Finnish meat firm HKScan has booked an increase in third-quarter profit and reaffirmed its full-year guidance.
In the three months to the end of September, the company earned EUR6.9m (US$8.8m), a 23.2% increase on the prior year period. The company said its businesses in Finland, Baltics and Poland recorded "positive progress" and "improved performance" compared to the previous year.
EBIT amounted to EUR15m compared to EUR14m last year, while net sales edged up 0.8% to EUR623m.
HKScan said it maintains its outlook for 2012, which stated that "due to the weak development of business in Sweden, there is a risk that the group's EBIT will come out below the level of 2011".
HKScan Group's interim report 1 January - 30 September 2012: Modest recovery continues
Group net sales in January-September 2012 totalled EUR 1 873.3 million (EUR 1 841.4 m for the corresponding period in 2011), growing by 2 per cent.
Group EBIT came to EUR 19.9 million (EUR 22.1 m) and was 1.1 per cent (1.2%) of net sales. The EBIT shortfall compared to the corresponding period in 2011 relates to losses during the first six months in the Swedish business. In Denmark the fire at the Vinderup plant in early June slowed sales and good business development. The businesses in Finland, Baltics and Poland recorded positive progress and they improved their performance compared to the previous year.
Group cash flow before debt service was EUR 26.1 million (EUR 9.6 million), and group net financial expenses stood at EUR -24.4 million (EUR -21.9 m) based mainly on higher loan margins.
HKScan maintains the outlook for 2012 which stated that due to the weak development of business in Sweden, there is a risk that the Group's EBIT will come out below the level of 2011. However, including the estimated non-recurring income of fire insurance compensation is very likely to improve the reported EBIT compared to 2011.
