Result continued to strengthen, operating environment remains challenging

FINANCIAL DEVELOPMENT IN BRIEF

• The Group's net sales totalled EUR 56.1 (56.5) million, which signified a decrease of 0.7%. 
• Comparable EBITDA was EUR 9.9 (8.9) million, which accounted for 17.6 (15.8) per cent of net sales. 
• EBITDA was EUR 9.6* (8.7*) million, which accounted for 17.0 (15.3) per cent of net sales. 
• Comparable EBIT was EUR 7.4 (6.5) million, accounting for 13.1 (11.4) per cent of net sales.
• EBIT was EUR 7.0* (6.2*) million, which accounted for 12.5 (10.9) per cent of net sales. 
• The Group's cash flow from continuing operations after financial items and taxes totalled EUR 15.0 (1.8) million.
• Comparable earnings per share were EUR 0.04 (0.03) per share.
• Earnings per share were EUR 0.04 (0.03) per share.    

*EBITDA and EBIT include EUR0.2million in costs related to business expansion and EUR0.1million in costs related to reorganisation. EBITDA and EBIT for the comparison period include EUR0.3million in costs related to business expansion.

• The Group's net sales totalled EUR 165.3 (165.2) million, which signified a growth of 0.0%. 
• Comparable EBITDA was EUR 24.8 (19,8**) million, which accounted for 15.0 (12.0) per cent of net sales. 
• EBITDA was EUR 23.5* (19.5*) million, which accounted for 14.2 (11.8) per cent of net sales. 
• Comparable EBIT was EUR 17.3 (12.3**) million, accounting for 10.4 (7.5) per cent of net sales.
• EBIT was EUR 16.0* (12.0*) million, which accounted for 9.7 (7.3) per cent of net sales. 
• The Group's cash flow from continuing operations after financial items and taxes totalled EUR 28.0 (0.4) million.
• Comparable return on invested capital (ROIC) was 8.7 (4.4) per cent and the return on invested capital (ROIC) was 8.1 (4.3) per cent.
• Comparable earnings per share were EUR 0.09 (0.05) per share.
• Earnings per share were EUR 0.09 (0.05) per share.    

*EBITDA and EBIT include EUR0.7million in costs related to business expansion and EUR0.5million in costs related to reorganisation. EBITDA and EBIT for the comparison period include EUR0.3million in costs related to business expansion.
**The comparable EBITDA and EBIT for the comparison period include a return of EUR 1.1 million in pension fund surplus from previous years.

KEY FIGURES OF THE GROUP, continuing operations

7-9/2 7-9/2 Change 1-9/20 1-9/20 Change 1-12/2
22 022
023 022 23
Net sales M€ 56.1 56.5 -0.7% 165.3 165.2 0.0% 220.8
Comparable M€ 9.9 8.9 10.2% 24.8 19.8 25.1% 28.3
EBITDA
Comparable % 17.6 15.8 15.0 12.0 12.8
EBITDA as a
percentage
of net
sales
EBITDA M€ 9.6 8.7 10.4% 23.5 19.5 20.7% 27.8
EBITDA as a % 17.0 15.3 14.2 11.8 12.6
percentage
of net sales
Comparable M€ 7.4 6.5 13.9% 17.3 12.3 40.1% 18.4
EBIT
Comparable % 13.1 11.4 10.4 7.5 8.3
EBIT as a
percentage
of net
sales
EBIT M€ 7.0 6.2 14.3% 16.0 12.0 33.3% 17.9
EBIT as a % 12.5 10.9 9.7 7.3 8.1
percentage
of net sales
Comparable € 0.04 0.03 31.5% 0.09 0.05 83.6% 0.08
earnings
per share
Earnings per € 0.04 0.03 29.4% 0.09 0.05 89.9% 0.08
share
Average FTE 348 342 1.8% 348 343 1.5% 342
personnel
Investments, M€ 2.4 1.0 151.0% 7.4 3.6 106.1% 5.2
continuing
operations
Cash flow M€ 15.0 1.8 28.0 0.4 11.2
from
business
operations
after
financial
items and
taxes,
continuing
operations
Equity ratio % 79.5 79.2 79.2
Net gearing % -18.5 -10.7 -15.7
Net interest M€ -47.5 -27.8 -41.2
-bearing
debt
Equity per € 1.62 1.63 1.66
share
Comparable % 8.7 4.4 5.6
return on
invested
capital
(ROIC),
continuing
operations
Return on % 8.1 4.3 5.5
invested
capital
(ROIC),
continuing
operations

CEO PEKKA KUUSNIEMI:

The third quarter continued largely along the same lines as the previous one, with consumers' purchasing behaviour remaining very cautious as a result of inflation and the uncertain economic situation. However, during the summer and early autumn, the demand situation in the Finnish consumer market improved somewhat for Raisio, while in our other main market, the UK, the cost of living crisis continued to challenge the sales volume of Benecol® products. The challenging market situation of B2B customers is also still reflected in the development of Raisio's net sales.

The 2023 grain harvest in Finland was the third worst of the millennium. However, prices have not yet shown any significant changes, and I do not believe that we will be seeing the massive price increases that we witnessed two years ago. In any case, procurement prices are facing upward pressure because both the quantity and quality of the harvest are woefully low.

During the review period, the company's net sales remained similar to the comparison period at EUR56.1 (56.5) million. In the previous year, most of the price increases had already been made during the second quarter, so comparability is already quite good. Performance improved significantly, with comparable EBIT rising to EUR7.4 (6.5) million, accounting for 13.1 (11.4) per cent of net sales. Cash flow after financial items and taxes was remarkably strong at EUR15.0 (1.8) million. With the change programme launched in August last year, our operations are evolving in different areas and will gradually be reflected in our performance indicators.

Over the past two years, we have significantly upgraded our production capabilities, with a brand new plant for drinkable and spoonable plant-based products launched in autumn 2021 at our carbon-neutral industrial area in Raisio and a completely renewed pasta production line completed this summer. The commissioning of both of these new investments, worth over EUR50million in total, has gone well and the payback of the investments has started well. With regard to the new plant, it should be noted that Raisio had no market share in these categories before, and today we are a powerful player in the Finnish market, strongly challenging the market leader. The Elovena® brand has thus proven its strength also in new product areas and brought significant growth to our sales in Finland.

During the summer and early autumn, the availability of pasta in Finland has come up in the public debate, somewhat unexpectedly. The installation and commissioning of the Raisio pasta line coincided with supply problems in the industry, resulting in gaps on shop shelves. At the moment, demand has exceeded expectations and the factory employees are doing their best to ensure that Finnish consumers have enough good Finnish pasta. In our strategy, we have placed the Torino® pasta brand in the `local hero' category, and its role is to contribute to a steady cash flow for the company and help ensure Finnish security of supply.

We have paved the way for international sales of oat products by carefully researching the European markets and working with customers in the most attractive geographical areas. We aim to establish a permanent position in markets much larger than Finland, and achieving this position will require a great deal of work and money. Achieving market positions in competitive consumer markets is expensive and even risky, but we believe that the strong Elovena® brand, which will soon be a century old, will also flourish on a global scale.

I wish to extend my sincere thanks to Raisio's employees for their great work in the ever-changing market situation.

OUTLOOK 2023

Raisio announced on 10 July 2023 that it had updated its financial outlook for 2023. Previously, the company had estimated that its outlook for 2023 would show an increase in comparable net sales and profit compared to the previous year.

New guidance for2023: Raisio expects comparable net sales to be at or slightly below the previous year's level. Comparable profit is expected to increase from the previous year, to between EUR21 and 23million (EUR18.4million in 2022).

In Raisio, Finland, 1 November 2023
Raisio plc
Board of Directors

Further information:
Pekka Kuusniemi, CEO, tel. +358 50 537 3883
Mika Saarinen, CFO, tel. +358 40 072 6808

The information in the Interim Report is unaudited.

The Finnish-language webcast concerning the Q3 result will take place at 12 noon on 1November2023. Raisio's interim report will be presented by CEO Pekka Kuusniemi. The webcast is available via a link on the Raisio website. This is the direct link to the webcast: https://raisio.videosync.fi/q3-2023.

Raisio will publish the 2023 Financial Statements Bulletin on 13February2024.

RAISIO PLC
At Raisio, we make food from the heart, with the aim of bringing health to ourselves and the Earth. We keep creating better plant-based and heart-healthy products so that eating healthily and within the Earth's ecological capacity can be a pleasure. Our strong brands, such as Benecol®, Härkis® and Elovena®, turn our ambitions into reality. Through our responsibility work, we make the hard choices for consumers, so that they can choose Raisio products with confidence. We have around 350 healthy food colleagues in six countries and export to more than 40 markets around the world. Raisio's shares are listed on Nasdaq Helsinki Ltd. In 2022, the Group's comparable net sales for continuing operations were approximately EUR 221 million and the comparable EBIT was approximately EUR 18 million. www.raisio.com