European meat group HKScan has lowered its full-year profit forecast on weaker sales and higher costs.
The company said that its comparable operating profit for 2016 will “remain at the previous year’s level or below it”. HKScan had previously forecast higher operating earnings for the year versus its performance in 2015.
In a statement, the company explained: “The reasons for the lowered outlook are the weaker than anticipated sales performance in Sweden, as well as higher purchase prices and the scarcity of beef raw material.”
HKScan will publish its report on its results for the period to the end of September on 2 November.
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.