Market issues in Sweden are being blamed for worse-than-expected performance by Nordic meat company, HKScan Corporation.
Ahead of the publication of its full-year results next month, the corporation has announced its expectation of operating profit of EUR12-14 million (US$12.7-14.8 million) for 2016. The same metric – Earnings before Interest and Taxes (EBIT) - the previous year was EUR21.5 million (US$22.8 million), on net sales of around EUR1.9 billion (US$2.01 billion).
With operations in Finland, Sweden, Denmark and the Baltic countries, HKScan produces, markets pork, beef, poultry and lamb products to its home markets and up to 50 export destinations.
There were a number of recent changes at executive level in HKScan’s management team towards the end of 2016, as well as in response to allegations of wrongdoing in its Baltic business.
The firm also issued a profit warning in October of 2016, ahead of the publication of its third-quarter results, when it forecast profits for the year no higher than in 2015, contrary to earlier indications.
