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HKScan Reduces Losses

14 May 2015

FINLAND - Finnish meat processor HK Scan saw net sales for the first quarter of the year reach € 466.0 million compared to €465.4 million in the same quarter of 2014.

The company saw its operating losses in the quarter reduced with reported EBIT at a loss of €800,000 compared to a loss of €17.5 million in the first quarter of 2014.

The total pre-tax loss was €3.1 million compared to a loss of €16.3 million in the previous year.

The company said that the outlook for 2015 was unchanged.

HKScan expects operating profit (EBIT) excluding non-recurring items to improve from 2014, and anticipates the last quarter to be the strongest.

Hannu Kottonen, HKScan CEO, (pictured) said: “HKScan’s performance turnaround was seen towards the end of last year, and it continued in the first quarter of 2015.

The trend was visible in all home market areas except Denmark. Both Group EBIT and cash flow improved clearly from the previous year, although they still remain slightly negative.

“Our improved financial performance was driven by Finland and Sweden, whereas performance in the Baltics remained flat. Denmark continued to make a loss.

“The Group’s balance sheet remained strong and financial expenses declined significantly from the previous year.

“Despite tough domestic competition in Finland, better sales and completed operational restructuring generated further clear improvement in profit and cash flow.

“Sweden continued steadily on its recovery track, and the new production setup has delivered results in full from the beginning of the year.

“Denmark is suffering the most from sales challenges, especially in exports. The restructuring of slaughtering and cutting operations were completed during the first quarter by centralising slaughtering and cutting operations from the Skovsgaard facility to the Vinderup plant.

“Overall Denmark as a whole is still in restructuring mode after the fire. Our result in the Baltics was modest, remaining largely unchanged from the previous year.

“Group restructuring entered the home stretch, with majority of the Finnish hatchery operations and the whole Estonian egg business divested in the first quarter.

“The Group’s efforts and actions to support the strategic goal of profitable growth are advancing well.

“Good progress is being made in preparations for strategic investment projects, product category development and brand management work.

“Despite delays with official export permits from the authorities, the Group is well prepared to commence exports to China, and we plan to establish a local presence both in Hong Kong and in China.”


TheMeatSite News Desk

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