Raisio plc, Interim Report 31 October 2008, 8:30 a.m.
INTERIM REPORT 1 JANUARY- 30 SEPTEMBER 2008
RAISIO'S NET SALES AND OPERATING RESULT INCREASED IN JULY-SEPTEMBER
- In July-September, Raisio's net sales increased by 22.5 per cent
year-over-year, amounting to EUR 134.5 million (EUR 109.8 million in
July-September 2007).
- Operating result in July-September doubled to EUR 7.6 million, excluding
one-off items (EUR 3.7 million), accounting for 5.6 per cent of net sales.
- All divisions improved their operating result.
- Cash flow from business operations in July-September totalled EUR 36.3
million (EUR 25.6 million).
- Raisio's forecast of the Group's outlook for 2008 remains unchanged.
The figures for the comparison period are given in brackets in the text.
Key figures, result from continuing operations
--------------------------------------------------------------------------------
| | 7-9/2008 | 7-9/2007 | 1-9/2008 | 1-9/2007 | 2007 |
--------------------------------------------------------------------------------
| Net sales, EUR | 134.5 | 109.8 | 376.3 | 312.7 | 421.9 |
| million | | | | | |
--------------------------------------------------------------------------------
| Operating result, EUR | 7.6 | 3.7 | 18.3 | 8.2 | 9.9 |
| million | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 5.6 | 3.4 | 4.9 | 2.6 | 2.3 |
--------------------------------------------------------------------------------
| Result before taxes, | 7.4 | 3.2 | 17.9 | 8.1 | 8.8 |
| EUR million | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.03 | 0.01 | 0.08 | 0.04 | 0.05 |
| EUR | | | | | |
--------------------------------------------------------------------------------
The figures do not include one-off items.
Key figures, balance sheet
--------------------------------------------------------------------------------
| | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Return on investment, % | 10.5 | 4.7 | 3.5 |
--------------------------------------------------------------------------------
| Equity ratio, % | 77.0 | 76.9 | 77.9 |
--------------------------------------------------------------------------------
| Net gearing, % | -12.5 | -16.3 | -13.1 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.77 | 1.70 | 1.70 |
--------------------------------------------------------------------------------
CEO Matti Rihko
“Raisio's profitability improvement continued as planned. Our actions have been
successful, leading to improvements under difficult conditions. In economical
turmoil food is a defensive business. Sense of community and safety are
emphasised in difficult times. Strong brands are a safe choice, because they
offer to consumers good quality at a reasonable price.
The changes in the food chain are only in the beginning. The entire chain must
adjust to new conditions, in which volatility in grain prices continues, food
accounts for an increasing share of household consumption and consumers are even
more aware of ecologically sound and sustainable alternatives, along with
matters affecting the environment. The changing conditions will have both short-
and long-term impacts on all of the parties involved. Consumers have made it
clear that they want natural and healthy food. As a forerunner in plant-based,
ecological nutrition, Raisio is well positioned to meet the new challenges
facing the food chain.
Raisio's new feed plant in Ylivieska is located at the heart of Finland's
milk-producing region. The company's investment in a highly efficient production
plant will make the entire Finnish milk chain more competitive. The plant's
delivery area produces half of Finland's milk and beef, and the region's
livestock farms use around one-fourth of the feed mixes produced in Finland. The
Ylivieska plant came on line as planned and will be operating at full capacity
at year-end. Raisio has boosted its position on the Finnish feed market this
year.
In early September, Raisio took sole responsibility for the marketing of Benecol
products in Finland and launched new, interesting products and safe, clinically
tested product applications. Raisio offers Finland's widest range of
cholesterol-lowering functional foods. Experiences from many countries show that
Benecol sales increase if the partner company focuses on developing the entire
market for cholesterol-lowering functional foods and introduces new, interesting
products and applications.”
RESULT FROM CONTINUING OPERATIONS
The Group's net sales in July-September totalled EUR 134.5 million (EUR 109.8
million). The most significant growth was seen in the Feed & Malt Division. The
Food Division's net sales amounted to EUR 51.7 million (EUR 48.6 million), while
that of Feed & Malt was EUR 78.7 million (EUR 59.3 million) and that of
Ingredients EUR 11.0 million (EUR 10.2 million).
Net sales in January-September increased about 20 per cent year-over-year,
totalling EUR 376.3 million (EUR 312.7 million). Net sales from outside Finland
represented 39.9% (39.2%) of the total, or EUR 150.2 million (EUR 122.5
million).
The Group's operating result in the third quarter more than doubled
year-over-year to EUR 7.6 million (EUR 3.7 million) and, including one-off
items, to EUR 7.6 million (EUR 5.6 million). The Food Division's operating
result was EUR 1.4 million (EUR -2.1 million) and, including one-off items, EUR
1.4 million (EUR ‑5.7 million). The operating result of the Feed & Malt Division
was EUR 4.3 million (EUR 4.1 million), and, including one-off items, EUR 4.3
million (EUR 9.6 million), while that of Ingredients was EUR 3.1 million (EUR
2.1 million) and that of other operations EUR -1.0 million (EUR -0.4 million).
The Group's operating result in January-September totalled EUR 18.3 million (EUR
8.2 million) and, including one-off items, EUR 22.5 million (EUR 10.0 million).
In the first quarter of 2008, Raisio recognised a one-off income item of EUR 4.2
million from the dissolution of joint ventures with Lantmännen, a Swedish
corporation. In the third quarter of 2007, Raisio made write-downs in the Food
Division and a reversal to the fixed asset write-down in the Feed & Malt
Division. These measures had only a minor impact on the Group's result in the
comparison period. Depreciations, allocated to operations in the income
statement, amounted to EUR 4.6 million (EUR 4.9 million) in July-September and
to EUR 13.4 million (EUR 13.6 million) in January-September.
The third-quarter result before taxes was EUR 7.4 million (EUR 3.2 million) and,
including one-off items, EUR 7.4 million (EUR 5.0 million). Result before taxes
in January-September was EUR 17.9 million (EUR 8.1 million) and, including
one-off items, EUR 22.1 million (EUR 9.9 million). Raisio's net financial items
in July-September totalled EUR -0.2 million (EUR -0.5 million), and EUR -0.5
million (EUR 0.3 million) in January-September.
The third-quarter result after taxes was EUR 5.3 million (EUR 2.0 million) and,
including one-off items, EUR 5.3 million (EUR 2.9 million). Result after taxes
in January-September was EUR 12.2 million (EUR 5.8 million) and, including
one-off items, EUR 16.4 million (EUR 6.7 million). Earnings per share in
July-September were EUR 0.03 (EUR 0.01), and, including one-off items, EUR 0.03
(EUR 0.02). In January-September, earnings per share were EUR 0.08 (EUR 0.04)
and, including one-off items, EUR 0.10 (EUR 0.04). Return on investment was 10.5
per cent (4.7%).
BALANCE SHEET AND FINANCIAL POSITION
At the end of September, Raisio's balance sheet total was EUR 359.5 million (EUR
360.3 million on 31 December 2007) and its equity was EUR 276.4 million (EUR
278.8 million on 31 December 2007). Equity per share rose to EUR 1.77 at the end
of September (EUR 1.70 on 31 December 2007). The Group's balance sheet includes
only EUR 1.4 million in goodwill.
The Group's interest-bearing financial liabilities at the end of September
totalled EUR 14.0 million (EUR 7.2 million on 31 December 2007). Net
interest-bearing financial liabilities were EUR -34.5 million (EUR -36.5 million
on 31 December 2007). The equity ratio at the end of September was 77.0% (77.9%
on 31 December 2007), and the gearing ratio -12.5% (-13.1% on 31 December 2007).
Cash flow from business operations in the third quarter was EUR 36.3 million
(EUR 25.6 million) and EUR 26.2 million (EUR 14.4 million) in January-September.
Working capital totalled EUR 99.0 million at the end of the review period (EUR
100.5 million on 31 December 2007).
Raisio's gross investments in July-September were EUR 3.1 million (EUR 9.1
million) and in January-September EUR 25.0 million (EUR 21.2 million), which
corresponds to 6.7 per cent (6.8%) of net sales. This year's two main
investments are the Ylivieska feed plant and the acquisition of a 25% holding in
Melia Ltd.
CONTINUING OPERATIONS
Food
Turn around in Food Division has been implemented quickly and according to
plans. The product portfolio has been renewed, and operations have been enhanced
considerably. This has resulted in markedly improved performance at a time when
the food industry, in general, is facing great problems.
The Food Division's net sales in July-September were EUR 51.7 million (EUR 48.6
million) and in January-September EUR 150.4 million (EUR 146.8 million). Net
sales from Northern European operations corresponded to those of the comparison
period, despite the number of product lines decreasing significantly from the
comparison period. Additionally, research based on consumers needs has enabled
successful launches of new products. In Finland, Raisio has focused on the
growth strategy of its strategic brands - Elovena, Sunnuntai and Keiju - which
has resulted in both the volume and value of sales increasing. Elovena snack
drinks have been a success and they have stabilized their position.
At the beginning of September, Raisio took sole responsibility for the marketing
of Benecol products in Finland and launched new products containing plant stanol
ester. The range of Elovena snack drinks also expanded with the introduction of
the Elovena-Benecol snack drink. The first statistics from trade point to these
measures being successful and to sales having increased.
Raisio re-launched margarines under the Carlshamn Mejeri brand in Sweden. Trade
and consumers have given a warm welcome to the new products, and sales are up
from the comparison period. The company is also preparing for the launch of
Elovena products in Sweden. The Elovena design has been adapted to the brand
expectations of local consumers.
Net sales from Eastern European operations increased by 25 per cent
year-over-year, totalling EUR 16.5 million (EUR 13.2 million). Raisio's Eastern
European operations include Poland, Russia and neighbouring regions. In Poland,
growth was particularly good in modern trade margarine sales. The sales of
Benecol margarines increased, and the company continued to strengthen its market
leadership. Raisio also launched Elovena snack biscuits on the Polish market.
Sales were slightly up in Russia from the comparison period, although margarine
sales continued to decrease.
Key figures for the Food Division
--------------------------------------------------------------------------------
| | 7-9/2008 | 7-9/2007 | 1-9/2008 | 1-9/2007 | 2007 |
--------------------------------------------------------------------------------
| Net sales, EUR million | 51.7 | 48.6 | 150.4 | 146.8 | 197.1 |
--------------------------------------------------------------------------------
| Northern Europe | 36.6 | 36.5 | 106.6 | 109.1 | 148.1 |
--------------------------------------------------------------------------------
| Eastern Europe | 16.5 | 13.2 | 47.9 | 41.1 | 53.9 |
--------------------------------------------------------------------------------
| Operating result, EUR | 1.4 | -5.7 | 7.1 | -8.3 | -11.1 |
| million | | | | | |
--------------------------------------------------------------------------------
| One-off items, EUR | 0.0 | -3.6 | 4.2 | -3.6 | -5.3 |
| million | | | | | |
--------------------------------------------------------------------------------
| Operating result, | 1.4 | -2.1 | 2.9 | -4.7 | -5.8 |
| excluding | | | | | |
| one-off items, EUR | | | | | |
| million | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 2.7 | -4.2 | 1.9 | -3.2 | -2.9 |
--------------------------------------------------------------------------------
| Investments | 1.0 | 1.5 | 16.1 | 5.8 | 7.2 |
--------------------------------------------------------------------------------
| Net assets | - | - | 81.0 | 88.4 | 85.8 |
--------------------------------------------------------------------------------
The Food Division's operating result in the third quarter improved clearly
year-over-year, amounting to EUR 1.4 million (EUR -2.1 million) and, including
one-off items, to EUR 1.4 million (EUR -5.7 million). The Food Division posted
its third consecutive profitable quarter. Profitability has improved thanks to
the Division renewing its product range in compliance with consumer needs,
enhancing its processes, as well as systematically developing the supply chain,
which has improved both cost-effectiveness and the service level. Operating
result in January-September was EUR 2.9 million (EUR -4.7 million) and,
including one-off items, EUR 7.1 million (EUR -8.3 million).
Feed & Malt
The Feed & Malt Division's net sales in July-September increased by nearly 33
per cent to EUR 78.7 million (EUR 59.3 million). Net sales from malt increased
by nearly 20 per cent and that of feeds by nearly 35 per cent from the
comparison period. This increase came about from the rise in unit prices,
following the increase in raw material prices. The sales volumes of feed and
vegetable oil also increased. Raisio has boosted its position in the Finnish
feed market this year, and the utilisation of plant capacity is high. The volume
and export of fish feeds correspond to the previous year's levels. Net sales in
January-September totalled EUR 211.8 million (EUR 152.7 million).
Key figures for the Feed & Malt division
--------------------------------------------------------------------------------
| | 7-9/2008 | 7-9/2007 | 1-9/2008 | 1-9/2007 | 2007 |
--------------------------------------------------------------------------------
| Net sales, EUR million | 78.7 | 59.3 | 211.8 | 152.7 | 206.7 |
--------------------------------------------------------------------------------
| Feed | 65.4 | 48.6 | 174.5 | 126.6 | 175.5 |
--------------------------------------------------------------------------------
| Malt | 12.8 | 10.7 | 34.1 | 25.1 | 30.1 |
--------------------------------------------------------------------------------
| Other | 0.7 | 0.2 | 3.9 | 1.4 | 1.7 |
--------------------------------------------------------------------------------
| Operating result, EUR | 4.3 | 9.6 | 10.3 | 13.0 | 14.2 |
| million | | | | | |
--------------------------------------------------------------------------------
| One-off items, EUR | 0.0 | 5.5 | 0.0 | 5.5 | 6.0 |
| million | | | | | |
--------------------------------------------------------------------------------
| Operating result, | 4.3 | 4.1 | 10.3 | 7.5 | 8.2 |
| excluding | | | | | |
| one-off items, EUR | | | | | |
| million | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 5.5 | 6.9 | 4.8 | 4.9 | 4.0 |
--------------------------------------------------------------------------------
| Investments | 1.7 | 5.7 | 6.5 | 10.3 | 16.7 |
--------------------------------------------------------------------------------
| Net assets | - | - | 100.9 | 77.8 | 86.0 |
--------------------------------------------------------------------------------
The Feed & Malt Division's operating result in July-September totalled EUR 4.3
million (EUR 4.1 million) and, including one-off items, EUR 4.3 million (EUR 9.6
million). Operating result in January-September was EUR 10.3 million (EUR 7.5
million) and, including one-off items, EUR 10.3 million (EUR 13.0 million). The
year-over-year increase in operating result has resulted from the improved
pressing margins in vegetable oil and the good profit development in malt.
The Ylivieska feed plant was inaugurated on 23 June 2008, and production will be
up and running at full speed at the turn of the year. The investment in the
highly efficient plant was around EUR 20 million. Production at the Oulu plant
came to an end in late September, and the production line is now being
transferred to the Ylivieska plant.
The Finnish grain crop was good in terms of volume. However, due to the rainy
harvest period, the quality of grain is variable. Since Raisio uses grain in
versatile ways, it can put different qualities to efficient use. This ensures
that the crops of contract farmers can be sold also in years in which the volume
and quality of crops vary. The Group has considerably increased its direct
acquisition of grain.
To improve the competitiveness of the Finnish food product chain, Raisio offers
its contract farmers value-added services and sells production inputs. In
addition to seeds for sowing and plant protection products, the company has
introduced a new product group, that of field fertilizers, into its production
input range offered to farmers. Raisio aims to provide its contract farmers and
feed customers with more economical alternatives for efficient cultivation.
Ingredients
Raisio continues to focus on building the growth potential for Benecol. It
expanded the market in Asia and continues to invest in the region. Managing the
regulatory processes is challenging but Raisio is supported by its strong
scientific evidence. The profitability of the Ingredients Division remained
strong.
The Ingredients Division's net sales in July-September totalled EUR 11.0 million
(EUR 10.2 million). The year-over-year sales of Benecol products increased
clearly in Great Britain and Poland, as did the sales volume of plant stanol
ester. Benecol products are currently sold in 28 countries. Net sales in
January-September totalled EUR 33.8 million (EUR 33.3 million).
Key figures for the Ingredients Division
--------------------------------------------------------------------------------
| | 7-9/2008 | 7-9/2007 | 1-9/2008 | 1-9/2007 | 2007 |
--------------------------------------------------------------------------------
| Net sales, EUR million | 11.0 | 10.2 | 33.8 | 33.3 | 44.9 |
--------------------------------------------------------------------------------
| Operating result, EUR | 3.1 | 2.1 | 8.2 | 7.1 | 9.5 |
| million | | | | | |
--------------------------------------------------------------------------------
| One-off items, EUR | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| million | | | | | |
--------------------------------------------------------------------------------
| Operating result, | 3.1 | 2.1 | 8.2 | 7.1 | 9.5 |
| excluding | | | | | |
| one-off items, EUR | | | | | |
| million | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 28.5 | 20.7 | 24.2 | 21.4 | 21.2 |
--------------------------------------------------------------------------------
| Investments | 0.1 | 1.6 | 1.0 | 5.7 | 7.5 |
--------------------------------------------------------------------------------
| Net assets | - | - | 42.1 | 43.8 | 46.0 |
--------------------------------------------------------------------------------
The Ingredients Division's operating result in July-September was EUR 3.1
million (EUR 2.1 million). The operating result benefited from
cost-effectiveness and growth in volumes. Operating result in January-September
was EUR 8.2 million (EUR 7.1 million), or 24.2 per cent of net sales.
In September, Raisio's partner, Kalbe Nutritionals, launched smoothies
containing plant stanol ester in Indonesia under the Nutrive Benecol brand. In
India, the sales development of the Colred-Benecol nutritional powder has not
been satisfactory and Raisio's Indian partner is taking further measures to
increase brand recognition and to enhance marketing to health care
professionals.
In co-operation with its local partners, Raisio continues its preparations to
enter new market areas and to launch interesting new products in all market
areas.
RESEARCH AND DEVELOPMENT
Raisio's R&D is based on a consumer- and customer-oriented approach. The
development of new products emphasises flavour, pleasure, health, well-being and
the environment. Research and development inputs amounted to EUR 1.2 million
(EUR 1.3 million) in the third quarter, and to EUR 4.2 million (EUR 4.3 million)
in January-September, representing 1.1% (1.4%) of net sales.
PERSONNEL
Raisio employed 997 people at the end of September (1,114 on 30 September 2007),
33.2% of whom worked outside Finland (31.1% on 30 September 2007). At the end of
September, the Food Division had 595, Feed & Malt 272, Ingredients 64 and
service functions 66 employees.
Raisio outsourced its laboratory operations to Eurofins Scientific Finland Oy.
The 45 employees of Raisio's laboratory services transferred to the employment
of Eurofins on 1 September 2008 when the company took over the laboratory
business and assumed responsibility for the laboratory services needed by
Raisio.
Kirsi Swanljung-von Wehrt, Raisio plc's Vice President, Legal Affairs, and a
member of the Group's management team, resigned from the company in order to
return to duties as an expert.
SHARES AND SHAREHOLDERS
The number of Raisio plc's free shares that were traded on NASDAQ OMX Helsinki
in January-September totalled 19.4 million (38.9 million). The value of trading
was EUR 30.8 million (EUR 78.9 million), and the average price was EUR 1.59 (EUR
2.03). The closing price on 30 September 2008 was EUR 1.58.
A total of 0.65 million restricted shares (1.0 million) were traded in
January-September. The value of trading was EUR 1.1 million (EUR 2.0 million),
and the average price was EUR 1.67 (EUR 2.00). The closing price on 30 September
2008 was EUR 1.69.
On 30 September 2008, the Group had a total of 37,293 registered shareholders
(37,873 on 31 December 2007). Foreign ownership of the entire share capital was
14.5 per cent (15.4% on 31 December 2007).
Raisio's market value at the end of September amounted to EUR 264.7 million (EUR
248.4 million on 31 December 2007). Excluding the company shares held by the
Group, the company's market value was EUR 251.1 million (EUR 235.8 million on 31
December 2007).
At the end of the review period, Raisio plc held 8,419,906 free shares and
183,903 restricted shares. Of these, 261,406 free shares and 6,100 restricted
shares have been purchased starting in September 2008 on the basis of the
authorisation granted by the Annual General Meeting in spring 2008. The number
of free shares accounts for 6.44% of all free shares and the votes they
represent, while the corresponding figure for restricted shares is 0.53%. In
all, the company shares held by the Group represent 5.21% of the company's share
capital and 1.48% of overall votes.
Raisio plc's subsidiaries did not hold any shares in the parent company. The
Raisio plc Research Foundation, an affiliated association, holds 150,510
restricted shares, which is 0.44% of the restricted shares and the votes they
represent and, correspondingly, 0.09% of the whole share capital and 0.37% of
the votes it represents.
A company share held by Raisio or its subsidiary does not entitle the holder to
participate in the Annual General Meeting.
REPURCHASE OF COMPANY SHARES
On 26 August 2008, the Board of Directors of Raisio decided to initiate a share
repurchase programme, according to which the company will purchase a maximum of
1,000,000 free shares and a maximum of 250,000 restricted shares. The share
repurchases started on 3 September 2008 and will continue until the said amounts
have been acquired or until otherwise announced.
SHARE-BASED INCENTIVE SCHEME
In May 2008, the Board of Directors decided to set up a three-year, share-based
incentive scheme as a part of the incentive and reward system offered to
Raisio's key personnel. The goal is to integrate the targets of shareholders and
key employees in order to increase the company's market capitalisation, to
enhance the key employees' commitment to the company and to offer them a
competitive reward system based on share ownership.
The scheme gives authorisation during three years to distribute a maximum of
1,600,000 of Raisio plc's free shares already in the company's possession after
the share repurchases carried out in 2005-2007. Rewards are paid as a
combination of shares and cash. Cash payments are to cover the taxes and fiscal
fees arising from share-based rewards.
The financial year 2008 is the first earnings period in the scheme, which uses
net sales growth and result before taxes, excluding one-off items, as earnings
criteria. The maximum number of shares to be distributed is 400,000 free shares.
The amount earned in rewards will be determined on the basis of the achievement
of targets after the financial statements have been prepared in the spring of
2009. Any rewards will be paid to those covered by the scheme in August 2009.
Shares distributed as part of the scheme are subject to a disposal restriction
and return obligation, which last until 1 September 2011 and will be applied if
the employee's employment or job contract end prior to the expiration of the
disposal restriction. The scheme covers 15 people in the first earnings period.
DECISIONS MADE AT THE ANNUAL GENERAL MEETING
Raisio plc's Annual General Meeting approved the financial statements for the
financial year 1 January - 31 December 2007 and discharged the members of the
Supervisory Board and the Board of Directors, as well as the Chief Executive
Officer, from liability. The Annual General Meeting decided to distribute a
dividend of EUR 0.04 per share. The dividend was paid to shareholders on 8 April
2008.
The Annual General Meeting authorised the Board of Directors to decide on the
repurchase of a maximum of 6,000,000 free shares and 1,500,000 restricted
shares. The authorisation expires on 27 September 2009.
Furthermore, the Annual General Meeting authorised the Board of Directors to
decide on share issues by (1) disposing all of the company shares and any
repurchased shares - a maximum total of 16,500,000 shares, 2,269,500 of which
can be restricted shares, and by (2) issuing a maximum of 16,500,000 new free
shares against payment. The share issue authorisations will expire, at the
latest, on 27 March 2013.
Details of the authorisations are available in the stock exchange release issued
on 13 February 2008. A stock exchange release about the decisions made by the
Annual General Meeting was published on 27 March 2008.
CHANGES IN GROUP STRUCTURE
Melia Ltd's business will be transferred to Raisio Nutrition Ltd, while Melia
Ltd's machinery, equipment, buildings and land in both Raisio and Nokia will be
transferred to Raisionkaaren Teollisuuspuisto Ltd on 1 January 2009. Melia Ltd's
personnel will transfer to the employment of Raisio Nutrition Ltd retaining
their current terms and benefits of employment. This will complete the
reorganisation initiated in autumn 2007, leading to Raisio's commercial and
production operations in Finland being separated also at company-level.
The malting business run by Raisio Nutrition will be incorporated into a limited
company, Raisio Malt Oy, through a partial spinoff, which will take effect on 31
December 2008.
RISKS AND SOURCES OF UNCERTAINTY IN THE NEAR FUTURE
The external environment will remain challenging due to the general economic
uncertainty, the changes in the food industry, as well as the increasing cost
pressure affecting trade, industry and producers.
The Helsinki Administrative Court has handled the appeal filed by the
representative of the Tax Office for Major Corporations concerning the taxation
of the sales profit resulting from the divestment of Raisio Chemicals in 2004.
The Administrative Court's decision coincides with the original decision made by
the Tax Office for Major Corporations in the company's regular taxation, as well
as that later made by the Assessment Adjustment Board. According to the
decision, the sales profit of approximately EUR 220 million is free of tax. The
Administrative Court's decision will take legal effect within 60 days from its
announcement, unless the representative of the tax recipients applies for leave
to appeal and amendment from Supreme Administrative Court.
OUTLOOK
Raisio's forecast of the Group's outlook in 2008 remains unchanged. Raisio's net
sales are expected to increase, and the operating result from continuing
operations in 2008, excluding one-off items, is expected to improve from the
previous year. All divisions are expected to post profitable annual operating
results, although the pressure on profitability will continue in feed. The
overall operating result in the Food Division is expected to be profitable,
although the target operating result rate of 5 per cent will probably not be
achieved due to increased marketing inputs, new product launches and
preparations for entry into new markets. The Ingredients Division is expected to
increase its net sales and improve profitability from the previous year.
Raisio, 31 October 2008
RAISIO PLC
Board of Directors
Further information:
Matti Rihko, CEO, tel. +358 400 830 727
Jyrki Paappa, CFO,
tel. +358 50 5566 512
Heidi Hirvonen, Communications Manager, tel. +358 50 567
3060
A press and analyst event will be arranged on 31 October 2008 at 10:00 a.m. in
Helsinki. It will be held at Hotel Scandic Simonkenttä, in the Bulsa-Freda
meeting room. The address is Simonkatu 9, Helsinki.
A teleconference in English will be held on 31 October 2008 at 4:00 pm Finnish
time, tel. +358 (0)9 8248 6504, PIN code 9373.
The interim report has not been audited.
Raisio plc will publish its Financial Statements for 2008 on 12 February 2009.
CONDENSED FINANCIAL STATEMENTS AND NOTES
INCOME STATEMENT (EUR million)
--------------------------------------------------------------------------------
| | 7-9/2008 | 7-9/2007 | 1-9/2008 | 1-9/2007 | 2007 |
--------------------------------------------------------------------------------
| CONTINUING OPERATIONS: | | | | | |
--------------------------------------------------------------------------------
| Net sales | 134.5 | 109.8 | 376.3 | 312.7 | 421.9 |
--------------------------------------------------------------------------------
| Expenses corresponding | -112.6 | -88.6 | -314.3 | -258.3 | -352.0 |
| to products sold | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit | 21.9 | 21.2 | 61.9 | 54.4 | 69.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other operating income | -14.3 | -15.6 | -39.4 | -44.4 | -59.3 |
| and expenses, net | | | | | |
--------------------------------------------------------------------------------
| Operating result | 7.6 | 5.6 | 22.5 | 10.0 | 10.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | 0.4 | 0.4 | 1.4 | 1.9 | 2.5 |
--------------------------------------------------------------------------------
| Financial expenses | -0.6 | -0.8 | -1.9 | -1.6 | -3.2 |
--------------------------------------------------------------------------------
| Share of result of | 0.1 | -0.1 | 0.1 | -0.3 | -0.3 |
| associated companies | | | | | |
| and joint ventures | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result before taxes | 7.4 | 5.0 | 22.1 | 9.9 | 9.5 |
--------------------------------------------------------------------------------
| Income tax | -2.1 | -2.1 | -5.7 | -3.2 | -1.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result for the period | 5.3 | 2.9 | 16.4 | 6.7 | 8.3 |
| from the continuing | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DISCONTINUED | 0.0 | -4.0 | 0.0 | -5.6 | -7.3 |
| OPERATIONS: | | | | | |
| Result for the period | | | | | |
| from discontinued | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| RESULT FOR THE PERIOD | 5.3 | -1.1 | 16.4 | 1.1 | 1.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | 5.3 | -0.8 | 16.3 | 1.4 | 1.4 |
| parent company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | -0.3 | 0.1 | -0.3 | -0.4 |
--------------------------------------------------------------------------------
| Earnings per share | | | | | |
| from the profit | | | | | |
| attributable to equity | | | | | |
| holders of the parent | | | | | |
| company | | | | | |
--------------------------------------------------------------------------------
| Earnings per share | 0.03 | 0.02 | 0.10 | 0.04 | 0.05 |
| from continuing | | | | | |
| operations (EUR) | | | | | |
--------------------------------------------------------------------------------
| Earnings per share | 0.00 | -0.03 | 0.00 | -0.04 | -0.05 |
| from discontinued | | | | | |
| operations (EUR) | | | | | |
--------------------------------------------------------------------------------
BALANCE SHEET (EUR million)
--------------------------------------------------------------------------------
| | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Intangible assets | 10.4 | 10.7 | 10.9 |
--------------------------------------------------------------------------------
| Goodwill | 1.4 | 1.3 | 1.3 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 127.1 | 123.7 | 127.9 |
--------------------------------------------------------------------------------
| Shares in associated companies and | 0.8 | 1.9 | 1.4 |
| joint ventures | | | |
--------------------------------------------------------------------------------
| Financial assets available for sale | 0.6 | 0.6 | 0.6 |
--------------------------------------------------------------------------------
| Receivables | 1.1 | 2.6 | 1.3 |
--------------------------------------------------------------------------------
| Deferred tax assets | 11.4 | 11.6 | 11.3 |
--------------------------------------------------------------------------------
| Total non-current assets | 152.7 | 152.2 | 154.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 86.0 | 79.4 | 91.7 |
--------------------------------------------------------------------------------
| Accounts receivables and other | 72.0 | 77.4 | 70.1 |
| receivables | | | |
--------------------------------------------------------------------------------
| Financial assets at fair value | 41.9 | 47.6 | 27.9 |
| through profit or loss | | | |
--------------------------------------------------------------------------------
| Cash in hand and at banks | 6.9 | 10.5 | 15.9 |
--------------------------------------------------------------------------------
| Total current assets | 206.7 | 214.9 | 205.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 359.5 | 367.1 | 360.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Equity attributable to equity | | | |
| holders of the parent company | | | |
--------------------------------------------------------------------------------
| Share capital | 27.8 | 27.8 | 27.8 |
--------------------------------------------------------------------------------
| Own shares | -18.2 | -14.8 | -17.9 |
--------------------------------------------------------------------------------
| Other equity attributable to equity | 266.8 | 256.3 | 256.2 |
| holders of the parent company | | | |
--------------------------------------------------------------------------------
| Equity attributable to equity | 276.4 | 269.3 | 266.1 |
| holders of the parent company | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 12.8 | 12.7 |
--------------------------------------------------------------------------------
| Total equity | 276.4 | 282.1 | 278.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 9.1 | 9.6 | 9.1 |
--------------------------------------------------------------------------------
| Pension liabilities | 0.2 | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| Non-current interest-bearing | 10.0 | 0.5 | 0.4 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Other non-current liabilities | 0.1 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 19.4 | 10.3 | 9.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Accounts payable and other | 57.9 | 60.4 | 61.8 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Reserves | 1.1 | 2.3 | 1.9 |
--------------------------------------------------------------------------------
| Financial liabilities at fair value | 0.6 | 0.7 | 1.5 |
| through profit or loss | | | |
--------------------------------------------------------------------------------
| Current interest-bearing liabilities | 4.0 | 11.4 | 6.8 |
--------------------------------------------------------------------------------
| Total current liabilities | 63.7 | 74.8 | 71.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 83.1 | 85.0 | 81.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | 359.5 | 367.1 | 360.3 |
--------------------------------------------------------------------------------
CHANGES IN GROUP EQUITY (EUR million)
--------------------------------------------------------------------------------
| | Shar | Sha | Res | Own | Tran | Retai | Total | Minor | Total |
| | e | re | erv | shar | slat | ned | | ity | equit |
| | capi | pre | e | es | ion | earni | | inter | y |
| | tal | miu | fun | | diff | ngs | | est | |
| | | m | d | | eren | | | | |
| | | res | | | ces | | | | |
| | | erv | | | | | | | |
| | | e | | | | | | | |
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -11. | -1.2 | 170.4 | 277.1 | 13.3 | 290.4 |
| 31.12.2006 | | | 6 | 4 | | | | | |
--------------------------------------------------------------------------------
| Translation | | | | | 0.4 | - | 0.4 | 0.0 | 0.4 |
| differences | | | | | | | | | |
| , | | | | | | | | | |
| transferred | | | | | | | | | |
| to the | | | | | | | | | |
| income | | | | | | | | | |
| statement | | | | | | | | | |
| on disposal | | | | | | | | | |
| of | | | | | | | | | |
| subsidiarie | | | | | | | | | |
| s | | | | | | | | | |
--------------------------------------------------------------------------------
| Translation | - | - | - | - | -1.3 | - | -1.3 | 0.0 | -1.3 |
| differences | | | | | | | | | |
| , generated | | | | | | | | | |
| in the | | | | | | | | | |
| financial | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Other | - | - | - | - | - | 0.0 | 0.0 | - | 0.0 |
| changes | | | | | | | | | |
--------------------------------------------------------------------------------
| Net income | 0.0 | 0.0 | 0.0 | 0.0 | -0.9 | 0.0 | -0.9 | 0.0 | -0.9 |
| recorded | | | | | | | | | |
| directly in | | | | | | | | | |
| shareholder | | | | | | | | | |
| s' equity | | | | | | | | | |
--------------------------------------------------------------------------------
| Result for | - | - | - | - | - | 1.4 | 1.4 | -0.3 | 1.1 |
| the | | | | | | | | | |
| financial | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | 0.0 | 0.0 | 0.0 | 0.0 | -0.9 | 1.4 | 0.5 | -0.3 | 0.2 |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | - | - | - | - | - | -4.8 | -4.8 | -0.3 | -5.1 |
--------------------------------------------------------------------------------
| Repurchase | - | - | - | -3.4 | - | - | -3.4 | - | -3.4 |
| of own | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Total other | 0.0 | 0.0 | 0.0 | -3.4 | 0.0 | -4.8 | -8.2 | -0.3 | -8.5 |
| chanes | | | | | | | | | |
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -14. | -2.2 | 167.0 | 269.3 | 12.8 | 282.1 |
| 30.9.2007 | | | 6 | 8 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -17. | -2.3 | 167.0 | 266.1 | 12.7 | 278.8 |
| 31.12.2007 | | | 6 | 9 | | | | | |
--------------------------------------------------------------------------------
| Translation | - | - | - | - | 0.0 | 0.1 | 0.1 | - | 0.1 |
| differences | | | | | | | | | |
| , | | | | | | | | | |
| transferred | | | | | | | | | |
| to the | | | | | | | | | |
| income | | | | | | | | | |
| statement | | | | | | | | | |
| on disposal | | | | | | | | | |
| of | | | | | | | | | |
| associated | | | | | | | | | |
| companies | | | | | | | | | |
| and joint | | | | | | | | | |
| ventures | | | | | | | | | |
--------------------------------------------------------------------------------
| Translation | - | - | - | - | 0.7 | - | 0.7 | - | 0.7 |
| differences | | | | | | | | | |
| , generated | | | | | | | | | |
| in the | | | | | | | | | |
| financial | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Other | - | - | - | - | 0.1 | -0.1 | 0.0 | 0.0 | 0.0 |
| changes | | | | | | | | | |
--------------------------------------------------------------------------------
| Net income | 0.0 | 0.0 | 0.0 | 0.0 | 0.8 | -0.1 | 0.8 | 0.0 | 0.8 |
| recorded | | | | | | | | | |
| directly in | | | | | | | | | |
| shareholder | | | | | | | | | |
| s' equity | | | | | | | | | |
--------------------------------------------------------------------------------
| Result for | - | - | - | - | - | 16.3 | 16.3 | 0.1 | 16.4 |
| the | | | | | | | | | |
| financial | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | 0.0 | 0.0 | 0.0 | 0.0 | 0.8 | 16.2 | 17.1 | 0.1 | 17.2 |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | - | - | - | - | - | -6.3 | -6.3 | - | -6.3 |
--------------------------------------------------------------------------------
| Repurchase | - | - | - | -0.5 | - | - | -0.5 | - | -0.5 |
| of own | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | - | - | - | 0.2 | - | 0.0 | 0.2 | - | 0.2 |
| payment | | | | | | | | | |
--------------------------------------------------------------------------------
| Squeeze-out | - | - | - | - | - | -0.2 | -0.2 | -12.8 | -13.0 |
--------------------------------------------------------------------------------
| Total other | 0.0 | 0.0 | 0.0 | -0.3 | 0.0 | -6.5 | -6.8 | -12.8 | -19.6 |
| changes | | | | | | | | | |
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -18. | -1.5 | 176.8 | 276.4 | 0.0 | 276.4 |
| 30.9.2008 | | | 6 | 2 | | | | | |
--------------------------------------------------------------------------------
CASH FLOW STATEMENT (EUR million)
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 | 2007 |
--------------------------------------------------------------------------------
| Operating result | 22.5 | 3.8 | 3.3 |
--------------------------------------------------------------------------------
| Adjustments to operting result | 10.1 | 16.7 | 22.3 |
--------------------------------------------------------------------------------
| Cash flow before change in working capital | 32.7 | 20.5 | 25.6 |
--------------------------------------------------------------------------------
| Change in current receivables | -7.2 | -8.5 | 1.9 |
--------------------------------------------------------------------------------
| Change in inventories | 5.9 | 1.4 | -12.1 |
--------------------------------------------------------------------------------
| Change in current non-interest-bearing | -3.1 | 1.1 | 0.2 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Total change in working capital | -4.5 | -6.0 | -9.9 |
--------------------------------------------------------------------------------
| Financial items and taxes | -2.0 | -0.1 | 0.0 |
--------------------------------------------------------------------------------
| Cash flow from business operations | 26.2 | 14.4 | 15.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments | -13.2 | -22.9 | -30.7 |
--------------------------------------------------------------------------------
| Divestment of subsidiaries | 0.1 | 4.1 | 4.1 |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | -8.0 | -0.2 | -0.2 |
--------------------------------------------------------------------------------
| Divestment of associated companies | 0.0 | 0.2 | 0.7 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed assets | 1.3 | 2.7 | 2.9 |
--------------------------------------------------------------------------------
| Loans granted | -1.9 | 0.0 | -0.1 |
--------------------------------------------------------------------------------
| Repayment of loan receivables | 1.7 | 1.4 | 1.3 |
--------------------------------------------------------------------------------
| Cash flow from investments | -20.0 | -14.8 | -21.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in non-current loans | 8.7 | -8.7 | -11.7 |
--------------------------------------------------------------------------------
| Change in current loans | -3.3 | -3.1 | -5.3 |
--------------------------------------------------------------------------------
| Repurchase of own shares | -0.5 | -3.4 | -6.5 |
--------------------------------------------------------------------------------
| Dividend paid to equity holders of the | -6.2 | -4.8 | -4.8 |
| parent company | | | |
--------------------------------------------------------------------------------
| Dividend paid to minority interests | 0.0 | -0.3 | -0.3 |
--------------------------------------------------------------------------------
| Cash flow from financial operations | -1.3 | -20.4 | -28.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Adjustment to translation difference | 0.1 | -0.5 | -0.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid funds | 5.0 | -21.2 | -35.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds at the beginning of the | 43.6 | 78.8 | 78.8 |
| period | | | |
--------------------------------------------------------------------------------
| Impact of change in market value on liquid | -0.1 | 0.3 | 0.1 |
| funds | | | |
--------------------------------------------------------------------------------
| Liquid funds at the end of the period | 48.5 | 58.0 | 43.6 |
--------------------------------------------------------------------------------
NOTES TO THE INTERIM REPORT
This interim report has been prepared in accordance with the IAS 34 Interim
Financial Reporting. The same accounting principles and calculating methods has
been complied in this interim report as in 2007 annual financial statements. The
interim report is shown in EUR millions.
When preparing the interim report, management must make estimates and
assumptions that affect the reported assets and liabilities, income and
expenses. Actual figures may differ from these estimates.
SEGMENT INFORMATION
NET SALES BY SEGMENT (EUR million)
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 2007 |
| | 2008 | 2007 | 2008 | 2007 | |
--------------------------------------------------------------------------------
| Food | 51.7 | 48.6 | 150.4 | 146.8 | 197.1 |
--------------------------------------------------------------------------------
| Feed & Malt | 78.7 | 59.3 | 211.8 | 152.7 | 206.7 |
--------------------------------------------------------------------------------
| Ingredients | 11.0 | 10.2 | 33.8 | 33.3 | 44.9 |
--------------------------------------------------------------------------------
| Other operations | 0.3 | 0.1 | 0.7 | 0.3 | 0.4 |
--------------------------------------------------------------------------------
| Interdivisional net sales | -7.2 | -8.4 | -20.6 | -20.4 | -27.1 |
--------------------------------------------------------------------------------
| Total net sales | 134.5 | 109.8 | 376.3 | 312.7 | 421.9 |
--------------------------------------------------------------------------------
OPERATING RESULT BY SEGMENT (EUR million)
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 2007 |
| | 2008 | 2007 | 2008 | 2007 | |
--------------------------------------------------------------------------------
| Food | 1.4 | -5.7 | 7.1 | -8.3 | -11.1 |
--------------------------------------------------------------------------------
| Feed & Malt | 4.3 | 9.6 | 10.3 | 13.0 | 14.2 |
--------------------------------------------------------------------------------
| Ingredients | 3.1 | 2.1 | 8.2 | 7.1 | 9.5 |
--------------------------------------------------------------------------------
| Other operations | -1.0 | -0.4 | -2.5 | -1.7 | -2.1 |
--------------------------------------------------------------------------------
| Eliminations | -0.3 | 0.0 | -0.5 | -0.1 | 0.1 |
--------------------------------------------------------------------------------
| Total net sales | 7.6 | 5.6 | 22.5 | 10.0 | 10.6 |
--------------------------------------------------------------------------------
NET ASSETS BY SEGMENT (EUR million)
--------------------------------------------------------------------------------
| | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Food | 81.0 | 88.4 | 85.8 |
--------------------------------------------------------------------------------
| Feed & Malt | 100.9 | 77.8 | 86.0 |
--------------------------------------------------------------------------------
| Ingredients | 42.1 | 43.8 | 46.0 |
--------------------------------------------------------------------------------
| Other operations, discontinued | 52.3 | 72.1 | 60.9 |
| operations and unallocated items | | | |
--------------------------------------------------------------------------------
| Total net assets | 276.4 | 282.1 | 278.8 |
--------------------------------------------------------------------------------
INVESTMENTS BY SEGMENT (EUR million)
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 2007 |
| | 2008 | 2007 | 2008 | 2007 | |
--------------------------------------------------------------------------------
| Food | 1.0 | 1.5 | 16.1 | 5.8 | 7.2 |
--------------------------------------------------------------------------------
| Feed & Malt | 1.7 | 5.7 | 6.5 | 10.3 | 16.7 |
--------------------------------------------------------------------------------
| Ingredients | 0.1 | 1.6 | 1.0 | 5.7 | 7.5 |
--------------------------------------------------------------------------------
| Other operations | 0.3 | 0.3 | 1.4 | 1.0 | 1.6 |
--------------------------------------------------------------------------------
| Eliminations | 0.0 | 0.0 | 0.0 | -1.6 | -1.6 |
--------------------------------------------------------------------------------
| Total investments | 3.1 | 9.1 | 25.0 | 21.2 | 31.4 |
--------------------------------------------------------------------------------
NET SALES BY MARKET AREA (EUR million)
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 2007 |
| | 2008 | 2007 | 2008 | 2007 | |
--------------------------------------------------------------------------------
| Finland | 76.8 | 67.8 | 226.0 | 190.2 | 263.9 |
--------------------------------------------------------------------------------
| Poland | 13.5 | 9.8 | 35.9 | 30.5 | 38.5 |
--------------------------------------------------------------------------------
| Russia | 14.0 | 14.8 | 37.6 | 33.3 | 39.5 |
--------------------------------------------------------------------------------
| Other Europe | 28.9 | 15.9 | 72.3 | 54.7 | 74.8 |
--------------------------------------------------------------------------------
| ROW | 1.4 | 1.5 | 4.4 | 4.1 | 5.2 |
--------------------------------------------------------------------------------
| Total | 134.5 | 109.8 | 376.3 | 312.7 | 421.9 |
--------------------------------------------------------------------------------
DISCONTINUED OPERATIONS AND NON-CURRENT ASSETS HELD FOR SALE
Discontinued operations
The diagnostics business, food potato businesses and Monäs Feed Oy Ab sold in
2007 are treated as discontinued operations in the Group's reporting.
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 | 2007 |
--------------------------------------------------------------------------------
| Result for the discontinued operations | | | |
--------------------------------------------------------------------------------
| Income from ordinary operations | | 17.3 | 19.3 |
--------------------------------------------------------------------------------
| Expenses | | -23.5 | -23.7 |
--------------------------------------------------------------------------------
| Result before taxes | | -6.2 | -4.5 |
--------------------------------------------------------------------------------
| Taxes | | 0.6 | -0.1 |
--------------------------------------------------------------------------------
| Result after taxes | | -5.6 | -4.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result from discontinued operations | | 0.0 | -2.9 |
--------------------------------------------------------------------------------
| Taxes | | 0.0 | 0.1 |
--------------------------------------------------------------------------------
| Result after taxes | | 0.0 | -2.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result for the discontinued operations | | -5.6 | -7.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow for the discontinued operations | | | |
--------------------------------------------------------------------------------
| Cash flow from business operations | | -1.4 | 1.3 |
--------------------------------------------------------------------------------
| Cash flow from investments | 0.8 | 6.0 | 5.8 |
--------------------------------------------------------------------------------
| Cash flow from financial operations | | -0.1 | -0.1 |
--------------------------------------------------------------------------------
| Total cash flow | 0.8 | 4.5 | 7.0 |
--------------------------------------------------------------------------------
TANGIBLE ASSETS
--------------------------------------------------------------------------------
| | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Acquisition cost at the beginning of | 430.2 | 450.5 | 450.5 |
| the period | | | |
--------------------------------------------------------------------------------
| Conversion differences | 1.6 | -1.4 | -1.4 |
--------------------------------------------------------------------------------
| Increase | 10.6 | 20.3 | 29.4 |
--------------------------------------------------------------------------------
| Decrease | -14.6 | -36.6 | -48.3 |
--------------------------------------------------------------------------------
| Reclassifications between items | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Acquisition cost at the end of the | 427.7 | 432.8 | 430.2 |
| period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Accumulated depreciation and | 302.3 | 332.8 | 332.8 |
| write-downs at the beginning of the | | | |
| period | | | |
--------------------------------------------------------------------------------
| Conversion difference | 1.0 | -0.9 | -1.0 |
--------------------------------------------------------------------------------
| Decrease and transfers | -13.9 | -32.5 | -42.8 |
--------------------------------------------------------------------------------
| Depreciation for the period | 11.1 | 11.3 | 15.1 |
--------------------------------------------------------------------------------
| Write-downs | 0.0 | -1.5 | -1.9 |
--------------------------------------------------------------------------------
| Accumulated depreciation and | 300.6 | 309.2 | 302.3 |
| write-downs at the end of the period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book value at the end of the period | 127.1 | 123.7 | 127.9 |
--------------------------------------------------------------------------------
RESERVES
--------------------------------------------------------------------------------
| | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| At the beginning of the period | 1.9 | 5.1 | 5.1 |
--------------------------------------------------------------------------------
| Increase in provisions | 0.0 | 0.4 | 0.0 |
--------------------------------------------------------------------------------
| Provisions used | -0.8 | -3.3 | -3.3 |
--------------------------------------------------------------------------------
| At the end of the period | 1.1 | 2.3 | 1.9 |
--------------------------------------------------------------------------------
BUSINESS ACTIVITIES INVOLVING INSIDERS
--------------------------------------------------------------------------------
| | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Sales to associated companies and | 10.3 | 9.4 | 12.8 |
| joint ventures | | | |
--------------------------------------------------------------------------------
| Purchases from associated companies | 0.1 | 2.8 | 3.1 |
| and joint ventures | | | |
--------------------------------------------------------------------------------
| Sales to key employees in management | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Purchases from key employees in | 0.8 | 0.5 | 0.6 |
| management | | | |
--------------------------------------------------------------------------------
| Short-term receivables from | 2.1 | 2.6 | 2.3 |
| associated companies and joint | | | |
| ventures | | | |
--------------------------------------------------------------------------------
| Liabilities to associated companies | 0.2 | 0.6 | 0.5 |
| and joint ventures | | | |
--------------------------------------------------------------------------------
CONTINGENT LIABILITIES (EUR million)
--------------------------------------------------------------------------------
| | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Assets given for security | | | |
--------------------------------------------------------------------------------
| For the company | | | |
--------------------------------------------------------------------------------
| Mortgages on real estate | 0.0 | 17.1 | 0.7 |
--------------------------------------------------------------------------------
| Corporate mortgages | 0.0 | 33.5 | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Contingent off-balance sheet | | | |
| liabilities | | | |
--------------------------------------------------------------------------------
| Non-cancelable other leases | | | |
--------------------------------------------------------------------------------
| Minimum lease payments | 1.7 | 2.2 | 2.5 |
--------------------------------------------------------------------------------
| Contingent liabilities for the | 0.0 | 1.5 | 1.5 |
| company | | | |
--------------------------------------------------------------------------------
| Contingent liabilities for associated | | | |
| companies | | | |
--------------------------------------------------------------------------------
| Guarantees | 0.0 | 3.1 | 0.0 |
--------------------------------------------------------------------------------
| Contingent liabilities for others | | | |
--------------------------------------------------------------------------------
| Guarantees | 0.0 | 0.2 | 0.1 |
--------------------------------------------------------------------------------
| Other liabilities | 2.2 | 2.2 | 2.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commitment to investment payments | 2.0 | 8.1 | 2.7 |
--------------------------------------------------------------------------------
DERIVATIVE CONTRACTS (EUR million)
--------------------------------------------------------------------------------
| | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Nominal values of derivative | | | |
| contracts | | | |
--------------------------------------------------------------------------------
| Raw material futures | 0.9 | 2.3 | 11.2 |
--------------------------------------------------------------------------------
| Currency forward contracts | 23.8 | 24.4 | 18.6 |
--------------------------------------------------------------------------------
| Interest rate swaps | 10.0 | - | - |
--------------------------------------------------------------------------------
QUARTERLY PERFORMANCE (EUR million)
--------------------------------------------------------------------------------
| | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2008 | 2008 | 2008 | 2007 | 2007 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Net sales by | | | | | | | |
| segment | | | | | | | |
--------------------------------------------------------------------------------
| Food | 51.7 | 49.7 | 49.0 | 50.3 | 48.6 | 48.5 | 49.8 |
--------------------------------------------------------------------------------
| Feed & Malt | 78.7 | 68.9 | 64.3 | 54.0 | 59.3 | 53.0 | 40.4 |
--------------------------------------------------------------------------------
| Ingredients | 11.0 | 10.1 | 12.7 | 11.6 | 10.2 | 10.7 | 12.5 |
--------------------------------------------------------------------------------
| Other operations | 0.3 | 0.2 | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Interdivisional | -7.2 | -6.0 | -7.4 | -6.7 | -8.4 | -6.1 | -5.9 |
| net sales | | | | | | | |
--------------------------------------------------------------------------------
| Total net sales | 134. | 122.9 | 118.9 | 109.2 | 109.8 | 106.1 | 96.8 |
| | 5 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating result | | | | | | | |
| by segment | | | | | | | |
--------------------------------------------------------------------------------
| Food | 1.4 | 0.9 | 4.8 | -2.7 | -5.7 | -1.7 | -0.9 |
--------------------------------------------------------------------------------
| Feed & Malt | 4.3 | 4.2 | 1.7 | 1.2 | 9.6 | 2.9 | 0.5 |
--------------------------------------------------------------------------------
| Ingredients | 3.1 | 1.7 | 3.3 | 2.4 | 2.1 | 2.6 | 2.5 |
--------------------------------------------------------------------------------
| Other operations | -1.0 | -0.7 | -0.8 | -0.4 | -0.4 | -0.5 | -0.8 |
--------------------------------------------------------------------------------
| Eliminations | -0.3 | 0.4 | -0.6 | 0.2 | 0.0 | 0.0 | -0.1 |
--------------------------------------------------------------------------------
| Total operating | 7.6 | 6.5 | 8.4 | 0.6 | 5.6 | 3.3 | 1.2 |
| result | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | -0.2 | -0.2 | -0.1 | -1.0 | -0.5 | -0.3 | 1.1 |
| and expenses, net | | | | | | | |
--------------------------------------------------------------------------------
| Share of result | 0.1 | 0.0 | 0.0 | 0.0 | -0.1 | -0.1 | -0.2 |
| of associated | | | | | | | |
| companies | | | | | | | |
--------------------------------------------------------------------------------
| Result before | 7.4 | 6.3 | 8.4 | -0.4 | 5.0 | 2.8 | 2.1 |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax | -2.1 | -2.5 | -1.1 | 2.0 | -2.1 | -0.8 | -0.4 |
--------------------------------------------------------------------------------
| Result for the | 5.3 | 3.8 | 7.3 | 1.6 | 2.9 | 2.1 | 1.7 |
| period from | | | | | | | |
| continuing | | | | | | | |
| operations | | | | | | | |
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ONE-OFF ITEMS (EUR million)
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| | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2008 | 2008 | 2008 | 2007 | 2007 | 2007 | 2007 |
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| Food | | | | | | | |
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| Impairment of | | | | | -1.3 | | |
| goodwill | | | | | | | |
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| Other impairments | | | | -1.6 | -2.0 | | |
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| Other one-off | | | 4.2 | | -0.3 | | |
| items | | | | | | | |
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| Feed & Malt | | | | | | | |
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| The reversal of | | | | 0.5 | 5.5 | | |
| impairment in the | | | | | | | |
| Feed & Malt | | | | | | | |
| business | | | | | | | |
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| Impact on | 0.0 | 0.0 | 4.2 | -1.2 | 1.9 | 0.0 | 0.0 |
| operating result | | | | | | | |
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| Financial income | | | | | | | |
| and expenses, net | | | | | | | |
--------------------------------------------------------------------------------
| Share of result | | | | | | | |
| of associated | | | | | | | |
| companies and | | | | | | | |
| joint ventures | | | | | | | |
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| Impact on result | 0.0 | 0.0 | 4.2 | -1.2 | 1.9 | 0.0 | 0.0 |
| before taxes | | | | | | | |
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KEY INDICATORS
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| | 30.9.2008 | 30.9.2007 | 31.12.2007 |
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| Net sales, EURm | 376.3 | 312.7 | 421.9 |
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| change, % | 20.3 | 2.9 | 4.8 |
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| Operating result, EURm | 22.5 | 10.0 | 10.6 |
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| % of net sales | 6.0 | 3.2 | 2.5 |
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| Result before taxes, EURm | 22.1 | 9.9 | 9.5 |
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| % of net sales | 5.9 | 3.2 | 2.3 |
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| Return on equity, ROE, % | 7.9 | 2.2 | 2.9 |
--------------------------------------------------------------------------------
| Return on investment, ROI, % | 10.5 | 4.7 | 3.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearing liabilities at the | 14.0 | 11.9 | 7.2 |
| end of the period, EURm | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 77.0 | 76.9 | 77.9 |
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| Net gearing, % | -12.5 | -16.3 | -13.1 |
--------------------------------------------------------------------------------
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| Gross investments, EURm | 25.0 | 21.2 | 31.4 |
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| % of net sales | 6.7 | 6.8 | 7.5 |
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| Depreciation, EURm | 13.4 | 13.6 | 18.3 |
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| R & D expenses, EURm | 4.2 | 4.3 | 6.4 |
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| % of net sales | 1.1 | 1.4 | 1.5 |
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| Average personnel | 1 073 | 1 181 | 1 157 |
--------------------------------------------------------------------------------
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| Earnings/share from continuing | 0.10 | 0.04 | 0.05 |
| operations, EUR | | | |
--------------------------------------------------------------------------------
| Cash flow from operations/share, EUR | 0.17 | 0.09 | 0.10 |
--------------------------------------------------------------------------------
| Equity/share, EUR | 1.77 | 1.70 | 1.70 |
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| Average number of shares during the | | | |
| period, in 1,000s*) | | | |
--------------------------------------------------------------------------------
| Free shares | 122,488 | 125,184 | 124,553 |
--------------------------------------------------------------------------------
| Restricted shares | 34,299 | 34,502 | 34,462 |
--------------------------------------------------------------------------------
| Total | 156,786 | 159,686 | 159,015 |
--------------------------------------------------------------------------------
| Average numer of shares at the end of | | | |
| the period, in 1,000s*) | | | |
--------------------------------------------------------------------------------
| Free shares | 122,255 | 124,045 | 122,444 |
--------------------------------------------------------------------------------
| Restricted shares | 34,290 | 34,383 | 34,316 |
--------------------------------------------------------------------------------
| Total | 156,545 | 158,428 | 156,760 |
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| Market capitalisation of shares at the | | | |
| end of the period, EURm*) | | | |
--------------------------------------------------------------------------------
| Free shares | 193.2 | 240.6 | 183.7 |
--------------------------------------------------------------------------------
| Restricted shares | 58.0 | 66.7 | 52.2 |
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| Total | 251.1 | 307.3 | 235.8 |
--------------------------------------------------------------------------------
*) Number of shares without own shares
CALCULATION OF INDICATORS
--------------------------------------------------------------------------------
| Return on equity (ROE), % | Result before taxes - income taxes*) |
| | ------------------------------------------- x |
| | 100 |
| | Shareholders' equity (average over the period) |
--------------------------------------------------------------------------------
| Return on investment | Result before taxes + financial expenses*) |
| (ROI), % | ------------------------------------------- x |
| | 100 |
| | Shareholders' equity + interest-bearing |
| | financial liabilities (average over the period) |
--------------------------------------------------------------------------------
| Equity ratio, % | Shareholders' equity |
| | ------------------------------------------- x |
| | 100 |
| | Balance sheet total - advances received |
--------------------------------------------------------------------------------
| Net interest-bearing | Interest-bearing financial liabilities - liquid |
| financial liabilities | assets and financial assets recorded at fair |
| | value in the income statement |
--------------------------------------------------------------------------------
| Net gearing, % | Net interest-bearing financial liabilities |
| | ----------------------------------------- x 100 |
| | Shareholders' equity |
--------------------------------------------------------------------------------
| Earnings per share*) | Result for the year of parent company |
| | shareholders |
| | ------------------------------------------------ |
| | Average number of shares for the year, adjusted |
| | for share issue |
--------------------------------------------------------------------------------
| Cash flow from business | Cash flow from business operations |
| operations per share | ------------------------------------------------ |
| | Average number of shares for the year, adjusted |
| | for share issue |
--------------------------------------------------------------------------------
| Shareholders' equity per | Equity of parent company shareholders |
| share | ------------------------------------------------ |
| | Number of shares at the end of the period |
| | adjusted for share issue |
--------------------------------------------------------------------------------
| Market capitalisation | Closing price, adjusted for issue x number of |
| | shares without own shares at the end of the |
| | period |
--------------------------------------------------------------------------------
*)The calculation of key indicators uses continuing operations result
