Net sales, profitability and sales volumes improved

FINANCIAL DEVELOPMENT IN BRIEF

• The Group's net sales totalled EUR 57.3 (52.7) million, which signified a growth of 8.8%.
• Comparable EBITDA was EUR 9.9 (8.2) million, which accounted for 17.2 (15.5) per cent of net sales.
• EBITDA was EUR 9.2* (7.5*) million, which accounted for 16.1 (14.3) per cent of net sales.
• Comparable EBIT was EUR 7.4 (5.7) million, accounting for 13.0 (10.8) per cent of net sales.
• EBIT was EUR 6.8* (5.0*) million, which accounted for 11.9 (9.5) per cent of net sales.
• The Group's cash flow from continuing operations after financial items and taxes totalled EUR 7.7 (9.8) million.
• Comparable earnings per share were EUR 0.04 (0.03) per share.
• Earnings per share were EUR 0.04 (0.03) per share.

*EBITDA and EBIT include EUR 0.5 (0.2) million in costs related to business expansion and EUR 0.2 (0.4) million in costs related to reorganisation.

• The Group's net sales totalled EUR 112.8 (109.1) million, which signified a growth of 3.4%.
• Comparable EBITDA was EUR 16.7 (14.9) million, which accounted for 14.8 (13.7) per cent of net sales.
• EBITDA was EUR 15.4* (14.0*) million, which accounted for 13.6 (12.8) per cent of net sales.
• Comparable EBIT was EUR 11.7 (9.9) million, accounting for 10.4 (9.1) per cent of net sales.
• EBIT was EUR 10.4* (9.0*) million, which accounted for 9.2 (8.2) per cent of net sales.
• The Group's cash flow from continuing operations after financial items and taxes totalled EUR 16.2 (13.0) million.
• The comparable return on invested capital (ROIC) was 9.3 (7.4) per cent and the return on invested capital (ROIC) was 8.3 (6.7) per cent.
• Comparable earnings per share were EUR 0.06 (0.05) per share.
• Earnings per share were EUR 0.06 (0.05) per share.

*EBITDA and EBIT include EUR 1.1 (0.5) million in costs related to business expansion and EUR 0.3 (0.4) million in costs related to reorganisation.

CEO PASI FLINKMAN:

The crises and sharp fluctuations that have marked the grocery sector in recent years became less pronounced during the first half of the year. Our operating environment is on a positive trend, although the environment remains price-sensitive and difficult to predict due to weak consumer purchasing power and confidence. Price competition is particularly fierce in the B2B market. A gradual improvement in consumer confidence and lower inflation with lower interest rates are supporting a recovery in private consumption. The gradually improving economic outlook is also creating the conditions for a rebound in the demand for responsibly produced food.

Despite the continued sluggishness in the market, Raisio's sales volumes have returned to growth thanks to strong brands, interesting product launches and market share gains. Volumes improved in the first quarter of the year and continued to do so in the second quarter. As a result, both of our reportable business segments increased their sales value above the levels of the comparison period. Developments in our main markets have been particularly promising.

Net sales in the second quarter increased by almost nine per cent from the previous year's level, amounting to EUR 57.3 (52.7) million. Our comparable EBIT grew by almost a third, reaching EUR 7.4 (5.7) million, or 13.0 (10.8) per cent of net sales. Higher sales and an improved gross margin significantly improved our results, despite the investments in international growth, marketing and product development in line with our strategy, which were higher than in the comparison period. The comparable return on invested capital (ROIC) also continued to develop positively, reaching 9.3 (7.4) per cent.

Measures taken in the strategically important UK market have started to bear fruit and the sales of Benecol® products are returning to growth, while the long-standing growth in Ireland has remained strong. Overall, our cholesterol-lowering products have played a significant role in our improved performance in the first half of the year.

In the domestic market, Elovena® has continued its strong development and has been an important driver of growth and market share gains for Raisio. The launch of Elovena in the Netherlands and Belgium, which started at the beginning of the year, continued in the second quarter. We have not yet reached the ambitious sales targets we set for the launch, but compared to our peers, the products have performed rather well in the market. We will continue to fund this expansion as planned throughout the rest of the year.

The challenges in the plant protein market remain unchanged, and we are not expecting quick wins. The market shares of strong, well-known brands such as Härkis® have remained high. The benefits of the planetary health diet are undeniable, and further growth is predicted globally in the longer term. Key factors for success in the market include high-quality products, the avoidance of opposition between plant-based and mixed diets, and the courage to seek competitive advantage by standing out.

It is a privilege to work in the food industry. People are interested in food. We all have opinions about it and encounter it every day. In the food industry, we have a real opportunity to contribute to the health of our fellow human beings, the smooth running of their daily lives and the well-being of our planet. This makes working with food very meaningful.

After the first few weeks as the new CEO, I find Raisio to be a fascinating combination of roots deep in the Finnish soil, a great capacity for renewal and a wealth of strong expertise. Inspiring examples of what our organisation is capable of include the traditional and iconic Elovena brand's ability to stay in touch with the times, and the company's in-depth research and development of plant stanols and carbon-neutral in-house production. Indeed, it is easy to be a proud new member of the Raisio team.

OUTLOOK 2024

Raisio projects the comparable EBIT for the financial year 2024 to be at the level of 2023 or slightly higher. Raisio's comparable EBIT in 2023 was EUR 22.7 million.

In Raisio, Finland 6 August 2024
Raisio plc
Board of Directors

Further information:
Pasi Flinkman, CEO, tel. +358 400 819 947
Mika Saarinen, CFO, tel. +358 40 072 6808

The CEO's webcast in Finnish of the Half-Year Financial Report will start on 7 August 2024 at 12 noon, Finnish time. This is the direct link to the webcast: https://raisio.videosync.fi/q2-2024

Raisio's Interim Report for January−September will be published on 5 November2024.

RAISIO PLC
At Raisio, we make food from the heart, with the aim of bringing health to ourselves and the Earth. We keep creating better plant-based and heart-healthy products so that eating healthily and within the Earth's ecological capacity can be a pleasure. Our strong brands, such as Benecol®, Härkis® and Elovena®, turn our ambitions into reality. Through our responsibility work, we make the hard choices for consumers, so that they can choose Raisio products with confidence. We have around 350 healthy food colleagues in seven countries and export to more than 40 markets around the world. Raisio's shares are listed on Nasdaq Helsinki Ltd. In 2023, the Group's comparable net sales for continuing operations were EUR 219.5million and the comparable EBIT was EUR 22.7 million. www.raisio.com