HKFoods Oyj : Interim Report for January–March 2026

About this update from Hkfoods Oyj Class A

Interim Report January-March 2026 6 May 2026 HKFoods' Interim Report 1 January-31 March 2026 Net sales grew and EBIT improved from the comparison period January-March 2026 HKFoods' comparable EBIT from continuing operations improved once again from the comparison pe- riod. The profit for the period from continuing operations also increased clearly. HKFoods' net sales from continuing operations grew by 3.8 per cent to EUR 242.5 (233.7) million. Sales strengthened clearly in the Finnish retail channel, and there was also growth in the food service channel, which improved the sales structure. In retail, sales of HKFoods' own HK ® and Kariniemen ® brands in particular grew across all main product groups. Sales in the food service channel developed positively due to commercial measures and a comprehensive product range. The Group's comparable EBIT from continuing operations strengthened by 23.7 per cent to EUR 5.7 (4.6) million, representing 2.4 (2.0) per cent of net sales. The comparable EBIT improved due to a more favourable sales structure as well as savings generated by the company's efficiency programme and improved production efficiency. The sharp rise in the purchase price of beef due to the shortage of beef continued. In addition, the rise in salary costs and significantly increased energy costs resulting from the cold winter weakened the comparable EBIT. The increases in sales prices and electricity price hedging measures only partially covered the rise in costs. The Group's profit for the period from continuing operations improved to EUR 2.8 (0.8) million, driven by a stronger EBIT and lower financing costs. Cash flow from operating activities, including discontinued operations, was EUR -5.9 (-4.7) million. Interest-bearing net debt declined to EUR 153.5 (160.1) million. Net gearing was 78.1 (74.1) per cent. Interest-bearing net debt excluding leasing liabilities under IFRS 16 was EUR 70.9 (74.0) million. The figures in parentheses refer to the same period in the previous year, unless otherwise mentioned. The figures are unaudited. Outlook for 2026 HKFoods expects that in 2026 the Group's comparable EBIT will grow compared to 2025. Key figures (EUR million) 1-3/2026 1-3/2025 2025 Net sales, continuing operations 242.5 233.7 996.4 EBIT, continuing operations 5.4 4.6 32.9 - % of net sales 2.2 2.0 3.3 Comparable EBIT, continuing operations 5.7 4.6 34.1 - % of net sales 2.4 2.0 3.4 EBITDA, continuing operations 12.7 12.1 62.5 Profit before taxes, continuing operations 3.1 1.2 18.7 - % of net sales 1.3 0.5 1.9 Profit for the period, continuing operations 2.8 0.8 14.2 - % of net sales 1.2 0.4 1.4 EPS, EUR, continuing operations 0.02 0.00 0.08 Comparable EPS, EUR, continuing operations 0.03 0.00 0.09 Cash flow from operating activities, incl. discontinued operations -5.9 -4.7 51.0 Cash flow after investing activities, incl. discontinued operations -9.9 -9.9 36.1 Return on capital employed (ROCE) before taxes, %, incl. discontinued operations 6.7 6.8 6.6 Interest-bearing net debt 153.5 160.1 141.8 Net gearing, % 78.1 74.1 73.2 HKFoods' CEO Juha Ruohola HKFoods' strong development continued in the first quarter of 2026. The comparable EBIT from continuing operations has improved for 13 consecutive quarters compared to the comparison period. Net sales from continuing operations grew by 3.8 per cent to EUR 242.5 (233.7) million. The Group's comparable EBIT from continuing operations strengthened by 23.7 per cent to EUR 5.7 (4.6) million, representing 2.4 (2.0) per cent of net sales. The profit for the period from continuing operations improved to EUR 2.8 (0.8) million. Sales strengthened clearly in the Finnish retail channel, and there was also growth in the food service channel, which improved the sales structure. Industrial sales increased whereas export sales declined. In retail, sales of HKFoods' own HK ® and Kariniemen ® brands in particular grew across all main product groups. Sales in the food service channel developed positively due to commercial measures and a comprehensive product range. The comparable EBIT improved due to a more favourable sales structure as well as savings generated by the company's efficiency programme and improved production efficiency. The sharp rise in the purchase price of beef due to the shortage of beef, the rise in salary costs and significantly increased energy costs weakened profitability. We were able to only partially offset the cost increases with higher sales prices during the early part of the year. Global uncertainty will continue to put upward pressure especially on energy, packaging and logistics costs. The situation regarding beef availability has remained tight, and consumption has shifted towards poultry and pork, which supports HKFoods' strategic priorities. Our investment capacity has improved in recent years as profitability has increased. Operations have been developed through efficiency investments as well as reforms in working methods and sustainability. Even now, several smaller efficiency investments are underway at the company's production units. We are also developing commercial activities. We advanced our responsibility programme by launching the ETEVÄT programme for contract meat producers in the early part of the year. The programme aims to improve profitability and production results for both producers and the company, as well as to promote the wellbeing of animals and people, a vital environment and a reduced environmental footprint. In addition, we expanded the use of Flavoured Salt in meat products and poultry products, among others. This innovation makes it possible to reduce the sodium content of individual products by up to 25 per cent. Our strong first-quarter performance is the result of excellent cooperation. For this, I would like to thank our employees, contract producers, customers and other partners. Key events in January−March 2026 HKFoods' buy-back programme of own shares was completed In February 2026, HKFoods completed the buy-back programme concerning the company's own Series A shares. In trading organised by Nasdaq Helsinki Ltd, the company acquired between 18 February 2026 and 24 February 2026 a total of 90,000 of its own Series A shares with an average price of EUR 1.9315 per share. The total purchase price for the shares was EUR 173,833.90. The shares were acquired at market price in public trading on Nasdaq Helsinki Ltd using the company's nonrestricted equity and in compliance with the price and volume limits applicable under the safe harbour rules. The buy-back programme for the company's own shares was based on the authorisation received from the Annual General Meeting held on 23 April 2025. The repurchased shares are used to fulfil obligations related to the company's share-based incentive schemes. Following the completion of the programme, on 25 February 2026, the total number of HKFoods Plc shares issued was 89,910,373, of which 85,175,373 were Series A shares and 4,735,000 Series K shares. After the repurchases, HKFoods Plc holds a total of 90,000 own Series A shares, which corresponds to approximately 0.1 per cent of all HKFoods shares in the company. Details on the matter were provided in the following stock exchange releases: 13 February 2026 and 25 February 2026 . Changes in HKFoods' own shares Based on the resolution made by the company's Board of Directors, HKFoods transferred on 12 March 2026 without consideration 89,332 own Series A shares held by the company to the company's CEO to pay the first instalment of the rewards from performance share plan 2023-2027, in accordance with the terms of the plan. The transfer of own shares was based on the authorisation granted by the Annual General Meeting held on 23 April 2025. After the transfer of shares, HKFoods holds 668 own shares. Details on the matter were provided in the following stock exchange release: 11 March 2026 . Strategy HKFoods' vision is to be the most valued partner of food moments. This means working together with all employees to meet the changing needs of consumers and customers by creating sustainable, tasty and nutritious solutions for all meaningful food moments. It is a collaborative effort with customers, consumers, contract producers and other company partners. HKFoods' strategic goal is to achieve profitable and sustainable growth as well as a strong presence in con-sumers' food moments as a valued partner. The company's focus is on growing product segments: strong and innovative poultry products, and meals and meal components. HKFoods' core business includes pork, beef and poultry meat, meat products, ready meals and meal components. HKFoods' strategic focus areas are: Growth in selected food moments: The target is to achieve profitable growth through selected food moments, which include simple everyday life and nutritious snacks. Operational excellence: Production and processes are enhanced and automated, and the entire value chain is streamlined and developed. Joint efforts are strengthened both internally and through partners. Competent, healthy personnel: HKFoods inspires people to get involved and renews itself. Wellbeing and safety at work are developed, and corporate culture is strengthened. Sustainable value chain: HKFoods cares and takes responsibility for a sustainable value chain by developing contract production, utilising innovations and producing tasty, healthy and safe food for consumers' various food moments. Responsibility is a key part of HKFoods' business. Responsible food production is developed throughout the value chain, from farms to consumers, by continuing the goal-oriented responsibility work. Environment-re-lated sustainability topics material to HKFoods' business include climate change adaptation, biodiversity, and circular economy. In terms of social responsibility, the material sustainability topics include the producer community, the company's own employees, and safe, healthy food. In addition, good governance and corporate culture, and animal welfare are key sustainability themes. The company's strategy has an impact on all sustainability topics identified as material to the company, the most important of which in the medium to long term are climate change, consumer health and safety, and animal welfare. HKFoods is looking for new growth and pursues strategic business opportunities within the limits of its financial resources. Long-term financial targets Due to the favourable financial development, HKFoods' Board of Directors updated the company's long-term financial targets in August 2025. The new targets are: EBIT: over 5 per cent of net sales (previously over 4 per cent) Return on capital employed (ROCE): over 12 per cent (no change from the previous target) Net gearing: less than 80 per cent (previously less than 100 per cent) Dividend: more than 50 per cent of net profit (previously more than 30 per cent) Corporate responsibility In March, HKFoods published its ESRS-compliant Sustainability Statement as part of the Report of the Board of Directors 2025. The report is available at www.hkfoods.com/en/investors-information/annual-re-view-2025/ . For information on the targets and indicators of the responsibility programme 2026-2028, visit www.hkfoods.com/en/responsibility/ . Key events in responsibility work, January−March 2026 Reducing greenhouse gas emissions At the end of 2025, an investment was made at the Vantaa production plant in a new electric steam boiler, which significantly reduces the plant's use of fossil energy and lowers energy costs and CO₂e emissions. From the beginning of 2026, approximately 80 per cent of the unit's steam has been produced using electricity and 20 per cent using natural gas. Steam production at Vantaa accounts for approximately 10 per cent of HKFoods' total energy consumption.

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