Raisio Group's Interim Report January-March 2016
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Transcript of Raisio Group's Interim Report January-March 2016
1
Raisio’s Interim Report
January-March 2016
CEO Matti Rihko Raisio plc
10 May 2016
-5
0
5
10
15
20
25
30
35
40
45
50
55
Group EBIT
2
7/2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1/2016
M€
Rolling 12 months EBIT
(Continuing operations, excluding one-off items)
The Group
• EBIT 9.7 (9.6) M€
• EBIT margin 8.5 (7.9)%
• Net sales 114.0 (122.5) M€
Brands
• EBIT 11.4 (11.3) M€
• EBIT margin 12.6 (12.1)%
• Net sales 90.2 (93.7) M€
Raisioagro
• EBIT 0.0 (0.1) M€
• Net sales 27.1 (32.6) M€
3
Raisio’s Q1/2016 in figures
Raisio’s Q1/2016
• Benecol successful in the home markets of consumer products
• Organic growth in the UK, Ireland and Poland
• Good quarter for Confectionery business
• Clear sales growth in Raisio’s own confectionery brands
• Good growth for Elovena snacks and gluten-free Provena products
• Benemilk Ltd’s sales to China increased; EBIT and cash flow negative
• Decision on possible financial arrangements for the Benemilk funding during summer 2016
4
34.6
39.3
34.8
51.7
9.6 9.7
0
2
4
6
8
10
12
0
10
20
30
40
50
60
2012 2013 2014 2015 1-3/2015 1-3/2016
EBIT EBIT %
M€ % Excluding one-off items
5
Group EBIT
6.6
8.0
5.4
9.6 9.7 10.6 11.0
8.5
14.0
10.7
12.0 12.1
16.0
6.6
8.4 8.9
12.0
0
5
10
15
20
Excluding one-off items
Group EBIT by quarters
M€
6
Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
0
100
200
300
400
500
600
700
2012 2013 2014 2015 1-3/2015 1-3/2016
Group net sales
7
M€
584 558
123 114
Brands Raisioagro
494 521
Key figures, result
Q1/ 2016
Q1/ 2015 2015
Net sales M€ 114.0 122.5 521.2
Change in net sales % -6.9 5.0 5.5
EBIT M€ 9.7 9.6 42.4
One-off items M€ 0.0 0.0 -9.2
EBIT excluding one-off items M€ 9.7 9.6 51.7
EBIT excluding one-off items % 8.5 7.9 9.9
Depreciation and impairment excluding one-off items
M€ 3.1 3.6 16.5
EBITDA excluding one-off items
M€ 12.7 13.2 68.1
Financial items M€ -0.9 -0.5 -2.5
Earnings per share (EPS) excluding one-off items
€ 0.05 0.05 0.26
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Key figures, balance sheet
Q1/ 2016
Q1/ 2015
2015
Equity ratio % 58.7 55.7 62.3
Gearing % 14.7 20.6 12.1
Net interest-bearing debt M€ 46.6 67.4 42.2
Equity per share € 2.02 2.08 2.23
Investments M€ 4.0 2.1 11.0
9
10
Brands
37.4 41.4
35.9
55.4
11.3 11.4
0
2
4
6
8
10
12
14
16
0
10
20
30
40
50
60
2012 2013 2014 2015 1-3/2015 1-3/2016
EBIT EBIT %
Brand Division’s EBIT
11
M€ % Excluding one-off items
9.0 9.4
6.4
11.3 11.4 11.0 11.1
8.2
14.3
9.7 10.8 10.8
15.8
7.6
10.0 10.6
13.9
0
5
10
15
20
Excluding one-off items
Brand Division’s EBIT by quarters
M€
12
Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
Brand Division’s net sales
330
305 306
385
94 90
0
50
100
150
200
250
300
350
400
450
2012 2013 2014 2015 1-3/2015 1-3/2016
13
M€
Benecol
• Net sales at the comparison period level
• Strong EBIT, up from the comparison period
• Home markets of consumer products: • In the UK, increased sales of spreads
• In Ireland, increased sales of spreads, yoghurt drinks and yoghurts
• In Poland, steadily improving performance strengthened the position of spreads as a market leader
• Slight increase in sales of Benecol ingredient to partners • Sales of Raisio’s partner in Indonesia
increased by 50%
• New partners started in the USA and Portugal
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• Improved EBIT for Northern Europe
• Increased sales for Elovena products. Particularly good sales were seen in Elovena snack biscuits, snack bars and instant porridges
• Clear sales growth in gluten-free Provena products
• Positive EBIT in Russia
• Sales volume down due to price increases following exchange rates
• Negative EBIT in the UK
• Honey Monster brand licensed to Brecks with an agreement signed on 13 April
• In Newport, many contract manufacturing partners adjusted their orders to tightening market conditions
Healthy Snacking
15
Confectionery
• Clearly improved EBIT
• Slightly increased net sales
• In the UK, sales growth for Raisio’s own Poppets, Fox’s and XXX brands
• In the Czech Republic, sales increased in Raisio’s own Pedro and Juicee Gummee brands
• Higher sales volumes in products made under partners’ brands and in retailers’ private label products
16
Forerunner in responsible brands
17
Sustainable food chain
Product safety
Growing interest in the origin of food and responsible production
Carbon and water footprint labels
since 2008
Top-notch traceability in contract
farming
A versatile selection of gluten-free products
TRENDS:
Ecological and healthy snacking
Certified production facilities
More than 20 products with
a carbon footprint label
Raisio’s Responsibility Programme 2016-2018 promoting sustainable
food chain
Healthy choices for consumers
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The original expert in cholesterol lowering
Eco-friendly, responsibly produced
and healthy
Healthy and natural snacking
Stomach-friendly,
gluten-free superfood
Food as a source of health and well-being
TRENDS:
Increasing demand for snacks
Increasing importance of farmed fish as a source of
protein
Wholegrain and
low-sugar products
FreeFrom products Heart-labeled
products
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Raisioagro
-1.8
-0.6
0.0 0.1 0.0 0.4
1.3 1.4 1.4 1.2
2.6
2.0
1.3
-0.1 -0.3
0.0 0.0
-3
-2
-1
0
1
2
3
Excluding one-off items
Raisioagro’s EBIT by quarters
M€
20
Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
54 54 49
33 27
65
71
63
45
75 76
54
40
61
53
36
28
0
10
20
30
40
50
60
70
80
90
Raisioagro’s net sales by quarters
M€
21
Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
Raisioagro Q1/2016
22
Kiristyvä kilpailu lisännyt tarvetta tarkastella eri toimintojen kannattavuutta
• Improved relative profitability for feeds
• Eco-friendly, healthy Benella Rainbow Trout successful in the markets
• Decision to start using Baltic Blend in fish feeds
• Sales volume of fertilisers and other farming supplies decreased
• Farmers continued to switch from value-added feeds to less expensive feeds; about 7% of Finnish dairy cows eat Benemilk feeds
• Fish feed season was opened as Russian customers started to stock up
9.5.2016
New fish feed innovation to decrease nutrients in
the Baltic Sea
Adding value of Baltic herring and sprat
used in the feed by producing it into
rainbow trout
23
The Baltic Sea feed - reality in 2016 ”We have a chance to eat the Baltic Sea in to better condition Benella by Benella.”
Less phosphorus and nitrogen returned to the sea than removed
with the fish
Baltic herring and sprat
caught from the Baltic Sea
Fishmeal and oil made
from fish
Fish farmed for human
consumption
Fresh fish for consumers
Raisioaqua manufactures
feeds
Phosphorus and nitrogen removed with farmed fish
Phosphorus and nitrogen removed from the sea
Baltic herring eats zooplankton
Zooplankton eats phytoplankton
Phytoplankton binds the released
phosphorus
24
Phosphorus and nitrogen load of the Baltic Sea Fish farming in Finland 13,000 tons (13 million kg)
BEFORE
Phosphorus 57,000 kg Nitrogen 517,000 kg
NOW (BALTIC BLEND)
Phosphorus -19,000 kg Nitrogen 5,000 kg
DIFFERENCE Phosphorus -75,000 kg Nitrogen -512,000 kg
Increase in fish farming would increase external nutrient load.
Increase in fish farming does not increase the load but reduces it.
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