HKScan published the Group’s new strategy in November 2019. At the core of the strategy is a turnaround programme for the years 2019-2021 aimed at improved profitability. During the implementation of the turnaround programme, the strong foundation for the company’s growth is also established.
HKScan’s strategic target is to grow profitably into a versatile food company, to have stronger presence in the consumers’ food moments and to strengthen the company’s market position in evolving markets together with its customers. Strong partnerships are part of our strategy and provide an important basis for reaching our targets. In addition, the company’s goal-oriented sustainability work is positioned more firmly as the foundation of our business and consumer brands. HKScan is finalising its corporate responsibility programme, which is a central part of the Group’s strategy.
The Group’s strong and innovative poultry product portfolio as well as meals and meal components are the company’s growth drivers. Meat and meat products are at the core of our operations and they will continue to play a major role in the future. In addition, HKScan is actively looking into opportunities to expand into new product categories and raw materials due to changing consumption habits.
HKScan is a strong player in retail trade with its well-known consumer brands. Due to consumers’ changing eating habits and buying behaviours, the food service channel is growing and opening interesting opportunities for the food industry. HKScan will continue investing in growth and strengthening its position in evolving and growing market channels. In addition to the strengthened product portfolio, HKScan wants to drive growth with new commercial concepts and digital solutions.
The company’s strategic focus areas include growth in consumers’ food moments, performance excellence, advanced sustainability work and a competitive farming community. In its strategy, HKScan outlines that increasing exports, especially in Asia, is very important and that the company will continue to strengthen its market position in the prioritised export markets. HKScan continues its strategic assessments related to the company’s structure and reviews the positioning of different market areas as part of the Group’s business operations.
During 2019 HKScan renewed its Group-wide operating model. The aim was to strengthen the company’s market area level profit responsibility and management as well as customer- and consumer-driven way of operating. The renewal is an integral part of the implementation of the company’s new strategy.
HKScan’s long-term financial targets remain unchanged and are: EBIT above 4 per cent of net sales, return on capital employed (ROCE) above 12 per cent, net gearing less than 100 per cent and dividend more than 30 per cent of net profit.
HKScan’s strongly improved financial performance as well as the share issue in summer 2019 and loan refinancing give the company time to continue the ongoing, determined work to improve profitability and build the foundation for growth. The systematic implementation of the turnaround programme continues, and the new strategy will set the guidelines for the company’s development and profitable growth. HKScan’s goal is to develop the Group to become an interesting company that rewards its owners and is among the leading players of the food industry.