Having divested all its abroad operations over the previous 12 months, Finland-based poultry meat firm HKScan is specializing in constructing on enhancements in gross sales and profitability reported for the primary quarter of its fiscal yr.
For the primary quarter of 2024, HKScan reviews enhancements in web gross sales and working revenue in contrast with the identical interval of final yr.
Following a collection of divestments over the previous 12 months, the corporate’s monetary reporting covers its persevering with operations, that are confined to its unique dwelling base, Finland.
At EUR228.7 million (US$246 million), web gross sales for the January-March interval have been 4.9% larger than within the first quarter of 2023. Whereas strikes within the final month of the reporting interval adversely impacted exports, the agency attributes the rise in gross sales to robust shopper demand in addition to profitable business exercise.
In contrast with a damaging determine of EUR400,000 for Earnings Earlier than Curiosity and Taxes (EBIT) within the first quarter of final yr, a optimistic determine of EUR1.2 million is reported for the quarter simply ended.
Comparable EBIT for the group’s persevering with operations was additionally rotated to EUR1.4 million.
HKScan reviews that its prices remained excessive within the first three months of this yr. Nevertheless, shopper demand in Finland was stronger than within the comparative interval, and the group was in a position to strengthen its place in its dwelling market.
Commenting on the outcomes, CEO Juha Ruohola welcomed the optimistic developments within the firm’s profitability.
“Now we have achieved this in cooperation with our personal employees in addition to our contract farmers and different companions,” he mentioned. “Our profitability will not be passable. To be able to obtain our focused revenue improvement and enhance profitability, we are going to proceed to tightly handle prices, enhance manufacturing effectivity, optimize our product portfolio within the face of adjusting shopper demand, and perform our business efforts.”
Current enterprise divestments have strengthened HKScan’s stability sheet, he mentioned, and the proceeds have been used to repay the corporate’s loans.
“On account of the numerous structural and operational measures taken, our future seems to be brighter,” in keeping with Ruohola.
Waiting for the remainder of the monetary yr, HKScan forecasts continued year-on-year enchancment in EBIT for its persevering with operations.
Extra on HKScan
With annual slaughterings of 95 million poultry, HKScan is among the many largest poultry producers in Europe, in keeping with WATTPoultry.com’s High Poultry Firms survey. The determine contains chickens, turkeys, and geese, and It was compiled earlier than the latest sale of the group’s abroad companies.
Over the previous 12 months, HKScan has introduced various vital modifications to its enterprise.
In September of 2023, last settlement was reached for the sale of its Baltic enterprise in Estonia and Latvia to the Maag Group of Estonia.
Settlement was reached in December to promote its Swedish subsidiary, HKScan Sweden AB, to Swedish Lantmännen. The sale was accomplished in March of this yr, and the agency has been renamed Scan Sverige.
Following the divestment of its Swedish enterprise, HKScan introduced it was altering its identify to HK Meals Plc in April of this yr. The change is anticipated to come back into impact later this month, after the brand new identify has been formally registered.
Earlier this month, HKScan offered its Danish operation to Plukon Meals Group. The acquisition of HKScan Denmark A/S was Netherlands-based Plukon’s fourth acquisition already this yr.
