Benecol-maker Raisio has reported an 11.3% year-on-year increase in net sales, to €66.7 million, in the second quarter of its financial year.
Comparable EBIT for the quarter amounted to €5.3 million, down 24.7%, accounting for 7.9% of net sales.
The company’s healthy food segment generated sales worth €34.7 million, up from €31.6 million in the same period last year.
Net sales in the company’s healthy ingredients segment amounted to €38.9 during the quarter, increasing from €34.3 million last year.
Pekka Kuusniemi, CEO of Raisio, said, “The pandemic that took hold the previous spring has caused considerable anomalies in Raisio’s market environment, and fluctuations in certain market and customer segments have been unprecedentedly large.
“The company’s financial performance was burdened by costs from the start-up of the new production facility and the as yet unprofitable EBIT of Verso Food Oy, which was acquired in April.”
Half-Year Performance
The group saw net sales increase by 1.7% to €116.6 million in the first half ended 30 June.
Comparable EBITDA for this period amounted to €13.3 million, down from €16.7 million in the first half of 2020.
The company’s healthy food segment saw sales worth €69.1 million, with comparable EBIT of €8.9 million, which comprised 12.9% of net sales.
The healthy ingredients division generated net sales of €61.2, up from €59.9 million last year.
The segment’s comparable EBIT amounted to €2.9 million, accounting for 4.8% of net sales.
Outlook
The company has estimated that net sales will increase during the financial year, but costs accrued from ‘front-loaded’ growth investments will put pressure on its profitability in 2021.
“The ever-changing pandemic situation within the different markets has continued to have an impact on demand, but in the UK market; for example, we managed to adapt to the new situation, particularly through changes in distribution, and the resulting development has been positive in relation to the comparison period," Kuusniemi added.
“On the whole, the demand situation within the markets in which Raisio operates has stabilised in terms of volume fluctuations, but, as I see it, the effects of the pandemic, such as the strong growth in online shopping, will permanently affect market dynamics.”
In June, Raisio announced an updated strategy and new targets for its Good Food Plan responsibility programme for 2022–2025.
