‘Disappointment’ as HKScan reports €42m loss
HKScan is in the red for the second successive year. A heavy loss of €42m for 2017 comes after smaller loss of €3.6m reported in 2016.
“Our full-year results were clear disappointments, our performance is not yet acceptable and we are in an early phase of the turnaround,” said HKScan CEO Jari Latvanen.
The commander-in-chief said higher-than-expected ramp-up costs at its automated chicken slaughterhouse, which increased operating costs and weakened ability to get poultry on the market, were responsible for the loss.
In the long run, the Rauma poultry plant – HKScan’s €80m crown jewel – should significantly enhance the company’s competitiveness and production efficiency. Results last year were hit by teething problems, but the business expect a strategic transformation, launched in 2017, to bear fruit soon.
“In spite of the fact that the transformation of the company has just been started, positive signs in certain markets and categories have already been visible,” added Latvanen.
“Our market share showed an upturn in our biggest market, Sweden, and the meals business’ sales and margins developed well throughout the year in all our home markets. We also increased the share of branded products and novelties in our sales in a highly competitive retail market, where the dominance of private labels has been increasing.”
In August 2017, the business launched its three-year ‘From Farm to Fork’ strategy. This changed its operating model significantly and saw the company build stronger ties with farmers in a bid to become the Nordics’ leading environmental, societal and sustainable meat producer. By doing this the company hopes to serve even “the most demanding fork in the world”.