Hkfoods Oyj Class A · OMXHEX:HKFOODS
Hkfoods Oyj Class A — H1 2024 Earnings Presentation
26 slides from Hkfoods Oyj Class A's earnings presentation, Aug 7, 2024
Slide 1: Half Year Financial Report 2024
Half Year Financial Report 2024 Juha Ruohola, CEO Mika Tilli, CFO 7 August 2024
Slide 2: Q2/2024: Net sales and comparable EBIT from continued operations increased
Q2/2024: Net sales and comparable EBIT from HKFoods' continued operations increased Net sales • Successful commercial measures increased the value of retail sales Net sales, M€, continuing operations • In Finland, the strongest growth came from meat, poultry and ready meal products. Sales from Polan
Slide 3: Comparable EBIT from continuing operations was 4.4 M€
Comparable EBIT from continuing operations was 4.4 M€ Change of comparable EBIT, M€, continuing operations 0.6 4.4 4.2 - 0.4 3 7.8.2024 Half Year Financial Report 2024
Slide 4: Quarterly net sales, M€, continuing operations
Quarterly net sales, M€, continuing operations 300 252 250 255 250 234 231 224 229 212 216 218 195 190 200 181 185 150 100 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0 2021 2022 2023 2024 4 7.8.2024 Half Year Financial Report 2024
Slide 5: Net sales breakdown Q2 2024, continuing operations
Net sales breakdown Q2 2024, continuing operations Sales channels Categories 15% 16% (+7) 6% (-1) 25% 62% 25% 17% (-6) (-1) (-1) 34% (+2) Retail Beef and pork Food service Charcuterie, sausages and bacons Industry Poultry Export Meals and meal components Changes in percentage points vs. Q2/2023 in p
Slide 6: Quarterly comparable EBIT from continuing operations, M€
Quarterly comparable EBIT from continuing operations, M€ Year 2021: Year 2022: Year 2023: 1-6/2024: -2.1 M€ -7.3 M€ 11.6 M€ 5.8 M€ 8 6.6 6 4.2 4.4 4 3.0 2.2 2 1.5 1.4 0 0.0 -2 -1.3 -1.5 -2.3 -2.3 -4 -3.5 -4.4 -6 -8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 2024 6 7.8.2024 Half Y
Slide 7: 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 8: HKFoods to sell its Danish business
HKFoods to sell its Danish business • On 2 May 2024, the company signed an agreement to sell the shares of its Danish business to Plukon Food Group B.V. from the Netherlands • The transaction is expected to close during 2024 and will be subject to approval by the Danish competition authorities • The
Slide 9: Development investment in the Eura unit of ready-to-eat products
Development investment in the Eura unit of ready-to-eat products • HKFoods to centralise its poultry meat packaging operations in Finland from Eura to Rauma and Forssa • In March, the company announced plans to invest approximately EUR 8 million in a production line for ready-to-eat products at its
Slide 10: The company's new name is HKFoods Oyj
The company’s new name is HKFoods Oyj • Annual General Meeting approved the change of the company's name from HKScan Oyj to HKFoods Oyj. The parallel company names of the new name are HKFoods Plc (in English) and HKFoods Abp (in Swedish). • The company’s new name, logo, website and email address, we
Slide 11: Continuity of financing ensured
Continuity of financing ensured • On 17 June 2024, HKFoods issued secured senior notes of EUR 90 million • The three-year notes mature on 17 June 2027, carry a floating interest at the rate of EURIBOR 3 months plus a margin of 7.5 per cent and had an issue price of 100 per cent • The proceeds from t
Slide 12: Outlook for 2024 unchanged
Outlook for 2024 unchanged In 2024, HKFoods expects the Group’s comparable EBIT from continuing operations to improve compared to 2023. 12 7.8.2024 Half Year Financial Report 2024
Slide 13: HKFoods' responsibility work themes
HKFoods’ responsibility work themes NATURE PEOPLE Climate Work safety Sustainable packaging Work well-being Biodiversity FARMER COMMUNITY SAFE FOOD ANIMAL WELFARE GOOD GOVERNANCE 13 7.8.2024 Half Year Financial Report 2024
Slide 14: Goal-oriented work towards zero accidents at work
Goal-oriented work towards zero accidents at work Accident frequency, LTIR Continuing operations, rolling 12M average * 21,4 17,9 15,6 16,6 Q2/21 Q2/22 Q2/23 Q2/24 *lost-time accidents per million working hours An example of determined work to promote safety: at Forssa' maintenance department 3 year
Slide 15: Our revised climate target
Our revised climate target i.e. net zero for all greenhouse gas emissions by 2050
Slide 16: Europe's Climate Leaders by Financial Times
HKFoods listed among the Europe’s Climate Leaders by Financial Times • HKFoods was listed among the precious Europe's Climate Leaders by Financial Times for the fourth year in a row • The Financial Times has listed 500 European companies that have achieved the greatest reduction in their production
Slide 17: Financial Review
Financial Review 17 7.8.2024 Half Year Financial Report 2024
Slide 18: Key figures, continuing operations
Key figures, continuing operations EUR million. 4-6/2024 4-6/2023 2023 Net sales 254.6 234.1 933.0 EBITDA 11.4 11.7 45.1 EBIT 3.1 4.4 14.3 - EBIT margin, % 1.2 1.9 1.5 Comparable EBIT 4.4 4.2 11.6 - EBIT margin, % 1.7 1.8 1.2 Profit for the period -1.7 -3.8 -17.3 EPS, EUR -0.03 -0.05 -0.24 Comparabl
Slide 19: Key figures
Key figures EUR million 4-6/2024 4-6/2023 2023 Cash flow from operating activities, 13.1 19.8 incl. discontinued operations 50.6 Cash flow after investing activities, incl. discontinued operations -3.3 10.9 73.3 Return on capital employed (ROCE) before taxes, %, incl. -1.1 -2.0 3.0 discontinued oper
Slide 20: Interest-bearing net debt and net gearing
Interest-bearing net debt and net gearing 361 373 362 353 345 353 329 324 304 310 294 288 208 216 140% 139% 94% *** ** 92% 101% 92% 108% **107% ** 112% 124% 123% 121% 94% 98.1% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Interest-bearing net debt (EUR million)
Slide 21: Debt profile and maturity structure as of 30 June 2024
Debt profile and maturity structure as of 30 June 2024 Maturity of the Group’s interest-bearing debt*, M€ Interest-bearing debt by credit type, M€* 120 2.0 7.2 3.9 80 29.6 40 97.7 0 2024 2025 2026 2027 >2027 Total interest-bearing debt without IFRS 16: Bonds Bank loans Pension loans ECA loans Commer
Slide 22: 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 8.7 25,0 9 20,0 19.8 8 2.4 15,0 13.1 7 10,0 6 0.1 5,0 5 0,0 4 3.4 4.4 Q2/23 Q2/24 3 0.7 0.3 2 1.1 Working capital, M€, 1 1.8 incl. discontinue
Slide 23: Summer 2024 food moments
Summer 2024 food moments 23 7.8.2024 Half Year Financial Report 2024
Slide 24: Summer 2024 food moments
Summer 2024 food moments 24 7.8.2024 Half Year Financial Report 2024
Slide 25: Summer 2024 food moments
Summer 2024 food moments 25 7.8.2024 Half Year Financial Report 2024
Slide 26: HKFoods will publish Q3 Interim Report on 6 November 2024
HKFoods will publish Q3 Interim Report on 6 November 2024 www.hkfoods.com