Raisio (RAIKV) Q2 2024 earnings summary

Executive summary

• Net sales and profitability improved in H1 2024, with sales volumes regaining growth, especially in Finland and through new product launches, driven by strong brands like Elovena and Benecol.

• Elovena was named Brand of the Year 2024 in Finland, and Benecol sales rebounded in the UK and Ireland.

• The company invested in international expansion, particularly in the Netherlands and Belgium, and in oat-based production capacity.

• Higher sales and improved gross margin drove results despite increased investments in international growth, marketing, and product development.

Financial highlights

• H1 2024 net sales increased to €112.8M from €109.1M year-over-year; Q2 2024 net sales grew to €57.3M from €52.7M.

• H1 2024 EBIT rose to €16.7M from €11.7M; Q2 EBIT increased to €8.2M from €5.7M year-over-year.

• Q2 comparable EBITDA: €9.9M (17.2% margin); H1 comparable EBITDA: €16.7M (14.8% margin).

• Comparable EPS for H1 2024 was €0.06, up from €0.05 in H1 2023.

• Cash flow from operations after financial items and taxes: €16.2M in H1 (+24.3% y/y), aided by reduced working capital and better profitability.

Outlook and guidance

• Comparable EBIT for 2024 is projected to be at or slightly above the 2023 level of €22.7M.

• The company aims to maintain a steady annual dividend through 2025, with a 2023 dividend of €0.14 per share (including a €0.03 supplementary dividend).