Poland, Russia and Ukraine are Raisio's markets in Eastern Europe. Poland in the second largest market of the Benecol products. The year 2014 was different for each of these market. The year was exceptional as a whole, but it went well as the company reacted rapidly to the changes in the markets.
Main events in 2014
- In Russia, sales volume in Nordic flakes increased despite the economic uncertainty. Euro-denominated net sales slightly decreased in spite of price increases.
- Sales to Ukraine decreased with stricter payment terms.
- In Poland, the consolidation of retail sector decreased sales volume of Benecol products.
In Russia, sales volume in Nordic products increased despite the economic uncertainty. Due to the weakened rouble, euro-denominated net sales slightly decreased despite Raisio's price increases. In Ukraine, Raisio significantly decreased its export as a result of the crisis.
In Poland, net sales and sales volume declined, which was largely due to the consolidation of retail sector and further intensifying competition. As a result of declined net sales, EBIT also weakened from the comparison year.
Good performance in a challenging situation
Benecol is a market leader in Poland.
In Poland, the competition is intensifying and promotions play an important role in the sale of cholesterol-lowering functional products. Benecol maintained its market leader position. At the end on 2014, the merger of two major retail chains resulted in a listing break that decreased the sale volume of Benecol products from the comparison year.
In Russia, good demand for Nordic flakes continued and Raisio increased its prices taking the exchange rate into account. Russian consumers value high-quality Nordic products made in Finland.
In Russia, good demand for Nordic flakes continued.
Raisio managed to decrease the country risk in Ukraine and to tighten payment terms, which resulted in lower deliveries. Raisio also continued to take steps in order to reduce the amount of sales receivables and credit loss risk in Ukraine.