Embattled European meat group HKScan issued a profit warning this morning (12 July) as weakness in Sweden and Finland hit the firm’s outlook.
The company said it now expects 2017 operating profit to “stay below the previous year’s level”. In fiscal 2016, HKScan reported operating profit of EUR13.2m (US$15.1m) and a net loss of EUR3.6m.
In a statement today, HKScan explained: “The reason for the revised outlook is weaker than expected sales and lower profitability in market area Sweden and Finland.”
HKScan added: “The ramp-up costs of the new Rauma poultry production plant will also burden profitability in 2017, as earlier communicated.”
HKScan has struggled to turn around its operations through a focus on value-added and branded products. After reporting what it termed a “weak” full-year performance for fiscal 2016 the firm turned its attention to cost cutting and confirmed a series of job cuts.
HKScan will publish its January-to-June interim report next week (19 July).