Meat processor HKScan has said it now expects a sharper decline in 2016 operating profit than previously suggested.
In an update today (13 January), the European meat company said it now expects comparable EBIT to total EUR12-14m (US$12.7-14.8m), versus EUR21.5m last year.
The company had said its comparable operating profit for 2016 will “remain at the previous year’s level or below it” when the company issued a previous profit warning in October. Prior to this, HKScan had forecast higher operating earnings for the year versus its performance in 2015.
HKScan said the weaker result was “mainly due to the weakened profitability of market area Sweden”.
HKScan will publish its financial statements 8 February.
In fiscal 2015, the group reported net profit of EUR1.9m (US$2.06m), down from EUR57.1m in 2014. EBIT of EUR9.6m compared to the EUR55.5m generated in 2014 but underlying EBIT hit EUR21.5m, up sharply from the EUR12.4m HKScan made in 2014. 2015 net sales were down 3.6% at EUR1.92bn.
Earlier this year, the company appointed Jari Latvanen as its new chief executive. Laiho took the helm at HKScan after chief executive Hannu Kottonen exited the firm in January. At the time, the company did not provide a reason for Kottonen’s departure.