Hkfoods Oyj Class A · OMXHEX:HKFOODS
Hkfoods Oyj Class A — HKScan — Q3 2023 Earnings Presentation
26 slides from Hkfoods Oyj Class A's earnings presentation, Nov 8, 2023
Slide 1: Interim Report Q3 2023
Interim Report Q3 2023 Juha Ruohola, CEO 8 November 2023
Slide 2: Goal-oriented work towards zero accidents at work
Goal-oriented work towards zero accidents at work Accident frequency, LTIR Continuing operations, rolling 12M average 25 * 20 15 10 5 0 Q3/20 Q3/21 Q3/22 Q3/23 *lost-time accidents per million working hours 2 8.11.2023 Interim Report Q3 2023
Slide 3: Q3/2023: HKScan's EBIT showed a clear improvement
Q3/2023: HKScan’s EBIT showed a clear improvement Net sales • At comparable exchange rates, net sales increased • Net sales were weighed down by the weakened Swedish Net sales, M€, continuing operations krona by EUR 18.4 million • Net sales were boosted by higher sales prices than in the 500,0 480,0
Slide 4: Q3 EBIT improved in Finland and Denmark
Q3 EBIT improved in Finland and Denmark Change of comparable EBIT, M€, continuing operations 5.7 1.1 12.8 0.9 - 2.2 7.3 4 8.11.2023 Interim Report Q3 2023
Slide 5: Quarterly net sales, M€, continuing operations
Quarterly net sales, M€, continuing operations 530 514 510 490 468 474 470 460 456 458 447 450 430 430 407 404 410 396 394 396 386 387 390 370 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 350 2020 2021 2022 2023 5 8.11.2023 Interim Report Q3 2023
Slide 6: Net sales breakdown Q3 2023, continuing operations
Net sales breakdown Q3 2023, continuing operations Markets Sales channels Categories 5% (-1) 6% 13% 14% 14% 38% (-1) 49% 24% (+2) 38% 75% (+1) (-2) (+1) 24% Retail Beef and pork Finland Food service Charcuterie, sausages and bacons Sweden, incl. Poland Industry Poultry Denmark Export Meals and meal
Slide 7: Quarterly comparable EBIT from continuing operations, M€
Quarterly comparable EBIT from continuing operations, M€ Year 2020: Year 2021: Year 2022: 1-9/2023: 11.8 M€ 17.9 M€ 9.7 M€ 19.3 M€ 15 12.8 12 11 10 8 8.3 7 6 5 3 3 1 0 -1 -2 -1.8 -5 -4 -5 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 7 8.11.2023 Interim Report Q3 2023
Slide 8: Annual estimated cost savings of 12.6 M€ from investments and development measures
Annual estimated cost savings of 12.6 M€ from the investments and development measures decided Unit Measure Estimated Realisation of annual savings savings Group functions Change of operating model and development 3 M€ After Q1/2023 measures, staff adjustments Rauma and Eura Efficiency measures deci
Slide 9: Outlook for 2023 unchanged
Outlook for 2023 unchanged In 2023, HKScan expects the Group’s comparable EBIT from continuing operations to improve compared to 2022. The full-year performance will be significantly affected by inflation and the development of consumer purchasing power in the company’s home markets. On the other ha
Slide 10: The divestment of Baltic businesses completed
The divestment of Baltic businesses completed • HKScan sold its Baltic businesses to the Estonian AS Maag Grupp on 31 August 2023 • The debt-free purchase price was EUR 90 million, of which EUR 20 million is conditional • Of the EUR 70 million fixed price, EUR 55 million was paid at the closing of t
Slide 11: Strategic renewal requires better profitability and stronger balance sheet
Strategic renewal requires better profitability and stronger balance sheet Improving the profitability of the core business Renewal into Increasing production efficiency, cost control, optimising the product a versatile portfolio to meet changing consumer food company demand and commercial measures
Slide 12: HKScan's responsibility work themes
HKScan’s responsibility work themes NATURE PEOPLE Carbon-neutral food chain Work safety Sustainable packaging Work well-being Biodiversity FARMER COMMUNITY SAFE FOOD ANIMAL WELFARE GOOD GOVERNANCE 12 8.11.2023 Interim Report Q3 2023
Slide 13: HKScan was awarded the CSR People Prize 2023 in Denmark
HKScan was awarded the prestigious CSR People Prize 2023 in Denmark • HKScan received the CSR People Prize 2023 in Denmark for its significant work in promoting diversity and inclusion in the workplace • For many years, HKScan has employed people whose employment is challenging for various reasons a
Slide 14: Financial review
Financial review 14 8.11.2023 Interim Report Q3 2023
Slide 15: Key figures, continuing operations
Key figures, continuing operations EUR million 7-9/2023 7-9/2022 2022 Net sales 459.9 467.9 1 833.8 EBITDA 25.2 18.3 55.8 EBIT 13.3 6.3 10.1 - EBIT margin, % 2.9 1.3 0.5 Comparable EBIT 12.8 7.3 9.7 - EBIT margin, % 2.8 1.6 0.5 Profit for the period 4.8 2.7 -4.9 EPS, EUR 0.04 0.02 -0.11 Comparable E
Slide 16: Key figures
Key figures EUR million 7-9/2023 7-9/2022 2022 Cash flow from operating activities, incl. discontinued operations 3.5 -6.2 18.9 Cash flow after investing activities, incl. discontinued operations * 34.9 -12.1 -21.9 Return on capital employed (ROCE) before taxes, %, incl. discontinued operations 0.0
Slide 17: Interest-bearing net debt and net gearing
Interest-bearing net debt and net gearing 355 362 368 358 333 346 347 315 323 314 328 298 300 308 298 138% 137% 124.8 97% * * 103% 101% 91% 96% ** ** 93% 103% 93% 108% 107% 113% 122% % Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Interest-bearing net debt
Slide 18: Debt profile and maturity structure as of 30 September 2023
Debt profile and maturity structure as of 30 September 2023 Maturity of the Group’s interest-bearing debt*, M€ Interest-bearing debt by credit type, M€* 160 10.9 3.9 2.0 2.1 120 89.6 80 100.0 40 36.0 0 2023 2024 2025 2026 >2026 Total interest-bearing debt without IFRS 16: Bonds Bank loans Pension lo
Slide 19: Cash flow and working capital; Investments
Cash flow and Investments working capital Cash flow from operating activities, M€, Group investments, M€, continuing operations incl. discontinued operations 4,0 3.5 7 5.8 2,0 6 0,0 5.1 -2,0 5 -4,0 2.7 4 2.0 -6,0 -8,0 -6.2 3 0.2 Q3/22 Q3/23 0.6 1.4 0.5 2 Working capital, M€, incl. discontinued opera
Slide 20: Finland Q3/2023 +5.7M€
Finland Q3/2023 Net sales, M€ Comparable EBIT, M€ +3% +5.7M€ EBIT improved by better 300,0 221.8 227.9 10,0 sales mix, production 250,0 200,0 9,0 8,0 7,0 7.6 efficiency improvements 150,0 100,0 6,0 5,0 4,0 and successful 50,0 3,0 2,0 1.9 commercial measures 1,0 0,0 0,0 Q3/22 Q3/23 Q3/22 Q3/23 • Reta
Slide 21: Kariniemen Wingfest products and HK pizzas
Examples of novelties in Finland Kariniemen Wingfest ® products and HK® pizzas 21 8.11.2023 Interim Report Q3 2023
Slide 22: Sweden Q3/2023 -2.2M€
Sweden Q3/2023 Net sales, M€ Comparable EBIT, M€ 300,0 -7% -2.2M€ 250,0 Retail sales value and 186.9 174.5 12,0 200,0 150,0 10,0 7.2 sales volumes 8,0 100,0 6,0 5.0 continued to grow at 4,0 50,0 2,0 comparable exchange 0,0 0,0 Q3/22 Q3/23 Q3/22 Q3/23 rates • At comparable exchange rates, net sales i
Slide 23: Scan brand sausages made from plant-based protein
Examples of novelties in Sweden Scan brand sausages made from plant-based protein 23 8.11.2023 Interim Report Q3 2023
Slide 24: Denmark Q3/2023 +0.9M€
Denmark Q3/2023 Net sales, M€ Comparable EBIT, M€ Good demand for -3% poultry products 80,0 2,5 +0.9M€ 70,0 60,0 59.2 57.5 2,0 continued in 50,0 40,0 30,0 1,5 1,0 1.1 Denmark 20,0 10,0 0,5 0.2 0,0 0,0 Q3/22 Q3/23 Q3/22 Q3/23 • Food service sales increased by 15% • Cost inflation levelled off in the
Slide 25: Higher value-added poultry products from the cooking line
Examples of novelties in Denmark Higher value-added poultry products from the cooking line 25 8.11.2023 Interim Report Q3 2023
Slide 26: www.hkscan.com
www.hkscan.com