New Development Programme Launched by HK Scan26 September 2013
FINLAND - Finland's economic crisis has forced a major meat processor, HKScan to lower its outlook for the coming year due to lower demand for meat.
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.
TheCattleSite News Desk