Raisio plc: Raisio to write down EUR 9.4 million in its Financial Statements
Raisio plc, Stock Exchange Release, 22 December 2017 at 9.31 a.m. Finnish time
RAISIO TO WRITE DOWN EUR 9.4 MILLION IN ITS FINANCIAL STATEMENTS
Raisio plc has updated the calculations of goodwill and brand values as well as the fair values of its balance sheet items. They lead to write-downs of a total of EUR 9.4 million in the 2017 financial statements.
The most significant re-evaluated balance sheet item is Benemilk Ltd’s intangible fixed assets. Raisio makes provision of EUR 8.3 million in its consolidated financial statements for the value of Benemilk’s fixed assets and related deferred tax asset, because the funds invested in the international commercialisation and protection of the Benemilk innovation can no longer be seen to involve significant revenue expectations. The international Benemilk business has not generated net sales in the financial period 2017 and there are no ongoing negotiations regarding the licensing of the innovation. Raisioagro continues the sale of Benemilk feeds in Finland where Benemilk has an established market position.
Other write-downs are allocated to buildings and machinery no longer useful to Raisio.
The amount of items impacting Raisio's comparable EBIT will total some EUR 49 million in the financial period 2017. The amount includes the items that have now been decided on as well as those shown to affect comparability earlier in the financial period and thus also the divestment loss of confectionery business.
Raisio revised its 2017 outlook in the stock exchange release published on 21 July 2017. For the full year 2017, the Company estimates its comparable EBIT to be approximately EUR 45 million. The outlook revision was due to the prolonged operational and commercial challenges at the UK confectionery business, lower than expected profitability and weakening of the pound against the euro. Exchange rates will continue to significantly affect Raisio’s net sales and EBIT.
Raisio will publish its 2017 Financial Statements Bulletin on 12 February 2018.
Communications and IR Manager
tel. +358 50 567 3060
President and CEO Pekka Kuusniemi, Raisio plc, tel. +358 50 537 3883
CFO Antti Elevuori, Raisio plc, tel. +358 40 560 4148
Raisio is an international food and feed company focusing on wellbeing and profitable growth. The core of Raisio’s strategy consists of plant-based, healthy and responsible branded products. Benecol is an international success story in cholesterol lowering. Our well-known local brands include Elovena, Nordic, cattle feed Maituri and Baltic Blend fish feeds. We promote sustainable food chain and develop innovations to enhance wellbeing. Raisio plc’s shares are listed on Nasdaq Helsinki Ltd. In 2016, the Group's net sales totalled EUR 436 million and comparable EBIT was EUR 50.7 million. The Group employs some 400 people. For more information on Raisio go to www.raisio.com/en