interim report 1 january-30 june 2011
TRANSCRIPT
Raisio Interim Report January-June 2011
CEO Matti Rihko 16 August 2011
Raisio Group Q2/2011
• The quarter as planned with no disturbances affecting business in our market areas
• Net sales growth +30%
• 150,5 M€ vs.115,7 M€
• EBIT improvement +73%
• 10.2 M€ vs. 5.9 M€
• 6.8% of net sales
• Brands Division’s profitability ordinary
• EBIT 10.3% of net sales
• Business to Business Division’s profitability improved
• EBIT 3.2% of net sales
• In addition, a one-off gain of 4.8 M€ for the divestment of malt business
2
Group net sales increased 30%
3
86.9 83.0
121.7
87.0
115.7
150.5
90.8
111.0
85.3
113.9
0
50
100
150
2009 2010 2011
Net sales, M€ (continuing operations)
Q1 Q2 Q3 Q4
2011
4
Group EBIT improved 73 %
4.9 4.4
6.1
3.1
5.9
10.2
7.5
6.3
1.9 2.7
0
4
8
12
2009 2010 2011
EBIT, M€ (continuing operations, excluding one-off items)
Q1 Q2 Q3 Q4
2011
Key figures, result Q2/
2011 Q2/
2010 H1/
2011 H1/
2010 2010
Net sales M€ 150.5 115.7 272.2 198.7 423.6
Net sales change % 30.0 33.1 37.0 14.3 21.0
EBIT M€ 10.2 5.9 16.2* 10.3 19.2
EBIT, % % 6.8 5.1 6.0* 5.2 4.5
Depreciation and impairment M€ 4.1 4.0 8.0 7.3 15.1
EBITDA M€ 14.2 9.9 24.2* 17.6 34.3
Net financial expenses M€ -0.9 -2.9 -1.0* -3.0 -1.9
Earnings per share (EPS) € 0.05 0.01 0.08* 0.03 0.08
Earnings per share (EPS), diluted
€ 0.05 0.01 0.08* 0.03 0.08
Earnings per share (EPS), discontinued operations
€ 0.03 0.00 0.03 0.00 0.00
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*Excluding one-off items
Key figures, balance sheet
Q2/ 2011
Q2/ 2010
H1/ 2011
H1/ 2010
2010
Equity ratio % - - 60.7 68.6 67.6
Gearing % - - 13.5 -10.8 -22.5
Net interest-bearing debt M€ - - 42.7 -34.1 -72.9
Equity per share € - - 2.02 2.02 2.06
Gross investements M€ 1.3 41.2* 66.8* 42.6* 48.5*
SHARE
Market capitalisation** M€ - - 379.0 425.3 439.1
Enterprise value (EV) M€ - - 421.7 363.7 356.1
EV/EBITDA - - 10.3 10.2 10.4
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*Including acquisitions **Excluding the shares held by the company
Distribution of Group net sales
56.9 % 24%
17.6 %
1.5 %
By regions
Finland UK
Rest of the Europe Rest of the World
56 %
44 %
By Divisions
Brands
B to B
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Key figures for Divisions
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Brands •+26% growth in net sales
•Net sales 81.1 M€ vs. 64.5 M€
•+46% growth in EBIT
•EBIT 8.4 M€ vs. 5.8 M€, or 10.3% of net sales
Business to Business •+38% growth in net sales
•Net sales 71.0 M€ vs. 51.4 M€
•EBIT almost doubled
•EBIT 2.3 M€ vs. 1.2 M€, or 3.2% of net sales
Brands Division
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Brands: net sales growth +26%
44.5 43.4
72.9
44.2
64.5
81.1
43.5
63.0
45.5
65.5
0
40
80
2009 2010 2011
Net sales M€
Q1 Q2 Q3 Q4
2011
11
Brands: EBIT growth +46%
5.8
4.8
5.8
4.6
5.8
8.4
7.3
6.5
2.8 2.9
0
4
8
2009 2010 2011
EBIT, M€
(excluding one-off items)
Q1 Q2 Q3 Q4
2011
Food: Western Europe
• Increased net sales and improved profitability
• UK operations reorganised and merged together
- Two units: Breakfast and snacks + Confectionery
• Sales in snacks up with new customers and increased demand
• Honey Monster novelties sold well
• Dormen brand strengthened with new customers, growth in brand awareness and strong demand for new products
• Promotional level is expected to remain high also in the future
• Main brands: Honey Monster, Sugar Puffs, Dormen, Harvest Cheweee and Fox’s
12
Food: Northern Europe
• Sales in branded products increased in Finland and Sweden
• Good sales development in Elovena continued
• Nalle children’s products were well received
• Bakery and industrial sales declined with a fall in consumption of bread
• Almost 40% sales increase in non-dairy products sold under Carlshamns brand
• Focus on healthy, ecological snacks
• Range of organic products has expanded
• Growth in international demand for gluten-free
Provena products
• Main brands: Elovena, Sunnuntai, Benecol, Carlshamn, Torino and Provena
13
Food: Eastern Europe
• Sales growth in Nordic products in Russia and Ukraine
• Sales growth of 40% in Benecol products boosted by launching of spoonable snacks in Poland last spring
• Elovena sales in Poland doubled
• Raisio started online trade of gluten-free Provena products
• Main brands: Nordic, Elovena, Benecol
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Benecol
• Great differences between the market areas of Benecol products
- Strong sales growth continued in the UK, the largest market of Benecol products
- Tight competition continued in Poland and Spain
- In Indonesia, Raisio’s partner supported the sales growth of Benecol with its marketing activities
• Raisio continues its active work to reach new markets
• Business profitability at its good ordinary level
15
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Business to Business
Business to Business
• Net sales boosted mainly by the product pricing matching the price rise of raw materials
• Profitability improvement mainly from higher sales volume in fish feed and from well developed input trade
• Increase in volume of fish and chicken feeds, decline in other animal sector
• Profitability problems of livestock production shown in shown in B-to-B operations
- The situation particularly difficult in pork sector
• Input trade to feed customers will be increased
• Volatility in raw material prices is expected to continue
• Availability of Finnish rapeseed challenging in the new harvest season
• Raisio sold its malt business in June
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Kuva:Wallapaper77.com
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45.0 39.9
49.5 45.0
51.4
71.0
49.5 48.4
40.2
49.0
0
40
80
2009 2010 2011
Net sales, M€
Q1 Q2 Q3 Q4
2011
Price rise in raw materials increased B-to-B net sales
19
EBIT of B-to-B Division almost doubled
0.5
0.1
0.7
-0.8
1.2
2.3
0.5
0.2
-0.3
0.4
-1
0
1
2
3
2009 2010 2011
EBIT, M€
(excluding one-off items)
Q1 Q2 Q3 Q4
2011
Outlook unchanged 2011
• Raisio continues implementing its growth phase
according to plan.
• Activeness in growth projects brings extensive
costs in relation to the company size,
thus undermining profitability in the short term.
• The Group’s target is to maintain the earlier
profitability level of 4-5% also during the
growth phase.
• However, Raisio has so far been able to exceed the set profitability level (H1/2011: EBIT% 6.0) despite the changes of market environment.
• Economic crisis also opens up interesting prospects for future acquisitions.
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