Finland: Raisio posts a modest profit as it battled to limit the impact of sharp rise in grain prices

Finland's Raisio posted a modest profit for the fourth-quarter, reversing losses generated a year earlier, as it battled to limit the impact of a sharp rise in the price of grain, Thomson Financial reported February 13.

The company, which makes malt for breweries, animal feed and margarine, said measures including productions cuts and the sale of unprofitable businesses boosted operating profit to 1.7 mil euro for the quarter.

That compared with a loss of 5.1 mil euro in the prior-year period, when the company was burdened by start-up costs for a Finnish soy-oat plant.

Sales rose 10.8 pct to 109.2 mil euro.

Raisio said it expects all divisions -- including its loss-making food business -- to return to profit this year, adding that underlying group profits and sales would improve.

However, it warned its food division would 'probably not' achieve its targeted 5 pct operating margin due in part to new product launches and higher marketing spend.

13 February, 2008