HKScan launches new strategy to improve profitability

By Aidan Fortune contact

- Last updated on GMT

HKScan launches new strategy to improve profitability

Related tags: Finland, Poultry, HKScan

Finnish processor HKScan has approved a new group strategy focusing on a financial turnaround over the next two years.

Set to run at the same time as the implementation of its current turnaround programme, this new strategy plans to “lay a solid foundation for the company’s future growth”​.

Its new priorities will be:

  • Growth in consumers’ food moments: It plans to grow as a food company in evolving sales channels and product categories preferred by consumers
  • Performance excellence: Development of processes and personnel competence strengthens consumer and customer experience, productivity, cost efficiency and profitability
  • Advanced responsibility work: Together with its partnership network, itwill build the Agrofood ecosystem enhancing profitability and sustainability footprint across the entire value chain to meet the changing consumer and customer needs
  • Competitive farming community: It plans to develop the competitiveness of responsible, high-quality primary production and ensure the availability of important raw

The business said its long-term financial targets remain unchanged. These include EBIT being more than 4% of net sales, return on capital employed (ROCE) being over 12% of net sales, net gearing less than 100% and dividends more than 30% of net profit.

To respond to changing consumer habits, HKScan is also looking into expanding its business into new product categories and raw materials.

On the new strategy, CEO Tero Hemmilä said: “Consumers’ purchasing habits and behaviour are changing rapidly. At HKScan, we believe in the future of varied, healthy and responsibly produced food. We aim to grow profitably into a versatile food company and to have stronger presence in consumers’ food moments. Our purpose is to enable consumers and customers to have tastier life, today and tomorrow.

“We are planning to move to a country-specific operating model that aims to enhance customer and consumer satisfaction and to clarify profit responsibility. We will also continue our strategic assessments related to the company structure and look at the positioning of different markets as part of the Group’s business operations.”

“Our primary task is to get the company’s profitability into shape together with our skilled personnel,”​ he added. “We will also boost our ability to create added value to customers and consumers by focusing on growth in selected product categories and sales channels. Active development work together with our customers enables stronger presence in consumers’ food moments in evolving sales channels and especially in the growing food service channel.” 

Related topics: Meat

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