Hkfoods Oyj Class A · OMXHEX:HKFOODS
Hkfoods Oyj Class A — HKScan — H1 2023 Earnings Presentation
23 slides from Hkfoods Oyj Class A's earnings presentation, Aug 9, 2023
Slide 1: Half Year Financial Report 2023
Half Year Financial Report 2023 Juha Ruohola, CEO Jyrki Paappa, CFO 9 August 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 30 * 25 20 15 10 5 0 Q2/20 Q2/21 Q2/22 Q2/23 *lost-time accidents per million working hours 2 9.8.2023 Half Year Financial Report 2023
Slide 3: Q2/2023: Net sales growth continued and EBIT clearly strengthened
Q2/2023: Net sales growth continued and EBIT clearly strenghtened Net sales Net sales, M€, continuing operations • Net sales increased by higher sales prices 500,0 456.3 473.8 than in the comparison period 480,0 460,0 440,0 • Sales volumes remained at the comparison 420,0 400,0 380,0 360,0 +4% perio
Slide 4: EBIT improved in Finland and Denmark
EBIT improved in Finland and Denmark Change of comparable EBIT, M€, continuing operations 1.5 8.3 3.5 0.8 - 0.8 3.3 4 9.8.2023 Half Year Financial Report 2023
Slide 5: Quarterly net sales, M€, continuing operations
Quarterly net sales, M€, continuing operations 530 514 510 490 468 474 470 456 458 447 450 430 430 407 404 410 396 394 396 386 387 390 370 350 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 5 9.8.2023 Half Year Financial Report 2023
Slide 6: Net sales breakdown Q2 2023, continuing operations
Net sales breakdown Q2 2023, continuing operations Markets Sales channels Categories 5% 6% (-1) (+1) 13% 14% 14% 39% (+1) 49% 23% (+2) 38% 75% (-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: 1-6/2023: 15 11.8 M€ 12 17.9 M€ 9.7 M€ 6.5 M€ 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 9.8.2023 Half Year Financial Report 2023
Slide 8: 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 9: Regulatory approvals for the sale of the Baltic business
Regulatory approvals for the sale of the Baltic business • 12/2022, HKScan signed an agreement to sell its Baltic business to Estonian AS Maag Grupp • Approvals from competition authorities received: • Estonian Competition Authority 7/2023, post-closing obligations for the buyer • Latvian Competitio
Slide 10: Profitability improvement as a priority
Profitability improvement as a priority 1. Tight cost control 2. Increasing production efficiency 3. Optimising the product portfolio to meet changing consumer demand 4. Commercial measures 10 9.8.2023 Half Year Financial Report 2023
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 E.g. cost efficiency and a versatile commercial measures food company Strengthening Profitable growth the financial base E.g. divestment of the Baltic business 202
Slide 12: HKScan listed as European Climate Leader by Financial Times
HKScan listed as European Climate Leader by Financial Times • HKScan selected on the European Climate Leaders list for the third year in a row • 500 companies selected on the list with the following criteria: • Reducing emissions from own production 2016–2021 • Transparent reporting on climate impac
Slide 13: Developing the data collection on the climate impact of the value chain
Developing the data collection on the climate impact of the value chain • Digital tools for contract farmers in Finland and Sweden • The tools provide increasingly accurate information on the climate impacts of HKScan's value chain • The data helps farms to target their climate actions to the most i
Slide 14: Financial review
Financial review 14 9.8.2023 Half Year Financial Report 2023
Slide 15: Key figures, continuing operations
Key figures, continuing operations EUR million 4-6/2023 4-6/2022 2022 Net sales 473.8 456.3 1 833.8 EBITDA 20.0 15.0 55.8 EBIT 8.4 3.1 10.1 - EBIT margin, % 1.8 0.7 0.5 Comparable EBIT 8.3 3.3 9.7 - EBIT margin, % 1.7 0.7 0.5 Profit for the period -0.6 1.4 -4.9 EPS, EUR -0.02 0.00 -0.11 Comparable E
Slide 16: Key figures
Key figures EUR million 4-6/2023 4-6/2022 2022 Cash flow from operating activities, incl. discontinued operations 19.8 22.4 18.9 Cash flow after investing activities, incl. discontinued operations 10.9 15.2 -21.9 Return on capital employed (ROCE) before taxes, %, incl. discontinued operations -2.0 0
Slide 17: Interest-bearing net debt and net gearing
Interest-bearing net debt and net gearing 355 362 368 358 333 346 347 315 323 308 314 298 300 298 138% 137% 97% * 101% 103% 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 Interest-bearing net debt (EUR million) Net g
Slide 18: Debt profile and maturity structure as of 30 June 2023
Debt profile and maturity structure as of 30 June 2023 Maturity of the Group’s interest-bearing debt*, M€ Interest-bearing debt by credit type, M€* 240 2.0 10.9 9.8 3.2 200 89.6 160 120 80 135.0 40 39.5 0 2023 2024 2025 2026 >2026 Total interest-bearing debt without IFRS 16: Bonds Bank loans Pension
Slide 19: Investments, cash flow and working capital
Investments Cash flow and working capital Group investments, M€, continuing operations Cash flow from operating activities, M€, incl. discontinued operations 9 7.7 8 22.4 19.8 7 6.3 6 2.8 5 2.1 0.7 Q2/22 Q2/23 4 0.2 1.5 3 2.5 Working capital, M€, 2 incl. discontinued operations 1 2.7 1.5 62 0 53 47
Slide 20: Finland Q2/2023 +3.5M€
Finland Q2/2023 Net sales, M€ Comparable EBIT, M€ +9% +3.5M€ EBIT improved by 300,0 232.7 production efficiency 250,0 213.4 6,0 4.9 200,0 5,0 improvements and 4,0 150,0 3,0 successful commercial 100,0 1.4 measures 2,0 50,0 1,0 0,0 0,0 Q2/22 Q2/23 Q2/22 Q2/23 • Higher sales prices increased net sales
Slide 21: Sweden Q2/2023
Sweden Q2/2023 300,0 Net sales, M€ Comparable EBIT, M€ 250,0 185.4 HKScan maintained 182.0 8,0 its market position, 200,0 7,0 150,0 6,0 4.9 4.1 5,0 100,0 4,0 3,0 retail sales volumes 50,0 2,0 1,0 increased 0,0 0,0 Q2/22 Q2/23 Q2/22 Q2/23 • Net sales clearly grew at comparable exchange rates • Partic
Slide 22: Denmark Q2/2023 +0.8M€
Denmark Q2/2023 Net sales, M€ Comparable EBIT, M€ Sales of strategically +3% important higher value- 80,0 70,0 57.4 59.1 4,0 3,5 +0.8M€ added poultry products 60,0 3,0 50,0 40,0 2,5 2,0 continued to grow 30,0 1,5 1.1 20,0 1,0 10,0 0,5 0.3 0,0 0,0 Q2/22 Q2/23 Q2/22 Q2/23 • Food service sales increase
Slide 23: www.hkscan.com
We make lige Taster - today and tomorrow HASCAN www.hkscan.com