HKScan has booked a drop in first-quarter operating earnings as cost savings failed to offset weak demand and price pressure.

The group said EBIT fell by almost 170%, dropping to a loss of EUR17.5m from a loss of EUR6.5m in the comparable period of last year.

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CEO Hannu Kottonen said that the “dissatisfying result” showed that cost-savings were unable to offset margin pressure from lower prices and sales volumes. Total sales value was down 8.2% in the three months to end-March.

The company did however stress that progress is being made on its turnaround initiatives. During the period HKScan restructured some of its sourcing agreements and established a group structure and brand identity.

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