Finland-based meat processor and convenience food group HKScan today (18 February) reported a near 13% drop in annual profits on the back of a series of issues in its domestic market.

Industrial action, a ban on pork exports to Russia and competition in the poultry sector hit HKScan’s profits in Finland, which fell by more than half in 2010.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

HKScan’s sales in Finland slipped by 1.9% to EUR718.5m (US$973.7m) but its EBIT from the market only reached EUR10.7m – down from the EUR27m it posted in 2009.

The fall in profits in Finland helped drive down EBIT at group level. HKScan’s company-wide EBIT was down 12.9% at EUR48m. Net profit fell 6.7% to EUR27.9m. At the top line, net sales slid 0.5% to EUR2.11bn.

In Sweden, HKScan’s biggest market by revenue, sales were also lower, dropping 3.9% to EUR997.1m. A programme designed to boost efficiency from its operations in Sweden cost EUR10m but HKScan’s local EBIT benefitted from the EUR7.9m it received from selling two sites. Consequently, HKScan’s EBIT in Sweden rose 22.1% to EUR20.4m.

See Also:

HKScan’s operations in the Baltics saw sales rise thanks in part to an aqcuisition in Latvia. EBIT, however, fell. In Poland, sales and EBIT rose due to growing exports, a strengthened position with its retail customers and tight cost control.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Reflecting on the year, CEO Matti Perkonoja labelled 2010 as a “strong year of development within the HKScan Group”.

However, he added: “The profitability of the business did not meet expectations, but development programmes relating to the business and strengthening of market positions in all market areas are providing confidence in the future.”

Click here for the full statement from HKScan.