Lack of growth in Benecol sales and the impact of recent acquisitions and restructuring at Raisio's nutrition unit mean the Finnish group is back in the red.
Turnover overall rose by 6.3 per cent in the first half of 2003 to €425.8 million, helped largely by the group's chemicals activities, but Raisio is now showing losses of €15.4 million compared to its €5 million in profit for last year's first half.
Investments in the Diffchamb diagnostics business, which was responsible for sales growth at the Life Sciences unit, as well as construction of chemical plants and cost-cutting measures in margarine production took their toll, with cash flow down to -€38.5 million for the interim period.
Restructuring of margarine activities caused problems at the Nutrition unit, which also faced strikes from workers during the last six months. Margarine sales dropped significantly to €66.2 million from €79.4 million the previous year.
Turnover for Life Sciences rose to €8.3 million from €7.1million the previous year, due to the sales from the new Diagnostics division. However the Benecol phytosterol sales dropped by 8 per cent, after promising growth at the end of last year. The unit recorded losses of €3.2 million compared to €0.1 million for the 2002 interim period.
Raisio recently launched Benecol yoghurt drinks on the Dutch and Swiss markets and said new products are planned for European markets in the autumn. To achieve the group's estimated turnover of €900 million for the year however, Raisio will have to improve operating efficiency at its Nutrition division.
Raisio directors said results are expected to improve in the second half, but remained cautious on the impact of 'the operating environment'.