Helsinki, Aug 1 - Finnish food group Raisio reported better-than-expected second-quarter operating profits, boosted by cost cuts.
Raisio's April-June operating profit nearly doubled to 6.5 million euros ($10.15 million) from the previous year and beat average analysts' forecast of 5.4 million in Reuters Estimates.
Sales rose 16 percent to 122.9 million euros, within the range of estimates.
"The forceful measures that we took well in advance to enhance cost-effectiveness have been successful," said Chief Executive Matti Rihko, adding the company was well placed to grow with its new customer-oriented focus.
"Although product launches, marketing inputs and research and development projects raise costs in the short term," he said.
The company repeated it expects 2008 sales and operating profit, minus one-offs, to grow year-on-year.
Raisio said it expects its food division to be profitable during 2008, but said the target operating result rate of 5 percent for the unit might not be achieved, citing increased marketing inputs, product launches and preparations for entry into new markets.