Hkfoods Oyj Class A · OMXHEX:HKFOODS
Hkfoods Oyj Class A — HKScan — Q1 2024 Earnings Presentation
27 slides from Hkfoods Oyj Class A's earnings presentation, May 8, 2024
Slide 1: Interim Report Q1 2024
Interim Report Q1 2024 Juha Ruohola, CEO Jyrki Paappa, CFO 8 May 2024
Slide 2: The transaction of HKScan's Swedish business closed
The transaction of HKScan’s Swedish business closed • On 27 March 2024, HKScan sold the shares in its Swedish subsidiary HKScan Sweden AB to Lantmännen ek för • The purchase price for the shares in HKScan Sweden AB amounted to approximately EUR 60 million in cash as well as the A shares (6,869,750)
Slide 3: HKScan to sell its Danish business
HKScan to sell its Danish business • On 2 May 2024, HKScan signed an agreement to sell the shares of its Danish subsidiary HKScan Denmark A/S 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 au
Slide 4: Q1/2024: HKScan's net sales and EBIT increased
Q1/2024: HKScan’s net sales and EBIT increased Net sales • Good volume growth increased the value of retail sales. The strongest growth came from HKScan's own Net sales, M€, continuing operations branded meat, poultry and ready meal products • Sales in the food service channel increased slightly 228
Slide 5: Q1/2024 Comparable EBIT improved by 3.7M€
Q1/2024 Comparable EBIT improved by 3.7M€ Change of comparable EBIT, M€, continuing operations 0.8 1.4 2.9 7.3 - 2.3 5 8.5.2024 Interim Report Q1 2024
Slide 6: Quarterly net sales, M€, continuing operations
Quarterly net sales, M€, continuing operations 300 252 250 250 234 231 229 224 218 212 216 195 190 200 181 185 150 100 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0 2021 2022 2023 2024 6 8.5.2024 Interim Report Q1 2024
Slide 7: Net sales breakdown Q1 2024, continuing operations
Net sales breakdown Q1 2024, continuing operations Sales channels Categories 6% 6% (-4) 19% 24% (+1) (-2) 20% 68% 28% (+4) (-1) 29% (+2) Retail Beef and pork Food service Charcuterie, sausages and bacons Industry Poultry Export Meals and meal components Changes in percentage points vs. Q1/2023 in pa
Slide 8: Quarterly comparable EBIT from continuing operations, M€
Quarterly comparable EBIT from continuing operations, M€ Year 2021: Year 2022: Year 2023: 1-3/2024: -2.1 M€ -7.3 M€ 11.6 M€ 1.4 M€ 8 7 6 4 4 3 2 2 1 1,4 0 0 -2 -1 -2 -2 -2 -4 -4 -6 -4 -8 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 2024 8 8.5.2024 Interim Report Q1 2024
Slide 9: 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 10: Annual estimated cost savings of approximately 6 M€
Annual estimated cost savings of approximately 6 M€ from the investments and development measures decided Unit Measure Estimated Realisation of annual savings savings Forssa Investment of over 5 M€ in meat 2 M€ During 2024 packaging, reorganisation of operations, staff adjustments and renewal of ope
Slide 11: Development investment in the Eura unit of ready-to-eat products
Development investment in the Eura unit of ready-to- eat products • HKScan to centralise its poultry meat packaging operations in Finland from Eura to Rauma and Forssa • Through the efficiency measures, HKScan aims to achieve annual savings of around EUR 1 million as from the third quarter of 2024 •
Slide 12: Outlook for 2024 unchanged
Outlook for 2024 unchanged In 2024, HKScan expects the Group’s comparable EBIT from continuing operations to improve compared to 2023. 12 8.5.2024 Interim Report Q1 2024
Slide 13: The company's new name will be HKFoods
The company’s new name will be HKFoods • Annual General Meeting of HKScan 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
Slide 14: HKScan's responsibility work themes
HKScan’s responsibility work themes NATURE PEOPLE Climate Work safety Sustainable packaging Work well-being Biodiversity FARMER COMMUNITY SAFE FOOD ANIMAL WELFARE GOOD GOVERNANCE 14 8.5.2024 Interim Report Q1 2024
Slide 15: Goal-oriented work towards zero accidents at work
Goal-oriented work towards zero accidents at work Accident frequency, LTIR Continuing operations, rolling 12M average * 18,1 14,7 14,4 14,8 Q1/21 Q1/22 Q1/23 Q1/24 *lost-time accidents per million working hours 15 8.5.2024 Interim Report Q1 2024
Slide 16: Our revised climate target by 2050
Our revised climate target by 2050 i.e. net zero for all greenhouse gas emissions by 2050
Slide 17: Financial Review
Financial Review 17 8.5.2024 Interim Report Q1 2024
Slide 18: Key figures, continuing operations
Key figures, continuing operations EUR million 1-3/2024 1-3/2023 2023 Net sales 228.7 218.0 933.0 EBITDA 8.9 7.4 45.1 EBIT 1.2 -0.4 14.3 - EBIT margin, % 0.5 -0.2 1.5 Comparable EBIT 1.4 -2.3 11.6 - EBIT margin, % 0.6 -1.0 1.2 Profit for the period -3.8 -6.5 -17.3 EPS, EUR -0.05 -0.08 -0.24 -0.05 -0
Slide 19: Key figures
Key figures EUR million 1-3/2024 1-3/2023 2023 Cash flow from operating activities, 1.8 -5.7 50.6 incl. discontinued operations Cash flow after investing activities, incl. discontinued operations 73.9 -12.8 73.3 Return on capital employed (ROCE) before taxes, %, incl. -0.2 -5.2 3.0 discontinued oper
Slide 20: Interest-bearing net debt and net gearing
Interest-bearing net debt and net gearing 361 373 362 353 345 353 329 324 304 310 294 288 208 140% 139% 94% ** * 92% 101% 92% ** **107% 108% 112% 124% 123% 121% 93.8% 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 Interest-bearing net debt (EUR million) Net gearing (%)
Slide 21: Debt profile and maturity structure as of 31 March 2024
Debt profile and maturity structure as of 31 March 2024 Maturity of the Group’s interest-bearing debt*, M€ Interest-bearing debt by credit type, M€* 200 6.4 2.0 9.0 160 1.1 120 29.6 80 40 89.8 0 2024 2025 2026 2027 >2027 Total interest-bearing debt without IFRS 16: Bonds Bank loans Pension loans ECA
Slide 22: Investments and cash flow and working capital
Cash flow and Investments working capital Cash flow from operating activities, M€, Group investments, M€, continuing operations incl. discontinued operations 1.8 3,0 2,0 7 6.2 1,0 0,0 6 -1,0 -2,0 -3,0 5 4.2 -4,0 3.4 -5,0 4 -6,0 -7,0 -5.7 3 2.4 Q1/23 Q1/24 2 0.1 1.8 Working capital, M€, 1.0 incl. dis
Slide 23: pttenn,, ViE TSE:
4Ls¥ pttenn,, ViE TSE: TSE : ei Biro *
Slide 24: Grill novelties in summer 2024
Grill novelties in summer 2024 24 8.5.2024 Interim Report Q1 2024
Slide 25: Mozzarella. Perunat
MOZZARELLA. PERUNAT
Slide 26: Grill novelties in summer 2024
Grill novelties in summer 2024 26 8.5.2024 Interim Report Q1 2024
Slide 27: www.hkscan.com
www.hkscan.com