raisio group's financial statements slides 2015
TRANSCRIPT
Raisio’s Financial Statements 2015
CEO Matti Rihko
Raisio plc
15 February 2016
• International
• Focused
• High EBIT
• IPR driven
2015
2007
Grand transition
2
• Domestic
• Multibusiness
• Low EBIT
• Volume driven
2015 • Margarine • Bulk flour • Potato • Benecol • Malt • Cattle, fish, pork, poultry
and fur feeds • Food Diagnostics • Oil Milling
• Benecol • Snack & Cereal • Confectionery • Raisioagro ---------------- • Benemilk
2
2015
-5
0
5
10
15
20
25
30
35
40
45
50
55
Group EBIT
3
Rolling 12 months EBIT
(Continuing operations, excluding one-off items)
7/2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
M€
0.03 0.04
0.07
0.09 0.10
0.11 0.12
0.13
0.14
0.16
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
€
4
*
Great dividend history
*The Board’s dividend proposal
Equity ratio
5
75 78 78 73
68 60 64
68
60 62
0
10
20
30
40
50
60
70
80
90
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
%
Raisio’s Q4/2015
• Strong organic growth for Benecol products in the UK
• Growth expected to continue in 2016
• The first after-acquisition TV campaign carried out on Raisio’s own terms boosted sales in the UK, Finland, Poland and Ireland
• Benemilk had its first Primafat order
• Raisio closing the Southall site at the end of March 2016
• Sustainably farmed Benella Rainbow Trout interests consumers, sells well and is recommended by WWF
6
Raisio’s Q4/2015 in figures
7
• Group EBIT 12.0 (8.9) M€*
• +34%
• 9.8 (7.6)% of net sales*
• Group net sales 122.7 (117.8) M€
• Brands Division EBIT 13.9 (10.6) M€*
• +32%
• 14.3 (12.5)% of net sales*
• Raisioagro EBIT 0.0 (0.0) M€*
* Excluding one-off items
8
8.9
12.0
0
2
4
6
8
10
0
5
10
15
Q4/2014 Q4/2015
%
EBIT EBIT %
Excluding one-off items M€
Group EBIT
Raisio’s 2015
• Acquisition of Benecol consumer product business late 2014 was an important deal for Raisio; Benecol products showed strong organic growth at the end of 2015
• New European organisation in Confectionery business, sales growth in own brands
• Good year for Northern European Snack & Cereal business, particularly good sales for new Elovena snacks
• In the UK, operations of Snack & Cereal business enhanced and adjusted to market conditions
• Difficulties in dairy farming resulted in the switch to less expensive feeds with lower added value. At the same time, Benemilk performed well as a value-added product
• Benemilk had its first Primafat order
9
Raisio’s 2015 in figures
10
• Group EBIT 51.7 (34.8) M€*
• +48%
• 9.9 (7.0)% of net sales*
• Group net sales 521.2 (493.9) M€
• Cash flow from operations 65.0 (26.2) M€
• Board’s dividend proposal 0.16 (0.14) €/share
• +14%
• Brands Division EBIT 55.4 (35.9) M€*
• +54%
• 14.4 (11.7) % of net sales
• Raisioagro EBIT 2.8 (3.4) M€*
* Excluding one-off items
31.8 34.6
39.3 34.8
51.7
0
2
4
6
8
10
12
0
10
20
30
40
50
60
2011 2012 2013 2014 2015
EBIT EBIT %
Group EBIT
11
M€ % Excluding one-off items
6.1 6.6 8.0
5.4
9.6 10.2 10.6
11.0
8.5
14.0
10.7 10.7
12.0 12.1
16.0
4.9
6.6
8.4 8.9
12.0
0
5
10
15
20
Excluding one-off items
Group EBIT by quarters
M€
12
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
0
100
200
300
400
500
600
700
2011 2012 2013 2014 2015
13
M€
521
553 584 558
Brands Raisioagro
494
Group net sales
122 135 128
117 123
151 151 149
133
142 142 161
150
127 135 139 138 131
118 123
0
50
100
150
200
Group net sales by quarters
M€
14
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
Key figures, result
Q4/ 2015
Q4/ 2014
Q3/ 2015
Q2/ 2015
Q1/ 2015 2015
2014
Net sales M€ 122.7 117.8 134.5 141.5 122.5 521.2 493.9
Change in net sales % 4.2 -10.2 5.9 6.8 5.0 5.5 -11.4
EBIT M€ 5.7 -7.2 16.0 11.1 9.6 42.4 6.9
EBIT excluding one-off items M€ 12.0 8.9 16.0 14.0 9.6 51.7 34.8
EBIT excluding one-off items % 9.8 7.6 11.9 9.9 7.9 9.9 7.0
Depreciation and impairment M€ 7.1 15.4 3.5 6.9 3.6 21.1 32.9
Depreciation and impairment excluding one-off items
M€ 3.5 3.4 3.5 5.9 3.6 16.5 14.6
EBITDA M€ 12.8 8.3 19.5 18.0 13.2 63.6 39.8
EBITDA excluding one-off items
M€ 15.4 12.3 19.5 20.0 13.2 68.1 49.5
Financial items M€ -1.0 -1.0 -0.7 -0.4 -0.5 -2.5 -1.5
Earnings per share (EPS) € 0.04 -0.04 0.08 0.05 0.05 0.22 0.04
Earnings per share (EPS) excluding one-off items
€ 0.06 0.05 0.08 0.07 0.05 0.26 0.18
15
Key figures, balance sheet
2015 2014
Equity ratio % 62.3 60.2
Gearing % 12.1 22.2
Interest bearing net debt M€ 42.2 72.2
Equity per share € 2.23 2.07
Dividend per share € 0.16* 0.14
Investments M€ 11.0 104.9**
16
*The Board’s dividend proposal to AGM **Including acquisition
Outlook for 2016
Despite the weakened visibility and difficult market conditions,
Raisio expects its EBIT to improve in 2016.
17
18
Brands
Brands 2015
• EBIT 55.4 (35.9) M€*
• EBIT 14.4 (11.7)% of net sales*
• Benecol business acquired late 2014 and its organic growth were key factors in EBIT improvement and net sales growth
19 * Excluding one-off items
Net sales 2015 2014
Snack & Cereal M€ 138.9 141.7
Benecol M€ 140.3 62.3
Confectionery M€ 105.4 100.6
Total M€ 385.1 306.1
31.2
37.4
41.4
35.9
55.4
0
2
4
6
8
10
12
14
16
18
0
10
20
30
40
50
60
2011 2012 2013 2014 2015
EBIT EBIT %
20
M€ % Excluding one-off items
Brand Division’s EBIT
5.8
9.0 9.4
6.4
11.3
8.4
11.0 11.1
8.2
14.3
10.4 9.7
10.8 10.8
15.8
6.6 7.6
10.0 10.6
13.9
0
5
10
15
20
Excluding one-off items
Brand Division’s EBIT by quarters
M€
21
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
315 330 305 306
385
0
50
100
150
200
250
300
350
400
450
2011 2012 2013 2014 2015
22
M€
Brand Division’s net sales
Benecol
• Strong organic growth in the UK at the end of 2015
• Benecol consumer product business acquired in the UK, Ireland and Belgium integrated to Raisio as planned
• In Poland, profitability improved due to streamlining efforts completed
• In Finland, increased sales in Benecol spreads
• Benecol products launched in China and South Korea, strong growth in Asia
• At the end of 2015, Olivio started as Raisio’s licensing partner in the USA with Benecol spread
23
New Benecol products
24
Benecol powder supplement launched in China in June 2015
Raisio renewed the brand image of spreads sold in the UK, Ireland and Belgium at the end of 2015
• Improvement for Northern Europe
• EBIT clearly up from the comparison period
• Clear increase in sales of Elovena and Provena products
• New Elovena products sold well
• Russia’s EBIT clearly positive
• Improvement in the UK, EBIT remains negative
• Low sales in cereal category, production adjusted to market; Southall site will be closed
• Production of Newport site enhanced
• Sales growing in nibbles as a category
Snack & Cereal
25
Confectionery
27
• Steady performance for Confectionery
• In the UK, sales increased in Raisio’s own branded products
• Extensive promotional campaign increased sales with renewed Fox’s confectionery
• Sales growth for Poppets and XXX confectionery
• Leicester site’s efforts to improve cost-effectiveness and service levels continued
• Sales grew in Raisio’s own Pedro and Juicee Gummee confectionery in the Czech Republic
• Free from products, a growing consumer trend
Benemilk
• In addition to the licensing model, a business model based on Primafat ingredient sales was established in spring 2015
• First Primafat order at the end of 2015; Benemilk is no longer a pre-revenue company
• First patents obtained 2015 in South Africa
• Benemilk Ltd examining conditions and opportunities to obtain new financing
28
29
Raisioagro
Raisioagro 2015
30
Kiristyvä kilpailu lisännyt tarvetta tarkastella eri toimintojen kannattavuutta
• EBIT 2.8 (3.4) M€*
• Net sales 145.9 (201.6) M€
• ROCE improved to 6.9% (6.1%)
• Fish feed sales at the comparison year level, profitability improved
• Difficulties in dairy farming resulted in the switch to less expensive feeds with lower added value. At the same time, Benemilk performed well as an added value product
• In farming supplies, focus on more profitable product groups. Sales in, e.g., fertilisers significantly down
• Low price levels in Europe weakened profitable grain exports significantly
• Benella Rainbow Trout, created together with the whole production chain, launched to consumers
* Excluding one-off items
Raisioagro’s EBIT
2.9
-0.3
3.1 3.4
2.8
-3
-2
-1
0
1
2
3
4
5
2011 2012 2013 2014 2015
31
M€ Excluding one-off items
0.7
-1.8
-0.6
0.0 0.1
2.3
0.4
1.3 1.4 1.4
0.4
1.2
2.6
2.0
1.3
-0.5
-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€
32
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
Raisioagro’s net sales
241 256 254
202
146
0
50
100
150
200
250
300
2011 2012 2013 2014 2015
33
M€
34