New Development Programme Launched by HKScan

FINLAND - Meat processor, HKScan, has lowered its 2013 outlook as the result of export challenges and the economic crisis impacting Finnish meat consumption.
calendar icon 26 September 2013
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HKScan lowers its outlook for 2013

According to the new guidance, HKScan Corporation CEO, Hannu Kottonen, reports that the comparable Earnings Before Interest and Taxes (EBIT) for 2013, excluding non-recurring items, will fall short of last year.

In the previous outlook, EBIT was estimated to improve from 2012. The outlook has deteriorated mainly due to longer-than-foreseen export challenges and continuing low price levels in export sales. In addition, consumption of lower-priced meat products has increased significantly relative to products made of higher-grade meat on all home markets, especially in Finland.

HKScan will publish its interim report for January-September 2013 on 6 November 2013.

A new development programme launched

In April 2012, HKScan launched a development programme to run until the end of 2013 covering all its operations in Finland, Sweden, Denmark and the Baltics. The programme aimed to achieve an annual profit improvement exceeding €20 million as well as a significant reduction in capital employed. Both targets will be exceeded by the end of the year.

HKScan has launched a new Group-wide development programme that will run until the end of 2014, targeting an annual profit improvement exceeding €20 million and a reduction of over €50 million in net debt. The main objectives of the launched development programme are to continue building a unified Group, efficient utilisation of Group synergies, and a demand-driven management of operations. In addition, the programme involves structural changes in business to improve profitability.

Brand work to be started

As part of its brand strategy, HKScan is launching a Group-wide project to utilise its top-performing local product- and packaging innovations as well as recipes in a more efficient way. The Group will also increase cross-border utilisation of production capacity. Sales will additionally be sought through innovative branded products and concepts.

HKScan’s new Group-level marketing organisation, founded in August 2013, will be responsible for the project.

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