown its ability to grow the whole category and to compete for the market leadership.

Our Benecol product range expanded into new categories. We increased our marketing investment to boost the sales of novelties and to gain new Benecol consumers. In our key Benecol product markets, we have started long-term work to increase healthcare professionals’ knowledge on cholesterol and on safe and effective Benecol products proven to lower cholesterol.

Raisio’s balance sheet has further strengthened, which enables the company to implement its long-term growth strategy.”

>> Raisio plc's Financial Statements Bulletin 2018