Finnish health food group Raisio has laid out a three-year strategy to boost revenue and profits, with M&A and new categories to play a part.
The owner of the Benecol cholesterol-fighting yogurt and spreads brand has set a goal to achieve €250m ($271.3m) in sales by the end of 2027, representing a more than 10% increase in organic terms from last year’s print of €227m.
Under the steer of CEO Pasi Flinkman, who joined the publicly-listed business from Finland peer Orkla last June, Raisio is targeting EBIT of €30m over the strategy period, around 28% more than the €23m recorded in 2024.
Raisio will reorganise into two physical, category-focused areas, and a third to concentrate on new business.
Breakfast and snacking, and heart health, form the first two. In those areas, the Elovena granola oatmeal and oat drinks brand owner seeks to outpace market growth.
“The markets of breakfast and snack products, as well as heart-healthy products in Europe, are growing by approximately 2−3% per year, and Raisio is seeking to grow faster than the market,” the company said today (13 March).
“This can be achieved by increasing the company’s market shares, as well as through geographic expansion and corporate acquisitions,” which, Raisio added, will include entrance into new categories.
In addition to Benecol yogurt drinks and kefir, Raisio also owns the Torino pasta brand and the Nalle porridge line. The business also supplies the B2B sector with oat-based ingredients.
“Raisio has strong expertise in gluten-free oat, of which the company is one of the most significant producers in Europe, and this position will be bolstered further,” the company said.
The new organisational structure is expected to be put in place in the first half of 2025 but the first-quarter results will reflect the old set up.
Flinkman said: “We want to be a consumer-oriented European innovator that promotes the food transition with new products, as well as plant-based foods and ingredients.
“Our goal is to grow faster than the market organically. Additionally, we will utilise our strong balance sheet more efficiently to accelerate growth. This entails opportunities to implement targeted acquisitions and investments in research activities.”
The reorganisation will come at a cost, however, with around 20 jobs likely to be cut. Raisio said it will initiate talks with around 200 employees in the process.
With the new business structure, Flinkman aims to “harmonise reporting and management responsibilities”, while allocating more resources to M&A.
Since Flinkman came on board, Raisio has sold its Härkis and Beanit plant-based protein brands to fellow Finnish food group Valio but has so far not instigated any M&A.
“Besides supporting existing business operations and organic growth, research activities will focus on developing new business opportunities, such as value-added oat-based ingredients, as well as solutions related to fullness and weight management,” Raisio said.
“The company is planning to invest in its product development centre and will also contribute to international research and start-up collaboration.”
