FINLAND: HKScan hit by poor pork profitability
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."
- Premier Foods CEO expects UK supermarket rebound
- Unilever must "speed" response to consumer trends
- Briefing: The risks and rewards of e-tail in China
- Why US diet guidelines should consider environment
- Emerging markets online: India's food retail scene
- Post Holdings strikes deal to acquire MOM Brands
- Food industry news of week: Unilever, PepsiCo
- Tootsie Roll CEO Melvin Gordon dies at 95
- Chobani launches Tots infant range
- Monde Nissin "to acquire Menora"
- 10 Key Trends in Food, Health and Nutrition 2015
- The Sugar Backlash and its Effects on Global Consumer Markets
- The Future of Retailing in the UK to 2017
- Global Consumer Trend Framework: Understanding Attitudes and Behaviors that Influence Global Consumption Habits
- Meat Substitutes Market - Global Trends, Forecasts up to 2019