Finnish meat processor HKScan has reduced its forecast for its 2011 EBIT on the back of rising raw material costs and other high production input costs.

The company said today (26 July) that it now expects full-year EBIT to be lower than in 2010. It said that its earnings development in the early part of the year has been “weaker than anticipated”.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

The company initally forecast that full-year EBIT in 2011 would improve against 2010.

“The ongoing difficult conditions in the international pork market and the rising prices of raw materials and other production inputs are eroding business profitability in all markets, especially in Finland,” the company said.

It also said that over-production of pork elsewhere in Europe led to increased pressure in HKScan’s markets to import meat. “Pork profitability in Finland is furthermore weakened by the low price level in export markets,” HKScan said. 

The company plans to increase prices to improve profitability and it will also take steps to accomplish an “orderly adjustment” of pork production volumes in Finland. It said that efficiency programmes in Finland and Sweden provide the foundation for more “positive development in the group’s competitiveness and profitability”.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Just Food Excellence Awards - The Benefits of Entering

Gain the recognition you deserve! The Just Food Excellence Awards celebrate innovation, leadership, and impact. By entering, you showcase your achievements, elevate your industry profile, and position yourself among top leaders driving food industry advancements. Don’t miss your chance to stand out—submit your entry today!

Nominate Now