Although turnover from continuing operations increased slightly in 2006, amounting to €436.3 million, the company's operating result from continuing operations, excluding one-off items, came to €-6.0 million (2005: €9.1 million).
Furthermore, operating result as reported in the financial statements came to €-38.5 million (€-10.9 million).
"Raisio food division's operations have been scattered, which has made it difficult to manage performance," said chief executive officer Matti Rihko.
"Despite rationalisation measures, the food division's result was deeply unprofitable as well as the result of the diagnostics division."
The food division's losses deepened and ended at €-5.5 million (€-1.8 million), excluding one-off items. The most significant performance drops were registered in the soy-oat, milling and Polish businesses.
Raisio's margarine sales in Sweden also continued to decrease. The operating result in Ingredients was €1.5 million (€2.7 million), and in Feed & Malt €0.5 million (€1.2 million) excluding one-off items.
However, the company said that its main target for 2007 was to improve profitability, and that measures to streamline business operations have already been put in place.
"A year of many changes in Raisio was concluded with efforts to improve profitability," said Rihko.
"Significant changes also took place in senior management and the board of directors in 2006."
In addition, this month the company stated that it would divest its food potato business in Vihanti. The transaction is to be completed in the first half of 2007.
The company has also initiated negotiations on a withdrawal from a currently planned project concerning the construction of a flake mill in Burunduk, Russia. The decision is based on a considerable increase in investment costs, which is expected to result in the project no longer meeting the original revenue requirements.
To cover the probable risks related to changes to be made to the project agreements, the company will include a write-down of approximately € 5.8 million in the financial statements for 2006.
Despite the challenging nature of 2006, Raisio is confident that the implementation of various rationalisation measures and structural policies will begin to have a positive effect.
"Raisio's main target for 2007 is to improve profitability by streamlining, focusing and enhancing operations," said Rihko.
Indeed, the company's stated priority is to become a forerunner and specialist in plant-based nutrition with leading brands.
"A strong balance sheet, good products and well-known brands provide a good ground to develop Raisio as a forerunner and specialist in plant-based nutrition," said the company in a statement.
