Raisio s Interim Report January-June CEO Matti Rihko Raisio plc 11 August 2015 Q2/2015

Transcription

1 Raisio s Interim Report January-June 2015 CEO Matti Rihko Raisio plc 11 August 2015 Q2/2015

2 Highlights Q2/2015 Raisio s EBIT of 14.0 M is the fourth consecutive quarterly result better than in the comparison period and also Raisio's best quarterly result Raisio raising the guidance for the financial period Raisio estimates its 2015 net sales to increase from last year and EBIT margin, excluding one-off items, to be clearly higher than the 7.0 per cent of

3 Raisio Group Q2/2015 EBIT 14.0 (8.5) M, +65% 9.9% (6.4%) of net sales Brands Division s EBIT 14.3 (8.2) M, +74% EBIT 14.6% (11.1%) of net sales Group profitability primarily improved due to the Benecol business acquired in November 2014 EBIT for UK s Cereal and Snack business positive Raisioagro s EBIT of 1.4 M at the comparison period level Strong cash flow from business operations, 18.6 (5.8) M One of the world's strongest patent portfolios in cattle feeds developed for Benemilk during

4 Group EBIT 2007 Q2/2015 M Q2/2015 (Continuing operations, excluding one-off items) Rolling 12 months EBIT 4

5 Group EBIT M Excluding one-off items % / / EBIT EBIT % 5

6 Group EBIT by quarters M 15 Excluding one-off items Q1 Q2 Q3 Q

7 Great dividend history

8 Group net sales M / /2015 Brands Raisioagro 8

9 Group net sales by quarters M Q1 Q2 Q3 Q

10 Key figures, result 4-6/ / / / Net sales M Change in net sales % EBIT M EBIT % Depreciation and impairment M EBITDA M Net financial expenses M Earnings per share (EPS) Figures excluding one-off items 10

11 Key figures, balance sheet 1-6/ / Equity ratio % Gearing % Net-interest bearing debt M Equity per share Investments* M * Including acquisitions 11

12 Brands 12

13 Brands Division Brands Division and key markets: Snack & Cereal: UK, Northern Europe, Russia Home markets for Benecol consumer products: UK, Ireland, Belgium, Poland, Finland, Portugal and Hong Kong as well as ingredient sales to licensing partners Confectionery: UK, Czech Republic and export Benemilk Ltd Net sales 97.8 (73.7) M EBIT 14.3 (8.2) M * One-off items of 2.9 M include a write-down from the divestment of Sulma pasta factory in Poland and streamlining efforts at UK s Southall factory * Excluding one-off items 13

14 Benecol Net sales 36.0 (13.9) M Net sales increased by almost 20 million euros due to the Benecol business acquired from Johnson & Johnson Benecol accounts for clearly over 50% of the Brands Division s EBIT Sale of plant stanol ester to licensing partners at the comparison period level Benecol is the market leader in the UK and Poland that are also the largest markets for Benecol consumer products Benecol products launched in China in June 2015; South Korea and Brazil other new market launches 14

15 Snack & Cereal Net sales 36.3 (35.6) M UK improved EBIT for snack bars positive and up from the comparison period Production efficiency further improved at the Newport factory EBIT for Cereal business at the comparison period level, but negative Production of savoury snacks terminated at the Southall factory, which decreases costs and increases flexibility North Europe improved EBIT clearly better than in the comparison period Elovena product range expanded, instant porridges increased in popularity Gluten-free is a consumer trend also in Finland, Provena product range expanded Positive EBIT for Russia 15

16 Benemilk Active development work to expand and strengthen IPR Almost 30 patent applications in the portfolio Good activity with partner candidates continued New feeding trials under preparation with partner candidates for the end of 2015 In addition to the licensing model, an ingredient business model has been developed Sale of Primafat ingredient will cover the feeding models of all essential highly developed milk chains We aim at close cooperation with globally operating producers and processors of palmitic acid 16

17 Confectionery Net sales increased, EBIT slightly down due to increased marketing campaigns Sales growth in Raisio s own branded products in the UK and Czech Republic Despite the UK s steady consumer demand, sales grew significantly in Poppets, XXX and Just brands Intense industrial competition for retailers private label orders continued and Big Bear s production volumes were down from the comparison period Real fruit juice containing Fox s Candy Bear products launched in the UK 17

18 Brands Division s EBIT M Excluding one-off items % / /2015 EBIT EBIT % 0 18

19 Brands Division s EBIT by quarters M Excludind one-off items Q1 Q2 Q3 Q

20 Brands Division s net sales M / /2015 Net sales Q2/2015: 97.8 M (73.7 M ) 20

21 Raisioagro 21

22 Raisioagro EBIT at the comparison period level, relative profitability improved Sales in highly processed special products increased Sales in farming supplies for dairy farms increased Slow start for the fish feed season due to cold spring Net sales cut by 28% Comparison period net sales include vegetable oils and pig and poultry feeds whose production were discontinued in autumn 2014 Working capital was 9 M lower than in the comparison period due to streamlining efforts 22

23 Raisioagro Cattle feeds In Finland, over 10% of dairy cattle Benemilk-fed Component feeding more commonly used, concentrates and protein concentrates increasing in popularity Cattle feed market remained cautious due to the milk import ban in Russia Export of Benemilk feeds to Russia started again Fish feeds Cold spring and cool waters slowed down the start of the fish feed season Raisioaqua launched Hercules Plus feed innovation enhancing fish growth and increasing egg production Online store Online sales grew by over 50% Customer base and order volume significantly higher than in the comparison period 23

24 Raisioagro s EBIT M Excluding one-off items / /

25 Raisioagro s EBIT by quarters M Excluding one-off items Q1 Q2 Q3 Q

26 Raisioagro s net sales M / /2015 Net sales Q2/2015: 44.7 M (62.6 M ) 26

27 Guidance 2015 Raisio expects its EBIT to return on its long-term upward trend. Raisio estimates its net sales of 2015 to increase from last year and EBIT margin, excluding one-off items, to be clearly higher than the 7.0 per cent of

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