Raisio's last seven years fall into three strategic phases. In 2010, following the phases of turnaround and improved profitability, Raisio moved to the growth phase that is still continuing.
Raisio's EBIT 2007-2013
Continuing operations excluding one-off items
From 2010 onwards: Growth
Raisio's key target is profitable growth organically and through acquisitions. Although Raisio has faced very different challenges during its three strategic phases, all phases have had common success factors: the ability to detect opportunities, to use them efficiently and to adapt promptly to significantly and rapidly changing business environment.
After the acquisitions, Raisio is a net debt free company
Raisio has shown its ability to carry out successful acquisitions. The acquisitions completed meet Raisio's criteria for acquisitions. During the growth phase, Raisio has carried out four acquisitions; two largest in the UK, one in Poland and one in the Czech Republic.
Raisio is a net debt free company despite the acquisitions of EUR 200 million made on a debt free basis during the growth phase. This gives Raisio a good opportunity to continue the implementation of the growth phase in line with its strategy.
Acquisitions and divestments 2012-2013
Raisio sold fixed assets of its non-dairy business as well as Nordic Milkfreedom and Soygurt brands to Norwegian Kavli. The contract was signed on 5 March 2013. Operations were transferred to the new owner on 9 May 2013. At Raisio, non-dairy business had annual net sales of approximately EUR 7 million.
Raisio sold and transferred its US-based esterification plant to American Avoca Inc. The agreement was signed on 18 April 2013. Raisio's Summerville plant operated as a reserve plant with low volumes. In 2012, net sales of the factory totalled approximately EUR 3.2 million excluding the plant stanol ester production. With the deal, the delivery chain of plant stanol ester, a Benecol product ingredient, has been enhanced.
On 13 November 2012, Raisio acquired a Czech confectionery company, Candy Plus. The purchase price was EUR 20.5 million on a debt-free basis including a new capital investment of EUR 2.3 million in fruit-liquorice line. Raisio paid the consideration from its cash reserves. The acquisition complements Raisio's existing, successful confectionery activities in the UK.
On 20 March 2012, Raisio acquired Polish Sulma sp. z o.o.'s pasta and grits operations, its intellectual property rights as well as fixed and current assets. The value of the deal was EUR 2.4 million (PLN 9.8 million). Raisio paid the purchase price in cash and Raisio did not assume liabilities. With the Sulma acquisition, Raisio strengthens its position both in the Polish market and in pasta products.
Raisio, the most profitable listed food company in Finland, focused on the profitability improvement during the profitability phase of 2008 and 2009. Main measures to achieve this included the renewal of product range to better meet consumer needs and enhancement of business processes. In addition, Raisio launched new products in the Finnish market and prepared to enter into new market areas and product categories. Moreover, the company's Eastern European operations were rationalised to improve profitability.
In 2009, Raisio sold its margarine business to Bunge. With this divestment, Raisio strategically focused more clearly on grain-based products and gained additional resources for the development of the company's other businesses. At the end of the profitability phase, Raisio had become the most profitable listed food company in Finland.
During the turnaround phase of 2007, Raisio divested its unprofitable operations, such as potato and diagnostics businesses, and sold the company manufacturing special feeds as well as its share in the Polish dairy company. The organisation was also streamlined and operations were enhanced.
When Raisio got back the rights related to the Benecol brand and plant stanol ester from its long-term partner McNeil, the company had an opportunity to focus on the development of its operations and product applications.
Raisio's strategic phases