HKScan Cautions on Profits
HKScan, the leading Nordic meat group, which produces pork, beef, poultry and lamb products, processed meats and convenience foods, estimates that its comparable operating profit for 2016 will remain at the previous year’s level or below it. 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 previously expected that its comparable operating profit (EBIT) would improve from 2015.
HKScan supplies the retail, food service, industrial and export sectors. Its domestic markets comprise Finland, Sweden, Denmark and the Baltics. The company exports to close to 50 countries and continues to expand its international business. For example, HKScan inaugurated its Asian business operation in Hong Kong early January 2016. In 2015, HKScan achieved operating profits of Eur21.5 million (excluding non-recurring items) on net sales of Eur1.9 billion and employed 7,400 people.
