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Business risks

Uncertainty in the international economic development is continuing. Gradual reduction of the US debt recovery has increased uncertainty, particularly in emerging economies. Their currencies have weakened against the dollar and euro. Of Raisio's market areas, this development has concerned especially Russia. Low economic growth and prolonged sovereign debt problems are maintaining the economic uncertainty in 2014. Despite the generally uncertain situation, we believe that the grocery trade will remain relatively stable compared to many other industries.

Volatility in raw material prices is estimated to remain at a high level. Slowing economic growth and potentially good harvests may calm down the price development. On the other hand, extreme weather events may cause sudden changes in harvest expectations and price levels of various agricultural commodities. In terms of profitability, risk management, for both value and volume of major raw materials, will remain significant also in the future.

Volatility in grain raw material prices expected to continue

Raisio's growth phase is a period of changes, during which several of the company's activities are developed and business management is considerably more challenging than in ordinary circumstances. Growth and rationalisation projects may still cause substantial costs in relation to the company size.