Raisio plc

Tervetuloa seuraamaan meidän Raision kolmannen vuosineljäkneksen tulosjulkistusta. Tänään tosiaan viides marraskuuta päivä, jota monet meistä on odottanut. Tänään on luvassa kaiken näköisiä uutisia pitkin maailmaa. Tärkeää niistä tietysti tämä Raision tulosjulkistus. Meidän kolmas vuosineljännes meni varsin hyvin. Liikevaihto kasvoi, muutit myynti. volume. In particular, health needs developed positively and were largely behind our growth. Growth in the third year was 5.4% and it came especially from our largest markets, from Great Britain and Finland. In Q3, the turnover did not develop as strongly as before, but only about 11% in a negative way, which is 6.5 million compared to the previous year's 7.4 million. The most important thing here is the amount of savings that we made, two of them. The weight of the turnover Varaus Iso-Britanniassa tehdystä pakkausten kierrätykseen liittyvästä viranomaismaksusta, joka on käsittelyssä siellä parhaillaan ja siitä ei ole päätöstä vielä olemassa, mutta varovaisuusperiaatteita noudattaen päätettiin tehdä siihen liittyen varaus kuitenkin. Toinen Suomessa on We have a discussion with Tulli, and we have a different view on Tulli's interpretation of this. We have a special prohibition on the interpretation of plant liester and its content, and there our interpretations differ from each other, and for the sake of certainty, we also have a precautionary principle in mind, and we have also made a precaution. Without these regulations, our business performance this quarter would have been very close to what it was last year. In quarter two, we also reported in our health data section that in the second quarter of the year, we had normal and larger operations that had been postponed, and they are now The situation has been balanced during the third quarter of this year. The previous activities are now seen as a weakened result in the business-to-business part in the third quarter of this year. But the situation has normalized and will continue in the end of the year in the usual way. In the business-to-business market, The grain market prices have dropped, and the high price competition there puts a bit of pressure on our business results, but in any case, the situation is relatively normal. Then, at the beginning of the year, growth has also been quite good, 4% growth rate and revenue growth at about 6% during the first nine months. Tänä aikana me ollaan panostettu selkeästi viime vuotta aikaisemmin meidän kasvuun, myyntiin, markkinointiin, tuotekehitykseen, innovointiin. Nämä kasvupanostukset tuovat meille kasvua erityisesti pitkässä juoksussa, mutta kasvaneista panostuksista huolimatta myöskin tulosparannus on ollut ihan selkeä jo tällä jaksolla. Mika, you have the floor.

Thank you. It's been a good half a day for me as well. Let's go a bit more broadly to the balance sheet of the income calculation. Here are a few examples of achievements. For example, in the financial sector, the comparison is still more powerful. There is a better performance in the circulation of the currency. There are many factors involved. Smaller net use capital, slightly better income, as we just saw, year-to-date, and the level of investment is also slightly lower than last year. This is due to the fact that self-sufficiency has not significantly changed at very, very high levels, but the debt of net revenue, instead, is, let's say, So, in practice, we have a stronger net-hand position in the past. In practice, liquid investment funds have grown in our interpretation. Also, at the same time, the investment capital production is starting to decline in the past. It is now two-digit, and this is 10% of our ROIC. And of course, in the future, a significant amount of improvement and improvement. This is also in addition to the results of these different and positive messages from the capital. Here are the views we gave this year in February. They are in front of us, as stated in the report. In addition, the distribution and payment decision of our spring section has also been stated here. Let's quickly go through the segments here. Let's start with health and living needs. In the bottom right corner, we have an extremely high trend, a wider trend change, as you can see in the picture. I can say that for a long time, in all consumer product markets, the growth of sales in all areas has been positive for the three markets. There has been a lot of discussion and talk about the UK market, which is very important to us, in addition to the fact that even in the clear growth in the comparison period, the volumes also drive it. We would like to look at this part of the year at the item level to emphasize that this sales growth is due to volume drops. It's not just one or two markets at a time, but there is a higher volume. It is of course a very good thing for us and a good start for the future. for the year and season. So, this is a very positive thing in terms of consumer products. There is a lot of weight and importance in this growth of more than 8% in turnover and significant growth in revenue. However, our main brands, Benecol and Elovena, are showing good results, both of them. Uutuustuotteet is an issue that has been going on for some time now, and this trend has continued to this fourth report as well. On the plant protein side, we still have challenges. They have continued in the market, which you can see in our brand as well. The development of sales is not in line with the goals at the moment. in that category for us. Here we have mentioned the new products and their significance. We have taken a look at the three-year period, and here we can see how Raisi has moved on to a new career and a new stage of development, as well as what comes with product development and product launch, and with a very large percentage of them succeeding in the markets. These are our drinking and drinking categories, but also in dry products, for example, there are successes on a wide scale. It shows that the product cycle is faster, the lancer cycle is faster, and the power is at least in front of it, so an extremely good performance now and probably in the future as well. Then there are the material parts. So, this is our second segment, in which we mostly talk about the activities that we aim for in this segment. And here we talk about the development of sales and revenue. We can see that sales, in terms of the number of euros, especially at the quarter-final level, instead of the revenue, as Pasi also mentioned at the beginning, leave room for improvement for us. It is mainly a bulk, large-volume, and domestic market, almost Finnish market, implemented, a different kind of crop market, so the competitiveness was tested, so it shows profitability. There is a lot of raw material drawbacks, actually, the reason and follow-up there, so they have been tested over the last couple of years and have changed dramatically. the prices of raw materials. Now it looks like the price of raw materials is set to a lower level than it was in the last couple of years. It also affects the value of sales, i.e. the growth of the business. Of course, our main focus will be on improving and optimizing the price. segment. By the way, this is a good example of what we have now in our procurement. Of course, we ended up in the 100-year period, and its quality and price together and availability are quite positive, so we will most likely get used to it, also in terms of profitability and sales levels as we move forward. So this was, and I'll give the floor back to Kapula, Thank you.

We are still living in a situation where prices are rising, but at the same time these megatrends, such as well-being, health and sustainable food, are still very important. They give our strategy a strong foundation for the future. We have started the strategy process and our strategy re-evaluation from the beginning of this fall. It has started quickly and is progressing in time. I am looking forward to telling you a little more about our strategy in the first quarter of next year. At this point, we will gladly answer any questions, if we have any. First question. Views on corporate purchases. Could you look at purchases on a slightly broader scale than before, and go outside the healthy food category? I can say that our financing position is so strong that it enables us to invest in both structural growth and organic growth. Business purchases are, without a doubt, interesting. As part of this strategy process, we are now assessing the strategy of expansion with business purchases. One element is probably the definition of healthy food. To what extent is healthy food and to what extent is healthier food? We will probably open up to something healthier, which will enable us to buy more companies and expand the target group that is on the market. I believe that it will create opportunities for us to find better interesting topics and implement them as well. In that sense, in almost all categories, there may be healthier alternatives, and it does give us a lot of new opportunities for growth. The next question is, what does the international added value curve of the business-to-business question look like? The situation with the gluten-free curve, especially, has been quite strong for some time now, and is still at a very strong level. In that respect, the views are quite strong. business-to-business challenges, as Mika described, to domestic commodity bulk production, but the added value and international market works well.

I would like to add something to the following, there are some nice questions here. We are also asked how much of Elven products are produced in Q3. Unfortunately, I don't have an exact percentage of quarter-to-quarter But I can say that the important thing is that, at least as far as I can picture it, Elovena has grown two-digitally for a long time. Unfortunately, I don't have a precise percentage to tell you about this, but the trend has continued to be the same. Then this is also asked in the same question about the growth in our EPIT. We will assess it and give it guidance. We will ask for possible counter-winds for the growth of the results in Q4. I would say that we do not expect any counter-winds in the near horizon. One thing that we need to take into account in the comparison of the growth of EBIT is that, as has been stated, this year we have also invested quite a lot. and real estate investments. We have made similar investments, but we are talking about OPECs, that is, in practice, the costs of product development in the market. The view is that in the spring as well as in Q4, these investments will exceed the last year. These things are in a certain way in terms of competitiveness and directly backwards, if you think about it. However, this year we will make significant investments, We have high expectations, and the results still look promising.

We are building long-term growth, without a doubt. That's what these investments aim for. We have asked about the activation of the corporate market. Without a doubt, as we said earlier, it is strongly on the agenda, and we are checking it. that strategy, and we are becoming more and more active in it. We will also open it up more closely in the first quarter of the year. Then we have asked if we could open up the development of product launches in new KV markets. During this year, the latest developments are coming from the Netherlands. We have just received warnings that the Albert Heijn chain, which is the market leader, and which we are distributing at Eloveena, has warned us about the distribution next year, which is a very good sign there, Tiukka kilpailu on käynnissä ja heikoimpia karsitaan säännöllisesti pois. Me ollaan siellä selvästi pärjääjien joukossa. Ollaan jatkamassa lanseerausta siellä myöskin ensi vuonna heidän kanssaan. Nyt syksyllä toinen sellainen olennainen kehitys on ollut tuossa Iikkaalla, Ruotsissa, meidän välipalapatukoitten which has received a good response. The growth of covers and distribution covers is at its best. It has moved well. Both markets have received quite good consumer reactions and feedback. Then there was a question about 700,000 euros from different segments.

Mika, would you like to comment on that, Jukka? Yes, that's exactly how it is overall. The other is related to the consumer products in Britain. The consumer products are subject to tax obligations. That's basically the segment at the time. The second is related to the gas and esteroid system. These sums are used for 400 000 and 300 000 euros. I don't remember if it was already mentioned, but there are 0.7 times more. The question is about the fees. It is related to the esteroid facility, which is the one on the industrial side. What else is there to ask?

You are actively talking about growth and improvement in efficiency. Can you talk about these? Yes, these are easy to understand. osaksi tätä meidän strategiatyötä, että minkälaisia ne kasvumahdollisuudet oikein on. Niitä ei vielä hirveän tarkalla tasolla, mutta kasvumahdollisuuksia itse asiassa tuntuu olevan monella suunnalla. Erityisesti tässä korostuu kyllä healthier meals, breakfast products and heart health. So, very close to the core of the present, there is growth around them. Of course, there are growth opportunities by expanding the value chain. There are cost-effectiveness opportunities. We also have a choice There are possibilities to expand the category and also to expand the field of science. We will probably talk more about these mutual prioritizations in the context of the strategy update. We are now looking for more focus and stricter prioritization, what comes first and what comes first, because there are more opportunities. There was also a question about low-hanging fruits and the importance of cost-level improvements. There are also a few clear possibilities to be identified, but I would also like to return to them in connection with the strategy and their choices in more detail.

Last but not least, how much have you increased the costs of product development, sales and marketing during the year 2024, and where do you want to go towards the end of the year? I referred to the Q4 issue already. In practice, I said that the quarter we have is also exceeding the quarter equivalent to the quarter back in the year, in absolute levels. This is, I would say, between 5 and 10 percent. The increase in inflation is all the same. I have to remember that the inflation is different in many ways, but that's the way it is. That is, in absolute euros, it is more than zero in that class.

And most of all, there is a significant increase in the levels. Most of the results will come in the longer term. In the future, not so much. But despite that, we have been able to develop results this year. That's why I'm quite satisfied. That's right.

And now we notice that the questions, let's thank them first. There was a nice amount here. Hopefully, we answered enough. We are probably ready now. lopettelemaan tämän virkkäästä. Kiitetään mielenkiinnosta, kiitän kysymyksistä.

Erinomaisen paljon kiitoksia. Hyviä kysymyksiä, hyviä haastoja. Erinomaisen hyvää päivänjatkoa teille kaikille. Juuri näin. Tapaamisiin taas. Kiitos.