Scandi Standard will make adjustments to its poultry production in Sweden and Ireland during the fourth quarter of 2021, the company announced in its interim report, issued on November 12.
According to the company, its net sales only declined slightly during the third quarter, yet operating income during the third quarter decreased by 74%.
According to Scandi Standard Interim CEO Otto Drakenberg, the company’s ready-to-cook segment was adversely affected by a number of internal and external challenges during the quarter. Among those were “significant under-manning in Ireland due to COVID-19,” as well as production challenges in both Sweden and Ireland. As a result, some changes will be made in operations in those two countries.
“As part of the improvement program, Scandi Standard has decided to temporarily reduce the intake of birds to production with approximately 8-10 percent in Sweden and Ireland during the fourth quarter in order to address production challenges and to ensure good operational capability,” explained Drakenberg. “The reduced volume has a short-term negative impact on the operating income but will at the same time enable a more rapid implementation of desired operational improvements. This also entails a downsizing of staff in both Sweden and Ireland, primarily through temporary employments not being renewed.”
Drakenberg was appointed to serve as the interim CEO, after the termination of CEO Leif Bergvall Hansen. That decision followed Scandi Standard’s announcement that its Swedish subsidiary Kronfagel experienced “certain deviations in connection with the slaughter and processing of chicken, which has been acknowledged by Swedish media.”
A permanent successor for Drakenberg has been named, as the company announced it hired Jonas Tunestål, currently executive vice president of Danish Crown and CEO of KLS Ugglarps, Danish Crown’s Swedish business, to take the helm at Scandi Standard. Tunestål will join the company no later than May 1, 2022, and Drakenberg will remain with the company until Tunestål arrives.
In addition to having operations in Sweden and Ireland, the company also operates in Finland, Denmark and Norway.
