HKScan, one of the leading food companies in northern Europe, reported a loss before taxes of €9.4 million in the first six months of 2012, an increase from a loss of €3.5 million during the same time in 2011, according to the company's latest financial report. The company's net sales, however, reached €1,250.4 million, an increase of 2 percent in comparison with the first half of 2011.
These sales numbers come in spite of the fact that the company was not without difficulties over the period. A fire on June 6 at one of the company's poultry plants caused a production break, interrupting poultry slaughtering, production, packing and delivery operations at its Vinderup plant in Denmark. While some lines could be restarted to a degree soon after the fire by reorganizing operations, it will not be until December that operations are back to normal.
Earlier in August, HKScan announced the launch of a new business strategy to improve profitability by building brand value and demand, improving efficiency, and developing its capital structure. The company’s management and operating model is to be simplified following a period of expansion and internationalization, and overlaps are to be removed.
In Sweden, HKScan is in the process of streamlining its business and its wholly-owned subsidiaries will be merged into a single business entity. The change is expected to result in the loss of 100 white-collar workers, and 50 blue-collar workers from the company total local workforce of 2,800 employees. Overall, the company plans to concentrate on delivering profitable performance and will maintain its 2012 outlook given at the beginning of the year.
