Strategy advancement and food supply assurance under exceptional circumstances
FINANCIAL DEVELOPMENT IN BRIEF
January-
· The Group's net sales totalled
· EBIT was
· The Healthy Food Segment's net sales totalled
· The Healthy Ingredients Segment's net sales totalled
· The return on investments (ROIC) was 4.4% (10%).
· The Group's outlook for 2020 remains unchanged.
KEY FIGURES OF THE GROUP
1-3/2020 1-3/2019 1-12/2019
Net sales M€ 54,7 49,9 236,3
Change in net sales % 9,7 0,4 3,5
EBIT M€ 6,6 5,0 27,3
EBIT of net sales % 12,0 10,0 11,5
EBITDA M€ 8,1 6,6 33,6
Earnings per share € 0,01 0,03 0,16
PRESIDENT AND CEO
Raisio's first quarter of the year was a tour de force for our personnel. This year is the second year of our strategy period and its leading theme is the internationalisation of our oat-based added-value products. In January, we announced two strategic steps we have taken to this end; namely, the modernisation of the Nokia mill, particularly to enable the production of gluten-free oat products, and the update of our 95-year-old Elovena brand to make it more suitable for international markets and new product categories.
The nature of our operations changed during the quarter as a result of the pandemic and took on a very tactical approach aimed at maximising our supply capability. Demand shifted strongly to retail sales as demand in the Food Service-sector declined rapidly due to operational difficulties experienced by the sector's customers. Grain-based products were of particular interest to consumers stocking up during March and, at the same time, the retail business focused on ordering large volume products as a means of surviving the logistical challenges presented by the period of increased demand. We also focused the volumes within our own supply chain and managed, I believe, to do an excellent job keeping up with the changes in demand brought on by the exceptional circumstances.
The new sales for the first quarter rose by nearly ten per cent in relation to the comparison period for a total of
The investment in the development and production facility for our plant-based added-value products has proceeded completely according to plan and we have already recruited all of the key personnel needed to start up operations. For the time being, the exceptional situation has not caused delays for the project. Of the almost
As the exceptional situation continues, we have prepared well in terms of the availability of our ingredients, and our supply capabilities are secured to this end up until the new harvest season. Travel restrictions will cause a labour shortage in agriculture during the upcoming harvest season, but the impact will be less for grain farming than for those farms that rely more on hand labour. Our personnel have shown tremendous flexibility amidst a rapidly changing environment. We have managed to scale our production quickly and do our part to safeguard the food supply. During the review period, we have also taken on a number of new recruits to fulfil the rapid needs created by growth in line with the company's strategy. I offer my warmest gratitude to our entire personnel for a job well done under the ongoing exceptional conditions.
OUTLOOK 2020
The Group's outlook remains unchanged.
In 2020, Raisio expects its net sales for continuing operations to grow (2019:
Raisio will continue its investments in the brands, R&D and the company's own production in its most important product categories.
In Raisio,
Board of Directors
Further information:
Pekka Kuusniemi, President and CEO, tel. +358 50 537 3883
The information in this Interim Report is unaudited.
Raisio's Half-Year Report for 2020 will be published on
Raisio is an international company specialised in healthy, responsibly produced food, ingredients and fish feeds. Our well-known brands include, for example, Benecol, Elovena, Sunnuntai,
Distribution
Nasdaq
www.raisio.com
Key media
https://news.cision.com/raisio-oyj/r/raisio-plc--interim-report-january-march-2020,c3104925
https://mb.cision.com/Main/19289/3104925/1242599.pdf
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