Latest news with #HKFoods
Yahoo
03-07-2025
- Business
- Yahoo
HKFoods backtracks on plan to sell Polish bacon factory
Following a strategic review, Finnish meat processor HKFoods has decided to keep its bacon production unit in Swinoujście, Poland. In a stock exchange filing published today (3 July), the company said it will 'continue with the current group structure', backtracking on reassessment plans announced in April that could have included a sale of the Swinoujście site. Operated by HKFoods' business in Poland, the Swinoujście plant has around 300 employees, according to the company. HKFoods reiterated its April estimate today that the Polish subsidiary will generate net sales of approximately €70m ($82.3m) in 2025. Commenting on the decision, HKFoods CEO Juha Ruohola said: 'We have invested in the Polish bacon unit over the past years and the profitable unit is in good shape. We have developed the unit's capacity and efficiency by investing in a slicing and packaging line in 2024, for example. During the first half of 2025, we have also continued our investment in increasing the added value of our Polish operations and our property development project. 'Following the extensive restructuring, we are now focusing on implementing our strategy in the HKFoods Group's operations in Finland and Poland, improving the competitiveness of our core business and the profitability of our operations, in addition to commercial activities." The company had said in April that the assessment was part of its ongoing evaluation of its group structure 'aimed at strengthening the group's balance sheet'. The Finnish meat processor has undergone significant restructuring in recent years to bolster its financial flexibility, including selling its businesses in the Baltics, Sweden, and Denmark. In May last year, the company signed a deal to sell its Danish subsidiary to Plukon Food Group, a Netherlands-based poultry group, for €44.6m. HKFoods also sold its Swedish business to local agri-food group Lantmännen in January 2024. The company's 2024 financial results, published in February, showed net sales from continuing operations of €1bn, up 7.4% from the previous year, driven by 'good' consumer demand and 'successful' commercial activities. EBITDA from continuing operations rose to €56.3m, a 24.8% increase from 2023, while the loss for the period narrowed to €1.8m from €17.3m in 2023. Losses turned positive in the most recent results issued in May for the first quarter of 2025. HKFoods delivered a net profit of €0.8m versus a €3.8m loss a year earlier. Sales climbed 2.2% to €233.7m in the three months to 31 March, while EBITDA from continuing operations rose 36% to €12.1m. In March, HKFoods also closed a slaughterhouse in the town of Paimio, Finland, as cattle numbers declined. Operations conducted by the company's Paimion Teurastamo business were to be transferred to the 'external service provider' Liha Hietanen in Sastamala by 31 March, HKFoods said in a statement. "HKFoods backtracks on plan to sell Polish bacon factory" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
07-05-2025
- Business
- Yahoo
HKFoods flags further beef shortages as cost of strikes yet to be felt
HKFoods has suggested a beef shortage in its home market of Finland is likely to continue, while a recent strike that affect its plants will bring added costs. The warnings emerged as the meat business, previously trading as HKScan, reported results for the first quarter of 2025 this morning (7 May). Beef and pork are one of the largest revenue earners for the listed business, contributing 29% to the company's 2024 sales of €1bn ($1.1bn). Only sausages, bacon and charcuterie brought in more, with 31% of the group total. CEO Juha Ruohola said today (7 May) a shortage of minced beef in Finland during the reported quarter 'became a public issue', linked to a 'significant reduction' in cattle numbers in the country. 'Forecasts indicate that a similar trend will continue in the future, which means that there will continue to be a shortage of beef,' Ruohola added. 'It is important for HKFoods to maintain self-sufficiency in domestic meat. This is also of importance for national security of supply.' HKFoods still managed to generate a 2.2% increase in first-quarter sales to €233.7m but Ruohola indicated consumers are eating less meat. In 2024, poultry accounted for 23% of the company's sales and meat-based meals 17%. 'Consumer demand in Finland weakened from the comparison period and shifted especially to lower-priced products. Demand for meat products in particular declined, which weakened the sales of HKFoods' own brands,' Ruohola said today. HKFoods has already announced plans to consolidate production as it seeks to realise annual costs savings of around €1m, which will start to be felt from the second quarter but not fully incorporated until the 2026 fiscal year. In March, the HK and Kariniemen meat brands owner said it planned to close a beef and pork slaughterhouse in the town of Paimio as cattle numbers decline. That plan has now come to fruition, the company said today. More recently in April, HKFoods said it was assessing the future of its bacon processing facility in Swinoujście, Poland, a site expected to generate around €70m in sales for the group business this year. HKFoods, which counts retail as its largest sales channel with 63% of revenues in 2024, also reported first-quarter EBITDA today from its continuing operations of €12.1m, up 36%. Elsewhere, EBIT rose to €4.6m from €1.2m in the corresponding period, while the associated profit margin climbed to 2% from 0.5%. The net result was a profit of €0.8m, compared to a €3.8m loss a year earlier. Meanwhile, HKFoods has yet to feel the full impact of workers' strikes, which affected a number of Finnish meat businesses in April.
Yahoo
28-04-2025
- Business
- Yahoo
HKFoods explores options for Polish bacon plant, including potential sale
Finnish meat processor HKFoods is assessing options for its bacon production unit in Swinoujście, Poland, including a potential sale. In a stock exchange filing published today (28 April), the company, previously trading as HKScan, said it has started 'preliminary investigations' to consider the Polish plant's future. The assessment is part of the company's ongoing evaluation of its group structure with the potential plant sale 'aimed at strengthening the group's balance sheet', the statement added. The Polish unit has around 300 employees, according to HKFoods. The company said it will provide further details on the plans for the facility 'when appropriate and will not comment further at this stage'. Over recent years, HKFoods said it has undergone 'major restructuring' to 'increase its financial flexibility', which included the sale of its businesses in the Baltics, Sweden, and Denmark. In May, the company signed a deal to sell its Danish subsidiary to Netherlands-based poultry group Plukon Food Group for €44.6m ($47.6m). HKFoods also sold its Swedish business to local agri-food group Lantmännen in 2024. Results for 2024 were published in February. HKFoods' net sales from continuing operations stood at €1bn, up 7.4% from the previous year, driven by 'good' consumer demand and 'successful' commercial activities. EBITDA from continuing operations rose to €56.3m, a 24.8% increase from 2023. The loss for the period from continuing operations narrowed to €1.8m, compared to a loss of €17.3m in 2023. HKFoods estimates its Polish subsidiary will generate net sales of approximately €70m in 2025. In March, HKFoods closed a slaughterhouse in the town of Paimio, Finland, as cattle numbers declined. Operations conducted by the company's Paimion Teurastamo business were to be transferred to the 'external service provider' Liha Hietanen in Sastamala by 31 March, HKFoods said in a statement. "HKFoods explores options for Polish bacon plant, including potential sale" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
