Finnish food group Raisio has reported a €7.6 million year-on-year drop in net sales in the third quarter of its financial year.
EBIT was down €1.8 million for the quarter when compared with the same period last year.t
The performance has been attributed to the interrupted export of Raisioaqua’s fish feeds to Russia.
The company, which sold its cattle feed business earlier this year for €34 million, expects sales profit to amount to €12.5 million.
Increased Marketing Investments
Raisio has increased marketing investments in its key brands Benecol and Elovena by around €1 million to boost the sales of new products.
President and CEO of Raisio, Pekka Kuusniemi, said, “In line with our plans, we have initiated corrective measures in the markets where the development of net sales and profitability did not meet the expectations in the first half of the year.
"Thanks to the price increases carried out in Russia, net sales and profitability in local currency already returned to the comparison period level.”
Focus On Core Business
Focus on core business and reorganisation in Poland has resulted in reversing the company’s negative performance in the first half of its financial year.
The Benecol maker plans to focus on healthy, plant-based food, and fish feeds segments, as the markets look promising for these products, it noted.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.