Raisio Reports 'Satisfactory' Performance As Sales Fall In Q2
Finland's Raisio Group, the maker of Benecol, has reported that comparable net sales totalled €196.8 million for the first six months of 2017, representing a decrease of 17.3% compared to the same period last year.
In the group's second quarter, from April to June 2017, comparable net sales fell 16% to €104.3 million, while comparable EBIT fell from €15 million to €13.1 million, which the company attributes to tough market conditions.
“Raisio’s €13.1 million comparable EBIT for April-June was a satisfactory performance as the profitability of the UK confectionery business decreased substantially with the continued operational and commercial challenges at the Leicester confectionery plant and with the declining pound," said Raisio CEO Jarmo Puputti.
Raisio says that net sales for its Benecol business remained at the comparison period level without the pound's currency impact, while sales growth continued in Elovena products.
In June, the company divested its Southall industrial property near London for approximately €40 million, and has started to solve operational problems at the Leicester plant.
The group has renewed its business strategy for 2017-2022, placing a focus on plant-based foods, effective animal feeds, and value-creating digital services.
"The company seeks profitable growth with agile product and brand development, new markets and product categories, digital services, and through acquisitions," said Pupputi. "The renewed strategy creates a well-targeted and determined operating model for growth."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.