Scandi Standard focuses on growing poultry segments

On a like-for-like basis, Nordic poultry firm, Scandi Standard achieved a seven percent increase in sales in fiscal year 2018 compared to the previous year at 8.797 billion Swedish krona (SEK; US$ 955 million at current exchange rates).

Yuriy Bukhanovsky | BigStock.com
Yuriy Bukhanovsky | BigStock.com

Nordic poultry firm Scandi Standard achieved a 7 percent increase in sales in fiscal year 2018 compared to the previous year at SEK8.797 billion (US$955 million).

According to the firm’s CEO, Leif Bergvall Hansen, all Scandi Standard business segments contributed to this growth in both the fourth quarter and the year as a whole.

Compared with 2017, Earnings Before Interest and Taxes (EBIT) was 10 percent higher at SEK323 million.

In the fourth quarter, significant increases in raw material costs impacted operating income by as much as SEK85 million. This led to a drop in operating margin to 4.7 percent from 5.6 percent the year before, although the comparison period was boosted by third-party compensation.

Making a strong contribution to the margin in 2018 was strong development in the ready-to-eat (RTE) and chilled product categories. The firm’s RTE plant has recently been expanded to take advantage of future growth in this segment. Frozen products, on the other hand, are less profitable and were in decline.

Looking ahead to 2019, Hansen forecasts a positive contribution from its Danish free-range and organic business, Rokkedahl Foods. Total Group investments of SEK380 million in 2019 will aim to improve efficiency, animal welfare, and food safety.

In January this year, Scandi Standard announced the appointment of Julia Lagerqvist as its new chief financial officer (CFO. She is to take over her new position in May.

In 2018, Scandi Standard agreed to take a controlling shareholding in Rokkedahl Foods ApS, which specializes in the production of organic and free-range chickens in Denmark, and it acquired Irish chicken processor, Manor Farm, in 2017.

Swedish-based Scandi Standard, according to the WATTAgNet Top Poultry Companies Database, is the Nordic region's leading poultry producer, with brands Kronfågel in Sweden, Danpo in Denmark, and Jæren in Norway.

According to the firm’s own web site, Scandi Standard produces, markets and sells ready-to-eat, chilled and frozen products under a number of well-known brands, as well as producing and selling eggs in Norway. The firm employs around 3,000 people.

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