HKScan Corporation Stock Exchange Release, 6 November 2019, at 8:00 EET
HKScan will grow into a versatile food company in line with its new strategy
HKScan’s Board of Directors has approved the Group’s new strategy with a focus on the turnaround programme for the years 2019-2021 improving the company’s profitability. At the same time with the implementation of the turnaround programme, we are laying a solid foundation for the company’s future growth. HKScan aims to grow profitably into a versatile food company and to strengthen its market position in evolving markets together with its customers. Strong partnerships are part of the strategy and provide the foundation for achieving the goals. In addition, the company’s goal-oriented sustainability work will be more firmly incorporated as a basis for our business and consumer brands.
CEO Tero Hemmilä says: “Consumers’ purchasing habits and behaviour are changing rapidly. At HKScan, we believe in the future of varied, healthy and responsibly produced food. We aim to grow profitably into a versatile food company and to have stronger presence in consumers’ food moments. Our purpose is to enable consumers and customers to have tastier life, today and tomorrow. We are planning to move to a country-specific operating model that aims to enhance customer and consumer satisfaction and to clarify profit responsibility. We will also continue our strategic assessments related to the company structure and look at the positioning of different markets as part of the Group’s business operations.”
In its home markets, HKScan is a leading company in many product categories where it is present. Strong, innovative poultry product portfolio as well as meals and meal components are our growth drivers. Meat and meat products are at the core of our operations and will continue to play a major role in the future. To respond to changing consumer habits, HKScan is looking into expanding its business into new product categories and raw materials.
With its well-known consumer brands, HKScan is a strong partner for retailers. Due to consumers’ changing eating habits and buying behaviour, the food service channel is growing and opening interesting opportunities for the food industry. HKScan will continue investing in growth and in strengthening its position in evolving and growing sales channels. Together with our strengthening product portfolio, new commercial concepts and digital solutions will support the company’s growth.
“Our primary task is to get the company’s profitability into shape together with our skilled personnel. We will also boost our ability to create added value to customers and consumers by focusing on growth in selected product categories and sales channels. Active development work together with our customers enables stronger presence in consumers’ food moments in evolving sales channels and especially in the growing food service channel,” says CEO Tero Hemmilä.
Strategic and long-term financial targets
HKScan’s key strategic target is to improve profitability, which enables business continuity and the development of the company. Our aim is to grow into a versatile food company and achieve a leading position in the key sales channels in our home markets. Increasing our exports, especially to Asia, is important for the company. HKScan will continue its efforts to strengthen its market position in its key export markets.
Long-term financial targets remain unchanged:
- EBIT more than 4 per cent of net sales,
- return on capital employed (ROCE) over 12 per cent of net sales,
- net gearing less than 100 per cent and
- dividends more than 30 per cent of net profit.
- Growth in consumers’ food moments: We will grow as a food company in evolving sales channels and product categories preferred by consumers. We will utilise new commercial concepts and digital solutions.
- Performance excellence: Development of our processes and personnel competence strengthens consumer and customer experience, productivity, cost efficiency and profitability.
- Advanced responsibility work: Sustainable way of operating is the foundation of our business. Together with our partnership network, we will build the Agrofood ecosystem enhancing profitability and sustainability footprint across the entire value chain to meet the changing consumer and customer needs.
- Competitive farming community: Together with our contract farming community, we will develop the competitiveness of responsible, high-quality primary production and ensure the availability of important raw materials giving us a competitive edge.
Heidi Hirvonen, SVP, Communications, tel. +358 10 570 6072
HKScan Media Service Desk, tel. +358 10 570 5700, or email: firstname.lastname@example.org
HKScan Corporation is a publicly listed meat and food company with over one hundred years of experience in responsible Nordic food production for customer and consumer needs. HKScan’s sustainable way of operating spans the entire value chain, from farm to consumer. Our nearly 7,200 professionals ensure our promise of high-quality products that taste good. Our home markets cover Finland, Sweden, Denmark and the Baltics. Our diverse product selection includes poultry, pork, beef, and lamb products as well as charcuterie and meals. The company’s strong consumer brands are HK®, Kariniemen®, Via®, Scan®, Pärsons®, Rakvere®, Tallegg® and Rose®. In 2018, HKScan’s net sales were EUR 1.7 billion.