Big small company’s strategy off to a good start

We have spent the first six months of the year implementing our new strategy: refining it during the first quarter and communicating and launching its implementation during the second quarter. Second quarter net sales decreased to EUR 54.4 (57.3) million, representing a decline of 4.8%, but comparable EBIT increased to EUR 7.9 (7.4) million, representing an increase of 6.3% compared to the comparison period. Our market performance has been very mixed. Consumer brand volumes developed positively, growing by 4.8% in volume and 1.6% in sales value, but industrial sales volumes declined by 12.9% and sales value by 16.6%. Consumer brands accounted for approximately 70% of our net sales, so the significant decline in industrial sales translated into a moderate decline in the Group’s net sales during the reporting period.

The implementation of our strategy, presented at the Capital Markets Day at the end of May 2025, has started as planned. At the end of March, we divested our plant protein business. This will allow us to better focus on breakfast and snacking products, heart health products and the development of new business. The impact of the divestment was EUR -1.1 million on comparable net sales and EUR +0.6 million on comparable EBIT in the second quarter.

The most significant change in the second quarter was the reorganisation of our business areas. This has allowed us to create clear and focused responsibilities, allocate our resources more effectively to implement our strategy and improve our cost efficiency. We appointed directors responsible for each business area. To accelerate structural growth, our Board of Directors established a special M&A Committee and we recruited a new M&A Director.

Our operations are international, and half of our net sales come from outside Finland. In April, we continued our geographical expansion with the launch of Elovena® in Spain. In line with our new strategy, we are now expanding geographically into a number of carefully selected markets, where we operate using a leaner model based on local partnerships. This increases flexibility and speed while reducing our risks. At the same time, the economic impact of opening up each new market is smaller in the short term. We will continue to develop our expansion model to make our growth faster, more resource-efficient and more repeatable.

Despite the positive development in earnings, we cannot be satisfied with the sales development in the second quarter. Consumer sales of our main brands developed well in all our main markets, but domestic industrial sales in the Breakfast, Snacking & Food Solutions segment in particular were below last year’s level. This was due to intense price competition in the market, which requires us to make our operations even more efficient. The Heart Health segment was more stable, with the decline in net sales in the second quarter being a natural consequence of deliveries to industrial customers exceeding normal levels in the first quarter.

In line with the objectives and plan for this strategy period, which emphasised improving profitability at the beginning of the period, our earnings have developed faster than our sales during the first half of the year. In the long run, however, accelerating organic growth is critical. Improved margins through streamlined operations will enable either greater marketing investments or more aggressive pricing, depending on market demand. This means that by improving our earnings and efficiency, we are laying the foundation for faster growth. Once the foundation is in place, we can shift our focus more strongly towards accelerating growth.

Responsibility work is also about risk management and new business opportunities

Solving our common problems not only secures our operating conditions, but also creates new business opportunities. Alongside climate change, biodiversity loss is one of the greatest challenges facing humanity. Therefore, we have begun mapping the agricultural biodiversity of our contract farms in connection with our carbon footprint calculations.

Similarly, excess weight and obesity are among the greatest health challenges of our time. The prevention and effective treatment of obesity require broad-based cooperation. As the only food company, Raisio was involved in establishing a new, cross-sector network for the prevention and treatment of obesity. A diet rich in fibre supports weight management and reduces the risk of cardiovascular diseases. This is why we are investing in fibre, both in our current product range and in our research and development work aimed at new business opportunities.

Pasi Flinkman
CEO, Raisio plc
August 2025

Half-Year Financial Report January-June 2025

We are off to a good start in 2025

Raisio’s operating environment has been stable despite macroeconomic and trade policy challenges. Food prices rose in all of our main markets during the first quarter, which weakened the overall volume development in the markets. Overall, however, the food industry is  stable and the impact of economic cycles is limited. In line with our strategy, our main focus is on Europe, and we are not dependent on the US or Chinese markets. The direct impact of potential tariffs on our business is likely to be muted, but the indirect effects may have some significance for Raisio’s business.

The 4.2% growth in the first quarter is faster than the overall market development, which is in line with our targets, and we have continued  to increase our market share. The growth is mainly attributable to the volume growth of our largest brands, Benecol® and Elovena®, in our main markets. In the B2B market in Finland, strikes in the bakery industry slowed down sales development, while exports performed well.

EBITDA also developed positively, particularly thanks to our sales mix and the efficiency measures launched in the second half of last year.

We continued to increase our investments in our main brands, which developed very well as a result. Additionally, Finnish consumers voted Elovena® the most sustainable brand in Finland for the second year in a row in the Sustainable Brand Index 2025 survey.

The growth in comparable EBIT slightly exceeded our expectations in the first quarter: 44% compared to the comparison period. In addition to our solid basic operations and continuous improvement, the quarter’s result was boosted by the strong early-year development of the Elovena® and Benecol® brands and the favourable timing of plant stanol ester deliveries. We are expecting fluctuations throughout the quarters of this year, but our outlook for the overall annual performance remains positive.

Implementation of new strategy underway

In March, we announced our new strategy. Within our existing categories, we are seeking growth particularly in breakfast and snack products and heart-healthy products. In addition to these, we are seeking growth from new business opportunities, which constitute the company’s third growth area. To ensure the efficient use of resources and focus on the growth areas identified in our strategy, we divested our plant protein business. The deal was closed right at the end of the first quarter and did not have any material impact on the results for the quarter. The sale of a loss-making business will naturally improve the Group’s operational result.

As part of the implementation of our strategy, we launched an organisational reform in March to ensure that our management and performance responsibilities support the implementation of our strategy and that we have the necessary expertise and resources to carry out our strategy.

We will present our new strategy at the Capital Markets Day on 27 May 2025. For more information on the Capital Markets Day, visit our website at www.raisio.com.

Pasi Flinkman
CEO, Raisio plc
May 2025

Interim Report January-March 2025

Renaissance from the fields to the world

When I joined Raisio last summer, I thought I was moving to a fairly traditional company. However, I have come to understand that Raisio is a fascinating combination of roots deep in the Finnish soil, outstanding R&D expertise, an international presence and strong brands. Indeed, Raisio’s strengths are built on its ability to combine the benefits of different approaches. Like a Renaissance man, Raisio has versatility, innovation and the ability to evolve and adapt to rapidly changing circumstances.

Volume growth and lessons from several markets

In 2024, volumes have increased: at the Group level, the increase was around 9% compared to the previous year. The trend was similar in all of our main markets and main categories. The stormy seas on the raw material markets calmed down to gentle ripples during the year. At the same time, we have consciously scaled back the role of grain trade with low levels of processing and focused on the production of strongly branded consumer products and processed raw materials.

Half of our net sales come from international markets outside Finland. Internationalising a brand requires a thorough understanding of markets and cultures, and the ability to adapt the products and messages to the needs of the target market while maintaining the core brand identity. It is a long and complex process that requires time, resources and flexibility. During the past year, we launched the Elovena® brand in the Netherlands and our snack biscuits in Sweden. These launches have not met all of our performance targets. In the long run, an organisation’s success is determined by its ability to learn and adapt to the world around it, and we have learned valuable lessons from these launches that will continue to support our ongoing internationalisation journey in the year ahead.

Great taste is an act of responsibility

You can choose Raisio products with a clear conscience because responsibility is an integral part of everything we do. At Raisio, we believe that by working with us, you are part of the solution to some of the biggest problems facing humanity.

We focus on the heart-healthiness of our product range. Last year, we supported the heart health of millions of people by supplying 260 million daily doses of plant stanol ester, which lowers harmful cholesterol. During the year, we launched 16 new Heart Symbol products in Finland, bringing the share of these products to 73% of our total consumer products. Fibre is the foundation of nutrition and well-being. Last year, we served 9,500 tonnes of dietary fibre to Finns in our consumer products. These are important figures, even though their magnitude and significance can be difficult to grasp. We operate on the premise that the increasing requirements for accuracy and verifiability in responsibility reporting are an advantage for Raisio, as they help separate the wheat from the chaff. Therefore, we report that 99.8% of the energy we used in 2024 was carbon neutral, although sometimes it might be tempting to round it up to 100%.

At the same time, it is important to recognise that no changes to our products — be it reducing sugar, adding fibre or making packaging more recyclable — will make any difference if consumers do not choose those products. That is why the deliciousness and convenience of our products are important pillars of responsibility.

Towards a bright future, in the short and the long term

Despite the challenges in the world around us, we enter the new year with confidence. Megatrends such as sustainability and well-being are fuelling our development. The economy is also expected to recover in the second half of 2025. However, we start from the premise that the responsibility for growth and profitability cannot be outsourced; it lies with us.

We are striving for clear progress in both the short and long term. We will continue to develop our responsiveness and adaptability without compromising on long-term development. We will continue to invest in our people, skills, research, product development and brands. We are in the final stages of our strategy process and will report more on it in the first quarter of the year.

The year 2025 kicked off with celebrations. This year marks the 30th anniversary of the launch of Benecol®. The brand celebrates its anniversary by working with healthcare professionals, continuing to help millions of people lower their cholesterol. At the same time, Elovena® is celebrating its 100th anniversary by being a strong presence in the everyday lives of our consumers and in the small but meaningful moments that, when shared with loved ones, are life at its best.

Raisio’s best days are still ahead of us. And not least because it is being built by a team of committed professionals who put their hearts and souls into their work. My warmest thanks to you and our partners for the past year.

I wish every one of you success and the best that life can give — the magic of everyday moments.

Pasi Flinkman
CEO, Raisio plc
February 2025

Financial Statements Bulletin 2024

In the third quarter, the business environment remained very similar to the second quarter. Due to the economic uncertainty and the slow decline in inflation, price remains a key driver of consumer choice, but consumer behaviour also continues to show signs of a budding resurgence of responsibility, convenience and wellness. Falling interest rates and rising purchasing power are paving the way for this trend to gain momentum.

There is variation between geographical areas in both consumer and retail behaviour. While Nordic retailers are increasingly seeking to serve other needs in addition to price consciousness, most English and Polish chains, for example, still focus heavily on price alone. We will not allow ourselves to rely on the recovery of the external environment; instead, we will actively seek growth and efficiency improvements ourselves, regardless of changes in the world around us. Our strategy work is progressing on schedule, and we will present our updated strategy during the first quarter of 2025.

Raisio’s products have a solid foundation, which is developing positively. Our growth has remained consistently strong and volume-driven also in the third quarter. Strong market positions and brands in our main markets are reducing our exposure to unhealthy price competition. At the same time, however, the market situation is slowing down our establishment in newer markets, as consumers’ willingness to try new products has declined.

Overall, we have witnessed a tentative decline in raw material prices this year, even though there have been divergent trends across product groups and cost items. As price volatility is expected to continue, the ability to anticipate and react remains important. Grain yields have been normal in terms of quantity, but the quality varies considerably. On the one hand, grain prices reduced our costs, but on the other hand they also increased price competition, especially in B2B channels, weighing on our profitability in the quarter. The comparable EBIT for the quarter is also impacted by the provision for retrospective payments to the authorities, without which we would have been very close to last year’s level. Our investments in future growth were also higher than in the previous year, as planned.

We have entered the last quarter of the year in good spirits. Breakfast oatmeal, snacks and heart health are popular all year round. Therefore, demand for our products is fairly stable throughout the year and we are not dependent on seasons, like many other food companies. As a result, the food industry’s holiday season is not causing us any holiday stress. Getting ready for the increasing regulation is a lot of work, but we believe that the Corporate Sustainability Reporting Directive, for example, will make our long-term sustainability efforts more transparent and allow us to also make better commercial use of them in the future. The last quarter of the year will also be partly spent preparing for the celebrations, as next year Elovena® will be 100 years old and Benecol® 30 years old. The celebrations will be reflected in both brands next year. The anniversary of the Elovena® brand in particular will be strongly present in everything we do right from the start of the year.

Looking back, I can say that I am also satisfied with the third quarter. Raisio’s employees have continued their good work in creating new solutions to build a healthier and more sustainable future and improving our efficiency. Thanks to them, the Benecol® brand has continued to grow in our largest markets in the UK and Finland, Elovena® has broken sales records in Finland and we launched Elovena® snack biscuits in September in ICA stores in Sweden.

As the Swedes say: Havre bra!

Pasi Flinkman
CEO, Raisio plc
November 2024

Interim Report January-September 2024

The crises and sharp fluctuations that have marked the grocery sector in recent years became less pronounced during the first half of the year. Our operating environment is on a positive trend, although the environment remains price-sensitive and difficult to predict due to weak consumer purchasing power and confidence. Price competition is particularly fierce in the B2B market. A gradual improvement in consumer confidence and lower inflation with lower interest rates are supporting a recovery in private consumption. The gradually improving economic outlook is also creating the conditions for a rebound in the demand for responsibly produced food.

Despite the continued sluggishness in the market, Raisio’s sales volumes have returned to growth thanks to strong brands, interesting product launches and market share gains. Volumes improved in the first quarter of the year and continued to do so in the second quarter. As a result, both of our reportable business segments increased their sales value above the levels of the comparison period. Developments in our main markets have been particularly promising.

Net sales in the second quarter increased by almost nine per cent from the previous year’s level, amounting to EUR 57.3 (52.7) million. Our comparable EBIT grew by almost a third, reaching EUR 7.4 (5.7) million, or 13.0 (10.8) per cent of net sales. Higher sales and an improved gross margin significantly improved our results, despite the investments in international growth, marketing and product development in line with our strategy, which were higher than in the comparison period. The comparable return on invested capital (ROIC) also continued to develop positively, reaching 9.3 (7.4) per cent.

Measures taken in the strategically important UK market have started to bear fruit and the sales of Benecol® products are returning to growth, while the long-standing growth in Ireland has remained strong. Overall, our cholesterol-lowering products have played a significant role in our improved performance in the first half of the year. In the domestic market, Elovena® has continued its strong development and has been an important driver of growth and market share gains for Raisio. The launch of Elovena in the Netherlands and Belgium, which started at the beginning of the year, continued in the second quarter. We have not yet reached the ambitious sales targets we set for the launch, but compared to our peers, the products have performed rather well in the market. We will continue to fund this expansion as planned throughout the rest of the year.

The challenges in the plant protein market remain unchanged, and we are not expecting quick wins. The market shares of strong, well-known brands such as Härkis® have remained high. The benefits of the planetary health diet are undeniable, and further growth is predicted globally in the longer term. Key factors for success in the market include high-quality products, the avoidance of opposition between plant-based and mixed diets, and the courage to seek competitive advantage by standing out.

It is a privilege to work in the food industry. People are interested in food. We all have opinions about it and encounter it every day. In the food industry, we have a real opportunity to contribute to the health of our fellow human beings, the smooth running of their daily lives and the well-being of our planet. This makes working with food very meaningful.

After the first few weeks as the new CEO, I find Raisio to be a fascinating combination of roots deep in the Finnish soil, a great capacity for renewal and a wealth of strong expertise. Inspiring examples of what our organisation is capable of include the traditional and iconic Elovena brand’s ability to stay in touch with the times, and the company’s in-depth research and development of plant stanols and carbon-neutral in-house production. Indeed, it is easy to be a proud new member of the Raisio team.

Pasi Flinkman
CEO
August 2024

Half-Year Financial Report January-June 2024