HKScan publishes profit warning
Meat and poultry company says slow sales in Sweden, higher purchase prices causing financial struggles
Ahead of the publication of its latest quarterly results next week, Nordic country meat and poultry company, HKScan Corporation has issued a profit warning.
Previously, HKScan had anticipated improved profitability in 2016 but, according to the company, its operating profit for this year will be no higher than in 2015, and may be lower. It attributed this forecast to weaker-than-anticipated sales in Sweden, higher purchase prices and a scarcity of beef.
With home markets in Finalnd, Sweden, Denmark and the Baltic states, HKScan produces, markets and sells high-quality, responsibly-produced pork, beef, poultry and lamb products, processed meats and convenience foods to the retail, food service, industrial and export sectors. It also export to almost 50 countries. In 2015, HKScan’s net sales amounted to around EUR1.9 billion (US$2.1 billion) and it had 7,400 employees.
In May this year, Jari Latvanen was appointed the company’s president and CEO. According to a press release from the company, Latvanen is scheduled to take over the new role on October 31. COO, Aki Laiho has been serving as deputy CEO since Hannu Kottonen stepped down in January this year.