2011-08-10 07:00:00 CEST
2011-08-10 07:00:17 CEST
REGULATED INFORMATION
HKScan Oyj - Interim report (Q1 and Q3)
HKSCAN GROUP'S INTERIM REPORT 1 JANUARY - 30 JUNE 2011: STRONG GROWTH IN HKSCAN GROUP'S NET SALES
HKSCAN GROUP'S INTERIM REPORT 1 JANUARY - 30 JUNE 2011
STOCK EXCHANGE RELEASE 10 August 2011 at 08:00
STRONG GROWTH IN HKSCAN GROUP'S NET SALES
* The HKScan Group's net sales in the first six months of the year grew to EUR
1 223.3 million (EUR 985.9 m). The growth in net sales (24%) was mainly
attributable to completed corporate acquisitions. Eliminating changes in
currency rates, organic growth stood at approximately 5 percent.
* Group EBIT for the first six months of the year came in at EUR 8.0 million
(EUR 13.6 m).
* The Group's performance continued to be eroded by the poor profitability of
pork.
* HKScan has been able to retain and even strengthen its market position.
* The company amended its EBIT guidance on 26 July 2011: The Group's full-year
EBIT is expected to fall short of 2010 levels.
HKSCAN GROUP
(EUR million)
Q2/2011 Q2/2010 Q1-Q2/11 Q1-Q2/10 2010
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Net sales 630.6 502.3 1 223.3 985.9 2 113.9
-----------------------------------------------------------------------
EBIT 6.7 8.1 8.0 13.6 48.0
-----------------------------------------------------------------------
- EBIT margin, % 1.1 1.6 0.7 1.4 2.3
-----------------------------------------------------------------------
Profit/loss before taxes -0.1 5.0 -3.5 8.9 36.5
-----------------------------------------------------------------------
Earnings per share, EUR 0.01 0.07 -0.05 0.13 0.52
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APRIL-JUNE 2011
- The Group's net sales in the second quarter of the year were EUR 630.6
million (EUR 502.3 m).
- EBIT came in at EUR 6.7 million (EUR 8.1 m).
- With respect to the comparison year of 2010, the impact of industrial action
in Finland in the quarter should be taken into account.
- In Finland, the profitability of the business fell short of the targets and
EBIT stood at EUR 0.7 million (EUR -0.1 m).
- In Sweden, the results of operations improved and EBIT came in at EUR 4.0
million (EUR 3.1 m).
- In Denmark, profitability fell short of the targets and EBIT was EUR -0.5
million.
− In the Baltics and Poland, business operations progressed according to plan.
In the Baltics, EBIT stood at EUR 2.7 million (EUR 3.3 m) and in Poland at EUR
2.8 million (EUR 4.0m).
- Group administration costs of EUR -2.9 million (EUR -2.1 m) were
exceptionally high on account of the Group's development projects and other
non-recurring expenses.
CEO MATTI PERKONOJA:
“HKScan's EBIT for the early part of the year was adequate in the challenging
market conditions. With respect to pork, the difficult global market situation
will continue. The rise in the prices of meat raw materials and other inputs
have eroded business profitability in all of HKScan's market areas.
The production of meat products in HKScan's main market areas is more expensive
than in Europe's major agricultural countries. The inflexibility of labour
costs is emphasized in an open market competition situation. In continuing, the
current situation will reduce the amount of food produced in these areas. The
situation is alarming at the moment, particularly with respect to pork, which
among the meat categories used by the company is most clearly within the sphere
of global competition. Development of the entire food supply chain right from
primary production will be important for the industry's future.
HKScan operates responsibly in the meat sector. Its basis is created by an
efficient, transparent and responsibly-operating production chain. Although
HKScan operates internationally, it provides consumers in its market areas with
locally-produced, safe and reliable food suited to local tastes the origin of
which is traceable right to the farm. Only by developing the entire product
offering in accordance with the expectations of consumers and the retail trade
can development of the business in the right direction be ensured.
Profitability of the Group's business operations in HKScan's market areas poses
a challenge. The development and efficiency measures, both ongoing and planned
for the near future will, when followed through, improve the company's
profitability. Competition in the sector is intensifying. The actors who react
fastest to the situation will cope best in the market.”
MARKET AREA: FINLAND
(EUR million)
Q2/2011 Q2/2010 Q1-Q2/11 Q1-Q2/10 2010
-------------------------------------------------------------
-------------------------------------------------------------
Net sales 207.9 173.5 395.9 341.3 718.5
-------------------------------------------------------------
EBIT 0.7 -0.1 0.1 -0.7 10.7
-------------------------------------------------------------
- EBIT margin, % 0.3 -0.1 0.0 -0.2 1.5
-------------------------------------------------------------
In Finland, net sales in the second quarter totalled EUR 207.9 million (EUR
173.5 m). Net sales were boosted by Järvi-Suomen Portti Oy's merger with the
Group at the beginning of the year. With respect to the comparison year of
2010, the impact of industrial action in the quarter should be taken into
account. EBIT came in at EUR 0.7 million, (EUR -0.1 m).
The profitability of business operations in Finland in the second quarter was
weakened by the protracted difficulties in pork production as well as by poor
pork price levels in the export and domestic markets. The business in Finland
will, in addition to raising selling prices, rectify the situation by adjusting
pork production volumes in a controlled manner.
Rapeseed pork, launched on the market in February, has been very well received
by customers and consumers. With respect to poultry meat and processed meats,
the second quarter progressed as planned. In the second quarter, the company
has succeeded in enabling poultry meat production volumes plagued by
insufficiency during the first quarter to meet demand. HK Ruokatalo has during
the first part of the year strengthened its share of the total market.
HK Ruokatalo's productivity programme concerning the period 2011−2013 is
progressing and pork cutting operations will be centralized to the production
facility in Forssa by the end of September during the current year. The beef
slaughterhouse investment in Outokumpu has been completed during the summer.
With the investment, it will be possible to increase and improve the
profitability of the facility's beef handling capacity.
Järvi-Suomen Portti Oy announced in June the launch of a development programme
through which it would increase production efficiency to utilize the capacity
of the production plant located in Tikkala in the town of Mikkeli more
efficiently. In the first phase of development the operations will be adjusted
in such a way that overlaps with the activities of HKScan Finland will be
dismantled and the operations centralized to the units in Finland best
qualified to perform them. The impacts of the development programme on the
personnel will be specified during the employer-employee negotiations initiated
in June.
MARKET AREA: SWEDEN
(EUR million)
Q2/2011 Q2/2010 Q1-Q2/11 Q1-Q2/10 2010
-------------------------------------------------------------
-------------------------------------------------------------
Net sales 263.0 241.9 515.4 472.3 997.1
-------------------------------------------------------------
EBIT 4.0 3.1 4.3 5.7 20.4
-------------------------------------------------------------
- EBIT margin, % 1.5 1.3 0.8 1.2 2.0
-------------------------------------------------------------
In Sweden, the profitability of business operations improved on the comparative
period in the second quarter. Net sales totalled EUR 263.0 million (EUR 241.9)
and EBIT came in at EUR 4.0 million (EUR 3.1 m). Net sales in krona were at the
same level as the previous year.
Despite tightening competition, Scan AB's second quarter went commercially
according to plan in Sweden.
Scan's ongoing efficiency programme is progressing. The start-up of the new
beef cutting line located in Linköping has continued to give rise to some
additional costs.
The scarcity of the supply of Swedish beef and pork has increased the purchase
prices of local raw material and, on the other hand, the strong krona has
contributed to an increase in the volumes of imported raw material. In
particular, the share of beef imports has continued to grow. Imported beef
already accounts for more than 50 percent of total consumption. With respect to
the primary production of pork, production volumes have fallen by about five
percent. The competitiveness of production based on Swedish meat raw material
is currently poor.
MARKET AREA: DENMARK
(EUR million)
Q2/2011 Q2/2010 Q1-Q2/11 Q1-Q2/10 2010
--------------------------------------------------------------
--------------------------------------------------------------
Net sales 55.9 - 113.5 - 21.8*)
--------------------------------------------------------------
EBIT -0.5 - -1.0 - -0.0*)
--------------------------------------------------------------
- EBIT margin, % -1.0 - -0.9 - 0.0*)
--------------------------------------------------------------
*) Rose Poultry A/S has been merged with the HKScan Group since 29 November
2010.
In Denmark, Rose Poultry's net sales stood at EUR 55.9 million. EBIT was EUR
-0.5 million.
The integration of Rose Poultry A/S, which joined the HKScan Group in November,
is in progress. In future, the aim is to improve the company's profitability by
developing Rose Poultry's fresh product range and further strengthen its
position, especially in its home market in Denmark, in Sweden and in the UK.
Rose Poultry is concentrating and improving its operations in the production
facilities located in Vinderup and Skovsgaard. Poultry slaughtering operations
at the Padborg plant in southern Denmark have been discontinued during the
second quarter in accordance with the announcement given in April.
MARKET AREA: BALTICS
(EUR million)
Q2/2011 Q2/2010 Q1-Q2/11 Q1-Q2/10 2010
-------------------------------------------------------------
-------------------------------------------------------------
Net sales 44.1 40.2 83.5 76.0 160.4
-------------------------------------------------------------
EBIT 2.7 3.3 3.6 4.3 8.7
-------------------------------------------------------------
- EBIT margin, % 6.1 8.1 4.3 5.7 5.4
-------------------------------------------------------------
In the market area of the Baltics, net sales came to EUR 44.1 million (EUR 40.2
m). The merger of AS Jelgavas Galas Kombinats with the Group on 1 July 2010 has
contributed to the growth in net sales. EBIT stood at EUR 2.7 million (EUR 3.3
m).
In the Baltics, the consumption of meat products is enjoying a modest recovery
with the growth of the economy. HKScan's business operations in the Baltic
countries have progressed steadily. The focus of development has been on the
product range and operational efficiency.
Strengthening inflation in the Baltics has rapidly increased the prices of raw
materials and other inputs. There is also pressure to raise personnel costs.
Despite these challenges, business operations in the Baltics have adjusted to
the prevailing market situation well.
MARKET AREA: POLAND
(EUR million)
*) Q2/2011 Q2/2010 Q1-Q2/11 Q1-Q2/10 2010
-------------------------------------------------------------
-------------------------------------------------------------
Net sales 77.0 66.0 147.5 129.9 279.3
-------------------------------------------------------------
EBIT 2.8 4.0 5.8 8.3 15.5
-------------------------------------------------------------
- EBIT margin, % 3.6 6.1 3.9 6.4 5.6
-------------------------------------------------------------
*) The figures refer to HKScan's share (50%) of the Sokolów Group's figures.
In Poland, business has progressed in accordance with expectations, although
the poor profitability of pork and increased production costs are exerting a
strain on operations. Sokolów's net sales totalled EUR 77.0 million (EUR 66.0
m) and EBIT stood at EUR 2.8 million (EUR 4.0m).
Sokolów's sales to traditional and modern retail supermarkets and hypermarkets
improved during the early part of the year as expected. Sales were boosted by
successful turnover of barbecue products in the second quarter and by broad
marketing campaigns.
The most important production-related development project has been the Sokolów
Podlaski plant, which is being modernised during the next few years.
CHANGES IN GROUP STRUCTURE
The corporate entity Järvi-Suomen Portti Oy established by HKScan Finland Oy
and Osuuskunta Karjaportti began operations at the turn of the year. The
company will continue and develop the production of processed meats at
Osuuskunta Portti's plant located in Tikkala in the town of Mikkeli. HKScan
Finland raised its holding in the company to 100 percent.
HK Ruokatalo merged its meat procurement and primary production as well as feed
trading into a single company at the beginning of 2011. The duties of the feed
company Lounaisfarmi and the chicken production chain of HK Ruokatalo were
transferred to LSO Foods, the name of which changed at the same time to HK
Agri.
CHANGES IN ORGANIZATION
Sirpa Laakso (Econ. & Bus. Adm.) assumed the post of Executive Vice President,
HR at HKScan Corporation and membership on the Management Team on 13 January
2011. Ms Laakso is responsible for HKScan's HR functions and for their
development in all of the Group's market areas. She reports to CEO Matti
Perkonoja.
Markku Suvanto, LL.M. trained on the bench, assumed the post of Administrative
and Legal Director at HKScan Corporation and membership on the Management Team
on 10 May 2011. Since 2009 he has held the position of HKScan Group lawyer. Mr
Suvanto is responsible for HKScan Group's legal affairs and, in respect of
external administration, for relations with the authorities. He is also in
charge of organizing internal administration and ensuring its effectiveness. Mr
Suvanto reports to CEO Matti Perkonoja.
CAPITAL EXPENDITURE AND FINANCE
The Group's gross investments in the second quarter of 2011 totalled EUR 17.3
million (EUR 18.0 m). Gross investments for the first half of 2011 totalled EUR
32.4 million (EUR 36.9 m) and were divided among production-related investment
in the market areas as follows: Finland EUR 10.3 million (EUR 13.3 m), Sweden
EUR 5.7 million (EUR 14.1 m), Denmark EUR 2.8 million (EUR - m) and the Baltics
EUR 6.3 million (EUR 6.0 m). HKScan's share of Sokolów investments in Poland
was EUR 7.2 million (EUR 3.5 m).
In Finland, the most important investments concerned the modernization of
Järvi-Suomen Portti's production line, the expansion of HK Ruokatalo's beef
slaughterhouse in Outokumpu and additional capacity in Eura. In Sweden, Scan's
investments in improving the pork slaughter process in Kristianstad and the
investment in the Pärsons' new cold-cut line in Halmstad continued. In Denmark,
investments involved the integration of Rose Poultry A/S and modernization of
the production lines to ensure efficiency and growth. In the Baltics, the main
investments involved the transfer of Rigas Miesnieks' production to Jelgava's
new production facility, the modernizations carried out on the production lines
at Rakvere to secure manufacturing capacity and programme for restructuring
production at Tallegg. In Poland, the main investment project was improvement
of the Sokolów Podlaski production facility.
The Group's interest-bearing debt at the end of June stood at EUR 508.7 million
(EUR 465.6 m). The growth in debt from the corresponding period a year earlier
(Q2/2010) is attributable mainly to the Rose Poultry deal executed in November
2010.Gross interest-bearing debt at the turn of the year was EUR 514.2 million.
The decrease in debt since the turn of the year is mainly notional due to the
weakening of the Swedish krona.
Due to rising monetary rates and the increase in total loans, net financial
expenses have risen considerably compared with the previous year, totalling in
January-June EUR 12.9 million (EUR 6.2 m). Untapped credit facilities at 30
June 11 stood at EUR 171.9 million (EUR 212.0 m). In addition, the Group had
other untapped overdraft and other facilities of EUR 39.9 million (EUR 22.6 m).
The EUR 100 million commercial paper programme had been drawn in the amount of
EUR 60.0 million (EUR 23.0 m).
At the end of the period under review, the equity ratio was 33.7 percent (35.2
%). The equity ratio at the turn of the year was 34.0 percent.
TREASURY SHARES
At 30 June 2011, HKScan held a total of 53 734 of its A Shares. These had a
market value of EUR 0.30 million (EUR 5.56 each) and accounted for 0.10% of all
shares and 0.03% of all votes. No dividend is paid on treasury shares.
RESOLUTIONS PASSED BY ANNUAL GENERAL MEETING
HKScan Corporation's Annual General Meeting on 27 April 2011 adopted the parent
company's and consolidated financial statements and discharged the members of
the Board of Directors and the CEO from liability for 2010. It was resolved
that the company pay a dividend of EUR 0.22 per share for 2010 in accordance
with the proposal of the Board of Directors.
In departure from the recommendation of the Board of Directors, the Annual
General Meeting resolved, on the proposal of HKScan's largest shareholder, LSO
Osuuskunta, that the number of members of the company's Board of Directors be
six (6). Juha Kylämäki, Niels Borup, Matti Karppinen, Tero Hemmilä and Otto
Ramel were, in accordance with the proposal of the Board, re-elected to a new
term and, in accordance with the proposal of LSO Osuuskunta, Henrik Treschow
was elected as a new member. At the organization meeting held immediately
following the AGM, the Board re-elected Juha Kylämäki as chairman and Niels
Borup as deputy chairman.
The Annual General Meeting resolved to elect Authorized Public Accountants
PricewaterhouseCoopers Oy, with APA Johan Kronberg as principal auditor, and
APA Petri Palmroth to serve as auditors as well as APA Mika Kaarisalo and APA
Jari Viljanen to serve as deputy auditors until the end of the next Annual
General Meeting.
BOARD OF DIRECTORS' EXISTING AUTHORIZATIONS
(1) The Annual General Meeting authorized the Board to resolve on acquiring
and/or accepting as pledge the company's Series A shares as follows:
The number of Series A shares to be acquired and/or accepted as pledge shall
not exceed 2 500 000, equal to approximately 4.5% of all shares and roughly
5.0% of Series A shares in the company.
Treasury shares may under the authorization only be acquired using unrestricted
equity, which means that acquisitions will reduce the company's funds available
for distribution of profit. Treasury shares may be purchased for a price quoted
in public trading on the purchase day or for a price otherwise determined by
the market.
Shares can be acquired on the basis of a proposed authorization to strengthen
the company's capital structure. In addition, shares can be acquired under a
proposed authorization to fund or implement corporate acquisitions or other
arrangements or otherwise transferred or cancelled.
The Board of Directors shall resolve upon the method of purchase. Among other
means, derivatives may be utilized in purchasing the shares. The shares may be
purchased in a proportion other than that of the shares held by the
shareholders (directed purchase). A directed acquisition of treasury shares can
only be executed for reasons of weighty financial consequence to the company
and the authorization cannot be exercised in violation of the principle of
shareholder equality. This authorization is valid until 30 June 2012.
This authorization cancels the authorization granted to the Board by the Annual
General Meeting of 23 April 2010 to resolve on acquiring the company's own A
Shares.
(2) The Annual General Meeting authorized the Board of Directors to resolve on
an issue of shares, option rights as well as other special rights entitling to
shares as referred to in Chapter 10:1 of the Limited Liability Companies Act as
follows:
This authorization concerns the issue of Series A shares. The Board was
authorized to decide on the number of shares to be issued. However, no more
than 2 500 000 Series A shares may be issued under this authorization. The
maximum number under the authorization equals approximately 4.5% percent of the
company's total registered shares and approximately 5.0% percent of total
Series A shares.
The Board is authorized to resolve upon all the terms and conditions of the
issue of shares and other special rights entitling to shares. The authorization
to issue shares covers the issuing of new shares as well as the transfer of the
company's treasury shares. The issue of shares and other special rights
entitling to shares may be implemented as a directed issue. This authorization
is valid until 30 June 2012.
The authorization cancels the authorization granted to the Board by the Annual
General Meeting of 23 April 2010 on resolving on an issue of shares, option
rights as well as other special rights entitling to shares.
The authorization concerning the issue of shares and other special rights
entitling to shares was granted to provide the company's Board with flexibility
in deciding on capital market transactions necessary to the company, e.g. to
secure its financing needs or to execute mergers and acquisitions. A directed
share issue can only be executed for reasons of weighty financial consequence
to the company and the authorization cannot be exercised in violation of the
principle of shareholder equality.
EMPLOYEES
In the first six months of 2011, HKScan had an average workforce of 8 594
employees (7 446 in Q1-Q2/2010).
The increase in employees was due the restructuring arrangements in 2010. The
Danish company, Rose Poultry A/S, and the Latvian company, Jelgavas Galas
Kombinats A/S, joined the Group in the latter part of 2010 and Järvi-Suomen
Portti Oy early in 2011. The comparison figures from Q1-Q2/2010 are therefore
exclusive of the numbers of employees in these three companies.
The average number of employees in each market area was as follows:
Q1-Q2/2011 Q1-Q2/2010
-------------------------------
Finland 2 773 2 496
-------------------------------
Sweden 3 008 3 139
-------------------------------
Denmark 908 -
-------------------------------
Baltics 1 905 1 811
-------------------------------
Sokolów employed on average 6 192 (5 615) persons.
Analysis of employees by country at 30 June is as follows:
30.6.2011 30.6.2010
-------------------------------------
Finland 34.9% 36.2%
-------------------------------------
Sweden 32.7% 37.2%
-------------------------------------
Estonia 17.5% 20.4%
-------------------------------------
Denmark 10.2% 0.7%
-------------------------------------
Latvia 2.5% 2.2%
-------------------------------------
Poland (Scan) 1.6% 2.7%
-------------------------------------
Other countries 0.6% 0.7%
-------------------------------------
Additionally, the Sokolów Group had 6 363 (5 890) employees at the end of the
period under review.
RISKS AND UNCERTAINTY FACTORS IN THE NEAR FUTURE
The most significant uncertainty factors in the HKScan Group's business involve
price trends of raw materials and availability, especially with respect to
Finnish and Swedish pork. Market area-specific uncertainty factors have to do
with the success of the business development programmes in Finland and Sweden
and the integration of the Rose Poultry acquisition in Denmark.
Challenges in the global economic situation will continue. Major fluctuation in
the Group's central currencies and higher interest rates may affect the Group's
competitiveness, net sales, earnings and balance sheet. Changes in demand
attributable to the financial situation such as, for example, growing
unemployment, may occur in the Group's market areas or its export markets.
These may affect the Group's net sales and earnings.
Any unforeseeable authorities procedures may affect the company's business in
its export markets.
The possibility of animal diseases can never be fully excluded in the food
industry's raw meat supplies.
EVENTS TAKING PLACE AFTER THE END OF THE REVIEW PERIOD
(1) The Group adjusted its EBIT forecast for 2011 on 26 July 2011. According to
the understanding of the Group's management, EBIT will fall short of the level
previously forecast due to the difficult international market situation for
pork and continuing high prices of raw materials and inputs. HKScan Corporation
forecast in its Q1 interim report published on 6 May 2011 that the “the Group's
full-year EBIT is expected to improve compared with 2010.”
The company adjusted its earlier forecast as follows:
HKScan's full-year EBIT is expected to fall short of 2010 levels.
FUTURE OUTLOOK
Consumer demand for meat is expected to remain steady in the Group's domestic
markets. The decentralized structure of HKScan's business in different product
groups and geographical areas, and the initiated efficiency programmes in
Finland and Sweden provide the foundation for stronger development of the
Group's competitiveness and profitability.
The difficult global market situation for pork will continue during the current
year in all of HKScan's market areas, especially in Finland. The protracted
profitability crisis will change most permanently the structures and production
volumes of the entire supply chain. With respect to pork, the company will
improve profitability by raising selling prices and through the controlled
adjustment of procurement volumes.
The Group's full-year EBIT is expected to fall short of 2010 levels.
CONSOLIDATED FINANCIAL STATEMENTS 1 JANUARY - 30 JUNE 2011
CONSOLIDATED INCOME STATEMENT
(EUR million)
Note Q2/201 Q2/201 Q1-Q2/11 Q1-Q2/ 2010
1 0 10
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET SALES 630.6 502.3 1 223.3 985.9 2 113.9
--------------------------------------------------------------------------------
Operating income and expenses 1. -605.8 -479.9 -1 179.4 -944.0 -2 006.2
--------------------------------------------------------------------------------
Share of associates' results 0.2 0.3 0.4 0.8 1.8
--------------------------------------------------------------------------------
Depreciation and impairment -18.3 -14.5 -36.3 -29.1 -61.5
--------------------------------------------------------------------------------
EBIT 6.7 8.1 8.0 13.6 48.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 1.9 1.3 3.5 3.5 8.1
--------------------------------------------------------------------------------
Financial expenses -9.5 -4.9 -16.4 -9.7 -21.9
--------------------------------------------------------------------------------
Share of associates' results 0.8 0.5 1.4 1.5 2.2
--------------------------------------------------------------------------------
PROFIT/LOSS BEFORE TAXES -0.1 5.0 -3.5 8.9 36.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income tax 1.1 -0.8 1.8 -0.6 -5.7
--------------------------------------------------------------------------------
PROFIT/LOSS FOR THE PERIOD 1.0 4.3 -1.7 8.3 30.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
PROFIT/LOSS FOR THE PERIOD
ATTRIBUTABLE TO:
--------------------------------------------------------------------------------
Equity holders of the parent 0.6 3.6 -2.5 7.0 27.9
--------------------------------------------------------------------------------
Non-controlling interests 0.4 0.7 0.8 1.2 2.9
--------------------------------------------------------------------------------
Total 1.0 4.3 -1.7 8.3 30.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share calculated on profit attributable to equity holders of the
parent:
EPS, undiluted, continuing operations, EUR/share 0.01 0.07 -0.05 0.13 0.52
-------------------------------------------------------------------------------
EPS, diluted, continuing operations, EUR/share 0.01 0.07 -0.05 0.13 0.52
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1 JANUARY - 30 JUNE
(EUR million)
Q2/201 Q2/201 Q1-Q2/ Q1-Q2/ 2010
1 0 11 10
--------------------------------------------------------------------------------
Profit/loss for the period 1.0 4.3 -1.7 8.3 30.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
OTHER COMPREHENSIVE INCOME (after taxes):
--------------------------------------------------------------------------------
Exchange differences on translating -2.8 -0.2 -1.7 7.0 13.5
foreign operations
--------------------------------------------------------------------------------
Available-for-sale investments 0.0 -0.4 0.0 0.0 0.0
--------------------------------------------------------------------------------
Cash flow hedging -1.7 -1.1 1.0 -3.9 1.8
--------------------------------------------------------------------------------
TOTAL OTHER COMPREHENSIVE INCOME -4.5 -1.7 -0.8 3.1 15.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -3.5 2.6 -2.5 11.4 46.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
ATTRIBUTABLE TO:
--------------------------------------------------------------------------------
Equity holders of the parent -4.0 1.9 -3.2 9.9 42.6
--------------------------------------------------------------------------------
Non-controlling interests 0.5 0.7 0.8 1.5 3.5
--------------------------------------------------------------------------------
Total -3.5 2.6 -2.5 11.4 46.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(EUR million)
Note 30.6.2011 30.6.2010 31.12.2010
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT ASSETS
--------------------------------------------------------------------------------
Intangible assets 2. 75.0 69.2 77.1
--------------------------------------------------------------------------------
Goodwill 3. 99.4 90.9 100.4
--------------------------------------------------------------------------------
Tangible assets 4. 530.2 482.3 537.8
--------------------------------------------------------------------------------
Shares in associates 27.9 22.7 27.0
--------------------------------------------------------------------------------
Trade and other receivables 29.0 20.6 25.3
--------------------------------------------------------------------------------
Available-for-sale investments 12.1 11.3 13.1
--------------------------------------------------------------------------------
Deferred tax asset 14.8 13.2 14.4
--------------------------------------------------------------------------------
NON-CURRENT ASSETS 788.4 710.2 795.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT ASSETS
--------------------------------------------------------------------------------
Inventories 5. 174.3 134.0 159.9
--------------------------------------------------------------------------------
Trade and other receivables 227.9 207.4 240.6
--------------------------------------------------------------------------------
Income tax receivable 4.4 2.2 0.3
--------------------------------------------------------------------------------
Other financial assets 0.4 2.2 3.9
--------------------------------------------------------------------------------
Cash and cash equivalents 43.6 68.6 69.5
--------------------------------------------------------------------------------
CURRENT ASSETS 450.5 414.4 474.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS 1 238.8 1 124.6 1 269.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY
--------------------------------------------------------------------------------
Share capital 6. 66.8 66.8 66.8
--------------------------------------------------------------------------------
Share premium reserve 73.4 74.1 73.4
--------------------------------------------------------------------------------
Treasury shares -0.0 -0.0 -0.0
--------------------------------------------------------------------------------
Fair value reserve and other reserves 162.3 144.4 154.4
--------------------------------------------------------------------------------
Translation differences -2.0 -6.1 0.6
--------------------------------------------------------------------------------
Retained earnings 105.3 107.5 124.4
--------------------------------------------------------------------------------
Equity attributable to equity holders of 405.8 386.6 419.6
the parent
--------------------------------------------------------------------------------
Non-controlling interests 10.9 9.4 11.1
--------------------------------------------------------------------------------
EQUITY 416.7 396.1 430.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT LIABILITIES
--------------------------------------------------------------------------------
Deferred tax liability 37.3 32.5 38.9
--------------------------------------------------------------------------------
Non-current interest-bearing liabilities 407.6 352.1 361.2
--------------------------------------------------------------------------------
Non-current non-interest bearing 12.6 5.0 12.4
liabilities
--------------------------------------------------------------------------------
Non-current provisions 1.4 2.8 2.4
--------------------------------------------------------------------------------
Pension obligations 3.0 3.5 3.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT LIABILITIES 461.9 395.9 418.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT LIABILITIES
--------------------------------------------------------------------------------
Current interest-bearing liabilities 101.1 113.5 153.0
--------------------------------------------------------------------------------
Trade and other payables 255.1 213.3 262.5
--------------------------------------------------------------------------------
Income tax liability 3.2 2.8 2.7
--------------------------------------------------------------------------------
Current provisions 0.8 3.1 2.3
--------------------------------------------------------------------------------
CURRENT LIABILITIES 360.2 332.7 420.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES 1 238.8 1 124.6 1 269.2
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN CONSOLIDATED EQUITY
(EUR million)
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
--------------------------------------------------------------------------------
EQUITY 66.8 73.4 -6.5 143.5 0.0 17.4 0.6 0.0 124.4 419.6 11.1 430.6
AT
1.1.2
011
--------------------------------------------------------------------------------
Result -2.5 -2.5 0.8 -1.7
for
the
finan
cial
year
--------------------------------------------------------------------------------
Transl 0.0 0.0 0.2 -2.6 0.8 -1.6 -0.1 -1.7
ation
diffe
rences
--------------------------------------------------------------------------------
Availa 0.0 0.0
ble-fo
r-sale
inves
tments
--------------------------------------------------------------------------------
Cash 1.0 1.0 1.0
flow
hedgi
ng
--------------------------------------------------------------------------------
Total 0.0 1.0 0.2 -2.6 -1.7 -3.2 0.8 -2.5
compr
ehensi
ve
incom
e for
the
perio
d
--------------------------------------------------------------------------------
Other
chang
e
--------------------------------------------------------------------------------
Direct 1.5 1.5 1.5
recogn
ition
in
retai
ned
earni
ngs
--------------------------------------------------------------------------------
Transf 6.8 -6.8 0.0 0.0
ers
betwe
en
items
--------------------------------------------------------------------------------
Share 0.0 0.0
issue
--------------------------------------------------------------------------------
Purcha 0.0 0.0
se of
treas
ury
share
s
--------------------------------------------------------------------------------
Increa 0.0 0.0
se in
holdi
ngs in
subsi
diarie
s
--------------------------------------------------------------------------------
Divide -12.1 -12.1 -0.9 -13.0
nd
distr
ibutio
n
--------------------------------------------------------------------------------
EQUITY 66.8 73.4 -5.5 143.5 0.0 24.4 -2.0 0.0 105.3 405.8 10.9 416.7
AT
30.6.
2011
--------------------------------------------------------------------------------
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
12.
--------------------------------------------------------------------------------
--
EQUITY 66.8 74.2 -8.4 143.5 0.0 14.6 -13.1 0.0 111.6 389.3 9.4
398.7
AT
1.1.2
010
--------------------------------------------------------------------------------
--
--------------------------------------------------------------------------------
--
Result 7.0 7.0 1.2
8.3
for
the
finan
cial
year
--------------------------------------------------------------------------------
--
Transl -0.1 0.0 -0.6 7.0 0.4 6.7 0.3
7.0
ation
diffe
rences
--------------------------------------------------------------------------------
--
Availa 0.0 0.0
0.0
ble-fo
r-sale
inves
tments
--------------------------------------------------------------------------------
--
Cash -3.9 -3.9
-3.9
flow
hedgi
ng
--------------------------------------------------------------------------------
--
Total -0.1 -3.8 -0.6 7.0 7.5 9.9 1.5
11.4
compr
ehensi
ve
incom
e for
the
perio
d
--------------------------------------------------------------------------------
--
Share- 0.0 0.0
0.0
based
compe
nsatio
n
expen
se
--------------------------------------------------------------------------------
--
Other -0.9 -0.9 -0.0
-1.0
chang
e
--------------------------------------------------------------------------------
--
Direct 0.4 0.4 -0.2
0.2
recog
nition
in
retai
ned
earni
ngs
--------------------------------------------------------------------------------
--
Transf 0.0
0.0
ers
betwe
en
items
--------------------------------------------------------------------------------
--
Share 0.0
0.0
issue
--------------------------------------------------------------------------------
--
Purcha 0.0
0.0
se of
treas
ury
share
s
--------------------------------------------------------------------------------
--
Increa 0.0
0.0
se in
holdi
ngs in
subsi
diarie
s
--------------------------------------------------------------------------------
--
Divide -12.0 -12.0 -1.3
-13.3
nd
distr
ibutio
n
--------------------------------------------------------------------------------
--
EQUITY 66.8 74.1 -12.2 143.5 0.0 13.0 -6.1 0.0 107.5 386.6 9.4
396.1
AT
30.6.
2010
--------------------------------------------------------------------------------
--
COLUMNS: 1. Share capital, 2. Share premium reserve, 3. Revaluation reserve, 4.
Reserve for invested unrestricted equity (RIUE), 5. Other equity item, 6. Other
reserves, 7. Translation differences, 8. Treasury shares, 9. Retained earnings,
10. Equity holders of the parent, 11. Non-controlling interests, 12. Total
CASH FLOW STATEMENT
(EUR million)
Q1-Q2/201 Q1-Q2/201 2010
1 0
--------------------------------------------------------------------------------
Operating activities
--------------------------------------------------------------------------------
EBIT 8.0 13.6 48.0
--------------------------------------------------------------------------------
Adjustments to EBIT -0.1 -0.6 -4.6
--------------------------------------------------------------------------------
Depreciation and amortization 36.3 29.1 61.5
--------------------------------------------------------------------------------
Change in provisions -2.7 -5.8 -7.9
--------------------------------------------------------------------------------
Change in net working capital -10.6 -25.4 -3.7
--------------------------------------------------------------------------------
Financial income 3.4 3.5 8.1
--------------------------------------------------------------------------------
Financial expenses -15.1 -9.7 -21.9
--------------------------------------------------------------------------------
Taxes -1.9 -0.6 -5.7
--------------------------------------------------------------------------------
Net cash flow from operating activities 17.3 4.1 73.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Investing activities
--------------------------------------------------------------------------------
Gross investments in property, plant and equipment -31.7 -35.7 -73.6
--------------------------------------------------------------------------------
Disposals of property, plant and equipment 1.0 2.3 7.0
--------------------------------------------------------------------------------
Investments in subsidiary 0.0 0.0 -25.2
--------------------------------------------------------------------------------
Shares in associates purchased -0.2 0.0 -1.6
--------------------------------------------------------------------------------
Shares in associates sold 0.0 0.0 1.3
--------------------------------------------------------------------------------
Loans granted -2.1 -1.3 -1.0
--------------------------------------------------------------------------------
Repayments of loans receivable 1.1 1.1 1.2
--------------------------------------------------------------------------------
Net cash flow from investing activities -31.9 -33.6 -91.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow before financing activities -14.6 -29.5 -18.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financing activities
--------------------------------------------------------------------------------
Current borrowings raised 28.0 93.8 169.9
--------------------------------------------------------------------------------
Current borrowings repaid -81.8 -67.4 -159.1
--------------------------------------------------------------------------------
Non-current borrowings raised 109.7 9.5 45.2
--------------------------------------------------------------------------------
Non-current borrowings repaid -57.7 -1.7 -33.0
--------------------------------------------------------------------------------
Dividends paid -12.1 -12.0 -11.9
--------------------------------------------------------------------------------
Purchase of treasury shares 0.0 0.0 -0.0
--------------------------------------------------------------------------------
Net cash flow from financing activities -13.9 22.1 11.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents -28.5 -7.4 -7.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at 1.1. 73.4 75.9 75.9
--------------------------------------------------------------------------------
Effect of changes in exchange rates on cash and -1.0 2.3 4.5
cash equivalents
--------------------------------------------------------------------------------
Cash and cash equivalents at 30.6. 43.9 70.8 73.4
--------------------------------------------------------------------------------
FINANCIAL INDICATORS
30.6.2011 30.6.2010 31.12.2010
--------------------------------------------------------------
--------------------------------------------------------------
EPS, undiluted, EUR -0.05 0.13 0.52
--------------------------------------------------------------
EPS, diluted, EUR -0.05 0.13 0.52
--------------------------------------------------------------
Equity per share, 30.6., EUR 7.38 7.16 7.63
--------------------------------------------------------------
Equity ratio, % 33.7 35.2 34.0
--------------------------------------------------------------
Adjusted average
--------------------------------------------------------------
number of shares, mill. 55.0 54.0 54.0
--------------------------------------------------------------
Gross capital expenditure
--------------------------------------------------------------
on PPE, EUR million 32.4 36.9 70.7
--------------------------------------------------------------
Employees, end of month
--------------------------------------------------------------
average 8 594 7 136 7 491
--------------------------------------------------------------
NOTES TO THE GROUP'S INTERIM REPORT
ACCOUNTING POLICIES
HKScan Corporation's interim report for 1 January - 30 June 2011 has been
prepared in compliance with IAS 34 Interim Financial Reporting. The same
accounting principles have been applied in the interim report as in the annual
financial statements for 2010. 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. These accounting principles are explained in
the financial statements for 2010.
As of 1 January 2011, the Group has adopted the following new IFRS standards
and interpretations:
− Change to IAS 32, Financial Instruments: Presentation - Classification of
Rights Issues (effective from 1 February 2010 or the succeeding financial
periods). The change applies to the accounting treatment (classification) for
the issue of shares, options and warrants outside the issuer's functional
currency. The amendments have no impact on consolidated reporting.
- IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments
(effective from 1 July 2010 or the succeeding financial periods). The
interpretation clarifies accounting where an entity renegotiates the terms of a
financial liability and as a result, issues its own equity instruments to the
creditor to settle all or a part of the financial liability. The amendments
have no impact on consolidated reporting.
- Amendments to IFRIC 14 interpretation, Prepayment of Minimum Funding
Requirement (effective from 1 January 2011 or the succeeding financial
periods). The amendment is aimed at correcting the unintended consequence of
IFRIC 14 IAS 19 − The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction. After the amendments, entities are
permitted to recognize as an asset some voluntary prepayments for minimum
funding contributions. The amendments have no impact on consolidated reporting.
- Revised IAS 24, Related Party Disclosures(effective from 1 January 2011 or
the succeeding financial periods). The revised standard clarifies the
definition of a related party and simplifies the disclosure requirements for
government-related entities.
ANALYSIS BY SEGMENT (EUR million)
Net sales and EBIT by main market area
Q2/2011 Q2/2010 Q1-Q2/11 Q1-Q2/10 2010
-------------------------------------------------------------------------
NET SALES
-------------------------------------------------------------------------
- Finland 207.9 173.5 395.9 341.3 718.5
-------------------------------------------------------------------------
- Sweden 263.0 241.9 515.4 472.3 997.1
-------------------------------------------------------------------------
− Denmark 55.9 - 113.5 - 21.8
-------------------------------------------------------------------------
- Baltics 44.1 40.2 83.5 76.0 160.4
-------------------------------------------------------------------------
- Poland 77.0 66.0 147.5 129.9 279.3
-------------------------------------------------------------------------
- Between segments -17.4 -19.3 -32.4 -33.6 -63.3
-------------------------------------------------------------------------
Group total 630.6 502.3 1 223.3 985.9 2 113.9
-------------------------------------------------------------------------
-------------------------------------------------------------------------
EBIT
-------------------------------------------------------------------------
- Finland 0.7 -0.1 0.1 -0.7 10.7
-------------------------------------------------------------------------
- Sweden 4.0 3.1 4.3 5.7 20.4
-------------------------------------------------------------------------
− Denmark -0.5 - -1.0 - -0.0
-------------------------------------------------------------------------
- Baltics 2.7 3.3 3.6 4.3 8.7
-------------------------------------------------------------------------
- Poland 2.8 4.0 5.8 8.3 15.5
-------------------------------------------------------------------------
- Between segments - - - - -
-------------------------------------------------------------------------
Segments total 9.6 10.3 12.7 17.6 55.2
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Group administration costs -2.9 *-2.1 -4.7 -4.0 *-7.2
-------------------------------------------------------------------------
Group total 6.7 8.1 8.0 13.6 48.0
-------------------------------------------------------------------------
* Includes EUR 0.9 million in soil decontamination expenses on sold land
recognized in Q2.
NOTES TO THE INCOME STATEMENT
1. NON-RECURRING ITEMS
(EUR million)
Q1-Q2/2011 Q1-Q2/2010 2010
---------------------------------------------------------------------------
Soil decontamination expense on sold land *) - -0.9 -0.9
---------------------------------------------------------------------------
Gains on disposal of production facilities *) - - 7.9
---------------------------------------------------------------------------
Total non-recurring items - - 7.0
---------------------------------------------------------------------------
*) Included in the income statement in the item “Operating income and expenses”.
NOTES TO THE STATEMENT OF FINANCIAL POSITION
2. CHANGES IN INTANGIBLE ASSETS
(EUR million)
Q1-Q2/2011 Q1-Q2/2010 2010
--------------------------------------------------------------------
Carrying amount at beginning of period 77.1 65.7 65.7
--------------------------------------------------------------------
Translation differences -1.5 4.5 8.1
--------------------------------------------------------------------
Increase 0.7 0.3 1.2
--------------------------------------------------------------------
Increase (acquisitions) 0.0 0.0 4.2
--------------------------------------------------------------------
Decrease -0.1 -0.2 -0.2
--------------------------------------------------------------------
Depreciation and impairment -1.9 -1.6 -3.5
--------------------------------------------------------------------
Transfer to other balance sheet item 0.7 0.4 1.5
--------------------------------------------------------------------
Carrying amount at end of period 75.0 69.2 77.1
--------------------------------------------------------------------
3. CHANGES IN GOODWILL
(EUR million)
Q1-Q2/2011 Q1-Q2/2010 2010
---------------------------------------------------------------------
Carrying amount at beginning of period 100.4 88.2 88.2
---------------------------------------------------------------------
Translation differences -1.4 2.7 4.2
---------------------------------------------------------------------
Increase 0.4 0.0 1.3
---------------------------------------------------------------------
Increase (acquisitions) 0.0 0.0 6.8
---------------------------------------------------------------------
Decrease 0.0 0.0 0.0
---------------------------------------------------------------------
Depreciation and impairment 0.0 0.0 0.0
---------------------------------------------------------------------
Transfer to other balance sheet item 0.0 0.0 0.0
---------------------------------------------------------------------
Carrying amount at end of period 99.4 90.9 100.4
---------------------------------------------------------------------
4. CHANGES IN PROPERTY, PLANT AND EQUIPMENT
(EUR million)
Q1-Q2/2011 Q1-Q2/2010 2010
---------------------------------------------------------------------
Carrying amount at beginning of period 537.8 469.1 469.1
---------------------------------------------------------------------
Translation differences -1.8 5.7 17.4
---------------------------------------------------------------------
Increase 30.3 37.5 71.6
---------------------------------------------------------------------
Increase (acquisitions) 0.7 0.6 43.0
---------------------------------------------------------------------
Decrease -0.9 -2.3 -2.4
---------------------------------------------------------------------
Depreciation and impairment -34.4 -27.9 -59.5
---------------------------------------------------------------------
Transfer to other balance sheet item -1.5 -0.4 -1.5
---------------------------------------------------------------------
Carrying amount at end of period 530.2 482.3 537.8
---------------------------------------------------------------------
5. INVENTORIES
(EUR million)
Q1-Q2/2011 Q1-Q2/2010 2010
----------------------------------------------------------
Materials and supplies 86.3 81.2 88.8
----------------------------------------------------------
Unfinished products 11.2 8.7 8.8
----------------------------------------------------------
Finished products 58.3 29.1 45.7
----------------------------------------------------------
Goods 0.0 0.2 0.0
----------------------------------------------------------
Other inventories 8.1 3.9 6.2
----------------------------------------------------------
Prepayments for inventories 2.2 3.0 2.6
----------------------------------------------------------
Live animals, IFRS 41 8.2 7.9 7.6
----------------------------------------------------------
Total inventories 174.3 134.0 159.9
----------------------------------------------------------
6. NOTES TO EQUITY
Share capital Number of Share Share RIUE Treasury Tot.
and share outstanding capital premium shares
share premium shares reserve
reserve
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
1.1.2011 54 972 788 66.8 72.9 151.1 0.0 290.8
--------------------------------------------------------------------------------
30.6.2011 54 972 788 66.8 72.9 151.1 0.0 290.8
--------------------------------------------------------------------------------
RIUE = Reserve for invested unrestricted equity
DERIVATIVE INSTRUMENT LIABILITIES
(EUR million)
30.6.2011 30.6.2010 31.12.2010
--------------------------------------------------------------------------
Derivative instrument liabilities
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Nominal values of derivative instruments
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Foreign exchange derivatives 77.1 98.8 149.9
--------------------------------------------------------------------------
Interest rate derivatives 276.5 208.0 247.0
--------------------------------------------------------------------------
Electricity derivatives 10.4 10.3 10.2
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Fair values of derivative instruments
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Foreign exchange derivatives 0.4 0.0 -0.3
--------------------------------------------------------------------------
Interest rate derivatives -12.2 -17.1 -16.8
--------------------------------------------------------------------------
Electricity derivatives 0.5 0.0 2.2
--------------------------------------------------------------------------
CONSOLIDATED OTHER CONTINGENT LIABILITIES
(EUR million)
30.6.2011 30.6.2010 31.12.2010
---------------------------------------------------------------------
Debts secured by
---------------------------------------------------------------------
pledges or mortgages
---------------------------------------------------------------------
- loans from financial institutions 39.6 37.4 56.1
---------------------------------------------------------------------
---------------------------------------------------------------------
Given as security
---------------------------------------------------------------------
- real estate mortgages 63.4 50.4 48.9
---------------------------------------------------------------------
- pledges 6.3 31.4 20.8
---------------------------------------------------------------------
- floating charges 44.6 20.3 47.3
---------------------------------------------------------------------
---------------------------------------------------------------------
For associates
---------------------------------------------------------------------
- guarantees 5.3 5.0 5.3
---------------------------------------------------------------------
---------------------------------------------------------------------
For others
---------------------------------------------------------------------
- guarantees and pledges 14.0 11.7 13.8
---------------------------------------------------------------------
---------------------------------------------------------------------
Other contingencies
---------------------------------------------------------------------
Leasing commitments 25.8 19.6 25.5
---------------------------------------------------------------------
Rent liabilities 62.9 41.2 56.3
---------------------------------------------------------------------
Other commitments 20.3 6.2 6.5
---------------------------------------------------------------------
BUSINESS TRANSACTIONS WITH RELATED PARTIES
(EUR million)
Q1-Q2/2011 Q1-Q2/2010 2010
---------------------------------------------------------
Sales to associates 29.5 18.0 40.4
---------------------------------------------------------
Purchases from associates 24.8 17.6 35.1
---------------------------------------------------------
Trade and other receivables 1.7 2.1 1.8
---------------------------------------------------------
Trade and other payables 8.7 9.0 8.8
---------------------------------------------------------
The figures presented in the interim report are unaudited.
Vantaa, 10 August 2011
HKScan Corporation
Board of Directors
Further information is available from CEO Matti Perkonoja. Please leave any
messages for him to call with Marjukka Hujanen on +358 (0)10 570 6218.
HKScan is one of the leading food companies in northern Europe with home
markets in Finland, Sweden, Denmark, the Baltic countries and Poland. HKScan
manufactures, sells and markets pork and beef, poultry products, processed
meats and convenience foods under several well-known local brand names. Its
customers are retail, the HoReCa sector, industry and export customers. HKScan
is active in nine countries and has some 11 000 employees. It had net sales of
EUR 2.1 billion in 2010.
DISTRIBUTION:
NASDAQ OMX Helsinki
Main media
www.hkscan.com
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