CEO Matti Rihko said that the €12m EBIT for the group during the quarter reflected a decision to cut some ‘less interesting’ businesses from its portfolio earlier in the year, which included the €330m sale of its oat, soy and rice business to Norwegian food company Kavli in March.
Referring to the record-level profit, Rihko said: “I am very pleased about that, especially remembering that the economy is difficult. And it wasn’t a perfect or brilliant result, which means we still have a lot of room for improvement.”
He added that for the rest of the year the company would focus on improving its UK breakfast and snacks operations, which were a weak spot for Raisio, despite improved sales in the category in Northern Europe.
“The whole sugared breakfast cereal category had a hard time,” he said. “…We lost some volume there. It is clear we need to fix the problem. It is clear we need to change the way we are running the business in the UK.”
The company reported sales of €149.5m in the quarter, down from €161m in the prior year period. Its guidance for the year remains unchanged, with net sales predicted to be slightly lower than last year, but with continued solid improvement in EBIT.
Raisio’s share price was up 4.65% in early trading on the Helsinki stock exchange, reaching a 52-week high of €4.65.