Scandi Standard Ab · OMXSTO:SCST
Scandi Standard Ab — Q1 2025 Earnings Presentation
48 slides from Scandi Standard Ab's earnings presentation, Apr 29, 2025
Slide 1: Scandi Standard Q1 2025 presentation
Scandi Standard Q1 2025 presentation Net Sales and EBIT margin Net sales 8% Sweden (+10%) 1% Denmark (+8%) 26% 21% Norway (0%) Ireland (+2%) Finland (0%) Lithuania 17% 26% 1) Pro forma including Manor Farm (% change vs LY in parenthesis)
Slide 2: Q1 2025: Solid growth and improved performance
Q1 2025: Solid growth and improved performance Q1 Q1 MSEK • 7% growth in net sales 2025 2024 • Strong demand driven by substitution from red meat Net sales 3,376 3,160 • Sales supported by strengthened convenience offering EBITDA 233 225 • Start-up of Lithuanian low-cost platform according to plan E
Slide 3: Growth and value drivers
Growth and value drivers
Slide 4: Strong consumer trend in favour of chicken products
Strong consumer trend in favour of chicken products Poultry consumption Nordics & Ireland +13% CAGR 1.7% k tonnes 1,000 964 830 828 855 798 • Strong poultry growth in the Nordics and 800 677 687 714 738 773 779 Ireland 600 400 • 44% poultry growth from 2010-2023 200 • 13% poultry growth expected fro
Slide 5: Chicken is an affordable product
Chicken is an affordable Relative pricing to consumer product 500 400 SEK per kg 300 • Price has always been important for 200 consumers 100 • Chicken affordable across segments 0 Low end cut Average cut High end cut • Fillets also competitively priced vs. Chicken Pork Beef Salmon average- and low-e
Slide 6: Increasing the value of our protein
Increasing the value of our protein EBIT SEK/kg (GW) Ingredients RTC Target RTE Corp >3.00 • EBIT/kg good measurement of value creation • Positive momentum towards 2027 target 1.82 1.82 1.69 0.11 0.13 0.25 0.53 • Q1 2025 EBIT/kg 1.73 SEK/kg (1.74) 0.54 0.59 • 2.05 SEK/kg when excluding Lithuania • 1
Slide 7: Leading positions in five domestic markets
Leading positions in five domestic markets • Strong consumer preference for domestic produce Market position • Each country highly consolidated 3 1 NAAPURIN • Large hurdle for new entrants MAALAISKANA 1 FINLAND DEN STOLTE • Requirement for domestic footprint HANE NORWAY KRONFÅGEL • Long term relatio
Slide 8: Start-up of acquired low-cost RTC platform in Lithuania
Start-up of acquired low-cost RTC platform in Lithuania • 20-25 kt (GW) state of the art processing plant (1) • Best in class cost position • Intention to build fully integrated hub (2) • Allow control of cost, welfare and food safety • Recent acquisition of farms accelerating process (3) • Planning
Slide 9: Main Ready-to-cook Plants
Main Ready-to-cook Plants Ready-to-cook Title Five Title Six Sweden Norway Finland Valla Title Two Jæren Title Three Lieto Our online marketing and search Our online marketing and search optimization services were designed. optimization services were designed. Chickens per year: 50 million Chickens
Slide 10: Ready-to-eat – Chicken becoming the preferred convenience choice
Ready-to-eat –Chicken becoming the preferred convenience choice Ready-to-eat Net Sales (MSEK) • Strong organic growth last ten years • Growth has materialised in uneven steps MSEK 3,500 • Positive momentum after loss of continental European contract in 2H 2023 3,000 2,949 2,873 5.3x 18% CAGR 2,601 •
Slide 11: Healthy market growth expected in European breaded market
Healthy market growth expected in European breaded market EuropeanFrozen European Frozen Breaded BreadedMarket Market (1) (1) 500 • Market players divided into tiers 450 440 450 400 430 • European players 400 400 410 420 350 • Regional players 300 319 321 310 312 314 316 318 Ktonnes • Local players
Slide 12: Acquisition takes Scandi Standard breaded activities to the top tier
Acquisition takes Scandi Standard breaded activities to the top tier • Two of Europe’s largest and most efficient breaded product lines (Factory C) • 48 kt annual capacity • One of few with advanced formed product(1) capability • Total investment 28 MEUR • Acquisition price + required investments(2)
Slide 13: Lithuania + Breaded RTE Well positioned to gain market share
Lithuania + Breaded RTE Well positioned to gain market share • Low cost and high quality - End-to-end • Low feed, labour and slaughtering cost • Quality control of RTC value chain • Efficient logistics • State-of-the-art breaded capability • Scalable platform • Lithuania slaughter capacity highly fl
Slide 14: Q1 2025: 2% increase in EBIT
Q1 2025: 2% increase in EBIT Change in Adj. EBIT Net sales Q1 2025 per segment (% change vs LY in parenthesis) 8% Sweden (+10%) 1% Denmark (+8%) 26% 21% Norway (0%) Ireland (+2%) Finland (0%) Lithuania 17% 26% Ready-to-cook Ready-to-eat Other Total MSEK Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 202
Slide 15: Ready-to-cook – Strong growth and improved performance
Ready-to-cook – Strong growth and improved performance • 6% increase in net sales MSEK Q1 2025 Q1 2024 R12M 2024 • 2% increase in chicken processed (GW) Net sales 2,600 2,441 10,081 9,923 EBIT 93 96 365 368 • Positive mix and price effects EBIT margin, % 3.6% 3.9% 3.6% 3.7% Non-comparable items1) -
Slide 16: Stable feed price
Feed cost development (Index vs avg 2020) FC Stable feed price Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Feed price 143 165 161 159 156 146 139 136 134 134 130 129 130 130 • Feed ~1/3 of cost base Feed composition and inclusion ranges • Changes largely trans
Slide 17: Realised export prices at average 2024 level
Realised export prices at average 2024 level Export price achievement - Development 104 104 103 • Down 3% compared to Q4 2024 100 99 100 100 98 • Increased prices more than off-set by FX and 96 98 mix • Expectation of increased prices reflecting higher bird prices in Eastern Europe • Efforts to impr
Slide 18: Ready-to-cook – Growth driven by strong retail demand
Ready-to-cook – Growth driven by strong retail demand Retail Net sales development, (MSEK) Net sales per country Finland (-3%) Lithuania 2% +5.7% 9% Sweden (+12%) +7.0% +8.1% +9.0% 26% 1,861 1,964 1,922 1,915 1,887 1,915 1,818 1,712 1,804 2021 1,759 Ireland (+2%) 26% 1,668 1,671 1,575 1,581 1,562 1,
Slide 19: Ready-to-eat – Strong growth and improved EBIT
Ready-to-eat – Strong growth and improved EBIT • Net sales up 9% MSEK Q1 2025 Q1 2024 R12M 2024 Net sales 646 594 2,653 2,601 • Driven by strong retail demand EBIT 31 25 153 148 • EBIT 31 MSEK (25) EBIT margin, % 4.7% 4.2% 5.8% 5.7% Non-comparable items1) - - - - • Negative impact from Stokke expans
Slide 20: Ready-to-eat – Strong retail growth, food service still slow
Ready-to-eat – Strong retail growth, food service still slow Retail Net sales development, MSEK Net sales per country Finland (+55%) +16.2% +14.0% 4% Norway (-2%) Sweden (+1%) +14.3% +11.8% 195 193 18% 26% 185 172 166 172 2021 165 156 2022 149 146 149 135 139 123 125 123 2023 114 2024 2025 53% Q1 Q2
Slide 21: CFO Comments
CFO Comments
Slide 22: Q1 2025 P&L Increased Sales and EBIT
Q1 2025 P&L MSEK Q1 Q1 Δ R12M 2024 Increased Sales and EBIT 2025 2024 Net sales 3,376 3,160 7% 13,239 13,024 EBITDA 233 225 4% 939 931 • Net sales above LY driven by increased volume, and Depreciation -100 -94 7% -395 -388 favourable product mix as well as price Amortization -9 -10 -8% -36 -37 • EBI
Slide 23: Returns
Capital Employed and ROCE Returns Average Capital Employed, MSEK ROCE% 6,000 12.0% 11.4% 11.1% 10.0% 4,000 8.0% • Improving ROCE in spite of effect of 6.0% 4,502 acquisition ramp-up 2,000 4,418 4.0% 2.0% • ROCE 11.4% (11.1%) 0 0.0% Q1 2024 Q1 2025 Equity and ROE • Return on equity 10.7% (11.6%) Aver
Slide 24: Strong cash flow
MSEK Q1 2025 Q1 2024 2024 2023 Opening balance NIBD 1,935 1,571 1,571 1,983 Strong cash flow EBITDA 233 225 931 880 Change in working capital 14 -189 -62 228 Net capital expenditure -221 -85 -367 -338 Other operating items -18 -20 -59 -99 Operating cash flow 8 -70 443 671 • Large acquisitions expens
Slide 25: Working capital remain exceptionally low
March 31, March 31, December Working capital remain MSEK Inventory 2025 910 2024 946 31, 2024 959 exceptionally low Trade receivables Trade payables 1,125 -1,556 1,225 -1,584 1,043 -1,532 Other working capital, net -639 -589 -604 Working capital -160 -2 -135 • 5% decrease in inventory Working capita
Slide 26: Cash flow guidance
Capital expenditure and Depreciation Cash flow guidance Capital expenditure (MSEK) Capex/Depreciation • Large 2025 investments 800 2.5 • Acquisitions 600 2.0 • Oosterwolde (paid in Q1) 1.5 400 • Lithuanian farms (MEUR 18 to be paid in Q2) 550 1.0 200 371 419 355 338 367 265 306 311 0.5 • Capital inv
Slide 27: Ensuring welfare - Cornerstone in licence to operate
Ensuring welfare - Cornerstone in licence to operate Nutritious He a l t h a n d we l l be Responsible of our c on sume r s Responsible animal welfare • Rearing mortality • Antibiotics use, foot pad scores and transport mortality • Primary data from growers Welfare Safety for consumer and employees
Slide 28: Sustainability scorecard
Sustainability scorecard LTI per million hours worked Use of antibiotics (% of flocks treated) Animal welfare indicator (Foot Pad Score) 34.0 11.3 11.0 14.9 10.6 28.4 27.8 28.8 9.9 12.5 9.3 8.8 11.6 11.4 24.8 24.1 24.7 25.1 22.5 23.3 7.6 9.9 9.9 20.3 6.6 6.2 8.4 8.4 8.5 13.9 4.6 4.9 5.0 4.3 2.5 1.6
Slide 29: Strategic pillars to achieve our goals
Strategic pillars to achieve our goals Ramp up Build a winning our efficiency culture together – end-to-end
Slide 30: Our 2027 targets
Objectives and investment priorities Our 2027 targets 5-7% Organic Net >6 >15 We want to be the leading provider of high- sales ROCE % growth p.a. % EBIT quality and sustainable chicken, setting the industry standard for excellence in animal welfare, environmental responsibility, and customer satisf
Slide 31: Structured approach receiving recognition
Structured approach receiving recognition Sustainability focus areas ESG ratings Focused work with transparency has Value chain focus (Scope 1-3) led to significant improvements in farm to fork with focus on data quality, target investor ESG ratings. setting and reduction initiatives. Rating framewo
Slide 32: Clear roadmap to > 3 SEK EBIT/kg
Clear roadmap to > 3 SEK EBIT/kg SEK per kg “Grill weight” SEK/kg >3.00 3.0 Climb the value ladder • Balance supply to domestic fillet demand 2.5 • Value creation through increased consumer convenience • Differentiation and branding opportunities 2.0 1.82 • Utilise further part of potential in Ingre
Slide 33: Summary and outlook
Summary and outlook • Strong quarterly growth and performance • Moving steadily towards financial targets • Expecting another significant step in 2025 • Well positioned in turbulent macro environment • Focus on start-up of acquired entities • Dividend proposal of SEK 2.50 (2.30) per share
Slide 34: Scandi Standard
‘S Scandi Standard
Slide 35: Appendix
Appendix
Slide 36: Segment information by quarter
Segment information by quarter Ready-to-cook, MSEK 2019 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Net sales 7,467 7,619 7,611 8,674 2,373 2,495 2,431 2,278 9,577 2,441 2,546 2,536 2,399 9,923 2,600 Adjusted EBITDA 621 622 424 406 115 139 182 161
Slide 37: Other, MSEK
Other, MSEK 2019 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Net sales 381 411 377 496 146 142 143 134 564 125 118 129 127 499 130 Adjusted EBITDA 18 11 15 79 24 25 12 10 71 8 6 11 10 36 13 Depreciations -7 -4 -3 -3 -1 -1 -2 0 -3 -1 -1 -1 -1 -4 -1
Slide 38: Ready-to-cook – Historic development
Ready-to-cook – Net sales and EBIT/kg (GW) Historic development 40 35.5 35.5 35.8 1.60 33.9 35 1.40 28.6 27… 30 26.9 1.20 1.31 1.30 25 1.35 1.18 1.00 20 0.97 0.80 15 0.60 0.18 • Historic track record of strong growth and stable 10 5 0.39 0.40 0.20 margins 0 0.00 2019 2020 2021 2022 2023 2024 R12M Ne
Slide 39: EBIT: Ready-to-cook
EBIT: Ready-to-cook • EBIT Q1 2024 – Q1 2025 (MSEK) Note: Majority of start up costs of 17 MSEK in Lithuania booked in COGS
Slide 40: EBIT: Ready-to-eat
EBIT: Ready-to-eat • EBIT Q1 2024 – Q1 2025 (MSEK)
Slide 41: Continued focus on inventory management
Continued focus on inventory management • Inventory decrease with 49 MSEK vs Q4 Inventory Value (MSEK) & Finished products volume (tonne) Ton • Driven by volume and FX MSEK 1,800 18,668 20,000 18,516 17,631 • Continued Focus area 1,500 15,971 16,625 16,616 16,578 16,683 15,850 16,659 15,312 15,156 1
Slide 42: Sustainability-linked financing
Sustainability-linked financing • Highly competent bank group • 5-year tenor to Q3 2029 • Amount and flexibility to facilitate organic and strategic growth • Amount ~3.2bn SEK • Accordion option of up to 1.5bn SEK • Main covenants • NIBD/EBITDA < 4.0x (1) • Interest cover > 3.5x • Strengthened link
Slide 43: Main Processing Plants
Main Processing Plants Ready-to-eat Farre Oosterwolde Stokke Honkajoki Stokke Honkajoki 43
Slide 44: 2030 Sustainability Goals – the foundation for a future-proof company
2030 Sustainability Goals – the foundation for a future-proof company Goal Key Performance Indicators Target 2030 • Critical complaints and recalls • 0 Integrated sustainability is a cornerstone of Providing local, healthy, safe • Quality & Food Safety Survey • Response rate >90%, scoring >75% Scand
Slide 45: Useful links and conversions
Useful links and conversions Commodity prices • Wheat CBOT • Soy CBOT • Maize CBOT • Rape seed ZMP Ross 308 chicken conversions • Live Weight to GW 0.72 • Live Weight to edible meat ~0.4
Slide 46: Chicken feed composition and substitutes
Chicken feed composition and substitutes Standard feed % Low-range High-range Main substitutes Main origin Wheat 54% 40% 63% Maize, oats Local, EU Soy 22% 11% 27% Peas, beans, high protein vegetable South America products Maize 10% 0% 10% Wheat, oats EU Fats 4% 4% 4% N.a. Local, EU Grain bi-products
Slide 47: Price segments
Price segments Meat High end cut Average cut Low end cut Breast fillet Drumstick Chicken legs & wings Chicken Thigh fillet Minced (chicken) Pork tenderloin Pork spare ribs Pork chops Pork Pork chops Minced (pork) Filet mignon Roast Beef Stew pieces Beef Entrecote Minced (Beef)
Slide 48: Forward looking statements
Forward looking statements This presentation contains various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “believe,” “expect,” “anticipate,” “intend,” “may,” “plan,” “estimate,” “should,” “could