Swedish poultry group Scandi Standard has lowered its forecast for annual underlying operating profit after a 12% fall in the third quarter of the year.
The company said today (28 November) it expects adjusted operating income, which excluded items including costs from the business’s recent IPO, to be “in line with or lower than 2013 pro forma”.
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In May, the group had forecast it would be level with or higher than the pro-forma result of SEK317.2m thanks to production efficiencies in the second half of the year.
Scandi Standard was formed in June 2013 through the combination of Kronfågel Holding and Cardinal Foods.
However, adjusted operating income fell 12% in the three months to the end of September to SEK66.5m as the business continued to feel the impact of the end of a contract to supply Sweden-based retailer ICA in Norway.
Net sales were up 3% at SEK1.36bn. Excluding the impact of the ICA contract, net sales increased 12%.
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By GlobalDataScandi Standard lifted its forecast for its net sales this year. It now sees sales being in line with the 2013 pro-forma. In May, it had forecast net sales would be level with or lower than the pro forma of SEK5.19bn.
Third-quarter net income grew 69% to SEK32.1m. Adjusted net income was up 80%.
