Recently-listed Swedish poultry group Scandi Standard has stuck to its forecasts for annual adjusted operating income despite a 16% fall in the second quarter.
Scandi Standard, which floated in Stockholm this summer, said it still expects adjusted operating income to be “in line with or higher” than the 2013 pro-forma figure of SEK317.2m (US$45.5m).
The company was formed in June 2013 through the combination of Kronfågel Holding and Cardinal Foods.
In the second quarter to 30 June, Scandi Standard saw adjusted operating income fall to SEK76.3m, down from SEK90.3m a year earlier. It pointed to the end of a contract to supply Sweden-based retailer ICA.
The end of that deal also weighed on sales, Scandi Standard said, although net sales were up 1% year-on-year at SEK1.3bn. Excluding the end of the ICA contract, net sales increased 11%, MD and CEO Leif Bergvall Hansen said.
Scandi Standard said it still sees 2014 net sales being “in line with or lower” than the 2013 pro-forma result of SEK5.2bn.
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Adjusted net income for the second quarter was SEK22.2m, compared to SEK40.7m in the corresponding period of 2013.
On a reported basis, which included costs linked to the IPO and refinancing charges, Scandi Standard’s operating income for the second quarter fell 58% to SEK36.9m. It booked a net loss of SEK48.2m.
For the first six months of 2014, Scandi Standard posted a net loss of SEK18.9m, down from SEK51.9m in 2013. Operating income more than trebled to SEK107.3m. Net sales grew 3% to SEK2.66bn.