Raisio Group notes downturn in turnover - Company News - Brief Article - Statistical Data Included

Eurofood, August 29, 2002

Finnish food and food ingredients firm, the Raisio Group, has reported a slight downturn in group turnover to 400.4m [euro] (2001: 401.9m [euro]) for the first half of 2002, due to a hot early summer and downturn in animal feed sales.

Consolidated operating profit rose to 12.4m [euro], up from 7.9m [euro] the previous year. Improvements came from cost savings and rationalisation measures.

First half turnover and profitability for the Raisio Nutrition division remained at 2001 levels, coming in at 221.3m [euro] (2001 : 219.5m [euro]) for the first half period. Turnover in the food business unit came to 131.9m [euro] (2001:130.4m [euro]).

The company says the conversion of Raisio Nutrition into a legally separate sub-group is moving ahead according to plan. The new Raisio Nutrition company will be owned 100% by Raisio Group and will act as the new subgroup's parent company, to which the Raision Margariini malt, food, potato and oil milling businesses will be transferred at the beginning of October.

Turnover for Raisio Life Sciences grew by about 21% in January-June to total 13.3m [euro] (2001:611.0m [euro]). Raisio Chemicals saw turnover fall by 2.8% to a value of 172.1m [euro] compared to 177.1m [euro].

BENECOL DEVELOPMENT

Cooperation agreements were signed during the period for Benecol product deliveries to new market areas. The Al Ain Dairy (United Arab Emirates) incorporated dairy products, juices and spreads containing stanol ester into its product range. Uniq also signed an agreement with Raisio's partner McNeil Consumer Nutritionals Europe on the manufacture and marketing of products containing stanol ester in France.

Regarding its outlook for the rest of the year, the Finnish concern said turnover should rise in the second half and net earnings will remain at 2001 levels. Raisio Nutrition's main challenge is the ongoing rationalisation of margarine industry. Performance at its businesses in Finland and the new margarine unit in Poland is expected to develop favourably, but Carlshamn Mejeri is expected to show poor results. Overall the nutrition group's performance will be hampered by one-off costs estimated at 5m [euro], arising from concentration of margarine production, but the sector is still expected to show results similar to last year's.