Finnish meat group HKScan reported lower profitability in 2013 as “headwinds in all market areas” partially offset its turnaround efforts.
The group said net profit in the year fell to EUR9.8m (US$13.3m), down from EUR17.7m in the comparable period of 2012. Operating profit fell to EUR30.5m in the year to the end of December, down from EUR43.1m last year.
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The company has embarked on a turnaround drive that has included restructuring and centralising its operations in an effort to cut costs, while also increasing its brand investments. CEO Hannu Kottonen said HKScan had done some “good work” on strengthening its share flow and balance sheet.
The firm achieved profitability in the Baltics and Poland and returned Sweden to a “profit making track” – although more work remains, Kottenen said. However, he characterised the results in Finland and Denmark as the “biggest disappointments”.
Margins came under pressure due to the tough competitive environment, which hindered the group’s ability to take action on pricing. However, sales remained relatively stable in the year, dipping to EUR2.48bn from EUR2.5bn.
Looking to 2014, Kottenen said the company now has a “more stable foundation” to improve its performance. The company forecast EBIT margins of 1-2%, compared to 0.5% in 2013.
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