Raisio plc

Oikein hyvää päivää kaikille ja terveisiä täältä viileästä, mutta aurinkoisesta Raisiosta. Tällä kertaa minä, Mika Saarinen, kerron Raision päättyneestä neljänneksestä. Toimitusjohtajamme Pekka Kuusniemi on valitettavasti sairastunut koronaan. Tästä johtuen käytämme joustavasti varamiesjärjestelyitä. Toimin talousjohtajana During the next part, I will tell you about a special, final quarter. In this article, which you see here, Strong growth in the world of marketing and inflation, we want to reveal several things that were present in Q1. I will tell you about the increased growth that came came to the fore at the beginning of the first quarter and the new strategy period. Then there are the global and market storms. I'll tell you about the markets. Here we mainly refer to the cost inflation that we experienced and encountered in the first quarter. The global storm is again referred to geopolitical issues and unfortunate events that started in Europe during the First World War IV, and its significance for us and our activities in these new, changing conditions. Let's move on. I'll click on the first page, where we first go through the group stage, the movement change, and the development of the result. On the left, you can see that the turnover has increased significantly. It is also important to note that when we put Russian consumer businesses on sale during the first quarter, they have also increased the turnover and profitability during the first quarter. from these figures as well as from the conversion figures. Considering this, the growth of our turnover was very strong and ultimately quite wide-ranging. In terms of profitability, it was a very exceptional fourth for Raisio. Here we can see that with a conversion-efficient turnover, only a fraction of the positive side was left. On the side, you can see the turnover rate, which has, let's say, the most once-in-a-lifetime records visible. That is, the rate of use of Raisio Agua, which has been reported in ongoing business operations, in the same way as we actually lost sales from Raisio Agva over the night after the escalation of the situation in Russia. On the operational side, sales have been proven to be successful, profitability has three major influences. of which two have been described here. I will quickly run through the middle bullet. For us, the most central, let's say exceptional, price shock came from the largest absolute price levels of all time of the raw materials of the forest side. And above all, the duration and rigidity of the price trend were the ones that hit us hard in this quarter. There are also other raw materials and, of course, the entire supply chain, the entire value chain, direct and indirect purchases, transport. All of this is, of course, the same as what has been heard from the company, regardless of the business, but all the same packaging, the entire chain, the need for price improvement and pressure has been there, which is of course channeled to us, which is our task. mitigate that effect. And also the operating growth driving factor, the bottom bullet there, i.e. the investments in sales and marketing, so in practice about 2.5 million during that quarter, there was an EBIT effect in that we invested in our new assets and marketing of their products, i.e. the cost of growth in that part. This same naturally reduced by the result, there are effects on the monetary flow. There are also effects on our investment capital in the most normal situation, where our crop-based raw materials are ultimately price volatility and profitability. Volatility has been quite small and profitability has been relatively secured. Now, of course, in a situation where the price In addition to the increase in the number of outbreaks, the availability is also important to us, and it is a concern that is present. Then we have to optimize the use case, I would say at a cost for a short period of time, to protect our supply with raw materials. These are the things that are also visible in these. In the big picture, nothing has changed too radically. We are still an extremely independent company, and perhaps the eye-opener in terms of the smallness of investments in comparison to Q1. This year, we are in the process of investing at levels that are significantly different from previous years. assets ready and in use, and to which we have invested. In the middle of the bullet, there is also a picture of our time. Perhaps it is said that a small investment of almost 4 million has been announced to us, and the project in the long run to renew the pasta line, so also there the component and availability problems make it possible for us to push this investment so that When it was supposed to be ready next year, it will be ready next year. This component side is also visible to us in this part. This year's total amount of investments will be, as we are used to seeing, quite unquestionable. In terms of visibility, we were in a situation on the third day, quite quickly after the start of the war, We were told that we would lose 15% of our turnover overnight. This is not at all profitable at the same time, but it is still a significant loss, which was quickly noticed inside the house. It was a loss that was felt to be final in these markets. And at the same time, the raw material pressure, which I mentioned and which we see in the numbers, has not yet eased to the extent that, even though I will soon tell you about our mitigation methods, the situation is still unclear. The role of Russia and Ukraine as global shareholders of Vilja is only 30% in the normal situation, which of course now remains more or less unachievable. if the acquisition of Raisio is important, but if the acquisition of Globaali is important. In the face of scarcity, prices usually want to rise or stay high. These are the kinds of things that Raisio occasionally acquires from home. In practice, almost 100% of the time, the availability that we are most concerned with is from home. and the success of the harvest. But at this stage, we are not yet ready to give new guidance, and we will return to that later. Let's move on to healthy food supplies. Here I would like to state that the Russian consumer business is 100% owned by our subsidiary, were put on sale and were sold under the Vapu. A Russian company buys a Russian company there. In addition, the Nordic brand, which has been very successful and traditional in these markets, has also been sold in the same store. The total purchase price of these is about 1.5 million euros. As a result, we also have to stopped writing about the loss of value in some of the business operations in the final quarter of this year. So two of these exceptional areas were to be dealt with during Q1. The stock market is expected to be implemented quite quickly. It depends on the duration of the Russian state-owned company's handling, but at the moment we can see that There are long holidays ahead, and once they are over, we have a promise to wait at least until October, and preferably in the middle of the month, so that this would also lighten the process of the promise and the view of acceptance. So, good news for us. Here, from Healthy Foods, health and food supplies. Naturally, we notice that Russia is one of the areas missing. Russia brought us in the history of the Group, about 10 million euros in advance. And about a million euros in EBITDA. So, these areas, from the portfolio of the trade exchange, we can see that our consumer product and business operations are very heavily concentrated at the moment in Western and Northern Europe, and also in Central and Eastern Europe, reported by Puola. and Ukraine are also continuing with us. We also have a small sales company in Ukraine, and with these conditions, they have been able to operate the goods they need, which is of course in many ways a very good thing. We hope that the whole group will have the best possible strength, future and quick decisions in the situation we are in. The turnover and revenue in this segment is seen to grow. Especially Eloveena was one of the brands that in Finland's markets increased the number of this new factory, which has been launched at the end of last year. The response has been good due to the new products, and it naturally increases the volume compared to the volume it didn't have last year. The purchase of VersaFood also took place last year, on the 1st of April, so this particular business product produced volume this quarter, which it didn't have last year. These need to be taken into account. But as for the older businesses, especially Benegol has also maintained its position in these markets. There are also new products being produced, of which it is allowed to expect continuous growth. On the business-to-business side, there was enormous growth, which unfortunately did not seem to be positive for us in this quarter. So, in that respect, we have now done our job. So, from the material part, we will now tell you about the changes in the segment content so that the fish In the picture on the left, we can see that Finland is the most important market. 65% of the company was lost. There is also interest in other countries, for example, Poland, Sweden, and other small countries, but in any case, we are responsible as a company and as an employee to ensure that this issue kasvatuskausi, joka on juuri tässä meneillään ja materiaalia raaka-aineita menee, tarvetta on, niin me toimitamme vähintäänkin tämän kuluvan kauden sitten loppuun näille asiakkaille, jotka meillä on pitkään olleet tärkeitä ja ovat. Ja sitten HAGVAan suhteen luonnollisesti tilanteen oloissa radikaalisti muuttunut, niin käydään myös, olemme kertoneet yhteistoimintaneuvotteluista, menettelyistä ja niiden lopputuloksista. Ja toki The company assessed the role of RAISIO AGVA strictly as part of the RAISIO Group. In this part of the article, you can see what I have told you about the success of the sales side. On the other hand, this segment is affected by the limited use of our facilities. low profitability, and on the other hand, Agva has brought in the one-time returns as well. And very large here, especially, is the very fast profitability gap between the business-to-business side and the business-to-business side, which we experienced. And in this connection, of course, there has been Koko yhtiöllä sillä tavalla ollaan oltu uuden edessä paitsi geopoliittisesti, niin myös sikäli, että sopimussuhteet, yhteistyösuhteet, hinnoittelut on pohjautuneet historiassa. Tietyllä tavalla on ollut sopimuksia, jotka sidotaan pisimmillään 18 kuukaudeksi, toimitusvolyymiä ja toimitushinta. Ja nytten käytännössä vaikkapa kauranhinta tällä hetkellä ylittää 400 euroa tonni. In the history of the longer period, the price has been 170. One might think that when this rapid rise came during this year, of course, the pricing that has been recorded cannot be adjusted. We have been in a situation where these agreements have been negotiated again, and also with the consumer market. In this way, we are in front of a new price. Pricing opportunities In the future, there will be even more. The mechanism of trade is also changing due to this crisis. In a few words, I would like to remind you of our strategy, which we launched last summer. It is good to say that the changes that have been told and that are seen in the numbers, will not slow down or hinder our strategy. suunnittelua, edistämistä ja tietä näiden alueiden kasvattamiseksi, eli sillä tavalla oikealla polulla olemme edelleen. Tässä tiivis statement juuri siinä, että tämä tiedottamamme Venäjältä vetäytyminen voidaan nyt sanoa, ei puhuta enää keskeyttämisestä, kun on liiketoimintaakin jo saatu myytyä, niin todella tämä on sillä tavalla peruuttamaton tilanne ja myös arvojemme mukainen. to advance the strategy from the past in the direction it was intended to. This is a bit of a preview of how we succeeded in Q1 in terms of sales. We also brought this report with us. It's interesting to follow these, because we have stated a 7% average annual sales growth target for these. growth for our shareholders, and here we have calculated Q1 versus Q1, and as you can see, 14.2% is in fact the cumulative total growth of Q1 in these areas, which, of course, is the best possible starting point for us when pricing starts to follow up. we also have markets that are very keen on and want these products. A couple of product innovations. The liquid one had quite a big impact on our new plant-based, drinkable, soluble products, crop-based, gluten-free industries. This individual SKU, as it is said, already alone, shows quite significant growth, especially in the fast launch period, or just a moment after launch, so it's a great performance, so this new product development in the future also plays a big role in getting the factory's operating standards up, and we all have the permission to believe in it. As you can see, there has been a lot of sales, as well as the individual SQ variant. There has been a lot of sales and profitability for the new category in a very short time. Brands have power, and the marketing of brands has power in this area of Q1. emme päässeet siihen kiinni, johtuen sopimussuhteista ja neuvotteluikkunoista, mutta toki lupa on sitten odottaa tehtyjen toimien, joihin hieman viittasin, niin joudusta siihen, että tämä laiva kääntyy aivan varmasti ja tämän vuoden aikana aivan varmasti ja jo aika piankin. Tarkkaa ohjeistusta me emme vielä pysty antamaan, mutta luonnollisesti se markkinoille teemme heti, kun siihen on riittävän suuri suuri näkymä eteenpäin. Mutta isojen muutosten kvartteri, isojen päätöksien kvartteri ja organisaatiolta valtavan hieno onnistuminen siinä, että poikkeuksellisia toimia, keinoja poikkeuksellisissa olosuhteissa ja kaikki tämä hyvässä menestyksessä, niin sillä tavalla voidaan toisaalta katsoa tästä eteenpäin varsin positiivisena. Tämä oli minun osaltani Viimeinen sivu. Kiitos paljon mielenkiinnosta. Oikein hyvää, toivon mukaan lämpenevää kevättä. Toivotaan myös hyvää satokautta. Markkinoille kenties toivotaan myöskin vähän seesteisyyttä. Tässä on ollut sielläkin erikoisia aikoja. Minun osaltani tässä kohtaa oikein paljon kiitoksia. Kiitos.