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Brands Division, continuing operations

In the financial period 2017, the Brands Division included Benecol, Healthy Food and the Benemilk business as its own company. In 2017, Raisio’s successes were its Elovena and Benecol products with sales growth of some 10 per cent in Finland.

Main events in 2017

  • Net sales EUR 195.1 (220.3) million. The comparison year figure includes net sales of EUR 26.4 million for the divested UK snack bar business.  
  • Comparable EBIT EUR 38.0 (38.4) million.
  • Comparable EBIT 19.5 (17.4)% of net sales.
  • Raisio’s divested Confectionery business was transferred to the new owner on 29 December 2017; the business is reported as a discontinued operation in the financial period 2017.

Financial review

Net sales for the Brands Division totalled EUR 195.1 (220.3) million. The UK accounted for some 30 per cent, Finland over 30 per cent and other markets almost 40 per cent of net sales of the Brands Division’s continuing operations.

Sales in Elovena and Benecol products increased by some 10 per cent in Finland, which was also seen in improved profitability. The conversion impact of the weakened British pound on the Brands Division’s net sales was EUR -4.8 million. Until 21 July 2016, the comparison period figure includes EUR 26.4 million in net sales for the divested UK snack bar business and licensed breakfast cereal business.

The Brands Division’s comparable EBIT totalled EUR 38.0 (38.4) million, accounting for 19.5 (17.4) per cent of net sales. EBIT was EUR 57.5 (18.0) million, accounting for 29.5 (8.2) per cent of net sales. The conversion impact of the weakened British pound on the Brands Division’s EBIT was EUR -1.0 million. This refers to the impact arising when subsidiaries’ EBIT in pounds is converted into euros as part of the consolidated financial statements.

Benecol's EBIT was significantly down from the comparison period due to higher subcontracting costs of consumer products and the sharp world market price increase of sterols used as raw material in Benecol products, since higher costs could not fully be passed on to end product prices. During 2017, Raisio secured the availability and price level of sterols required for its production in the coming years.

Key figures for the Brands Division

    2017 2016
Net sales M€ 195.1 220.3
   Benecol M€ 122.5 124.6
   Healthy Food M€ 72.1 69.7
   Benemilk M€ 0.0 0.4
   Common for the Brands M€ 0.5 26.4
Comparable EBIT M€ 38.0 38.4
Comparable EBIT % 19.5 17.4
Items affecting comparability M€ 19.6 -20.3
EBIT M€ 57.5 18.0
EBIT % 29.5 8.2
Investments M€ 3.0 3.9

 

From 1 February 2018, the new Healthy Food Division includes Benecol and the previous Healthy Food business.

Business operations

The 2017 reviews for the Brands Division’s businesses are available through the following links.

Benecol
Healthy Food
Confectionery
Benemilk