Hkfoods Oyj Class A · OMXHEX:HKFOODS
Hkfoods Oyj Class A — HKScan — Q3 2021 Earnings Presentation
29 slides from Hkfoods Oyj Class A's earnings presentation, Nov 4, 2021
Slide 1: Interim Report Q3 2021
Interim Report Q3 2021 Tero Hemmilä, CEO Jyrki Paappa, CFO 4 November 2021
Slide 2: Q3/2021: EBIT stable in an exceptional market situation
Q3/2021: EBIT stable in an exceptional market situation Net sales Net sales, M€ 1308.1 1323.6 1350,0 • Clear growth in retail sales of own branded 1300,0 products continued 1250,0 - Good sales growth in meals and 446.8 1200,0 460,0 450,0 438.3 meal components 440,0 430,0 1150,0 • Food service sales
Slide 3: Key EBIT impacts of an exceptional market situation
Key EBIT impacts of an exceptional market situation Estimated direct impacts on EBIT 1-9/2021 Baltics: increased feed prices and decreased pork market prices Denmark: impact of avian flu on exports The whole Group: increased energy prices The whole Group: Costs of Covid-19 pandemic 0 -1,5 -3 M€ Inte
Slide 4: Quarterly net sales, M€
Quarterly net sales, M€ 490 473 470 464 455 449 447 450 441 438 439 439 434 429 428 430 416 411 410 402 390 370 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 350 2018 2019 2020 2021 Interim Report Q3 2021 4
Slide 5: Net sales breakdown Q3/2021
Net sales breakdown Q3/2021 Markets Sales channels Categories 4% (-1) 6% 10% 15% 10% (+%) 12% (+1) 36% 42% (-1) (-1) 22% (-1) 78% 38% (+1) 27% (+1) Finland Retail Beef and pork Sweden, incl. Poland Food service Charcuterie, sausages and bacons Baltics Industry Poultry Denmark Export Meals and meal c
Slide 6: Q3/2021: Profit improvement continued in Finland and Sweden
Q3/2021: Profit improvement continued in Finland and Sweden • Group’s profit development was Comparable EBIT, M€ two-fold and the reasons are clear • Finland and Sweden continued positive profit development • In Denmark, the export restrictions due to avian flu continued to have a significant negati
Slide 7: Quarterly comparable EBIT 2018–2021, M€
Quarterly comparable EBIT 2018–2021, M€ 15 12 10 8 8 6 5 5 1 1 0 -2 -1 -5 -3 -4 -10 -10 -10 -15 -17 -20 -18 -25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 2021 Interim Report Q3 2021 7
Slide 8: Comparable EBIT rolling 12 months, M€
Comparable EBIT rolling 12 months, M€ 17 20 20 19 11 7 4 -2 -10 -24 -38 -46 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 2020 2021 Interim Report Q3 2021 8
Slide 9: Outlook 2021
Outlook 2021 HKScan estimates that the Group’s comparable EBIT in 2021 will improve compared to 2020.
Slide 10: HKScan – key figures
HKScan – key figures (EUR million) 7-9/2021 7-9/2020 1-9/2021 1-9/2020 Net sales 446.8 438.3 1 323.6 1 308.1 EBITDA 23.5 24.0 54.5 53.1 EBIT 7.6 7.7 10.2 3.8 - EBIT margin, % 1.7 1.7 0.8 0.3 Comparable EBIT 7.7 8.2 7.2 4.9 - EBIT margin, % 1.7 1.9 0.5 0.4 Profit for the period 3.6 3.7 -2.1 -6.4 EPS,
Slide 11: HKScan – key figures
HKScan – key figures (EUR million) 7-9/2021 7-9/2020 1-9/2021 1-9/2020 Cash flow from operating activities -15.6 2.8 12.5 23,3 Cash flow after investing activities -23.9 -5.2 59.9* -47.9* Return on capital employed (ROCE) before taxes, % 5.1 0.1 Interest-bearing net debt 333.3 323.1 Net gearing, % 1
Slide 12: Finland Q3/2021: Clear EBIT improvement due to increased sales of value-added products
Finland Q3/2021: Clear EBIT improvement due to increased sales of value-added products Net sales, M€ Comparable EBIT, M€ +1.7 M€ 10,0 9,0 8,0 7,0 6,0 5,0 4,0 3,0 3.1 2,0 1,0 1.4 0,0 Q3/20 Q3/21 • Sales growth continued in value-added products, such as meals, meal components and processed meat produc
Slide 13: Sweden Q3/2021: Sales growth for Scan branded products
Sweden Q3/2021: Sales growth for Scan branded products Net sales, M€ Comparable 14,0 EBIT, M€ +5.3% +1.0 M€ 12,0 10,0 190,0 170.8 8,0 6.9 162.2 170,0 6,0 5.9 150,0 4,0 130,0 110,0 2,0 90,0 0,0 Q3/20 Q3/21 Q3/20 Q3/21 • Increased retail sales for Scan branded products • Recovery in food service sales
Slide 14: Baltics Q3/2021: Price pressure in pork imports decreased the EBIT
Baltics Q3/2021: Price pressure in pork imports decreased the EBIT Net sales, M€ Comparable EBIT, M€ excluding change of biological asset revaluation • Clear decline in net sales due to decreased volumes and prices of pork • Sales clearly increased in poultry products • Costs increased due to the ra
Slide 15: Denmark Q3/2021: Sales growth for Rose branded products
Denmark Q3/2021: Sales growth for Rose branded products Net sales, M€ Comparable EBIT, M€ +4.7% • Clear growth in retail sales of the Rose branded products • Strategy implementation progressed as planned through the sales growth in ready-to-eat poultry products • Restrictions on exports due to avian
Slide 16: Investments driving efficiency and strategy implementation
Investments driving efficiency and strategy implementation Investments, • New logistics centre near Tallinn taken into M€ 8.4 8.2 use; all Baltic market area deliveries will be centralised in the new centre. • In Sweden, clear improvement in production * efficiency through product flow optimisation
Slide 17: Interest-bearing net debt and net gearing
Interest-bearing net debt and net gearing 365 323 333 305 309 315 300 308 298 299 276 120% 90% 97% * 101% 103% 91% ** 96% 93% 103% 88% 85% Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Interest-bearing net debt (EUR million) Net gearing (%) * Q2/2020 includes the investment to th
Slide 18: Q3/2021: Cash flow from operating activities
Q3/2021: Cash flow from operating activities • The development of cash flow from Cash flow from operating activities, M€ operating activities was due to normal temporal variations in the amount of trade payables and other non-interest- bearing payables • Capital tied up in inventories decreased Inte
Slide 19: Debt profile and maturity structure as of 30 September 2021
Debt profile and maturity structure as of 30 September 2021 Maturity of the Group’s interest-bearing debt*, Interest-bearing debt by credit type, EUR million EUR million* 120 80 40 0 2021 2022 2023 2024 >2024 Total interest-bearing debt without IFRS 16: EUR 228.6 million Bonds Pension loans ECA loan
Slide 20: Strategy
Strategy
Slide 21: After Turnaround, we will continue to strengthen our foundation
After Turnaround, we will continue to strengthen our foundation 3 Renewing into a versatile food company • Food company transformation • Stronger presence in changing and varied food moments, in evolving sales channels and product 2 categories Strengthening • Scaling up partnerships the foundation i
Slide 22: HKScan’s strategic priorities
HKScan’s strategic priorities We are growing into a versatile food company PARTNERSHIPS OPERATING MODEL Growth in consumers’ Performance excellence Competitive farming food moments • Creating value through community • Strong brands for food moments commercial excellence and • Quality and availabilit
Slide 23: Vietävä – restaurant-level fresh meals
On a journey into a versatile food company: Vietävä – restaurant-level fresh meals • Delicious Vietävä fresh meals developed by chef Kape Aihinen • Made in our Vantaa unit’s new modern, restaurant-level kitchen • Food handmade by chefs • Everyday food and classics with style • Sales expanding to new
Slide 24: Ready-to-eat snacks and meals
On a journey into a versatile food company: Ready-to-eat snacks and meals Our target: growth in snacks and meals Interim Report Q3 2021 24
Slide 25: Tasty, quick-to-use plant-based products
On a journey into a versatile food company: Tasty, quick-to-use plant-based products Our target: expanding into plant-based raw materials Interim Report Q3 2021 25
Slide 26: Easy and delicious for home kitchens
On a journey into a versatile food company: Easy and delicious for home kitchens Our target: developing our core business and increasing the added value of our products Interim Report Q3 2021 26
Slide 27: New channels to engage consumers with our brands
On a journey into a versatile food company: New channels to engage consumers with our brands Our target: new ways to engage with consumers Collaboration in Swedish travel destinations Implementation of the commercial cooperation agreement related to the Maten é klar meal concept will Cooperation sta
Slide 28: Zero Carbon climate plan proceeding throughout the food chain
Zero Carbon climate plan proceeding throughout the food chain Logistics centre Biogas trucks in the Baltics: in Finland and renewable energy Sweden with solar panels, 400,000 km/year less transports Targeting a carbon-neutral food chain by the end of 2040 Goal-oriented reduction of packaging plastic
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