Benecol-Maker Reaps The Rewards Of New Strategy In Half-Year Results
Benecol- and Elovena-maker Raisio PLC achieved Net Sales of €112.6 million in the first half of this year, 2.8% more than the same period in 2018.
From January to June, the group reported EBITDA of €15.4 million, almost 12.5% higher than the first half of 2018.
Raisio’s President And CEO, Pekka Kuusniemi, said that the performance reflects the group’s new strategy, which is to ensure the growth and profitability of its core business.
“Already during the first quarter, we were able to stop the net sales decline and in the review period, we saw a clear upturn in growth in terms of both net sales and profitability,” he said.
“Net sales increased by almost 5% and profitability improved by over 10% from the comparison period.”
He also highlighted the “significant new potential” seen in the group’s customer-oriented new organisation structure after just two quarters.
Both of Raisio’s business units, Healthy Food (Net Sales: €68.9m) and Healthy Ingredients (Net Sales: €56.6m), improved their performance from the comparison period.
While it has not yet reached the comparison period level yet, Kuusniemi said that the group’s strategic focus on fewer and stronger brands, combined with streamlining of the organisational structure carried out in the previous fiscal year, supported cost management over the comparison period.
In terms of the second quarter of the 2019 fiscal year, Raisio’s net sales totalled €62.7 million, up 5%, with growth driven by a mix of strong fish feed sales and higher food product prices.
© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click sign-up to subscribe to Checkout.