- ISIN FI0009006308
HKScan Oyj
HKScan Group’s interim report for 1 January-30 June 2014: Strong balance sheet – business result remained weak
DGAP-News: HKScan Oyj
06.08.2014 / 07:05
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HKScan Corporation INTERIM REPORT
6 August 2014, at 08:05 am
HKScan Group's interim report for 1 January-30 June 2014:
Strong balance sheet - business result remained weak
* Net sales were EUR 967.1 (1 038.4) million for January-June, and EUR 501.7
(531.3) million in the second quarter.
* Reported EBIT for January -June was EUR 41.1 (-6.1) million. EBIT excluding
non-recurring income and expenses was EUR -8.2 (-3.0) million. The
corresponding EBIT margin was -0.9 (-0.3) per cent.
* For the second quarter, reported EBIT was EUR 58.5 (0.4) million. EBIT
excluding non-recurring income and expenses was EUR -1.1 (0.4) million. The
corresponding EBIT margin was -0.2 (0.1) per cent.
* Cash flow before debt service was EUR 157.2 (-5.6) million in January-June,
and EUR 180.9 (21.5) million in the second quarter.
* Profit before taxes was EUR 41.1 (-6.4) million in January-June, and EUR 57.4
(0.3) million in the second quarter.
* EPS was EUR 0.86 (-0.07) in January-June, and EUR 1.10 (0.01) in the second
quarter.
* Net financial expenses were EUR -9.6 (-10.8) million in January-June, and EUR
-5.2 (-5.2) million in the second quarter.
* Net debt was EUR 185.0 (423.7) million, and net gearing 41.8 (108.8) per cent.
* The sale of shares in Saturn Nordic Holding AB, owner of 100% of the shares
in Sokolów S.A., was completed on June 10. The transaction generated operating
income amounting to EUR 77.6 million in capital gain, cash flow of EUR 8.3
million as dividends and EUR 178.7 million as sales price after the transaction
costs
* Outlook for 2014 (revised June 16): HKScan expects its comparable operating
profit (EBIT) margin to be 0.5-1.0 per cent. The last quarter is anticipated to
be the strongest. In 2013, the corresponding comparable operating profit (EBIT)
margin was 0.5 per cent.
Hannu Kottonen, HKScan's CEO, comments on the second quarter 2014:
'In the second quarter we continued to face even stronger headwind than in the
first quarter of the year. The weak market situation, particularly in the
retail sector, has led to tough sales price competition and a further decline
in sales volumes in all market areas. The impact of low market demand has been
further exacerbated by pork export limitations to Russia.
As a result, net sales and EBIT performance again remained below expectations
in the second quarter, with both net sales and comparable EBIT decreasing from
the previous year. The best-performing market area was the Baltics. Despite the
difficult market circumstances good headway was made with inventory management.
One of the quarter's most significant achievements was the sale of the stake in
the Sokolów joint venture. The divestment generated substantial capital gain
and a good financial result for the reported period. As the deal enabled HKScan
to pay off its syndicated term loans, the Group's capital structure is now in
strong shape for future business development.
Despite the tough business environment, the production restructuring project in
Sweden and the whole profit development programme for 2014 proceeded as
planned. Good progress is also being made in Group-wide brand strategy
development as well as in technology and operations footprint enhancement. The
strategic review completed in June highlighted the need to fine-tune the
strategic must-win battles and to increase our focus on profitable growth in
the coming years.'
KEY FIGURES, Q2
(EUR million) Q2/201 Q2/201 Q1-Q2/20 Q1-Q2/20 2013
4 3 14 13
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Net sales 501.7 531.3 967.1 1 038.4 2 113.2
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EBIT 58.5 0.4 41.1 -6.1 11.7
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- % of net sales 11.7 0.1 4.2 -0.6 0.6
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Profit / loss before taxes 57.4 0.3 41.1 -6.4 6.7
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- % of net sales 11.4 0.1 4.2 -0.6 0.3
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Profit / loss for the period 59.3 0.4 46.4 -3.7 9.8
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- % of net sales 11.8 0.1 4.8 -0.4 0.5
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EBIT, excluding non-recurring -1.1 0.4 -8.2 -3.0 11.2
income and expenses
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- % of net sales -0.2 0.1 -0.9 -0.3 0.5
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EPS, EUR 1.10 0.01 0.86 -0.07 0.16
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Cash flow before debt service 180.9 21.5 157.2 -5.6 86.8
(mEUR)
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Cash Flow Before Financing 182.2 24.4 153.8 -7.4 74.7
Activities (mEUR)
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Return on capital employed (ROCE) 11.0 4.0
before taxes, %
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Net debt (mEUR) 185.0 423.7 335.3
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Gearing % 45.1 116.8 98.9
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Net Gearing % 41.8 108.8 82.0
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JANUARY - JUNE 2014
Net sales for the reported period were down on the corresponding period the
previous year. EBIT also saw a year-on-year decline. The Baltics were the only
market area generating positive EBIT. Sweden improved modestly on last year,
but the converse applied to Finland and Denmark. Considering the circumstances,
pleasing progress was made in inventory management, with stocks clearly lower
than the previous year. The Group's overall financial position was clearly
stronger at the end of the reported period thanks to the divestment of its
stake in the Sokolów joint venture. Net financial expenses were down despite of
one-time financial restructuring costs related to the repayment of the
syndicated term loans.
Demand in both consumer and away from home markets remained low. HKScan won
some market share with branded products, but in general private-label products
continued to increase their market share. Both value and volume growth was
modest, with both domestic and export markets being affected by pork
oversupply. The continuing Russian ban on pork imports from the EU countries
increased the surplus in the pork meat balance globally. Pork meat inventories
remained high throughout Europe, and global market prices remained
dissatisfactory. Animal purchasing prices continued to decrease, but this
failed to offset the deficit in sales prices. The Group's Away from Home
business saw positive development in the food service sector, but the export
business continued to face challenges.
HKScan finalized the sale of its shares (50%) in Saturn Nordic Holding AB on 10
June. The sales price for the shares was EUR 180 million and the payment was
received in cash. On 28 April 2014 Saturn Nordic Holding AB paid out a dividend
of EUR 8.3 million for 2013, corresponding to PLN 35 million. HKScan recorded a
capital gain of EUR 77.6 million for the sale in the reported period. The
divestment decreased the Group's net gearing by 56.5% points.
A EUR 17.2 million asset impairment was made in the second quarter concerning
certain assets in Finland and Denmark to match their book value with estimated
future profit. This asset impairment was reported as non-recurring expenses.
The Group profit before taxes in the second quarter also included one-time
profit deriving from a transaction in whichHKScan's associate Lihateollisuuden
Tutkimuskeskus LTK Osuuskunta sold its subsidiary MP-Maustepalvelu Oy on June
25. A capital gain of EUR 3.6 million from the sale of the shares was reported
in the income statement for associates.
The strategic review completed in June highlighted the need to fine-tune the
strategic must-win battles and to place a sharper focus on profitable growth in
the coming years. Harmonisation, simplification and streamlining of the
structure and internal processes of the Group will also continue in 2015.
The development programme for 2014 is proceeding as planned, targeting an
annual profit improvement in excess of EUR 20 million and a reduction of over
EUR 50 million in net debt by 2015.
In May Group marketing was strengthened with the Group new product and
packaging development and product category management becoming part of Group
Marketing function. Group marketing was also renamed as Strategic Marketing and
Innovation. The aim of this function is to drive profitable growth of the Group
by creating a competitive advantage and increasing brand value. One of the top
priorities for this function is to build the common Group-level product brand
Flodins(TM), which will be visible on all home markets as well as in intercompany
business and exports.
HKScan deepened its corporate responsibility work through a stakeholder
dialogue conducted in seven countries. Based on the results, HKScan confirmed
the priorities of the HKScan corporate responsibility programme, placing a
focus on economic, environmental and social responsibility as well as animal
welfare. The Group additionally wants to ensure the transparency and
sustainability of its supply chain as well as efficient stakeholder cooperation
and communication.
The Group identity renewal project continued with the harmonization of the
legal entity naming structure in the Baltics. This action marked the completion
of the Group's legal entity naming harmonization process.
MARKET AREA: FINLAND
(EUR million) Q2/2014 Q2/2013 Q1-Q2/201 Q1-Q2/2013 2013
4
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Net sales 199.5 199.4 378.7 393.5 804.1
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EBIT -12.7 0.6 -14.1 -0.6 3.2
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- EBIT margin, % -6.4 0.3 -3.7 -0.2 0.4
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EBIT excluding non-recurring -0.7 0.6 -2.2 2.6 6.9
expenses
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- EBIT margin, % -0.4 0.3 -0.6 0.7 0.9
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In Finland, net sales were EUR 378.7 (393.5) million in January-June and EUR
199.5 (199.4) million in the second quarter. EBIT excluding non-recurring
expenses were EUR -2.2 (2.6) in January-June and EUR -0.7 (0.6) million in the
second quarter. EUR 12.0 million in asset impairments were recorded as
non-recurring expenses.
The total market volume for Finland continued to decrease during the second
quarter. Consumers' purchasing power and willingness to spend were down, which
kept sales volume low, especially in the retail business. Russia's ban on EU
pork imports increased oversupply in the domestic market. Oversupply, economic
uncertainty and fluctuating consumption affected sales prices in both domestic
and especially export markets.
Despite low levels of demand, sales remained on last year's level and frozen
stocks were managed well, remaining clearly below the previous year. Branded
products won market share, but profit did not improve due to the declining
market and decreasing prices. Working capital items other than inventories did
not improve cash flow, which remained on the previous year's level.
Both animal purchasing prices and purchasing volumes decreased. Animal sourcing
prices were below the prior year's level, but above those of 2012. Costs were
up due to ongoing challenges with poultry supply and quality. HKScan plans to
tackle quality and cost issues by adjusting its chicken breed next year in line
with Group harmonization efforts. After the change, all HKScan market areas
will conform to a uniform chicken breed.
New HK Rapeseed pork(TM), HK Kabanossi(R) and Kariniemen(R) chicken products were
launched in April for the barbeque season and the Kariniemen(R) webpages were
renewed. 'Chosen by Farmers' high quality imported meats were launched in
Finland for the consumer and away from home markets. At the end of May, 'LIHA'
('Meat') - a book about HKScan's meat value chain - was chosen as the world's
best cookbook in its category in the annual Gourmand World Cookbook Awards
competition.
MARKET AREA: BALTICS
(EUR million) Q2/2014 Q2/2013 Q1-Q2/2014 Q1-Q2/2013 2013
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Net sales 41.2 43.8 82.0 85.6 175.1
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EBIT 1.8 1.1 2.0 1.7 7.7
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- EBIT margin, % 4.5 2.5 2.4 2.0 4.4
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In the Baltics, net sales were EUR 82.0 (85.6) million in January-June and EUR
41.2 (43.8) million in the second quarter. EBIT was EUR 2.0 (1.7) million in
January-June and EUR 1.8 (1.1) million in the second quarter.
The overall market remained on the previous year's level. The Baltic market is
suffering the most from Russia's ban on EU pork imports. Due to pork
oversupply, pork sales prices were below the expected level, but margins
increased slightly thanks for favourable cost development. Positive margin
performance in the poultry segment continued to support overall profitability.
HKScan maintained its position on the domestic market, but encountered
continuing difficulties in exports.
Costs in primary production were kept well under control and animal raw
material costs decreased. The frozen stock level was managed well, remaining
clearly lower than a year before. Net working capital was below the
corresponding period last year, but due to decreased trade payables and higher
investments, cash flow was weaker.
As announced in March, HKScan continued to clarify and streamline its legal
structure by merging its two Estonian subsidiaries, AS Rakvere Lihakombinaat
and AS Tallegg. AS HKScan Estonia was formed on 2 June 2014 as part of the
legal entity renaming process. Company names were also harmonized in Latvia and
Lithuania at the end of May 2014.
With the important barbeque season in full swing, HKScan gave a strong boost to
its main brands in Estonia and Latvia. An especially close eye was kept on the
success of its new Rakvere, Tallegg and Rigas Miesnieks snack products,
Rakvere's minced meat cheese-pockets and Rakvere's cold-smoked bacon. New
flavour varieties and packaging in the marinated meat offering have contributed
to higher sales in this category.
MARKET AREA: SWEDEN
(EUR million) Q2/2014 Q2/2013 Q1-Q2/201 Q1-Q2/2013 2013
4
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Net sales 232.7 242.1 443.1 471.3 966.5
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EBIT 0.6 2.2 -11.4 -0.6 8.0
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- EBIT margin, % 0.3 0.9 -2.6 -0.1 0.8
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EBIT excluding non-recurring 1.5 2.2 -0.3 -0.6 10.2
expenses
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- EBIT margin, % 0.6 0.9 -0.1 -0.1 1.1
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In Sweden, net sales were EUR 443.1 (471.3) million in January-June, and EUR
232.7(242.1) million in the second quarter. EBIT excluding non-recurring
expenses was EUR -0.3 (-0.6) million in January-June and EUR 1.5 (2.2) million
in the second quarter.
Russia's ban on EU pork imports increased the volume of imported meat also in
Sweden. Private label products, especially in cold cuts and processed products,
kept gaining market share. HKScan nevertheless gained market share with its
branded products in certain processed meat products and convenience food
categories. Sales price pressure was strongest in red meat and cold cuts. Sales
of Svensk Rapsgris(R) and the launch of fresh chicken progressed as planned.
Frozen stock levels were clearly below the prior year, but other working
capital items had a negative impact on cash flow, which was nevertheless
slightly higher than in the previous year. Animal purchasing prices decreased
for pork but remained unchanged for beef. Pork sourcing volumes were lower than
in the prior year in line with the volume and value rebalancing plan and beef
volumes also took a downturn in the second quarter. Production efficiency
continued to improve. The production restructuring project is proceeding as
planned, with full implementation scheduled to begin by 2015, targeting an
annualized profit improvement in excess of EUR 7 million.
In June, HKScan and Sweden's Lantmännen signed a letter of intent (LOI) for
initiating a strategic partnership offering innovative feed solutions and
advisory services to Swedish pig producers. HKScan will work together with its
stakeholders to sustainably improve the competitiveness and profitability of
Swedish livestock farms, with the ultimate goal of ensuring that Swedish
primary production maintains a secure, long-term foothold on the European meat
market.
As a part of HKScan Group's harmonization process, Höglandsprodukter AB and the
sales of Annerstedt Flodin AB have been integrated into HKScan Sweden during
the second quarter.
The Group has renewed its Swedish producer contracts for more simplified,
harmonized and market-driven pig purchase pricing practices and to better match
pig slaughtering volumes with demand. The project is proceeding as planned.
The renewed producer co-operation and producer services model will further
enhance productivity in primary production in Sweden.
MARKET AREA: DENMARK
(EUR million) Q2/201 Q2/201 Q1-Q2/20 Q1-Q2/20 2013
4 3 14 13
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Net sales 52.6 60.2 106.6 116.4 225.3
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EBIT -6.0 -0.5 -6.7 -0.8 3.6
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- EBIT margin, % -11.4 -0.8 -6.3 -0.7 1.6
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EBIT excluding non-recurring income -0.8 -0.5 -1.5 -0.8 -2.8
and expenses
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- EBIT margin, % -1.6 -0.8 -1.4 -0.7 -1.2
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In Denmark, net sales in January-June amounted to EUR 106.6 (116.4) million and
EUR 52.6 (60.2) million in April - June. EBIT excluding non-recurring expenses
was EUR -1.5 (-0.8) million in January-June and EUR -0.8 (-0.5) million in the
second quarter. A EUR 5.2 million asset impairment was recorded as
non-recurring expenses.
Poultry purchasing prices and volumes decreased from the previous year, but
sales price pressure remained tough. Combined with the impact of lower volume,
the result remained in the red. Actions to decrease frozen stock continued,
which also decreased margins in the second quarter. Fresh chicken products
generated satisfactory margins, albeit at low volumes, whereas frozen products
continued to face severe sales price competition, resulting in low margins.
Turnaround efforts are in progress in Denmark, but no major results have yet
been achieved given the challenging competitive situation in the second
quarter. However, sales price increases and production efficiency improvement
actions are in the pipeline for the short term.
INVESTMENTS
The Group's investments in the second quarter totalled EUR 9.8 (7.4) million.
The market area breakdown is as follows:
(EUR million) Q2/2014 Q2/2013 Q1-Q2/2014 Q1-Q2/2013 2013
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Finland 3.7 3.4 6.5 4.5 15.2
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Baltics 2.4 2.1 7.5 6.1 8.7
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Sweden 0.9 1.3 2.0 1.9 6.1
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Denmark1) 2.9 0.7 5.3 1.0 12.1
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Total 9.8 7.4 21.2 13.4 42.2
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1) 2013 investments include the rebuild of the Vinderup plant.
A substantial amount of planned and executed investments focused on improving
operational efficiency, which has been identified as a strategic focus area. In
Finland the main investments were process- and facility related, including the
renewal of the freezing system in Outokumpu. In Sweden certain process
investments were made in Linköping. In the Baltics, facility updates and
renewal of the freezing system was carried out in Rakvere. In Denmark the main
investment was the launch of a fresh chicken packaging line in Vinderup.
FINANCING AND TAXES
The Group's interest-bearing debt at the end of June stood at EUR 199.8 (455.1)
million. Net debt decreased to EUR 185.0 (423.7) million, mostly due to the
closing of Sokolów divestment, after which, HKScan repaid all syndicated term
loans amounting to approx. EUR 190 million. In addition, shares in HKScan
Finland and HKScan Sweden pledged as security for the loans were released.
The Group's liquidity has been good. Undrawn committed credit facilities at 30
June 2014 stood at EUR 161.5 (175.0) million. In addition, the Group had other
uncommitted overdraft and other facilities of EUR 22.4 (22.7) million. The EUR
200.0 million commercial paper programme had been drawn to the amount of EUR
126.5 (134.0) million. In the second quarter, a total amount of EUR 5.4 million
was paid as dividend for 2013.
Net financial expenses were EUR -5.2 (-5.2) million in the second quarter and
EUR -9.6 (-10.8) million in January-June. Costs in the second quarter include
one-time financial restructuring expenses of EUR 1.1 million.
Group income taxes were EUR 1.9 (0.1) million in the second quarter, and EUR
5.3 (2.7) million positive in January-June.
SHARES
At the end of March, HKScan Group's share capital stood at EUR 66 820 528. The
Group's total number of shares issued, 55 026 522, was divided into two share
series as follows: A Shares, 49 626 522 (90.19% of the total number of shares)
and K Shares, 5 400 000 (9.81%). The A Shares are quoted on the NASDAQ OMX
Helsinki. The K Shares are held by LSO Osuuskunta (4 735 000 shares) and
Sveriges Djurbönder ek.för. (665 000 shares) and are not listed. The company
held 1 053 734 A Shares as treasury shares corresponding to 1.9 per cent of the
company's total number of shares and 0.7 per cent of the total number of votes.
HKScan's market capitalization at the end of June stood at EUR 217.9 (187.8)
million, breaking down as follows: Series A shares had a market value of EUR
196.5 (169.0) million, and the unlisted Series K shares a calculational market
value of EUR 21.4 (18.8) million.
In January-June, a total of 7 896 690 (3 157 677) of the company's shares with
a total value of EUR 31 214 934 (12 367 456) were traded. The highest price
quoted in the period under review was EUR 4.49 (4.28), and the lowest was EUR
3.47 (3.46). The average price was EUR 3.94 (3.91). At the end of June, the
closing price was EUR 3.96 (3.48).
LIQUIDITY PROVIDING AGREEMENT
On 30 June 2014, HKScan Corporation terminated the Liquidity Providing (LP)
agreement between HKScan and FIM Securities Ltd. The agreement met the
requirements set for liquidity providing at NASDAQ OMX Helsinki Ltd. The
company estimates that the liquidity of the stock is sufficient and an external
liquidity provider is no longer needed. The liquidity providing agreement
terminated on 31 July 2014.
ANNUAL GENERAL MEETING AND BOARD OF DIRECTORS' AUTHORISATIONS
The Annual General Meeting of HKScan Corporation was held on 10 April 2014 in
Helsinki. The resolutions of the AGM, including authorisations given to the
Board, are reported in full in a stock release the same day. The Board has not
exercised the authorisations given by the AGM.
The AGM re-elected the current Board members, Juha Kylämäki, Niels Borup, Teija
Andersen, Gunilla Aschan, Tero Hemmilä and Henrik Treschow for a further term
of office. Mikko Nikula and Per Nilsson were re-elected as deputy members. At
the organisational meeting after the AGM, the Board re-elected Juha Kylämäki as
Chairman and Niels Borup as Vice Chairman.
PERSONNEL
During the first half of the year, HKScan had an average of 7 726 (7 720)
personnel. The increased average headcount in Finland was due to temporary
production arrangements, therefore only concerning temporary employees. In the
Baltics, the headcount increased due to higher production volumes. The
headcount continued to decrease in Sweden and Denmark. The end of June
headcount varies due to summer employees temporarily substituting for permanent
personnel.
The average number of personnel in each market area was as follows:
Q1-Q2/2014 Q1-Q2/2013 2013
--------------------------------------
Finland 2 786 2 720 2 685
--------------------------------------
Baltics 1 767 1 749 1 761
--------------------------------------
Sweden 2 332 2 365 2 459
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Denmark 841 886 869
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Total 7 726 7 720 7 774
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The breakdown of personnel by market area at the end of June was as follows:
30.6.2014 30.6.2013 31.12.2013
-----------------------------------------
Finland 3 225 3 107 2 572
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Baltics 1 791 1 783 1 760
-----------------------------------------
Sweden 2 681 2 464 2 248
-----------------------------------------
Denmark 961 872 838
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Total 8 658 8 226 7 418
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CLAIM BY OY PRIMULA AB'S BANKCRUPTCY ESTATE
As announced in a stock exchange release published on 7 September 2012, HKScan
Corporation and HK Ruokatalo Oy (now HKScan Finland Oy) were notified that Oy
Primula Ab's bankruptcy estate has submitted an action for damages to the
District Court of Finland Proper concerning the companies. The claim amounts to
about EUR 16.3 million, plus claims related to interest and legal costs.
HKScan and HKScan Finland see the action as unjustified, and the companies have
disputed the claim in its entirety in the pending trial. Therefore, the action
did not give rise to any provisions in the consolidated financial statements.
NOTIFICATIONS OF CHANGES IN HOLDINGS
On 1 April 2014, HKScan Corporation received a disclosure conforming to the
Finnish Securities Markets Act concerning change in ownership. Varma Mutual
Pension Insurance Company submitted notification that as a result of a share
sale and purchase concluded on 1 April 2014, its holding in HKScan had fallen
below 5 per cent of all shares in the company. Subsequent to the transaction,
the number of A Shares owned by Varma is 2 242 806 accounting for 4.08% of
shares and 1.42% of voting rights.
SHORT-TERM RISKS AND UNCERTAINTY FACTORS
The most significant uncertainty factors in the HKScan Group's business are
related to price trends and the availability of local meat raw material, as
well as to the adequacy of increases in the sales prices for the products in
relation to cost development.
The risks include various unexpected actions potentially taken by the
authorities which may cause restrictions on the business. Additionally, the
Group's ongoing development projects and organisational restructuring may
create uncertainties caused by the Group's own actions and unforeseen extra
costs.
The risks of animal diseases in the food industry's raw meat supply or eventual
international or regional food scandals impacting the overall consumption
outlook can never be fully excluded.
EVENTS AFTER THE REPORTING PERIOD
HKScan announced on 6 August 2014 plans to continue harmonizing its
organisation and consolidating its structure in order to improve profitability
in Finland. With the planned restructuring HKScan aims to reduce costs, improve
operational efficiency and ensure a business-driven way of working. The
targeted annual profit improvement is approximately four million euros.
Statutory employee negotiations will start on 11 August 2014 and will impact
the majority of HKScan Group's white-collar employees in Finland, amounting to
a total of approximately 400 employees. The anticipated headcount reduction is
estimated to concern no more than 75 white-collar employees.
The restructuring process is scheduled to be completed by the end 2014.
OUTLOOK FOR 2014
HKScan adjusted its full-year outlook on 16 June 2014. HKScan expects its
full-year operating profit (EBIT) margin excluding non-recurring items to be
0.5-1.0 per cent. Performance in the last quarter is anticipated to be the
strongest. The corresponding figure for the full year 2013 was 0.5 per cent.
The full-year reported operating profit including non-recurring items is
estimated to be significantly higher as a result of the sale of HKScan's shares
in Saturn Nordic Holding AB.
CONSOLIDATED FINANCIAL STATEMENTS 1 JANUARY - 30 JUNE 2014
CONSOLIDATED INCOME STATEMENT
(EUR million) Note Q2/201 Q2/201 Q1-Q2/201 Q1-Q2/201 2013
4 3 4 3
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Net sales 501.7 531.3 967.1 1 038.4 2 113.2
--------------------------------------------------------------------------------
Cost of goods sold 1. -493.9 -506.0 -951.0 -995.6 -2 014.8
--------------------------------------------------------------------------------
Gross Profit 7.8 25.3 16.2 42.8 98.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other operating items 1. 83.1 5.4 89.6 13.2 33.4
total
--------------------------------------------------------------------------------
Sales and marketing costs 1. -17.5 -15.1 -32.3 -30.1 -58.1
--------------------------------------------------------------------------------
General administration 1. -14.9 -15.3 -32.4 -31.9 -62.0
costs
--------------------------------------------------------------------------------
Operating Profit 58.5 0.4 41.1 -6.1 11.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income and -5.2 -5.2 -9.6 -10.8 -23.6
expenses
--------------------------------------------------------------------------------
Share of profit/loss in 4.0 5.1 9.7 10.5 18.6
associates
--------------------------------------------------------------------------------
Profit/loss before taxes 57.4 0.3 41.1 -6.4 6.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income tax 1.9 0.1 5.3 2.7 3.1
--------------------------------------------------------------------------------
Profit/loss for the period 59.3 0.4 46.4 -3.7 9.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-controlling interests -0.1 0.1 0.2 0.1 -1.1
--------------------------------------------------------------------------------
Profit/loss for the period 59.2 0.6 46.6 -3.6 8.7
--------------------------------------------------------------------------------
Earnings per share calculated on profit attributable to
equity holders of the parent:
--------------------------------------------------------------
EPS, undiluted, continuing operations, EUR/share 1.10 0.01 0.86 -0.07 0.16
--------------------------------------------------------------------------------
EPS, diluted, continuing operations, EUR/share 1.10 0.01 0.86 -0.07 0.16
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(EUR million) Q2/201 Q2/201 Q1-Q2/20 Q1-Q2/20 2013
4 3 14 13
--------------------------------------------------------------------------------
Profit/loss for the period 59.3 0.4 46.4 -3.7 9.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
OTHER COMPREHENSIVE INCOME (after
taxes):
--------------------------------------------------------------------------------
Exchange differences on translating -3.9 -6.7 -5.3 -7.3 -3.4
foreign operations
--------------------------------------------------------------------------------
Cash flow hedging -0.1 1.6 -1.2 2.8 2.8
--------------------------------------------------------------------------------
Revaluation - - - - -
--------------------------------------------------------------------------------
Actuarial gains or losses - - - - 1.6
--------------------------------------------------------------------------------
TOTAL OTHER COMPREHENSIVE INCOME -4.1 -5.2 -6.5 -4.4 1.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE 55.2 -4.8 39.9 -8.2 10.8
PERIOD
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD ATTRIBUTABLE TO:
--------------------------------------------------------------------------------
Equity holders of the parent 55.1 -4.6 40.1 -8.1 9.7
--------------------------------------------------------------------------------
Non-controlling interests 0.1 -0.2 -0.2 -0.1 1.1
--------------------------------------------------------------------------------
Total 55.2 -4.8 39.9 -8.2 10.8
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(EUR million) Note 30.6.2014 30.6.2013 31.12.2013
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Intangible assets 2. 147.3 152.8 152.1
--------------------------------------------------------------------------------
Tangible assets 3. 381.9 418.2 411.5
--------------------------------------------------------------------------------
Holdings 40.9 142.4 149.9
--------------------------------------------------------------------------------
Other non-current assets 34.9 34.5 30.6
--------------------------------------------------------------------------------
TOTAL NON-CURRENT ASSETS 604.9 747.7 744.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Inventories 4. 140.8 170.0 152.5
--------------------------------------------------------------------------------
Current receivables 142.3 171.6 137.0
--------------------------------------------------------------------------------
Cash and cash equivalents 13.1 30.9 68.7
--------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 296.3 372.4 358.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Assets of disposal group classified as - - -
held for sale
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TOTAL ASSETS 901.2 1 120.2 1 102.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY 5. 442.9 389.6 409.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current loans, interest-bearing 62.2 135.1 245.1
--------------------------------------------------------------------------------
Non-current liabilities, non 32.9 35.8 36.5
interest-bearing
--------------------------------------------------------------------------------
TOTAL NON-CURRENT LIABILITIES 95.1 170.8 281.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Current loans, interest-bearing 137.5 320.0 159.3
--------------------------------------------------------------------------------
Current liabilities, non 225.7 239.7 252.3
interest-bearing
--------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 363.2 559.7 411.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 901.2 1 120.2 1 102.2
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN CONSOLIDATED EQUITY
(EUR 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
million)
--------------------------------------------------------------------------------
EQUITY AT 66.8 73.5 -10.8 143.5 32.0 2.0 0.0 93.0 400.0 9.0 409.0
1.1.2014
--------------------------------------------------------------------------------
Result - - - - - - - 46.6 46.6 -0.2 46.4
for the
financia
l period
--------------------------------------------------------------------------------
Other
comprehe
nsive
income
(+) /
expense
(-)
--------------------------------------------------------------------------------
Transl. - - - - - -5.3 - - -5.3 - -5.3
diff.
--------------------------------------------------------------------------------
Cash flow - - -1.2 - - - - - -1.2 - -1.2
hedging
--------------------------------------------------------------------------------
Actuarial - - - - - - - 0.0 0.0 - 0.0
gains or
losses
--------------------------------------------------------------------------------
Total - - -1.2 - - -5.3 - 46.6 40.1 -0.2 39.9
compreh.
income
for the
period
--------------------------------------------------------------------------------
Direct - - - - - - - 0.1 0.1 - 0.1
recognit
. in
retained
earnings
--------------------------------------------------------------------------------
Transfers - -0.6 - - -21.9 - - 22.5 0.0 0.0 0.0
between
items
--------------------------------------------------------------------------------
Dividend - - - - - - - -5.4 -5.4 -0.7 -6.1
distribu
t.
--------------------------------------------------------------------------------
EQUITY AT 66.8 72.9 -12.0 143.5 10.1 -3.3 0.0 156.8 434.8 8.1 442.9
30.6.201
4
--------------------------------------------------------------------------------
(EUR 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
million)
--------------------------------------------------------------------------------
EQUITY AT 66.8 73.3 -13.7 143.5 26.4 5.4 0.0 93.7 395.4 8.6 404.0
1.1.2013
--------------------------------------------------------------------------------
Result - - - - - - - -3.6 -3.6 -0.1 -3.7
for the
financia
l period
--------------------------------------------------------------------------------
Other
comprehe
nsive
income
(+) /
expense
(-)
--------------------------------------------------------------------------------
Transl. - - - - - -7.3 - - -7.3 - -7.3
diff.
--------------------------------------------------------------------------------
Cash flow - - 2.8 - - - - - 2.8 - 2.8
hedging
--------------------------------------------------------------------------------
Actuarial - - - - - - - 0.0 0.0 - 0.0
gains or
losses
--------------------------------------------------------------------------------
Total - - 2.8 - - -7.3 - -3.6 -8.1 -0.1 -8.2
compreh.
income
for the
period
--------------------------------------------------------------------------------
Direct - - - - - - - -0.1 -0.1 - -0.1
recognit
. in
retained
earnings
--------------------------------------------------------------------------------
Transfers - - - - 5.3 - - -5.3 0.0 - 0.0
between
items
--------------------------------------------------------------------------------
Dividend - - - - - - - -5.4 -5.4 -0.6 -6.0
distribu
t.
--------------------------------------------------------------------------------
EQUITY AT 66.8 73.3 -10.8 143.5 31.7 -1.9 0.0 79.2 381.7 7.9 389.6
30.6.201
3
--------------------------------------------------------------------------------
COLUMNS: 1. Share capital, 2. Share premium reserve, 3. Revaluation reserve, 4.
Reserve for invested unrestricted equity (RIUE), 5. Other reserves, 6.
Translation differences, 7. Treasury shares, 8. Retained earnings, 9. Equity
holders of the parent, 10. Non-controlling interests, 11. Total
CASH FLOW STATEMENT
(EUR million) Q1-Q2/2014 Q1-Q2/2013 2013
-------------------------------------------------------------------------------
Cash flow before change in net working capital 7.0 25.2 76.4
-------------------------------------------------------------------------------
Change in net working capital -10.2 -18.4 46.2
-------------------------------------------------------------------------------
Financial items and taxes -4.0 -1.6 -11.8
-------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES -7.2 5.2 110.8
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Cash flow from investing activities 160.0 -12.2 -35.6
-------------------------------------------------------------------------------
CASH FLOW AFTER INVESTING ACTIVITIES 152.8 -7.0 75.3
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Change in loans -202.1 -10.3 -55.9
-------------------------------------------------------------------------------
Dividends paid -6.1 -6.0 -5.9
-------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES -208.2 -16.3 -61.8
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
NET CASH FLOW -55.4 -23.3 13.5
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Cash and cash equivalents at beginning of period 68.7 55.6 55.6
-------------------------------------------------------------------------------
Translation differences -0.2 -1.5 -0.4
-------------------------------------------------------------------------------
Cash and cash equivalents at end of period 13.1 30.9 68.7
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
FINANCIAL INDICATORS
30.6.2014 30.6.2013 31.12.2013
-----------------------------------------------------------------------------
Earnings per share (EPS), undiluted, EUR 0.86 -0.07 0.16
-----------------------------------------------------------------------------
Earnings per share (EPS), diluted, EUR 0.86 -0.07 0.16
-----------------------------------------------------------------------------
Equity per share, EUR 8.1 7.1 7.4
-----------------------------------------------------------------------------
Equity ratio, % 49.1 34.8 37.1
-----------------------------------------------------------------------------
Adjusted average number of shares, mill. 54.0 54.0 54.0
-----------------------------------------------------------------------------
Gross capital expenditure on PPE, EUR mill. 21.2 13.4 42.2
-----------------------------------------------------------------------------
Employees, end of month average 7 726 7 720 7 774
-----------------------------------------------------------------------------
NOTES TO THE CONSOLIDATED INTERIM REPORT
ACCOUNTING POLICIES
HKScan Corporation's interim report for 1 January - 30 June 2014 has been
prepared in compliance with IAS 34 Interim Financial Reporting standards. The
same accounting principles have been applied in the interim report as in the
annual financial statements for 2013, with the exception of the new IFRS 10
(Consolidated Financial Statements) and IFRS 11 (Joint arrangements) standards
(effective as of 1 January 2014). In addition, costs incurred by centralized
Group services such as Group Technology and Operations Development are to be
invoiced individually by Market Areas as of January 1, 2014. The Group's
financial reporting in 2014 will be in line with these changes. The quarterly
Group and market area information for 2013 has been restated accordingly. Due
to the rounding of the figures to the nearest million euros in the interim
report, some totals may not agree with the sum of their constituent parts.
Accounting principles are explained in the financial statements for 2013.
The interim report is unaudited.
ANALYSIS BY SEGMENT
Net sales and EBIT by market area
(EUR million) Q2/2014 Q2/2013 Q1-Q2/2014 Q1-Q2/2013 2013
-----------------------------------------------------------------------------
NET SALES
-----------------------------------------------------------------------------
- Finland 199.5 199.4 378.7 393.5 804.1
-----------------------------------------------------------------------------
- Baltics 41.2 43.8 82.0 85.6 175.1
-----------------------------------------------------------------------------
- Sweden 232.7 242.1 443.1 471.3 966.5
-----------------------------------------------------------------------------
- Denmark 52.6 60.2 106.6 116.4 225.3
-----------------------------------------------------------------------------
- Between segments -24.3 -14.2 -43.2 -28.5 -57.7
-----------------------------------------------------------------------------
Group total 501.7 531.3 967.1 1 038.4 2 113.2
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
EBIT
-----------------------------------------------------------------------------
- Finland -12.7 0.6 -14.1 -0.6 3.2
-----------------------------------------------------------------------------
- Baltics 1.8 1.1 2.0 1.7 7.7
-----------------------------------------------------------------------------
- Sweden 0.6 2.2 -11.4 -0.6 8.0
-----------------------------------------------------------------------------
- Denmark -6.0 -0.5 -6.7 -0.8 3.6
-----------------------------------------------------------------------------
- Between segments
-----------------------------------------------------------------------------
Segments total -16.2 3.5 -30.3 -0.3 22.5
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Group administration costs 74.8 -3.0 71.3 -5.8 -10.7
-----------------------------------------------------------------------------
Group total 58.5 0.4 41.1 -6.1 11.7
-----------------------------------------------------------------------------
NOTES TO THE INCOME STATEMENT
1. NON-RECURRING ITEMS
(EUR million) Q2/201 Q2/201 Q1-Q2/2 Q1-Q2/2 2013
4 3 014 013
--------------------------------------------------------------------------------
Restructuring redundancy expenses COGS, - - - -1,4 -1,5
Finland 1)
--------------------------------------------------------------------------------
Restructuring redundancy expenses SGA, - - - -0,7 -1,1
Finland 2)
--------------------------------------------------------------------------------
Restructuring expenses for production - - - -1,0 -1,0
setup, Finland 1)
--------------------------------------------------------------------------------
Impairment of assets, Finland 1) -12,0 - -12,0 - -
--------------------------------------------------------------------------------
Restructuring expenses for closed - - -3,7 - -
operations, Sweden 1)
--------------------------------------------------------------------------------
Impairment of assets, Sweden 1) - - -6,6 - -
--------------------------------------------------------------------------------
Impairment of assets, Sweden 3) - - - - -2,3
--------------------------------------------------------------------------------
Impairment of inventory 2011-2012, -0,8 - -0,8 - -
Sweden 1)
--------------------------------------------------------------------------------
Property insurance compensation, Denmark - - - - 7,1
3)
--------------------------------------------------------------------------------
Impairment of assets, Denmark 1) -5,2 - -5,2 - -
--------------------------------------------------------------------------------
Restructuring redundancy expenses SGA, - - - - -0,7
Denmark 2)
--------------------------------------------------------------------------------
Capital gain in sales of shares of 77,6 - 77,6 - -
Saturn Nordic Holding Ab 3)
--------------------------------------------------------------------------------
Non-recurring items Total 59,6 - 49,3 -3,1 0,5
--------------------------------------------------------------------------------
1) Included in the Income Statement in the item
'COGS Total'
2) Included in the Income Statement in the item
'SGA Total'
3) Included in the Income Statement in the item 'Other
operating items total'
NOTES TO THE STATEMENT OF FINANCIAL POSITION
2. CHANGES IN INTANGIBLE ASSETS
(EUR million) Q2/2014 Q2/2013 2013
---------------------------------------------------------
Opening Balance 152.1 156.1 156.1
---------------------------------------------------------
Translation differences -3.3 -2.2 -3.1
---------------------------------------------------------
Additions 0.6 0.5 2.1
---------------------------------------------------------
Additions, business acquisitions 0.8 - -
---------------------------------------------------------
Disposals 0.0 0.0 0.0
---------------------------------------------------------
Depreciation and impairment -2.9 -1.8 -3.2
---------------------------------------------------------
Reclassification between items 0.0 0.2 0.3
---------------------------------------------------------
Closing balance 147.3 152.8 152.1
---------------------------------------------------------
3. CHANGES IN PROPERTY, PLANT AND EQUIPMENT
(EUR million) Q2/2014 Q2/2013 2013
---------------------------------------------------------
Opening Balance 411.5 437.0 437.0
---------------------------------------------------------
Translation differences -2.1 -2.3 -2.5
---------------------------------------------------------
Additions 20.9 13.8 40.5
---------------------------------------------------------
Additions, business acquisitions 0.0 0.0 0.0
---------------------------------------------------------
Disposals -1.1 -0.8 -5.0
---------------------------------------------------------
Depreciation and impairment -47.9 -29.6 -58.1
---------------------------------------------------------
Reclassification between items 0.5 0.0 -0.5
---------------------------------------------------------
Closing balance 381.9 418.2 411.5
---------------------------------------------------------
4. INVENTORIES
(EUR million) Q2/2014 Q2/2013 2013
------------------------------------------------------
Materials and supplies 78.8 99.3 85.8
------------------------------------------------------
Semi-finished products 4.2 4.2 4.0
------------------------------------------------------
Finished products 42.9 49.1 44.3
------------------------------------------------------
Other inventories 3.2 6.0 6.6
------------------------------------------------------
Inventories, advance payments 1.9 0.7 1.1
------------------------------------------------------
Biological asset, IFRS 41 9.8 10.6 10.7
------------------------------------------------------
Total inventories 140.8 170.0 152.5
------------------------------------------------------
5. NOTES TO EQUITY
Share capital Number of Share Share Reserve for Treasu Total
and share outstanding capit premium invested ry
premium shares al reserve unrestricted
reserve equity
--------------------------------------------------------------------------------
1.1.2014 53 972 788 66.8 72.9 143.5 0.0 283.1
--------------------------------------------------------------------------------
30.6.2014 53 972 788 66.8 72.9 143.5 0.0 283.2
--------------------------------------------------------------------------------
DERIVATIVE INSTRUMENT LIABILITIES
(EUR million) 30.6.2014 30.6.2013 31.12.2013
---------------------------------------------------------------------------
Nominal values of derivative instruments
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Foreign exchange derivatives 85.4 56.3 78.3
---------------------------------------------------------------------------
Interest rate derivatives 180.4 255.8 211.6
---------------------------------------------------------------------------
Electricity derivatives 7.8 10.5 9.3
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Fair values of derivative instruments
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Foreign exchange derivatives 0.5 0.9 -0.8
---------------------------------------------------------------------------
Interest rate derivatives -14.8 -18.2 -16.0
---------------------------------------------------------------------------
Electricity derivatives -1.9 -2.0 -2.1
---------------------------------------------------------------------------
---------------------------------------------------------------------------
---------------------------------------------------------------------------
---------------------------------------------------------------------------
CONSOLIDATED OTHER CONTINGENT LIABILITIES
---------------------------------------------------------------------------
(EUR million)
---------------------------------------------------------------------------
30.6.2014 30.6.2013 31.12.2013
---------------------------------------------------------------------------
Debts secured by
---------------------------------------------------------------------------
pledges or mortgages
---------------------------------------------------------------------------
- loans from financial institutions 72.1 316.3 273.7
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Given as security
---------------------------------------------------------------------------
- real estate mortgages 12.3 12.5 12.4
---------------------------------------------------------------------------
- pledges 0.4 5.1 0.4
---------------------------------------------------------------------------
- floating charges 9.1 9.0 9.0
---------------------------------------------------------------------------
---------------------------------------------------------------------------
For associates
---------------------------------------------------------------------------
- guarantees 5.3 7.5 7.5
---------------------------------------------------------------------------
---------------------------------------------------------------------------
For others
---------------------------------------------------------------------------
- guarantees and pledges 16.2 11.9 15.7
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Other contingencies
---------------------------------------------------------------------------
Leasing commitments 15.3 17.4 17.2
---------------------------------------------------------------------------
Rent liabilities 45.5 51.7 49.4
---------------------------------------------------------------------------
Other commitments 7.4 7.2 6.6
---------------------------------------------------------------------------
THE FAIR VALUE DETERMINATION PRINCIPLES APPLIED BY THE GROUP ON FINANCIAL
INSTRUMENTS MEASURED AT FAIR VALUE
Derivatives
The fair values of currency derivatives are determined by using the market
prices for contracts of equal duration on the reporting date. The fair values
of interest rate swaps are determined using the net present value method
supported by the market interest rates on the reporting date. The fair value of
commodity derivatives are determined by using publicly quoted market prices.
30.6.2014 Level 1 Level 2 Level 3
--------------------------------------------------------------------------------
Assets measured at fair value
--------------------------------------------------------------------------------
Financial assets recognised at fair value
--------------------------------------------------------------------------------
through profit or loss
--------------------------------------------------------------------------------
- Trading securities - - - -
--------------------------------------------------------------------------------
- Trading derivatives
--------------------------------------------------------------------------------
- Interest rate swaps - - - -
--------------------------------------------------------------------------------
- Foreign exchange derivatives 0.8 0.0 0.8 0.0
--------------------------------------------------------------------------------
- Commodity derivatives - - - -
--------------------------------------------------------------------------------
Available-for-sale financial assets
--------------------------------------------------------------------------------
- Investments in shares 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
Total 0.8 0.0 0.8 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities measured at fair value
--------------------------------------------------------------------------------
Financial liabilities recognised at fair
value
--------------------------------------------------------------------------------
through profit or loss
--------------------------------------------------------------------------------
-Trading derivatives
--------------------------------------------------------------------------------
- Interest rate swaps -14.8 0.0 -14.8 0.0
--------------------------------------------------------------------------------
of which subject to cash flow hedging -14.6 0.0 -14.6 0.0
--------------------------------------------------------------------------------
- Foreign exchange derivatives -0.3 0.0 -0.3 0.0
--------------------------------------------------------------------------------
of which subject to net investment hedging - - - -
--------------------------------------------------------------------------------
- Commodity derivatives -1.9 0.0 -1.9 0.0
--------------------------------------------------------------------------------
of which subject to cash flow hedging -1.9 0.0 -1.9 0.0
--------------------------------------------------------------------------------
Total -17.0 0.0 -17.0 0.0
--------------------------------------------------------------------------------
BUSINESS TRANSACTIONS WITH RELATED PARTIES
(EUR million) Q1-Q2/2014 Q1-Q2/2013 2013
----------------------------------------------------------
Sales to associates 32.2 53.8 106.5
----------------------------------------------------------
Purchases from associates 20.3 29.8 55.1
----------------------------------------------------------
Trade and other receivables 2.4 3.1 4.0
----------------------------------------------------------
Trade and other payables 2.9 4.1 5.0
----------------------------------------------------------
NEXT FINANCIAL REPORT
HKScan Group's interim report January-September 2014 will be published on 5
November 2014.
Vantaa, 6 August 2014
HKScan Corporation
Board of Directors
Further information is available from HKScan Corporation's President and CEO
Hannu Kottonen and
CFO Tuomo Valkonen. Kindly submit a call-back request to Marja-Leena Dahlskog,
SVP Communications, firstname.surname@hkscan.com or tel. +358 10 570 2142
HKScan is the leading Nordic meat expert. We sell, market and produce
high-quality, responsibly-produced pork, beef, poultry and lamb products,
processed meats and convenience foods under strong brand names. Our customers
are the retail, food service, industrial and export sectors, and our home
markets comprise Finland, Sweden, Denmark and the Baltics. We export to close
to 50 countries. HKScan's net sales is EUR 2.1 billion and we have some 7 700
employees, making us one of the Europe's leading meat companies.
DISTRIBUTION:
NASDAQ OMX Helsinki
Main media
www.hkscan.com
News Source: NASDAQ OMX
---------------------------------------------------------------------
06.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
Language: English
Company: HKScan Oyj
Finland
ISIN: FI0009006308
End of News DGAP News-Service
---------------------------------------------------------------------
280993 06.08.2014
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