HKScan (OMXH: HKSAV) warned that its Swedish operations have been loss-making to start the year. The company blames higher than expected purchasing price and weaker availability of pork and beef meat. The production of pig and cow meat in Sweden has continued to slide, leaving slaughtering volumes and margins low. The company also blames strong krona, which has increased imports.
The Finland-based manufacturer of meat foods and products entered Sweden in 2007 through a purchase of Scan AB. It says that the loss in Sweden will also push the group result for Q1 to a small minus despite improving operations in Finland.
The company does maintain 2012 expectations of improved result compared to 2011 despite this weaker than expected outcome. The firm starts an efficiency programme lasting until the end of 2013 aiming to reach over 20 million Euro result improvement. HKScan said it is looking at longer-term measures in Sweden. The stock has slid over 6% in the 10 minutes following the warning.
No comments:
Post a Comment