Raisio have cut back their 2017 guidance after the UK confectionary business proved to be harsh towards the company, presenting them with a number of production and commercial challenges.
EBIT was tipped to fall a bit short of their €50.7m ($59m/£45.18m) target from a full-year 2017, however EBIT is now expected to generate around €45m (£$52.4m/£40m).
Some of Raisio’s private label confections, as well as Poppets, were delisted by a section of UK retailers recently, while the company has also had – and reported – production difficulties at their UK confectionary plant, with the Leicester based plant producing chocolate, boiled sweets, toffees and mints.
On August the 9th, Raisio will report their half year (January to June) results, which should make for very interesting reading indeed. With Raisio weighing up new markets in EuropeIn following their release, they’ve stressed that Raisio will continue to put money into their brands and is looking to spread their wings into Europe.
Confectionary brands that Raisio have include Juicee Gummee and Fox’s Glacier, however three quarters of their confectionary sales are made up of private label products. In May, Raisio revealed that their confectionary unit almost rakes in a third of group sales, which sounds good until it becomes clear that that’s a 9.3% drop in Q1 revenues to €23.4m ($25.5m/£20.85m).
Heads have rolled upstairs in Raisio, with CEO Matti Rikho resigning in January 2017, which has seen Jarmo Puputti act as interim CEO until the company can source a full-time replacement.
