A strong end to the year has helped HKScan report healthy growth in earnings and pre-tax profits – and the Scandinavian food group has said it believed this year’s figures would surpass 2009, despite the tough economic environment.
Although sales were hit by exchange rates and fell 7.4% to EUR2.21bn (US$2.98bn), the company said that reported EBIT increased by 45% reaching EUR55.1m. Pre-tax profit quadrupled to EUR37.3m as costs improved.
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CEO Matti Perkonoja said: “The final quarter of the year was a resounding success in terms of both sales and financial performance in all market areas. In the Baltics, Rakvere Lihakombinaat and Tallegg exceeded the group’s EBIT target of 5%. The market area of Sweden also developed favourably in the fourth quarter and had it not been for non-recurring charges of EUR5.8m, EBIT in Sweden as well would have climbed to 5% of net sales.
“The fact that this was accomplished amidst the restructuring and reorganisation ongoing in the Scan Group only makes the achievement more remarkable. In Poland, Sokolów posted the best quarterly results in its history. In the market area of Finland, HK Ruokatalo’s solid earnings development carried through until the end of the year,” he added.
Looking ahead, the company said that it expected consumer demand for food to remain steady in the its domestic markets and export markets are anticipated to pick up somewhat towards the end of the year.
“In addition, the ongoing streamlining programmes and the restructuring programme in Sweden in particular provide the foundation for solid business development,” a statement said.
“The group’s full-year EBIT exclusive of non-recurring items is estimated to surpass that in 2009 despite the considerable challenges posed by the markets in the early part of the year,” it concluded.
