FINLAND: HKScan hit by poor pork profitability

By | 6 May 2011

Scandinavian meat processor HKScan today (6 May) recorded a loss in its first quarter as it was hit by poor pork profitability in Finland and Sweden.

The company said today (6 May) that for the quarter ended 31 March, it reported a EUR2.7m (US$3.9m) loss against an EUR4m profit in the same period of 2010.

However, net sales grew by 22% over the quarter to reach EUR592.7m, which it attributed mainly to acquisitions. Organic growth was 4%.

Commenting on the results, CEO Matti Perkonoja said the pork supply chain in Finflan and Sweden had been affected for an "exceptionally long time by very low profitability".

Perkonoja said: "Overproduction of pork elsewhere in Europe has resulted in greater than usual pressure to import meat to HKScan's market area. Disgorgement of pork stocks - accumulated during the dioxin scandal in Germany - on the market during the latter part of the year will continue to disrupt the pork market. At the same time, in Finland, the release on the export market of stocks which arose due to the ban on exports to Russia last year is creating additional challenges for profitability in the business with respect to pork meat."

Sectors: Financials, Meat & poultry

Companies: HKScan

View next/previous articles

Currently reading -

FINLAND: HKScan hit by poor pork profitability

There are currently no comments on this article

Be the first to comment on this article

Related articles

FINLAND: Pork woes continue for HKScan

Finland-based meat processor HKScan has posted a fall in in EBIT in its third-quarter, despite an easing in European pork problems.

FINLAND: Pork problems push HKScan to H1 loss

Finland-based meat processor HKScan has posted a first-half loss as rising commodity costs and low pork prices hit the company's profits.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page