HKScan reports difficult 2013, but strategy progressing
Poultry production continues as focus of investment
Finland's HKScan recorded 2013 sales of EUR2.4782 billion (USD3.4461 billion), down from the EUR2.5031 billion (USD3.480 billion) recorded in 2012. Earnings before interest and taxes stood at EUR30.5 million (USD42.4 million), down from 2012's EUR43.1 million (USD59.9 million).
The company notes that its performance was hit by low export prices and an increase in consumption of volume products, rather than more expensive, high-end cuts.
HKScan is active across pork, beef, processed meat and convenience foods, as well as poultry. It notes that in 2013 group broiler meat production reached 53 million pounds.
The company has registered growing demand for poultry meat over recent years and has been instigating an investment program across Finland, Denmark and the Baltics in response.
The year 2013 saw the company rebuild its Vinderup plant in Denmark following a fire and inaugurate a renewed and expanded poultry production facility in Tabasalu, Estonia. Since then, the Tabasalu facility is now responsible for the slaughter, deboning and processing of poutlry for the group throughout the Baltic region.
The company also launched new poultry products in Sweden under the Parsons brand in 2013. Denmark became the group's main producer of organic chicken, in response to strong consumer demand, and also witnessed a number of product launches, the most important being fresh poultry meat products. Additionally, Denmark was the focus for new sustainable packaging, particularly more convenient packing for fresh white meat.
According to Hannu Kottonen, president and CEO of HKScan Corporation: "HKScan's past year was one of regeneration. Implementation of the strategy and operating model progressed as planned, despite a challenging business environment. We are now focusing on building a long-term, sustainable foundation for the future."