raisio group's half-year report january-june 2016
TRANSCRIPT
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Raisio’s Half-year financial report
January-June 2016
CEO Matti Rihko Raisio plc
10 August 2016
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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 Q2/2016
M€
Rolling 12 months EBIT
(Comparable EBIT)
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The Group
• EBIT 15.0 (14.0) M€
• EBIT margin 12.1 (9.9) %
• Net sales 124.1 (141.5) M€
Brands
• EBIT 14.2 (14.3) M€
• EBIT margin 16.1 (14.6) %
• Net sales 88.2 (97.8) M€
Raisioagro
• EBIT 1.4 (1.4) M€
• Net sales 37.7 (44.7) M€
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Raisio’s Q2/2016 in figures
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Raisio’s Q2/2016
• Honey Monster brand licensed
• After the review period, Newport snack bar business sold
• Raisio still owns a land area of over three hectares in Southall, London
• Brexit affects exchange rates and increases economic uncertainty in the short and long term
• A time-out with Benemilk’s international licensing
• In Finland, Benemilk has made a breakthrough; sales continued as usual
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34.6
39.3
34.8
51.7
23.7 24.7
0
2
4
6
8
10
12
0
10
20
30
40
50
60
2012 2013 2014 2015 1-6/2015 1-6/2016
EBIT EBIT %
M€ % Comparable figures
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Group EBIT
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6.6 8.0
5.4
9.6 9.7 10.6 11.0
8.5
14.0
15.0
10.7 12.0
12.1
16.0
6.6
8.4
8.9
12.0
0
5
10
15
20
Group EBIT by quarters
M€
6
Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
Comparable figures
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0
100
200
300
400
500
600
700
2012 2013 2014 2015 1-6/2015 1-6/2016
Group net sales
7
M€
584 558
264 238
Brands Raisioagro
494 521
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Key figures, comparable income statement
4-6/ 2016
4-6/ 2015
1-6/ 2016
1-6/ 2015 2015
Net sales M€ 124.1 141.5 238.1 264.0 521.2
Change in net sales % -12.3 6.8 -9.8 6.0 5.5
EBIT M€ 15.0 14.0 24.7 23.7 51.7
EBIT % 12.1 9.9 10.4 9.0 9.9
Depreciation and impairment M€ -3.1 -5.9 -6.1 -9.5 -16.5
EBITDA M€ 18.1 20.0 30.8 33.2 68.1
Financial items M€ -0.9 -0.4 -1.8 -0.8 -2.5
Earnings per share (EPS) € 0.07 0.07 0.12 0.12 0.26
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Key figures, balance sheet
1-6/ 2016
1-6/ 2015
2015
Equity ratio % 61.4 57.5 62.3
Gearing % 19.7 22.4 12.1
Net-interest-bearing debt M€ 59.6 75.6 42.2
Equity per share € 1.92 2.15 2.23
Investments M€ 8.3 5.1 11.0
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Brands
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37.4 41.4
35.9
55.4
25.6 25.6
0
2
4
6
8
10
12
14
16
0
10
20
30
40
50
60
2012 2013 2014 2015 1-6/2015 1-6/2016
EBIT EBIT %
Brand Division’s EBIT
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M€ % Comparable figures
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9.0 9.4
6.4
11.3 11.4 11.0 11.1
8.2
14.3 14.2
9.7 10.8
10.8
15.8
7.6
10.0
10.6
13.9
0
5
10
15
20
Brand Division’s EBIT by quarters
M€
12
Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
Comparable figures
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Brand Division’s net sales
330
305 306
385
192 178
0
50
100
150
200
250
300
350
400
450
2012 2013 2014 2015 1-6/2015 1-6/2016
13
M€
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Benecol
• Net sales slightly decreased from the comparison period due to the weakened pound; sales volume remained the same
• EBIT improved from the comparison period
• Home markets, consumer products: • Volumes of spreads increased in the UK, Poland and Finland
• Net sales increased in Hong Kong
• Increase in Benecol ingredient sales to licensing partners
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• Retail sales of Elovena products developed well. Particularly good sales growth for new Elovena snack biscuits, snack bars and instant porridges
• Positive EBIT in Russia and Ukraine
• Increased sales volume
• Divested HM and Newport at a loss
• Honey Monster brand was licensed
• Newport snack bar business was divested in July after the review period
Healthy Snacking
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Confectionery
• EBIT improved and net sales increased
• In the UK, sales growth for Raisio’s own Fox’s brand
• In the Czech Republic, sales grew in Raisio’s own Pedro brand
• Sales volumes continued to grow in products made under partner brands and retailers’ private label products
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Consumers involved in the development of naturally healthier snacks
• Raisio has interviewed more than 4,000 consumers during the year
- Snacking at home and at work
- Consumer Online Team has refined findings into ideas
• Traditional products updated with new ingredients
• Novelties in interesting product groups
• Integration of packaging and social media brought Elovena the Xerox Best-of-the-Best Packaging Award
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Raisioagro
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-0.3
3.1 3.4 2.8
1.5 1.4
-3
-2
-1
0
1
2
3
4
5
2012 2013 2014 2015 1-6/2015 1-6/2016
Raisioagro’s EBIT
20
M€ Comparable figures
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-1.8
-0.6
0.0 0.1 0.0 0.4
1.3 1.4 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
Raisioagro’s EBIT by quarters
M€
21
Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
Comparable figures
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54 54 49
33 27
65
71
63
45 38
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€
22
Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
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Raisioagro Q2/2016
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Kiristyvä kilpailu lisännyt tarvetta tarkastella eri toimintojen kannattavuutta
• Net sales decreased due to lower grain exports and fertiliser sales
• EBIT at the comparison period level and ROCE above 10%
• Good start for fish feed season in Finland; sales volumes increased
• Eco-friendly and healthy Benella Rainbow Trout performed well in the market
• Successful launch for the Baltic Blend brand
• Dairy farms continued to switch from added value feeds to more affordable feeds, around 7% of Finnish dairy cows fed with Benemilk
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New ecosystem for the dairy chain emerging in Finland
• Digital service innovation optimising milk production per cow
• More than 100 milking robot farms involved
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