Raisio’s profitability improved, no increase in dividend

Food house Raisio made an adjusted operating profit of 4.4 million in the fourth quarter of 2020, compared to a forecast of EUR 4.0 million. A year ago, operating profit amounted to EUR 4.3 million.

Operating profit is 8.2 percent of net sales, up 2.6 percent from the comparison period.

The company’s net sales were 53.9 million in the fourth quarter and 54.5 million in the comparison period. The forecast was exceeded, as it was EUR 50.3 million. The total effect of currency conversions decreased net sales by EUR -1.6 million, comparable operating result by EUR -0.3 million.

The comparable operating profit for the full financial year was EUR 27.7 million, compared to EUR 27.3 million a year ago.

Earnings per share for the fourth quarter increased to EUR 0.04 from EUR 0.03 in the comparison period, for the full year earnings per share were EUR 0.15, a year ago EUR 0.14.

Raisio’s Board of Directors will propose a dividend of EUR 0.13 to the Annual General Meeting, which is the same as a year ago. Forecasts expected the dividend to increase to EUR 0.14.

The Healthy Foods segment’s net sales were EUR 33.9 million, compared to EUR 35.0 million a year ago. However, the unit’s operating profit improved to EUR 4.2 million, from EUR 4.1 million a year ago.

The Healthy Ingredients segment’s net sales increased to EUR 26.4 million from EUR 25.7 million in the comparison period. The operating result was at last year’s level of EUR 1.8 million.

Turnover is growing, factory investment is eating away at profitability

In 2021, Raisio estimates that net sales will increase from EUR 233.6 million for the past financial year. The frontloaded costs of our growth investments will put pressure on our profitability in 2021 compared to 2020, the company states in a press release.

“The past financial year tested Raisio’s ability to act agilely in very rapidly changing circumstances. The financial year was marked by rapid changes in demand in the spring, changes in consumer behavior caused by lockouts, currency fluctuations, teleworking and constant vigilance to combat the effects of the pandemic. I am pleased to say that the organization showed both excellent flexibility and commitment and we were able to deliver commendable operational performance, ”the CEO Pekka Kuusniemi notes in the release.

“Achieving the second year sub-targets of our three-year strategy period from March proved to be very challenging, especially in terms of expanding into new markets. The implementation of larger research projects, especially clinical trials, will also be largely post-pandemic. Commitment to our purpose and strategy is strong. At the heart of our strategy period is the growth of the oat business. The internationalization of oats progressed well in challenging conditions. As a single market, Finland deserves a special mention, with all brands growing excellently. During the financial year, the megatrends supporting our work have further strengthened. ”

“The uncertain political situation in the UK has overshadowed the Healthy Foods segment since June 2016. The trade agreement finally concluded on Christmas Eve removes this uncertainty, and there will be no changes in the availability of products or consumer price levels due to tariffs. ”

Factory investment is progressing

The construction of the plant, which is nearing completion, has proceeded on schedule, despite the fact that conditions have been very challenging, according to Kuusniemi.

“Consumers will be able to enjoy the new plant-based products in the second half of the year. We will tell you more about the new product categories to be launched during the first half of this year. The modernization of the Nokia mill, which was completed at the beginning of 2020, proved to be successful, we entered new export markets for gluten-free oats, and domestic trade in value-added oats also grew nicely. ”

Source: Arvopaperi by www.arvopaperi.fi.

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