‘Disappointment’ as HKScan reports €42m loss

By Oscar Rousseau

- Last updated on GMT

Loss-making HKScan said its long-term strategic transformation has begun to show positive signs
Loss-making HKScan said its long-term strategic transformation has begun to show positive signs

Related tags Livestock Economics Business Beef Pork Poultry Processing equipment & plant design

Scandinavian meat processor HKScan has posted a full-year loss after scale-up costs at its new cutting-edge poultry plant in Rauma, Finland, “eroded” results.

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.

Positive ‘transformation’

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”.

Related topics Meat

Related news

Show more


Post your comment

We will not publish your email address on the website

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Follow us


View more