Raisio H1 EBIT jumps 73%
In the same period sales jumped 37% to €272.2m from €198.7m in H1 2010 as the company’s acquisitions including the UK snack group Big Bear delivered improved performance and a non-profitable malt business (Viking malt) was sold off.
For full-year 2010, Raisio had sales of €423.6m.
“Our main brands continued to grow in all Raisio’s market areas. A major reorganisation was carried out in the UK, which allows us to develop our activities and secure growth,” said chief executive officer, Matti Rihko.
“EBIT of the Brands Division rose to the target level in the review period, 10% of net sales, which is a good achievement. Benecol’s sales growth remained strong in our largest market, the UK, even though sales varied widely between different European countries.”
Raisio is one of the global leaders in cholesterol-battling plant sterol and stanol supply.
Benecol ingredients sold €25.2m for the half.
“Benecol’s profitability remained at its ordinary good level also in the second quarter of 2011,” the company said.
“Healthy sales development of Benecol products continued in the UK and Ireland where Raisio’s partner carried out several sales promotion campaigns. Tight competition in the Spanish and Polish markets continued."
"At the beginning of the year, sales in the Benecol products varied considerably between different countries in Europe. In Indonesia we saw a sales increase that was supported by marketing activities carried out by Raisio’s partner. Raisio continued its active work on local authorisations in Asia and to promote market access for Benecol products.”
The company’s grain operations had been affected by price fluctuations but in Finland it was, “more peaceful than in international markets”.
The company said it wanted to maintain profitability levels at about 4-5% of revenue.