Leif Bergvall Hansen, managing director and CEO of European poultry company Scandi Standard said most of the company’s capital investments this year will be directed for its business in Ireland.
Scandi Standard, which is headquartered in Stockholm, Sweden, has operations in Sweden, Norway, Finland, Denmark and Ireland. It’s entry into Ireland began in 2017, when the company announced its intent to acquire Manor Farm. At the time, Manor Farm’s operations included a processing plant, a feed mill and a network of about 130 contract growers and 43 contract breeders.
While Hansen did not offer specific details on the capital investments in Ireland, he did say, “The investments are aimed an increasing efficiency, improving animal welfare, food safety differentiation and de-bottlenecking.”
The company’s intent is to invest around SEK380 million (US$39.5 million) in 2019.
Hansen’s comments about investments in Ireland came as Scandi Standard announced its financial results for the second quarter of the 2019 fiscal year. The company’s Irish operations saw net sales rise from SEK499 million to SEK501 million. The company also reported “stable revenue” and lower operating costs.
Scandi Standard’s performance in other countries
Sweden – Scandi Standard’s net sales in Sweden rose 8% to SEK711 million for the quarter. The company also reported “favorable sales mix development.
Denmark – Operations in Denmark were strong for the quarter, with 20% revenue growth. Net sales rose from SEK688 million to SEK826 million. Scandi Standard’s new Danish brand, De Danske Familiagarde, saw 57% percent growth.
Finland –Scandi Standard’s Finnish sales rose from SEK114 million to SEK129 million. Revenue growth was around 13%.
Norway – Net sales for Scandi Standard were up from SEK393 million to SEK419 million. Revenues increased 7%.
More acquisitions possible
Hansen noted that the company’s acquisition of Manor Farm was a good move for Scandi Standard, and hinted other acquisitions could be on the horizon.
“We are carefully following the structural changes in our sector and believe that we are ideally positioned to take part of the consolidation of the European poultry market,” said Hansen. “We believe the acquisition of Manor Farm is a good illustration of how we can create value and stability for our shareholders. The acquisition has contributed to further geographic diversification and we are happy with our cross-country teams’ ability to deliver benefits through exchanging best practice within the group.”
Scandi Standard, according to the Poultry International Top Companies listings, is the 23rd largest poultry company in Europe and the largest in Sweden. It produces broilers, turkeys, ducks and table eggs.
