Raisio: Raisio plc, Financial Statements Bulletin 2017

Raisio plc        Financial Statements Release 12 February 2018

RAISIO PLC, FINANCIAL STATEMENTS BULLETIN 2017

January-December 2017, continuing operations:

  -- Raisio Group's net sales totalled EUR 306.8 (336.6) million.
  -- Raisio Group's comparable EBIT amounted to EUR 37.8 (38.6)
     million,accounting for 12.3 (11.5)% of net sales.

January-December 2017, in total including the discontinued operations:

  -- Raisio Group's net sales totalled EUR 402.8 (436.3) million.
  -- Raisio Group's comparable EBIT amounted to EUR 45.9 (50.7)
     million,accounting for 11.4 (11.6)% of net sales.
  -- The Board's dividend proposal is EUR 0.17 per share.

October-December 2017, continuing operations:

  -- Raisio Group's net sales totalled EUR 72.0 (70.7) million.
  -- Raisio Group's comparable EBIT totalled EUR 7.5 (9.6) million,accounting
     for 10.4 (13.6)% of net sales.

October-December 2017, in total including the discontinued operations:

  -- Raisio Group's net sales totalled EUR 97.3 (95.4) million.
  -- Raisio Group's comparable EBIT totalled EUR 9.2 (12.0) million,accounting
     for 9.5 (12.6)% of net sales.

CEO'S REVIEW

"After the review period, at the end of January 2018, Raisio announced to
consider the divestment of its cattle and fish feed business as one strategic
alternative. Raisio has initiated negotiations on the sale of its feed
businesses with several operators. At the same time, Raisio moved from a
holding-type structure to a model in which all resources are targeted toward
organic growth, the strategic objective of the Healthy Food Division. 

The confectionery business divestment in December 2017 was Raisio's first
strategic step towards its focus, namely its core business Healthy Food.
Together with the already strong balance sheet, the proceeds from the
confectionery deal allow extensive acquisitions. Raisio is a net debt free
company with net cash of EUR 105 million at the end of 2017. In addition to the
organic growth, Raisio seeks growth through acquisitions that suit its core
business. 

In 2017, Raisio's successes were its Elovena and Benecol products with sales
growth of some 10 per cent in Finland and fish feed exports to Russia showing
an increase of almost 30 per cent. Good sales development was also seen in
improved EBIT. 

The Group's EBIT, including the confectionery business, was clearly down from
the comparison period. EBIT decline was primarily due to the challenges of the
UK confectionery business that continued until the end of 2017. Benecol's EBIT
was also significantly down from the comparison period due to higher
subcontracting costs of consumer products and the sharp world market price
increase of sterols used as raw material in Benecol products, since higher
costs could not fully be passed on to end product prices. Raisio has secured
the availability and price level of sterols required for its production in the
coming years." 

RAISIO GROUP'S KEY FIGURES, continuing and discontinued operations

                                       2017                       2016          
--------------------------------------------------------------------------------
        Continuing          Discontinu  Total  Continui  Discontin  Total  
                            ed                    ng     ued               
--------------------------------------------------------------------------
Income statement                                                                
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Net sales, M€                    306.8   96.0     402.8      336.6   99.7  436.3
--------------------------------------------------------------------------------
Change in net sales, %            -8.8   -3.7      -7.7      -19.2   -4.8  -16.3
--------------------------------------------------------------------------------
Comparable EBIT, M€               37.8    8.1      45.9       38.6   12.1   50.7
--------------------------------------------------------------------------------
Comparable EBIT, %                12.3    8.4      11.4       11.5   12.2   11.6
--------------------------------------------------------------------------------
EBIT, M€                          55.9  -59.2      -3.2       16.8   12.1   28.9
--------------------------------------------------------------------------------
EBIT, %                           18.2  -61.7      -0.8        5.0   12.2    6.6
--------------------------------------------------------------------------------
Comparable EBITDA, M€             45.9   11.1      57.0       46.8   15.2   62.0
--------------------------------------------------------------------------------
EBITDA, M€                        71.8  -27.4      44.4       41.1   15.2   56.3
--------------------------------------------------------------------------------
Financial income and              -1.4   -0.3      -1.7       -2.1   -0.1   -2.2
 expenses, M€                                                                   
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Comparable earnings per           0.18   0.04      0.22       0.19   0.06   0.25
 share, M€                                                                      
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Earnings per share, M€            0.27  -0.38     -0.11       0.06   0.06   0.12
--------------------------------------------------------------------------------
Balance sheet                        -      -         -          -      -       
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Equity ratio, %                   73.4      -     -           66.8      -    -  
--------------------------------------------------------------------------------
Net gearing, %                   -39.8      -     -            8.5      -    -  
--------------------------------------------------------------------------------
Net interest-bearing debt,      -105.1      -     -           26.7      -    -  
 M€                                                                             
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Equity per share, €               1.68      -     -           1.99      -    -  
--------------------------------------------------------------------------------
Dividend per share, €                -      -     0.17*          -      -   0.17
--------------------------------------------------------------------------------
Investments, M€                   10.4    5.4      15.8       13.3    5.2   18.6
--------------------------------------------------------------------------------

* Board of Directors' proposal to the Annual General Meeting

                                  10-12/2017                  10-12/2016        
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                          Continui  Discon-ti  Total  Continui  Discontin  Total
                             ng        nued              ng        ued          
--------------------------------------------------------------------------------
Income statement                                                                
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Net sales, M€                 72.0       25.3   97.3      70.7       24.7   95.4
--------------------------------------------------------------------------------
Change in net sales, %         1.9        2.3    2.0     -25.2      -12.7  -22.3
--------------------------------------------------------------------------------
Comparable EBIT, M€            7.5        1.7    9.2       9.6        2.4   12.0
--------------------------------------------------------------------------------
Comparable EBIT, %            10.4        6.7    9.5      13.6        9.7   12.6
--------------------------------------------------------------------------------
EBIT, M€                      -1.6      -36.7  -38.3       9.1        2.4   11.5
--------------------------------------------------------------------------------
EBIT, %                       -2.2     -145.3  -39.4      12.9        9.7   12.1
--------------------------------------------------------------------------------
Comparable EBITDA, M€          9.7        2.5   12.1      11.5        3.2   14.7
--------------------------------------------------------------------------------
EBITDA, M€                     8.3      -36.1  -27.7      10.6        3.2   13.8
--------------------------------------------------------------------------------
Financial income and          -0.3        0.0   -0.3       0.1        0.1    0.2
 expenses, M€                                                                   
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Comparable earnings per       0.04       0.01   0.04      0.05       0.01   0.06
 share, €                                                                       
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Earnings per share, €        -0.02      -0.22  -0.25      0.05       0.01   0.06
--------------------------------------------------------------------------------
Balance sheet                                                                   
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Investments, M€                1.8        2.7    4.6       3.8        1.4    5.1
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EVENTS AFTER THE REVIEW PERIOD

On 31 January 2018, Raisio announced to consider the divestment of cattle and
fish feed businesses as one strategic alternative. The company also renewed its
organisational structure and started statutory cooperation negotiations in
order to ensure the Group growth, profitability and competitiveness. 

Raisio considers the divestment of its feed businesses as a strategic
alternative 

Raisio is considering a sale of its cattle and fish feed businesses as one
strategic alternative. Raisio has initiated negotiations on the sale of its
feed business with several operators. During the negotiations, Raisioagro
continues business as usual. Raisio's Grain Trade business is not for sale. 

Raisio continues the renewal of the Group structure

Benecol and Foods businesses, which were operating as separate organisations,
have been combined into one Healthy Food Division. During the spring 2018, the
company will also initiate measures to simplify the Group's legal corporate
structure. 

In addition to his CEO role, Pekka Kuusniemi will serve as COO of the Healthy
Food Division until a new director is appointed. The new organisational
structure has been in force since 1 February 2018. 

Raisio Group started statutory cooperation negotiations

To ensure its growth, competitiveness and profitability, Raisio started
cooperation negotiations concerning 115 employees on 5 February 2018. Initial
estimate of the reduction need is 30 persons. The cooperation negotiations
concern the Group services as well as marketing, product development and
service functions of the new Healthy Food Division. The aim is to complete the
negotiations during March 2018. At the end of 2017, Raisio's Finnish operations
employed a total of 325 people. 

GUIDANCE 2018

Raisio estimates the net sales of the Group's continuing operations to slightly
increase from 2017. The company estimates the comparable EBIT of the Group's
continuing operations account for more than 10 per cent of net sales. Exchange
rates will continue to significantly affect Raisio's net sales and EBIT. 

Raisio's key strategic target is growth, both organically and through
acquisitions. To ensure Raisio's organic growth, the company will move from a
holding-type structure to a model in which all resources are targeted toward
supporting the strategic objectives of the new Healthy Food Division. Raisio
will also seek growth through acquisitions that suit its core business. Raisio
is net debt free and has a strong balance sheet, which makes acquisitions
supporting its core business possible. 

RAISIO PLC

Heidi Hirvonen
Communications and IR Manager
tel. [phone]

Further information:
Pekka Kuusniemi, President and CEO, tel. [phone]
Antti Elevuori, CFO, tel. [phone]
Heidi Hirvonen, Communications and IR Manager, tel. [phone]

Chief Executive's video in English will be available on Raisio's web site at
www.raisio.com 

The interim report has not been audited.

Raisio plc

Raisio is an international food and feed company focusing on wellbeing and
profitable growth. The core of Raisio's strategy consists of plant-based,
healthy and responsible branded products. Benecol is an international success
story in cholesterol lowering. Our well-known local brands include Elovena,
Nordic, cattle feed Maituri and Baltic Blend fish feeds. We promote sustainable
food chain and develop innovations to enhance wellbeing. Raisio plc's shares
are listed on Nasdaq Helsinki Ltd. In 2016, the Group's net sales totalled EUR
436 million and comparable EBIT was EUR 50.7 million. The Group employs some
400 people. For more information on Raisio go to www.raisio.com/en 

Distribution
Nasdaq
Key media
www.raisio.com

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