2012-02-17 07:01:54 CET
2012-02-17 07:03:02 CET
REGULATED INFORMATION
HKScan Oyj - Financial Statement Release
HKScan Group’s financial statement release 1 January − 31 December 2011
HKScan Corporation FINANCIAL STATEMENT RELEASE 17 February
2012, at 08:00 am
HKScan Group's financial statement release 1 January − 31 December 2011
HKScan's ebit strengthens during the last quarter
* In 2011, HKScan's net sales rose to EUR 2 491.3 million (EUR 2 113.9 m): up
by 17.9 %.
* EBIT came in at EUR 39.6 million (EUR 48.0 m).
* The protracted challenges in the pork business began to ease towards the end
of the year, and the situation is stabilizing, especially in the market area of
Finland.
* There have been no significant changes in market position in any of the
Group's market areas during the year. The market position continued to
strengthen in Finland, however.
* Net financial expenses were EUR -30.9 million (EUR -13.8 m); the rise
compared with the previous year was considerable. Higher loan margins were the
main reason for the rise.
* Guidance for 2012: EBIT is estimated to be better than in 2011.
HKSCAN CONSOLIDATED INCOME STATEMENT, Q4 and the entire year
(EUR million)
Q4/2011 Q4/2010 2011 2010
----------------------------------------------------------------------
Net sales 649.8 595.7 2 491.3 2 113.9
----------------------------------------------------------------------
EBIT 17.6 15.7 39.6 48.0
----------------------------------------------------------------------
- % of net sales 2.7 2.6 1.6 2.3
----------------------------------------------------------------------
Share of associates' result 0.6 -0.1 2.5 2.2
----------------------------------------------------------------------
Financial income and expenses, net -9.1 -4.5 -30.9 -13.8
----------------------------------------------------------------------
Profit before taxes 9.1 11.1 11.3 36.5
----------------------------------------------------------------------
- % of net sales 1.4 1.9 0.5 1.7
----------------------------------------------------------------------
Income tax -0.7 -2.4 1.0 -5.7
----------------------------------------------------------------------
Profit for the period 8.3 8.7 12.2 30.8
----------------------------------------------------------------------
- % of net sales 1.3 1.5 0.5 1.5
----------------------------------------------------------------------
----------------------------------------------------------------------
Profit attributable to:
----------------------------------------------------------------------
- Equity holders of the parent 7.5 8.0 10.1 27.9
----------------------------------------------------------------------
− Non-controlling interests 0.8 0.7 2.1 2.9
----------------------------------------------------------------------
Total 8.3 8.7 12.2 30.8
----------------------------------------------------------------------
----------------------------------------------------------------------
EPS, undiluted, EUR 0.14 0.15 0.18 0.52
----------------------------------------------------------------------
EPS, diluted, EUR 0.14 0.15 0.18 0.52
----------------------------------------------------------------------
Q4/2011, OCTOBER-DECEMBER
- The Group's net sales grew in the last quarter of the year by 9.1% and
totalled EUR 649.8 million (EUR 595.7 m).
- EBIT came in at EUR 17.6 million (EUR 15.7 m), up by 12.1%.
- In Finland, net sales were EUR 217.6 million (EUR 198.2 m) and EBIT EUR 7.2
million (EUR 4.7 m). Measured by profitability, the quarter was one of the best
in recent years.
- In Sweden, net sales were EUR 275.6 million (EUR 275.0 m) and EBIT EUR 7.4
million (EUR 8.0 m).The movement in net sales was a result of, among other
things, a quieter Christmas season than expected.
- In Denmark, net sales came to EUR 54.3 million (EUR 21.8 m) and EBIT to EUR
-1.3 million (EUR -0.0 m). The business development programme continued to
erode performance in the last quarter too. When considering the figures, it
should be taken into account that the company was consolidated into the HKScan
Group since 29 November 2010.
- In the Baltics, net sales grew to EUR 44.9 million (EUR 42.0 m) and EBIT
stood at EUR 2.8 million (EUR 1.8 m). Development of the business continued to
be strong.
- In Poland, business progressed as planned. Net sales came to EUR 73.9 million
(EUR (72.6 m) and EBIT to EUR 3.5 million (EUR 3.0m).
CEO MATTI PERKONOJA:
“HKScan's EBIT in the last quarter of 2011 recovered after the poor trend at
the beginning of the year. The quarter went as expected, and in terms of
performance, was the year's best.
HKScan's market position is strong in all the company's market areas and there
have not been any significant changes in it.
In Finland, sales price increases implemented at the end of the year and cuts
in costs, for their part, returned the profitability of the business to a
better level. The transition to more controlled contract production in the pork
chain is proceeding as planned. The most important launch in 2011 in Finland
was Rapeseed pork, which turned out to be commercially very successful. HKScan
is launching similar pork meat on the Swedish market in 2012 under the name
Svensk Rapsgris.
In Sweden, the market continued to be challenging throughout the year. Swedish
meat raw materials are in short supply and producer prices are high. Meat
imports to Sweden have increased significantly, which is largely based on the
favourable exchange rate situation for importers.
In Denmark, considerable effort was devoted in 2011 to the new structuring of
the business. In accordance with its strategy, Rose Poultry is developing fresh
produce for its domestic markets, especially for Sweden.
In the Baltics and Poland, strong development of the business continued both in
the last quarter and throughout the whole year.
The Group's financial costs have increased substantially. A key near-term goal
is to strengthen cash flow and with this to reduce interest-bearing
liabilities.
Meat consumption has increased in all the Group's market areas. Consumers want
high-quality and responsibly produced food. The Group is a responsible player
in the meat sector whose starting point in product development and production
is excellent taste and high quality. The basis is an efficient and transparent
production chain. In 2011, a corporate responsibility scheme was implemented by
the HKScan Group in the subsidiaries in Finland, Sweden and the Baltics. In
Denmark, Rose Poultry A/S joined the scheme during the year.
The problems in the global economy have only a minimal impact on consumer
demand for HKScan's products, as the Group's comprehensive product portfolio
offers options for the diverse needs of different consumers groups.
The prevailing trend in which the consumer market is becoming fragmented into
smaller consumer groups is continuing to grow. Successful operators in the
industry are those who understand and exploit the change more readily. A key
success factor for the future is to develop the offering under the strong
brands of the HKScan Group to meet consumer expectations. The taste and quality
of food, sustainable production methods and the positive experience engendered
by good food are highlighted.”
MARKET AREA: FINLAND
(EUR million)
Q4/2011 Q4/2010 2011 2010
------------------------------------------------
------------------------------------------------
Net sales 217.6 198.2 812.4 718.5
------------------------------------------------
EBIT 7.2 4.7 12.1 10.7
------------------------------------------------
- EBIT margin, % 3.3 2.4 1.5 1.5
------------------------------------------------
In Finland, net sales rose to EUR 812.4 million (EUR 718.5 m). Järvi-Suomen
Portti Oy's merger with the Group at the beginning of 2011 accounted for
approximately half of this growth. EBIT came in at EUR 12.1 million, (EUR 10.7
m).
The profitability of the business in Finland improved in the last quarter. The
protracted difficulties in the pork business stabilized towards the end of the
year. Surplus pork stocks were offloaded onto the market profitably. The
implemented price increases together with more efficient production management,
rectified the situation towards the end of the year.
Rapeseed pork, launched in February, has proved to be a success in the market.
Boosted by the strong demand in rapeseed pork products, the total consumption
of pork in Finland grew by some 5 percent annually (Source: TNS Gallup, Meat
Barometer). The market position strengthened in poultry, fresh meat and cold
cuts.
The year 2011 was good commercially. The Group succeeded in the summer barbeque
season. Performance at the end of the year was also successful, especially in
Christmas sales, thanks to Rapeseed Christmas pork. The market position
strengthened in Finland.
HKScan Finland Oy's subsidiary Järvi-Suomen Portti Oy began operations at the
beginning of 2011. During the summer an efficiency programme was announced
which would increase production efficiency and improve capacity utilization at
the plant in Mikkeli between 2011 and 2012. To eliminate overlaps with HKScan
Finland's other operations, the transfer of logistics operations in Mikkeli to
Vantaa was started.
MARKET AREA: SWEDEN
(EUR million)
Q4/2011 Q4/2010 2011 2010
--------------------------------------------------
--------------------------------------------------
Net sales 275.6 275.0 1 045.7 997.1
--------------------------------------------------
EBIT 7.4 8.0 17.2 20.4
--------------------------------------------------
- EBIT margin, % 2.7 2.9 1.6 2.0
--------------------------------------------------
In Sweden, Scan AB's net sales in 2011 amounted to EUR 1 045.7 million (EUR
997.1 m). Net sales in krona remained on the same level as the previous year.
EBIT in 2011 came in at EUR 17.2 million (EUR 20.4 m). When considering the
comparison year, EUR 7.9 in million non-recurring gains realized in 2010 must
be taken into account. Implementation of the efficiency programme in 2010 gave
rise to substantial exceptional costs as well.
Development in net sales was affected by the halt in the growth of consumer
staples in Sweden and the strong growth in the share of private label brands
during the year. In addition, the Christmas season in 2011 was quieter than
expected.
Production volumes of pork have decreased further in Sweden. Imports cover over
35 percent of consumption. Imports of beef already account for over 50 percent
of consumption. Scarcity in the supply of Swedish beef and pork places pressure
on local raw material purchase prices, which rose considerably at the end of
the year.
In the autumn, it was announced a new Hansa brand range of products would be
launched on the market as an alternative to private brands. Meat primarily from
other units of the HKScan Group outside Sweden are used in Hansa-products,
taking into account the Group's balance meat sheet, price level and exchange
rates.
At the end of the year, Scan AB's subsidiary Annerstedt Flodins AB launched the
origin-labelled Chosen by Farmers concept for the consumer-packed meat
category. High-quality beef and lamb comes from selected beef cattle breeders
mainly from Uruguay, Australia and New Zealand. Chosen by Farmers has awakened
trade and consumers interest in Sweden.
Early in 2012, Scan AB is bringing Swedish rapeseed pork (Svensk Rapsgris) to
restaurant customers. The concept is expanding to include the retail trade
during summer 2012. During the pilot phase, the concept evoked significant
interest within primary production too. The aim is to achieve an upturn in the
primary production of pork, which for many years has been declining.
MARKET AREA: DENMARK
(EUR million)
Q4/2011 Q4/2010*) 2011 2010*)
---------------------------------------------------
---------------------------------------------------
Net sales 54.3 21.8 228.1 21.8
---------------------------------------------------
EBIT -1.3 -0.0 -3.7 -0.0
---------------------------------------------------
- EBIT margin, % -2.4 0.0 -1.6 0.0
---------------------------------------------------
*) Rose Poultry A/S has been consolidated with the HKScan Group since 29
November 2010.
In Denmark, Rose Poultry's net sales in 2011 were EUR 228.1 million (EUR 21.8
m) and EBIT stood at EUR -3.7 million (EUR -0.0 m). When considering the
figures, it should be taken into account that the company has been consolidated
into the HKScan Group since 29 November 2010.
The weak development in the business during 2011 was attributable to the low
level of sales prices, especially for chicken leg quarters, in the EU markets
and the Middle East. At the same time costs increased at the beginning of the
year, mainly due to high raw material prices.
The poor profitability during the last quarter was attributable, among other
things, to the clearing of export stocks of chicken leg quarters. The Malaysian
export market, which re-opened at the end of the year, will improve export
volumes and profitability. The ongoing business development programme in the
company is advancing according to plan, although it also resulted in additional
expenditure in the second half of 2011.
Rose Poultry's development and centralization activities continued at the
Vinderup and Skovsgaard production facilities. Discontinuation of slaughtering
at the Padborg facility during the second quarter decreased the company's
workforce by 50.
In line with its strategy, Rose Poultry will focus increasingly in the future
on fresh poultry products, particularly in the Danish and Swedish markets.
During 2012 it will launch a range of new products on these markets.
MARKET AREA: BALTICS
(EUR million)
Q4/2011 Q4/2010 2011 2010
------------------------------------------------
------------------------------------------------
Net sales 44.9 42.0 173.3 160.4
------------------------------------------------
EBIT 2.8 1.8 9.8 8.7
------------------------------------------------
- EBIT margin, % 6.2 4.3 5.6 5.4
------------------------------------------------
In the market area of the Baltics, net sales in 2011 came to EUR 173.3 million
(EUR 160.4 m) and EBIT to EUR 9.8 million (EUR 8.7 m).
High raw material prices and increased energy costs made the year challenging.
Inflation throughout the Baltic countries increased food prices, which in turn
affected consumption. During the second half of year, in particular, consumer
behaviour became clearly more uncertain. HKScan's Baltic units have
nevertheless adapted to the prevailing market situation well and maintained
strong profitability in line with targets. Success has been achieved with the
right product range and active cost discipline. Sales in the entire Baltic
region grew. The highest growth in net sales was in Lithuania.
Sales of Rakvere Lihakombinaat's and especially of Tallegg's seasonal products
succeeded well. Tallegg has developed its products and modernized its
production processes and lines to meet growing demand. In Latvia, the
reorganization of production was completed as planned in late May. In
Lithuania, the new, successful products and development of customer
relationships contributed to growth.
MARKET AREA: POLAND
(EUR million)
*) Q4/2011 Q4/2010 2011 2010
------------------------------------------------
------------------------------------------------
Net sales 73.9 72.6 298.9 279.3
------------------------------------------------
EBIT 3.5 3.0 12.7 15.5
------------------------------------------------
- EBIT margin, % 4.7 4.1 4.2 5.6
------------------------------------------------
*) The figures refer to HKScan's share (50%) of the Sokolów Group's figures.
In Poland, Sokolów's net sales were up on the previous year. The share
recognized for the HKScan Group (50%) amounted to EUR 298.9 million (EUR 279.3
m). EBIT came in at EUR 12.7 million (EUR 15.5 m). December sales reached
all-time record.
Sokolów's sales improved as planned, both in modern and in traditional retail
chains. Costs continued to rise in pork production in Poland. Transferring
price increases to consumers has posed a challenge, which has weakened the
profitability of pork.
The year 2011 was overall challenging in the Polish meat sector. The most
seriously affected were small and medium-sized companies specializing in
slaughtering and cutting. Large and diverse companies such as Sokolów have
coped with the situation better. The most significant investment in Poland
involved improvement of processed meat production.
INVESTMENTS
The Group's production-related gross investments in 2011 totalled EUR 61.0
million (EUR 70.7 m). Breakdown of investments by market areas was as follows:
(EUR million)
2011 2010
-----------------------------------------------
Finland 17.3 20.2
-----------------------------------------------
Sweden 8.9 27.5
-----------------------------------------------
Denmark 7.8 0.7 2)
-----------------------------------------------
Baltics 12.4 14.5
-----------------------------------------------
Poland 1) 14.5 7.8
-----------------------------------------------
1) HKScan's share (50%) of Sokolów investments.
2) Rose Poultry 29 November−31 December 2010.
In Finland, the most important investments were the expansion of the beef
slaughterhouse at Outokumpu. In addition, the cooling capacity of the carcass
cold storage facility was increased in Forssa. In Sweden, the main investments
were development of the processes at the Kristianstad and Linköping units. In
Denmark, the investments involved development of Rose Poultry's production
processes. In the Baltics, the main investments continued to involve the
modernizations carried out on the production lines at Rakvere to secure
manufacturing capacity and the programme for restructuring production at
Tallegg. In Poland, the most important projects were improvement of the Sokolów
Podlaski production facility and the beef slaughtering line at the Tarnów
plant.
FINANCING
The Group's interest-bearing debt at year-end stood at EUR 504.2 million (EUR
514.2 m). Debt decreased only slightly compared with the previous year,
although the amount was for most of the year clearly higher than in the
comparison year due to the Rose Poultry acquisition executed in November 2010.
Net financial expenses rose considerably compared with the previous year, and
totalled EUR -30.9 million (EUR -13.8 m). The main reasons for the increase
were higher margins on loans, growth in loans arising from the Rose Poultry
acquisition, interest rate derivative costs and higher rates.
The Group's liquidity has been good throughout the financial year. Untapped
committed credit facilities at 31 December 2011 stood at EUR 204 million (EUR
203 m). In addition, the Group had other untapped overdraft and other
facilities of EUR 26 million (EUR 34 m). In November 2011, the company
increased the size of its commercial paper programme from EUR 100 million to
EUR 200 million. At the turn of the year, the commercial paper programme had
been drawn in the amount of EUR 109.3 million (EUR 37 m).
A large proportion of the company's loans mature in 2013−2014. The company has
started negotiations on refinancing. The debt crisis of euro zone countries,
the euro crisis, and at the same time stricter capital requirements for banks
increase the risk of a rise in financial costs. The company's current loan
agreements are subject to ordinary terms relating to profit and balance sheet.
The financial covenants are net gearing ratio and ratio of net debt to EBITDA.
At the end of the year, the equity ratio stood at 33.6 percent (34.0 %).
TAXES
The Group's taxes during 2011 were EUR 1.0 million (EUR -5.7 m). The effective
tax rate was positive (-15.6 %). This was the result of a number of factors.
Tax losses are recognized in deferred tax assets using local tax rates. In the
Baltic operations, advantage was taken of Estonia's zero tax rate as, so far,
the company has not planned on distributing profits from the Baltics.
EFFECT OF CURRENCY EXCHANGE RATES
With respect to the Group's main currencies, the Swedish krona fluctuated
during the year, but finished at the level at the end of 2010. The Polish zloty
weakened by over 10 percent. Changes in the rate of the Danish krone were
minimal, as the krone is tied to the euro with a certain fluctuation margin.
Fluctuations in currency exchange rates become visible upon the consolidation
of the figures of foreign business segments. At the closing date, half of the
equities of foreign subsidiaries on average had been hedged. As Estonia adopted
the euro in January 2011, EEK-denominated equity hedges ended.
RESEARCH AND DEVELOPMENT
Research and development in the HKScan Group involves mainly standard product
development, meaning the development of new products over a span of one to two
years and the updating of products already on the market. A total of EUR 11.2
million (EUR 9.6 m) was spent on R&D in 2011, equal to 0.4 percent of net
sales.
A project of more than usual significance is Rapeseed pork, the marketing of
which was started in Finland in February 2011. In accordance with a feeding
programme developed through extensive research, Rapeseed pigs are fed with
Finnish grain and rapeseed oil, which improves the quality of the fat in their
meat. Two-thirds of the fat in Rapeseed pork is soft, and it contains as much
as four times more omega 3 fatty acids than ordinary pork. During 2011, the
Rapeseed pork range was expanded and innovative adaptation for the Swedish
market under the name Svensk Rapsgris was started.
CORPORATE RESPONSIBILITY
As a major northern European meat company that recognizes its responsibilities
HKScan operates in accordance with legislation and the requirements of the
authorities. As part of continuous improvement of its operations, HKScan's
subsidiaries are actively involved in industry-wide research and development
projects. HKScan endeavours to increase the transparency of its operating chain
and thus strengthen stakeholders' confidence in the operations of the entire
chain of operations.
HKScan's responsibility scheme concentrates on the most pertinent aspects of
responsibility for its sector. For the food industry the most important areas
are product safety, nutrition, environmental matters, employee wellbeing at
work, wellbeing of production animals, local aspects and economic
responsibility (MTT 2009). HKScan's day-to-day operations are guided by
responsibility principles drawn up for each aspect. In 2011, a corporate
responsibility scheme was implemented in the subsidiaries in Finland, Sweden
and the Baltics. In Denmark, Rose Poultry A/S joined the scheme during the
year.
In product development HKScan invests in high-quality and nutritionally
balanced products. An example of this is Rapeseed pork developed in Finland by
HK Ruokatalo. Rapeseed oil added to the pigs' feed softens the quality of the
fat in a natural way.
Most of the Group's production plants have an ISO 22000 certified product
safety management system either from the British Retail Consortium (BRC) or a
German IFS certification. The majority of the plants in Finland, Sweden and the
Baltics have in place a quality management system compliant with the ISO 9001
standard and an environmental management compliant with the ISO 14001 standard.
HKScan operates on the principle of causing minimum adverse environmental
impact during production. This principle is put into practice in all market
areas, taking into account existing local and Union-wide regulations and
certification processes.
In the food industry, energy, water, waste arising from processing biological
materials, wastewater and flue gases from heating plants cause the greatest
environmental loading. HKScan seeks to reduce the amount of energy and water
consumed in relation to production (= specific consumption), to reduce waste
and improve sorting. Use of more environmentally-friendly and renewable
packaging materials will be increased gradually.
The health and welfare of production animals are the prerequisite for the
operation and profitability of the entire meat chain. Wellbeing reduces
production animals' stress and morbidity, and thus the need for medication.
Welfare is also taken into account in animal breeding, animal housing
conditions and transportation. HKScan subsidiaries monitor the welfare of
production animals and develop its measurement.
CHANGES IN THE BOARD OF DIRECTORS
The composition of the company's Board of Directors changed on 4 February 2011
when the convened Extraordinary General Meeting of Shareholders elected as new
members of the Board Juha Kylämäki, Niels Borup and Tero Hemmilä. The election
of new members became necessary after Board members Markku Aalto, Tiina
Varho-Lankinen and Matti Murto had announced their resignation on 4 January
2011. The matter has been reported in more detail in the stock exchange release
published on 4 January 2011. In addition to the elected new members, the Board
included Matti Karppinen, Pasi Laine and Otto Ramel from before.
HKScan's Annual General Meeting, held on 27 April 2011 re-elected Juha
Kylämäki, Niels Borup, Matti Karppinen, Tero Hemmilä and Otto Ramel and elected
as a new member Henrik Treschow.
CHANGES IN MANAGEMENT
On 17 November 2011, HKScan's Board of Directors appointed Hannu Kottonen as
the company's next CEO. He will take up the post at the beginning of March 2012
when the current CEO Matti Perkonoja retires. Mr Kottonen is moving to HKScan
from Metsä Tissue Corporation, whose CEO he has been since 2006. Prior to this,
he has served as head of M-real Corporation's Consumer Packaging business area
between 2004 and 2006. He has also been employed by the Huhtamaki Group in
various positions, including CFO and president of the Fresh Food Packaging
Division.
Sirpa Laakso, M Sc (Econ.) assumed the post of executive vice president, HR at
HKScan Corporation and membership on the Management Board on 13 January 2011.
Ms Laakso is responsible for HKScan's HR functions and their development in all
of the Group's market areas.
The Group's lawyer Markku Suvanto, LL.M. trained on the bench, assumed the post
of administrative and legal director and membership on the Management Board on
10 May 2011. He is responsible for the 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.
The position of managing director of Rose Poultry A/S remained vacant, as Olli
Antniemi, BSc (Econ) died of a sudden illness on 24 November 2011. Mr Antniemi
participated in a key manner in the Group's strong process of
internationalization. Prior to being Rose Poultry's managing director, he was
senior vice president of strategy and development at HKScan, managing director
of Scan AB, executive vice president of HKScan's Baltic Group as well as
marketing and exports director at HK Ruokatalo. Thomas Olander, BSc (Econ & Bus
Admin), was appointed as Rose Poultry's new managing director on 11 January
2012. The appointment is reported below in “Events taking place after 31
December 2011”.
CHANGES IN GROUP STRUCTURE
Järvi-Suomen Portti Oy established on a 90/10 basis by HKScan Finland Oy and
Osuuskunta Karjaportti began operations at the beginning of 2011. The company
produces processed meats in Mikkeli at Osuuskunta Portti's Tikkala plant. In
May, HKScan Finland raised its holding in Järvi-Suomen Portti to 100 percent.
Meat procurement and primary production as well as feed trading in the Group's
operations in Finland were merged 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 Oy.
RESOLUTIONS PASSED BY THE GENERAL MEETINGS OF SHAREHOLDERS
(1) The resolutions of HKScan Corporation's Extraordinary Meeting of
Shareholders, which convened on 4 February 2011, are reported below in “Changes
in the Board of Directors”.
(2) HKScan Corporation's AGM adopted on 27 April 2011 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 decided to distribute a
dividend of EUR 0.22 per share as recommended by the Board of Directors.
On the proposal of HKScan's largest shareholder, LSO Osuuskunta, the AGM
resolved that the number of members of the company's Board of Directors be six.
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.
In accordance with the recommendation of the Board of Directors' Nomination
Committee, the AGM resolved that remuneration for members of the Board remain
unchanged; that as annual remuneration members of the Board be paid EUR 21 000,
the deputy chairman EUR 25 800 and the chairman EUR 51 600 per year. In
addition, an attendance fee of EUR 500 per meeting would be paid for Board and
committee meetings. Travel expenses would be reimbursed in accordance with the
company's travel policy.
Authorised Public Accountants PricewaterhouseCoopers Oy, with APA Johan
Kronberg as principal auditor, and APA Petri Palmroth were appointed as
auditors until the end of the next AGM. The deputy auditors are APA Mika
Kaarisalo and APA Jari Viljanen.
The authorizations granted by the AGM on 27 April 2011 are explained below
under the heading “Board of Directors' existing authorizations”.
SHAREHOLDERS AND SHARE CAPITAL
At the end of 2011, the shareholder register maintained by Euroclear Finland
Ltd included 11 802 shareholders. The number totalled 12 524 a year earlier.
Nominee-registered and foreign shareholders held 20.1 percent (23.3 %) of all
the company's shares.
The Company's registered and fully paid-up share capital at the beginning of
the financial year and at the balance sheet date was EUR 66 820 528.10. The
share capital breaks down as follows:
A Shares 49 626 522 90.19 %
K Shares 5 400 000 9.81 %
Total 55 026 522 100.00 %
According to the Articles of Association, each A Share conveys one vote and
each K Share 20 votes. The K Shares are held by LSO Osuuskunta (4 735 000
shares) and Sveriges Djurbönder ek.för. (665 000 shares). Each share gives
equal entitlement to a dividend. The shares have no nominal value.
NOTIFICATIONS OF CHANGES IN HOLDINGS
HKScan did not receive any notifications of changes in holdings during 2011.
CHANGES IN SHARE CAPITAL FROM 2010 TO 2010
The company did not increase share capital during the financial year 2010. The
proceeds of EUR 8.0 million from the share offering to the shareholders of Rose
Poultry A/S (Vinderup Poultry A/S, Skovsgaard Fjerkræslagteri A/S and Hedegaard
A/S) executed in December 2010 were recognized in full in the reserve for
invested unrestricted equity (RIUE), and for this reason the share capital was
not increased.
STOCK EXCHANGE LISTINGS
HKScan's A Share has been quoted on NASDAQ OMX Helsinki Ltd since 6 February
1997. During 2011, a total of 11 765 471 of the company's shares with a total
value of EUR 71 137 019 were traded. The highest price quoted was EUR 7.98 and
the lowest EUR 4.08. The middle price was EUR 6.05 and the year-end closing
price was EUR 5.64. The share price fell by 21.1 percent on the year while the
index for the Food Products sector (HX302020GI) fell by 17.5 percent on or 36.0
points on the year.
The company's market capitalization at the end of the financial year stood at
EUR 310.3 million, and a year earlier at EUR 393.1 million. It breaks down as
follows: Series A shares had a market value of EUR 279.9 million and the
unlisted Series K shares a calculational market value of EUR 30.5 million.
HKScan has in place a market making agreement with FIM Pankkiiriliike Oy which
meets the requirements of NASDAQ OMX's Liquidity Providing (LP) operation.
TREASURY SHARES
At the beginning and at the end of the financial year 2011, HKScan held a total
of 53 734 of its treasury A Shares. These had a market value at year-end of EUR
0.30 million and accounted for 0.10% of all shares and 0.03% of all votes. No
dividend is paid on treasury shares.
BOARD OF DIRECTORS' EXISTING AUTHORIZATIONS
(1) The AGM of 27 April 2011 authorized the Board to decide on acquiring and/or
accepting as pledge treasury A Shares in such a way that the shares acquired
and/or accepted as pledge total a maximum of 2 500 000 shares, equal to roughly
4.5 % of total registered shares and 5.0 % of total A Shares.
Treasury shares may 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 to strengthen the company's capital structure. In
addition, shares can be acquired under the 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 and
cancels the authorization granted to the Board by the AGM of 23 April 2010 to
decide on acquiring treasury A Shares.
(2) The AGM also authorized the Board of Directors to decide 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. The Board
was authorized to decide on the issue of a maximum of 2 500 000 Series A
Shares, corresponding to approximately 4.5 % of all registered shares in the
company and approximately 5.0 % of all Series A Shares.
The Board may decide upon all the terms and conditions of the issue of shares
and other special rights entitling to shares. The authorization to issue shares
shall cover 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 and cancels the authorization granted to the Board by the
AGM of 23 April 2010 on deciding 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.
The Board did not exercise the authorizations received from the AGM during 2011.
EMPLOYEES
The HKScan Group had in 2011 on average 8 287 employees. (In 2010, excluding
Denmark, the Group had on average 7 491 employees.). At the end of 2011, the
Group had 7 882 (8 058) employees.
The increase in employees was due the restructuring arrangements in 2010. The
Danish company, Rose Poultry A/S, and the Latvian company, AS Jelgavas Galas
Kombinats, joined the Group in the latter part of 2010 and Järvi-Suomen Portti
Oy early in 2011.
The average number of employees in each market area was as follows:
2011 2010
---------------------
Finland 2 750 2 464
---------------------
Sweden 2 789 3 143
---------------------
Denmark 867 -
---------------------
Baltics 1 881 1 884
---------------------
Total 8 287 7 491
---------------------
The figures for the comparison year do not take into account Denmark, which
consolidated into the Group only on 29 November 2010.
In addition, Sokolów had on average 6 191 (5 734) employees.
Employees by country at the end of the financial year:
31.12.2011 % 31.12.2010 %
-----------------------------------------------------
Finland 2 564 32.5% 2 325 28.9%
-----------------------------------------------------
Sweden 2 511 31.9% 2 622 32.5%
-----------------------------------------------------
Estonia 1 543 19.6% 1 605 19.9%
-----------------------------------------------------
Denmark 844 10.7% 969 12.0%
-----------------------------------------------------
Latvia 208 2.6% 292 3.6%
-----------------------------------------------------
Poland (Scan) 153 1.9% 189 2.3%
-----------------------------------------------------
Other countries 59 0.7% 57 0.8%
-----------------------------------------------------
Total 7 882 8 058
-----------------------------------------------------
In addition, Sokolów had 6 175 (6 145) employees.
The HKScan Group has employees in ten European countries. Executive management
in each country ensures that Group companies have regard to the legislation and
agreements governing employment, remuneration and other terms of employment,
and occupational safety in their respective countries. During 2011, effort was
devoted to developing a human resources management model covering the whole
Group. A key area was competence development.
The HKScan Group's European Works Council (EWC), which promotes dialogue
between representatives of the Group management and personnel, began its
activities in autumn 2011. The Council functions as a cooperation body for
discussion between the Group's management and personnel in issues that are
significant and, due to their scope, transnational. The EWC convenes biannually
in one of countries within HKScan's field of activities. The first meeting was
organized in Vantaa, Finland.
SHARE-BASED INCENTIVE SCHEMES
The company has no share-based incentive schemes in place.
During the years 2006−2008, the company had in place a share-based incentive
scheme for key employees. The three-year commitment period relating to it ended
on 31 December 2010 and the shares were released for the unrestricted use of
their recipients.
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 and to Danish poultry meat. Market area-specific
uncertainty factors have to do with the success of the business development
programmes in Finland and Sweden and the implementation of Rose Poultry's new
business model Denmark.
Challenges in the global economic situation will continue. Major fluctuations
in the Group's central currencies and increases in the price of money 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 31 DECEMBER 2011
Thomas Olander, BSc (Econ & Bus Admin), was appointed as the new managing
director of HKScan's Danish subsidiary, Rose Poultry A/S 11 January 2011. He
transferred to the post from the position of managing director of Pärsons
Sverige AB, which is part of the Group. Mr Olander has been employed at HKScan
Group since 2008 and before that was managing director of the Swedish company
Ugglarps Slakteri AB. Mr Olander continues to act as managing director of
Kreatina A/S and of Scan Foods UK Ltd. Mr Olander reports to Denis Mattsson,
managing director of Scan AB, who is responsible for both the Swedish and
Danish market areas on HKScan's Management Board.
HKScan is combining and rendering closer to each other the operative management
of the market areas of Finland and the Baltics. Anne Mere, MBA, managing
director of HKScan's Estonian subsidiary AS Rakvere Lihakombinaat, was
appointed to the post as of 10 February 2012. She also became a member of
HKScan's Management Board. Ms Mere will be responsible for HKScan's market
area of Finland as HKScan Finland Oy's managing director, and for the market
area of the Baltics.
Along with Ms Mere's appointment, Teet Soorm was appointed managing director of
AS Rakvere Lihakombinaat. He is also continuing as managing director of AS
Tallegg and AS Ekseko. Jari Leija is continuing as managing director of HK
Ruokatalo Oy, the largest subsidiary in the market area of Finland.
FUTURE OUTLOOK
Consumer demand for meat is expected to remain steady in the Group's domestic
markets. Cost changes in production inputs can still be forecast only for the
near future.
HKScan's different product groups and different geographical areas, and the
ongoing efficiency and development programmes further strengthen the Group's
competitiveness and profitability.
Sales prices of the company's products this year will be increased selectively
in different product groups and in different market areas.
The group's EBIT for 2012 is estimated to be better than in 2011.
BOARD OF DIRECTORS' PROPOSAL ON DISTRIBUTION OF PROFIT
The parent company's distributable assets stand at EUR 166.2 million including
the reserve for invested unrestricted equity (RIUE), which holds EUR 151.1
million. The Board of Directors recommends that the company pays a dividend of
EUR 0.17 per share for 2011, i.e. a total of approximately EUR 9.3 million.
There have been no material changes in the company's financial standing since
the end of the year under review. The company maintains good liquidity and the
recommended distribution of dividend will not in the Board's estimation
compromise the company's solvency.
ANNUAL GENERAL MEETING
HKScan Corporation's Annual General Meeting will be held at 11 am on 25 April
2012 in the Ballroom of Helsinki Fair Centre (address: Messuaukio 1, 00520
Helsinki). To be eligible to attend the Annual General Meeting, shareholders
should be registered by 13 April 2012 in HKScan Corporation's shareholder
register maintained by Euroclear Finland Ltd. Notice of and Board proposals to
the Annual General Meeting will be published at a later date.
HKSCAN GROUP'S CONSOLIDATED FINANCIAL STATEMENTS 1 JANUARY - 31 DECEMBER 2011
CONSOLIDATED INCOME STATEMENT
(EUR million)
Note 2011 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET SALES 2 491.3 2 113.9
--------------------------------------------------------------------------------
Change in inventories of finished goods and work in 16.1 3.5
progress
--------------------------------------------------------------------------------
Work performed for own use and capitalized 1.3 1.3
--------------------------------------------------------------------------------
Other operating income 1. 9.2 13.6
--------------------------------------------------------------------------------
Share of associates' results 1.1 1.8
--------------------------------------------------------------------------------
Materials and services -1 740.8 -1 445.9
--------------------------------------------------------------------------------
Employee benefits expenses 1. -379.3 -316.6
--------------------------------------------------------------------------------
Depreciation and amortization 1. -72.3 -61.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other operating expenses 1. -286.9 -262.0
--------------------------------------------------------------------------------
EBIT 39.6 48.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 7.4 8.1
--------------------------------------------------------------------------------
Financial expenses -38.3 -21.9
--------------------------------------------------------------------------------
Share of associates' results 2.5 2.2
PROFIT/LOSS BEFORE TAXES 11.3 36.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income tax 1.0 -5.7
--------------------------------------------------------------------------------
PROFIT/LOSS FOR THE PERIOD 12.2 30.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
PROFIT/LOSS FOR THE PERIOD ATTRIBUTABLE TO:
--------------------------------------------------------------------------------
Equity holders of the parent 10.1 27.9
--------------------------------------------------------------------------------
Non-controlling interests 2.1 2.9
--------------------------------------------------------------------------------
Total 12.2 30.8
--------------------------------------------------------------------------------
Earnings per share calculated on profit attributable to equity holders of the
parent:
--------------------------------------------------------------------------------
-
EPS, undiluted, continuing operations, EUR/share 0.18 0.52
--------------------------------------------------------------------------------
EPS, diluted, continuing operations, EUR/share 0.18 0.52
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR 1 JANUARY - 31 DECEMBER 2011
(EUR million)
2011 2010
--------------------------------------------------------------------------------
Profit/loss for the period 12.2 30.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
OTHER COMPREHENSIVE INCOME (after
taxes):
--------------------------------------------------------------------------------
Exchange differences on -2.5 13.5
translating foreign operations
--------------------------------------------------------------------------------
Available-for-sale investments 0.0 0.0
--------------------------------------------------------------------------------
Cash flow hedging -7.4 1.8
--------------------------------------------------------------------------------
Revaluation 0.0 0.0
--------------------------------------------------------------------------------
TOTAL OTHER COMPREHENSIVE INCOME -9.8 15.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE 2.4 46.1
PERIOD
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD ATTRIBUTABLE TO:
--------------------------------------------------------------------------------
Equity holders of the parent 0.3 42.6
--------------------------------------------------------------------------------
Non-controlling interests 2.1 3.5
--------------------------------------------------------------------------------
Total 2.4 46.1
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(EUR million)
Note 31.12.2011 31.12.2010
---------------------------------------------------------------
ASSETS
---------------------------------------------------------------
---------------------------------------------------------------
NON-CURRENT ASSETS
---------------------------------------------------------------
Intangible assets 2. 76.6 77.1
---------------------------------------------------------------
Goodwill 3. 101.0 100.4
---------------------------------------------------------------
Tangible assets 4. 516.5 537.8
---------------------------------------------------------------
Shares in associates 29.9 27.0
---------------------------------------------------------------
Trade and other receivables 31.1 25.3
---------------------------------------------------------------
Available-for-sale investments 13.0 13.1
---------------------------------------------------------------
Deferred tax asset 21.1 14.4
---------------------------------------------------------------
NON-CURRENT ASSETS 789.2 795.0
---------------------------------------------------------------
---------------------------------------------------------------
CURRENT ASSETS
---------------------------------------------------------------
Inventories 5. 190.2 159.9
---------------------------------------------------------------
Trade and other receivables 223.8 240.6
---------------------------------------------------------------
Income tax receivable 1.5 0.3
---------------------------------------------------------------
Other financial assets 0.4 3.9
---------------------------------------------------------------
Cash and cash equivalents 48.0 69.5
---------------------------------------------------------------
CURRENT ASSETS 463.8 474.1
---------------------------------------------------------------
---------------------------------------------------------------
ASSETS 1 253.0 1 269.2
---------------------------------------------------------------
---------------------------------------------------------------
EQUITY AND LIABILITIES
---------------------------------------------------------------
---------------------------------------------------------------
EQUITY
---------------------------------------------------------------
Share capital 6. 66.8 66.8
---------------------------------------------------------------
Share premium reserve 73.4 73.4
---------------------------------------------------------------
Treasury shares 0.0 0.0
---------------------------------------------------------------
Fair value reserve and other 153.2 154.4
reserves
---------------------------------------------------------------
Translation differences -1.9 0.6
---------------------------------------------------------------
Retained earnings 117.9 124.4
---------------------------------------------------------------
Equity attributable to equity 409.3 419.6
holders of the parent ---------------------------------------------------------------
Non-controlling interests 12.2 11.1
---------------------------------------------------------------
EQUITY 421.5 430.6
---------------------------------------------------------------
---------------------------------------------------------------
NON-CURRENT LIABILITIES
---------------------------------------------------------------
Deferred tax liability 36.9 38.9
---------------------------------------------------------------
Non-current interest-bearing 333.5 361.2
liabilities
---------------------------------------------------------------
Non-current non-interest bearing 3.0 12.4
liabilities
---------------------------------------------------------------
Non-current provisions 0.6 2.4
---------------------------------------------------------------
Pension obligations 3.1 3.1
---------------------------------------------------------------
---------------------------------------------------------------
NON-CURRENT LIABILITIES 377.1 418.0
---------------------------------------------------------------
---------------------------------------------------------------
CURRENT LIABILITIES
---------------------------------------------------------------
Current interest-bearing 170.6 153.0
liabilities
---------------------------------------------------------------
Trade and other payables 282.9 262.5
---------------------------------------------------------------
Income tax liability 0.1 2.7
---------------------------------------------------------------
Current provisions 0.7 2.3
---------------------------------------------------------------
CURRENT LIABILITIES 454.4 420.6
---------------------------------------------------------------
---------------------------------------------------------------
EQUITY AND LIABILITIES 1 253.0 1 269.2
---------------------------------------------------------------
STATEMENT OF CHANGES IN CONSOLIDATED EQUITY
(EUR million)
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
--------------------------------------------------------------------------------
Equity at 66.8 73.4 -6.5 143.5 17.4 0.6 0.0 124.5 419.6 11.1 430.6
1.1.
2011
--------------------------------------------------------------------------------
Result 0.0 0.0 0.0 0.0 0.0 0.0 0.0 10.1 10.1 2.1 12.2
for
the
financial
year
--------------------------------------------------------------------------------
Transl. 0.0 0,0 0,0 0,0 0,0 -2.5 0.0 0.0 -2.5 0.0 -2.5
diff.
--------------------------------------------------------------------------------
Available 0.0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
−for-sale
investm.
--------------------------------------------------------------------------------
Cash flow 0,0 0,0 -7.4 0,0 0,0 0,0 0,0 0,0 -7.4 0.0 -7.4
hedging
--------------------------------------------------------------------------------
Revaluat- 0,0 0,0 0,0 0,0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
ion
--------------------------------------------------------------------------------
Total 0,0 0,0 -7.4 0.0 0.0 -2.5 0.0 10.1 0.3 2.1 2.4
compr.
income
for the
period
--------------------------------------------------------------------------------
Share- 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
based
compens.
expense
--------------------------------------------------------------------------------
Other 0,0 0,0 0,0 0,0 0.0 0,0 0,0 0,0 0.0 -0.1 -0.1
change
--------------------------------------------------------------------------------
Direct 0,0 0,0 0,0 0,0 0,0 0,0 0,0 1.5 1.5 0.0 1.5
recogn.
in ret.
earnings
--------------------------------------------------------------------------------
Transfers 0,0 0,0 0,0 0,0 6.1 0,0 0,0 -6.1 0,0 0,0 0,0
between
items
--------------------------------------------------------------------------------
Share 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
issue
--------------------------------------------------------------------------------
Purchase 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
of
treasury
shares
--------------------------------------------------------------------------------
Increase 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
in hold.
in subs.
--------------------------------------------------------------------------------
Dividend 0,0 0,0 0,0 0,0 0,0 0,0 0,0 -12.1 -12.1 -0.9 -13.0
distrib.
--------------------------------------------------------------------------------
Equity 66.8 73.4 -13.9 143.5 23.5 -1.9 0.0 117.9 409.3 12.2 421.5
at 31.12.
2011
--------------------------------------------------------------------------------
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
--------------------------------------------------------------------------------
Equity at 66.8 74.2 -8.4 143.5 14.6 -13.1 0.0 111.6 389.3 9.4 398.7
1.1.
2010
--------------------------------------------------------------------------------
Result 0,0 0,0 0,0 0,0 0,0 0,0 0,0 27.9 27.9 2.9 30.8
for the
financial
year
--------------------------------------------------------------------------------
Transl. 0,0 -0.1 0.1 0.0 -0.6 13.7 0.0 -0.2 12.9 0.6 13.5
diff.
--------------------------------------------------------------------------------
Available 0,0 0,0 0.0 0,0 0,0 0,0 0,0 0,0 0.0 0.0 0.0
-for-sale
investm.
--------------------------------------------------------------------------------
Cash flow 0,0 0,0 1.8 0,0 0,0 0,0 0,0 0,0 1.8 0.0 1.8
hedging
--------------------------------------------------------------------------------
Total 0,0 -0.1 1.9 0.0 -0.6 13.7 0.0 27.7 42.6 3.5 46.1
compr.
income
for the
period
--------------------------------------------------------------------------------
Share- 0,0 -0.8 0.0 0.0 0,0 0,0 0,0 0,0 -0.8 0.0 -0.8
based
comp.
expense
--------------------------------------------------------------------------------
Other 0,0 0,0 0,0 0,0 -0.9 0.0 0.0 0.0 -0.9 0.0 -1.0
change
--------------------------------------------------------------------------------
Direct 0,0 0,0 0,0 0,0 0,0 0,0 0,0 1.2 1.2 -0.2 1.1
recogn.
in ret.
earnings
--------------------------------------------------------------------------------
Transfers 0,0 0,0 0,0 0,0 4.3 0,0 0,0 -4.3 0,0 0,0 0,0
between
items
--------------------------------------------------------------------------------
Share 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
issue
--------------------------------------------------------------------------------
Purchase 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
of
treasury
shares
--------------------------------------------------------------------------------
Increase 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0.0 0.0 -0.1 0.0
in hold.
in subs.
--------------------------------------------------------------------------------
Dividend 0,0 0,0 0,0 0,0 0,0 0,0 0,0 -11.9 -11.9 -1.6 -13.5
distrib.
--------------------------------------------------------------------------------
Equity at 66.8 73.4 -6.5 143.5 17.4 0.6 0.0 124.5 419.6 11.1 430.6
31.12.
2010
--------------------------------------------------------------------------------
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)
2011 2010
--------------------------------------------------------------------------
Operating activities
--------------------------------------------------------------------------
EBIT 39.6 48.0
--------------------------------------------------------------------------
Adjustments to EBIT -0.7 -4.6
--------------------------------------------------------------------------
Depreciation and amortization 72.3 61.5
--------------------------------------------------------------------------
Change in provisions -3.0 -7.9
--------------------------------------------------------------------------
Change in net working capital -28.3 -3.7
--------------------------------------------------------------------------
Financial income 12.1 8.1
--------------------------------------------------------------------------
Financial expenses -31.8 -21.9
--------------------------------------------------------------------------
Taxes -6.4 -5.7
--------------------------------------------------------------------------
Net cash flow from operating activities 53.9 73.8
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Investing activities
--------------------------------------------------------------------------
Gross investments in property, plant and -60.4 -73.6
equipment
--------------------------------------------------------------------------
Disposals of property, plant and equipment 1.9 7.0
--------------------------------------------------------------------------
Investments in subsidiary -25.2
--------------------------------------------------------------------------
Shares in associates purchased -1.0 -1.6
--------------------------------------------------------------------------
Shares in associates sold 0.0 1.3
--------------------------------------------------------------------------
Loans granted -1.8 -1.0
--------------------------------------------------------------------------
Repayments of loans receivable 2.1 1.2
--------------------------------------------------------------------------
Net cash flow from investing activities -59.2 -91.9
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Cash flow before financing activities -5.4 -18.1
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Financing activities
--------------------------------------------------------------------------
Current borrowings raised 76.8 169.9
--------------------------------------------------------------------------
Current borrowings repaid -98.3 -159.1
--------------------------------------------------------------------------
Non-current borrowings raised 159.4 45.2
--------------------------------------------------------------------------
Non-current borrowings repaid -142.4 -33.0
--------------------------------------------------------------------------
Dividends paid -12.7 -11.9
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Net cash flow from financing activities -17.1 11.1
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Change in cash and cash equivalents -22.5 -7.0
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Cash and cash equivalents at 1.1. 73.4 75.9
--------------------------------------------------------------------------
Effect of changes in exchange rates on cash -2.5 4.5
and cash equivalents
--------------------------------------------------------------------------
Cash and cash equivalents at 31.12. 48.4 73.4
--------------------------------------------------------------------------
FINANCIAL INDICATORS
2011 2010
-----------------------------------------------------------
Net sales, EUR mill. 2 491.3 2 113.9
-----------------------------------------------------------
Operating profit/loss (EBIT), EUR million 39.6 48.0
-----------------------------------------------------------
- % of net sales 1.6 2.3
-----------------------------------------------------------
Profit/loss before taxes, EUR million 11.3 36.5
-----------------------------------------------------------
- % of net sales 0.5 1.7
-----------------------------------------------------------
Return on equity (ROE), % 2.9 7.4
-----------------------------------------------------------
Return on investment (ROI), % 4.8 6.3
-----------------------------------------------------------
Equity ratio, % 33.6 34.0
-----------------------------------------------------------
Net gearing ratio, % 107.2 101.7
-----------------------------------------------------------
Gross investments, EUR million 61.0 70.7
-----------------------------------------------------------
- % of net sales 2.4 3.3
-----------------------------------------------------------
R&D expenses, EUR million 11.2 9.6
-----------------------------------------------------------
- % of net sales 0.4 0.5
-----------------------------------------------------------
Average no. of employees 8 287 7 491
-----------------------------------------------------------
PER SHARE DATA
2011 2010
------------------------------------------------------------------
------------------------------------------------------------------
Earnings per share (EPS), undiluted, EUR* 0.18 0.52
------------------------------------------------------------------
Earnings per share (EPS), diluted, EUR* 0,18 0.52
------------------------------------------------------------------
Equity per share, EUR* 7.67 7.63
------------------------------------------------------------------
------------------------------------------------------------------
Dividend per share, EUR* 0.17* 0.22
------------------------------------------------------------------
Dividend payout ratio, undiluted, % 92.1* 42.6
------------------------------------------------------------------
Dividend payout ratio, diluted, % 92.1* 42.6
------------------------------------------------------------------
Effective dividend yield, % 3.0* 3.1
------------------------------------------------------------------
Price/earnings ratio (P/E)
------------------------------------------------------------------
- undiluted 30.6 13.9
------------------------------------------------------------------
- diluted 30.6 13.9
------------------------------------------------------------------
Lowest trading price, EUR* 4.08 7.07
------------------------------------------------------------------
Highest trading price, EUR* 7.98 10.20
------------------------------------------------------------------
Middle price, EUR* 6.05 8.18
------------------------------------------------------------------
Closing price on year, EUR 5.64 7.15
------------------------------------------------------------------
Market capitalization, EUR million 310.3 393.1
------------------------------------------------------------------
Shares traded, 1 000 11 765 23 674
------------------------------------------------------------------
- % of average number 21.4 43.8
------------------------------------------------------------------
Adjusted number of outstanding shares in thousands
------------------------------------------------------------------
- average during the financial year 54 973 54 015
------------------------------------------------------------------
- at end of financial year 54 973 54 973
------------------------------------------------------------------
- fully diluted 54 973 54 973
------------------------------------------------------------------
* Based on the Board of Directors' dividend recommendation
FORMULAE FOR FINANCIAL INDICATORS
Profit before taxes - taxes
Return on equity ---------------------------------------- x 100
(%)
Total shareholders' equity (average)
Profit before taxes + interest and other financial expenses
Return on ---------------------------------------- x 100
investment (%)
Balance sheet total - non-interest-bearing debt
(average)
Total shareholders' equity
Equity ratio (%) ---------------------------------------- x 100
Balance sheet total - advances received
Interest-bearing debt - interest-bearing loan
receivables - cash and cash equivalents
Net gearing ratio ---------------------------------------- x 100
(%)
Total shareholders' equity
Profit for the period attributable to equity holders
of the parent
Earnings per share ----------------------------------------
Average adjusted number of shares during the
financial year
Equity attributable to holders of the parent
Equity per share ----------------------------------------
Average adjusted number of shares at the end of the
financial year
Dividend per share
Dividend per share ----------------------------------------
Coefficient of share issues after the financial year
Adjusted dividend per share
Dividend payout ---------------------------------------- x 100
ratio (%)
Earnings per share
Dividend per share
Effective dividend ---------------------------------------- x 100
yield (%)
Adjusted closing price on the last trading day of the
financial year
Adjusted closing price on the last trading day of the
financial year
P/E ratio ----------------------------------------
Earnings per share
Market The number of outside shares at the end of the financial
capitalization period x the closing price on the last trading day of the
financial year
Employee numbers Average of workforce figures calculated at the end of
calendar months
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ACCOUNTING POLICIES
HKScan Corporation's financial statement release for 1 January − 31 December
2011 has been prepared in compliance with IAS 34 Interim Financial Reporting.
The consolidated financial statements have been prepared in compliance with the
International Financial Reporting Standards (IFRS) and the IAS and IFRS
standards and SIC and IFRIC interpretations effective at 31 December 2011.
The consolidated financial statements have been prepared in compliance with the
same accounting policies as in 2010. Due to the rounding of the figures to the
nearest million euros, some totals may not agree with the constituent parts.
There are no IFRS standards or IFRIC interpretations that have become effective
in the financial year that would have a material impact on the Group.
The Group has yet to apply the following new or revised standards and
interpretations published by the IASB. These will be applied as from the
effective date of each standard and interpretation or, if the effective date
does not fall on the first day of the financial year, as from the start of the
financial year first beginning after the effective date.
- Amendment to IFRS 7, Financial Instruments: Disclosures (effective for
financial years beginning on or after 1 July 2011) The amendment will increase
transparency in the reporting of transfer transactions and improve users'
understanding of the risk exposures relating to transfers of financial assets
and the effect of those risks on an entity's financial position, particularly
those involving securitisation of financial assets. The amendment has not yet
been endorsed for application in the EU. The Group has yet to assess the
impacts of the amendment.
- Amendment to IAS 1 Presentation of Financial Statements (effective for
financial years beginning on or after 1 July 2012). The main change resulting
is a requirement to group items presented in ‘other comprehensive income' on
the basis of whether they are potentially subsequently reclassifiable to profit
or loss. The amendment has not yet been endorsed for application in the EU. The
Group has yet to assess the impacts of the amendment.
- Amendment to IAS 19 Employee Benefits (effective for financial years
beginning on or after 1 January 2013). In the future, all actuarial gains and
losses shall be recognized immediately under other comprehensive income, i.e.
the ‘corridor method' will be eliminated and finance costs will be calculated
on a net funding basis. The amendment has not yet been endorsed for application
in the EU. The Group has yet to assess the impacts of the amendment, but it
will affect the Group's figures.
- IFRS 9, Financial Instruments (date of effectiveness yet to be confirmed).
IFRS 9 is the first phase in a broader project to replace IAS 39 with a new
standard. Different measurement methods have been maintained, but they have
been simplified. IFRS 9 divides financial assets into two classifications:
those measured at amortized acquisition cost and those measured at fair value.
The classification depends on the company's business model and the contractual
cash flow characteristics. The IAS 39 guidance on impairment and hedge
accounting continues to apply. According to the new standard, recording and
valuation of financial liabilities should remain unchanged, except in those
financial liabilities to which a so-called ‘fair value option' is applied. The
standard has not yet been endorsed for application in the EU. The Group has yet
to assess the impacts of IFRS 9.
- IFRS 10 Consolidated Financial Statements (effective for financial years
beginning on or after 1 January 2013). Based on existing principles, the
standard defines control as a primary factor when determining whether an entity
should be included within the consolidated financial statements. In addition,
the standard provides further guidance on how to assess control in difficult
cases. The standard has not yet been endorsed for application in the EU. The
impacts of IFRS 10 are yet to be assessed, and the Group plans its adoption in
2013.
- IFRS 11 Joint Arrangements (effective for financial years beginning on or
after 1 January 2013). The standard focuses on the rights and obligations in
the accounting of joint arrangements rather than on their legal form. There are
two types of joint arrangement: joint operations and joint ventures. The
standard also requires a single method, the equity method, in joint venture
reporting and the previous option to apply proportionate consolidation is no
longer allowed. The standard has not yet been endorsed for application in the
EU. The new standard will significantly change reporting of the Group's figures
and the segment of Poland. The Group is planning to adopt the new standard in
2013.
- IFRS 12 Disclosures of Interests in Other Entities (effective for financial
years beginning on or after 1 January 2013). The standard includes the
disclosure requirements for various interests in other entities, including
associates, joint arrangements, special purpose companies and other off-balance
sheet companies. The standard has not yet been endorsed for application in the
EU. The impacts of IFRS 12 are yet to be assessed, and the Group plans its
adoption in 2013.
- IFRS 13 Fair Value Measurement (effective for financial years beginning on or
after 1 January 2013). The standard aims to improve consistency and reduce
complexity, as it provides a precise definition of fair value and combines in a
single source the requirements for fair value measurement and disclosure. The
use of fair value accounting is not extended, but guidance is provided on how
it should be applied where its use is already required or permitted in another
standard. The standard has not yet been endorsed for application in the EU. The
impacts of IFRS 13 are yet to be assessed, and the Group plans its adoption in
2013.
- IAS 28 (revised 2011) Associates and Joint Ventures (effective for financial
years beginning on or after 1 January 2013). The revised standard includes
requirements for accounting of joint ventures as well as associates with the
equity method following the issue of IFRS 11. The revised standard has not yet
been endorsed for application in the EU.
ANALYSIS BY SEGMENT (EUR million)
Net sales and EBIT by main market area
Q4/2011 Q4/2010 2011 2010
--------------------------------------------------------------------------------
NET SALES
--------------------------------------------------------------------------------
- Finland 217.6 198.2 812.4 718.5
--------------------------------------------------------------------------------
- Sweden 275.6 275.0 1 045.7 997.1
--------------------------------------------------------------------------------
− Denmark 54.3 21.8 228.1 21.8
--------------------------------------------------------------------------------
- Baltics 44.9 42.0 173.3 160.4
--------------------------------------------------------------------------------
- Poland 73.9 72.6 298.9 279.3
--------------------------------------------------------------------------------
- Between segments -16.4 -14.0 -67.1 -63.3
--------------------------------------------------------------------------------
Group total 649.8 595.7 2 491.3 2 113.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EBIT
--------------------------------------------------------------------------------
- Finland 7.2 4.7 12.1 10.7
--------------------------------------------------------------------------------
- Sweden 7.4 8.0 17.2 20.4
--------------------------------------------------------------------------------
− Denmark -1.3 0.0 -3.7 0.0
--------------------------------------------------------------------------------
- Baltics 2.8 1.8 9.8 8.7
--------------------------------------------------------------------------------
- Poland 3.5 3.0 12.7 15.5
--------------------------------------------------------------------------------
- Between segments 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
Segments total 19.6 17.5 48.0 55.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Group administration costs -2.0 -1.8 -8.4 *) -7.2
--------------------------------------------------------------------------------
Group total 17.6 15.7 39.6 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)
Q4/2011 Q4/2010 2011 2010
--------------------------------------------------------------------------------
Soil decontamination expense on sold land 1) - - - -0.9
--------------------------------------------------------------------------------
Gains on disposal of production facilities 2) - - - 7.9
--------------------------------------------------------------------------------
Total non-recurring items - - - 7.0
--------------------------------------------------------------------------------
1) Included in the income statement in the item “Other operating expenses”
2) Included in the income statement in the item “Other operating income”
NOTES TO THE BALANCE SHEET
2. CHANGES IN INTANGIBLE ASSETS
(EUR million)
1-12/2011 1-12/2010
---------------------------------------------------------------------------
Carrying amount at beginning of period 77.1 65.7
---------------------------------------------------------------------------
Translation differences 0.3 8.1
---------------------------------------------------------------------------
Increase 2.3 1.2
---------------------------------------------------------------------------
Increase (acquisitions) 0.0 4.2
---------------------------------------------------------------------------
Decrease -0.3 -0.2
---------------------------------------------------------------------------
Depreciation and impairment -4.0 -3.5
---------------------------------------------------------------------------
Transfer to other balance sheet item 1.1 1.5
---------------------------------------------------------------------------
Carrying amount at end of period 76.6 77.1
---------------------------------------------------------------------------
3. CHANGES IN GOODWILL
(EUR million)
1-12/2011 1-12/2010
---------------------------------------------------------------------------
Carrying amount at beginning of period 100.4 88.2
---------------------------------------------------------------------------
Translation differences 0.2 4.2
---------------------------------------------------------------------------
Increase 0.4 1.3
---------------------------------------------------------------------------
Increase (acquisitions) 0.0 6.8
---------------------------------------------------------------------------
Decrease 0.0 0.0
---------------------------------------------------------------------------
Depreciation and impairment 0.0 0.0
---------------------------------------------------------------------------
Transfer to other balance sheet item 0.0 0.0
---------------------------------------------------------------------------
Carrying amount at end of period 101.0 100.4
---------------------------------------------------------------------------
4. CHANGES IN PROPERTY, PLANT AND EQUIPMENT
(EUR million)
1-12/2011 1-12/2010
---------------------------------------------------------------------------
Carrying amount at beginning of period 537.8 469.1
---------------------------------------------------------------------------
Translation differences -7.9 17.4
---------------------------------------------------------------------------
Increase 56.2 71.6
---------------------------------------------------------------------------
Increase (acquisitions) 1.3 43.0
---------------------------------------------------------------------------
Decrease -1.2 -2.4
---------------------------------------------------------------------------
Depreciation and impairment -67.7 -59.5
---------------------------------------------------------------------------
Transfer to other balance sheet item -1.8 -1.5
---------------------------------------------------------------------------
Carrying amount at end of period 516.5 537.8
------------------------------------------------------
5. INVENTORIES
(EUR million)
1-12/2011 1-12/2010
---------------------------------------------------------------------------
Materials and supplies 88.7 88.8
---------------------------------------------------------------------------
Unfinished products 9.1 8.8
---------------------------------------------------------------------------
Finished products 72.1 45.7
---------------------------------------------------------------------------
Goods 0.0 0.0
---------------------------------------------------------------------------
Other inventories 7.7 6.2
---------------------------------------------------------------------------
Prepayments for inventories 4.5 2.6
---------------------------------------------------------------------------
Live animals, IFRS 41 7.9 7.6
---------------------------------------------------------------------------
Total inventories 190.2 159.9
---------------------------------------------------------------------------
6. NOTES TO EQUITY
--------------------------------------------------------------------------------
Share capital Number of Share Share Reserve for Treasur Total
and share outstanding capit premium invested y
premium shares al reserve unrestricted shares
reserve equity
1.1.2011 54 972 788 66.8 72.9 143.5 0.0 283.2
--------------------------------------------------------------------------------
31.12.2011 54 972 788 66.8 72.9 143.5 0.0 283.2
--------------------------------------------------------------------------------
A dividend for the financial year 2010 was paid on 10 May 2011. At EUR 0.22 per
share, the total came to EUR 12 million.
INTEREST-BEARING LIABILITIES
The Group's interest-bearing debt at year-end stood at EUR 504.2 million (EUR
514.2 m). Debt decreased only slightly compared with the previous year,
although the amount was for most of the year clearly higher than in the
comparison year due to the Rose Poultry acquisition executed in November 2010.
FINANCIAL RISKS
Financial risks consist of refinancing and liquidity risks, counterparty risks
in financial contracts, foreign exchange risks, interest rate risks, commodity
risks and credit risks. Financial risks and financial risk management are part
of the Group's treasury policy. The policy observed has been adopted by the
Board and its implementation is centralized to a finance unit led by the
Group's CFO. The treasury policy was not amended in the financial year 2011.
The purpose of capital management in the Group is to support business through
an optimal capital structure by safeguarding a normal operating environment and
enabling organic and structural growth. Capital structure is influenced by
controlling the amount of working capital tied up in the business and through
reported profit/loss, distribution of dividend and share issues. The Group may
also decide on the disposal of assets to reduce liabilities.
Financial risks and capital management will be discussed in more detail in the
Notes to the 2011 financial statements.
DERIVATIVE INSTRUMENT LIABILITIES
(EUR million)
31.12.2011 31.12.2010
----------------------------------------------------------------
Nominal values of derivative instruments
----------------------------------------------------------------
----------------------------------------------------------------
Foreign exchange derivatives 63.2 149.9
----------------------------------------------------------------
Interest rate derivatives 283.8 247.0
----------------------------------------------------------------
Electricity derivatives 11.1 10.2
----------------------------------------------------------------
----------------------------------------------------------------
Fair values of derivative instruments
----------------------------------------------------------------
----------------------------------------------------------------
Foreign exchange derivatives -0.5 -0.3
----------------------------------------------------------------
Interest rate derivatives -23.0 -16.8
----------------------------------------------------------------
Electricity derivatives -1.1 2.2
----------------------------------------------------------------
CONSOLIDATED OTHER CONTINGENT LIABILITIES
(EUR million)
31.12.2011 31.12.2010
---------------------------------------------------------------------
---------------------------------------------------------------------
Debts secured by
---------------------------------------------------------------------
pledges or mortgages
---------------------------------------------------------------------
- loans from financial institutions 34.1 56.1
---------------------------------------------------------------------
---------------------------------------------------------------------
Given as security
---------------------------------------------------------------------
- real estate mortgages 63.0 48.9
---------------------------------------------------------------------
- pledges 5.1 20.8
---------------------------------------------------------------------
- floating charges 22.8 47.3
---------------------------------------------------------------------
---------------------------------------------------------------------
Security for debts of participating interests
---------------------------------------------------------------------
- guarantees 5.2 5.3
---------------------------------------------------------------------
---------------------------------------------------------------------
For others
---------------------------------------------------------------------
- guarantees and pledges 14.0 13.8
---------------------------------------------------------------------
---------------------------------------------------------------------
Other contingencies
---------------------------------------------------------------------
Leasing commitments 26.2 25.5
---------------------------------------------------------------------
Other rent commitments 61.0 45.6
---------------------------------------------------------------------
Other commitments 7.8 6.5
---------------------------------------------------------------------
BUSINESS TRANSACTIONS WITH RELATED PARTIES
(EUR million)
2011 2010
---------------------------------------
Sales to associates 73.0 40.4
---------------------------------------
Purchases from associates 47.3 35.1
---------------------------------------
Trade and other receivables 2.8 1.8
---------------------------------------
Trade and other payables 9.1 8.8
---------------------------------------
BUSINESSES ACQUIRED
Järvi Suomen Portti Oy
HKScan Finland Oy and Järvi-Suomen Portti Osuuskunta announced on 24 June 2010
that they had concluded an agreement concerning a business arrangement and were
establishing a new company to continue and develop processed meat production in
Mikkeli. The competition authorities' approval was received in October 2010.
The new corporate entity, Järvi-Suomen Portti Oy, established by HKScan Finland
Oy and Järvi-Suomen Portti Osuuskunta (currently Osuuskunta Karjaportti) began
operations on 1 January 2011. The new company is continuing the production of
processed meats at Osuuskunta Karjaportti's plant located in Tikkala in the
town of Mikkeli.
The transaction includes the production machinery and business at the Tikkala
plant as well as Järvi-Suomen Portti's brands. The plant in Mikkeli has been
made available through a long-term lease. Personnel affected by the arrangement
transferred to the new company as so-called ‘old employees', i.e. with the
terms of their employment unchanged.
The goodwill of EUR 0.4 million arising from the acquisition is based on the
potential to achieve synergetic benefits in merging the business operations of
Järvi-Suomen Portti with the Group.
The goodwill recognized is not tax-deductible. The following table summarizes
the consideration paid on the deal and the recognized assets and liabilities
assumed on the date of the acquisition.
Consideration at 1 January 2011
(EUR million)
Note
--------------------------------------------------------------------------------
Total consideration 1.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
The assets and liabilities arising from the acquisitions are as
follows
--------------------------------------------------------------------------------
Property, plant and equipment 4. 0.5
--------------------------------------------------------------------------------
Inventories 5. 1.2
--------------------------------------------------------------------------------
Other receivables 0.2
--------------------------------------------------------------------------------
Other liabilities -1.0
--------------------------------------------------------------------------------
Total identifiable net assets 0.9
--------------------------------------------------------------------------------
Goodwill 0.3
--------------------------------------------------------------------------------
Other operating expenses do not include material costs relating to the
acquisition in the 2011 consolidated income statement.
Järvi-Suomen Portti Oy's net sales, which were included in the consolidated
income statement as of 1 January 2011, totalled EUR 47.6 million and EBIT was
EUR -2.0 million.
The figures reported in the financial statement release are unaudited.
NEXT FINANCIAL REPORT
The HKSCan Group's interim report for January−March 2012 will be published on 8
May 2012.
Vantaa, 17 February 2012
HKScan Corporation
Board of Directors
Further information is available from HKScan Corporation's CEO, Matti
Perkonoja. Please leave any messages for him to call with Marja Siltala,
Communications Manager, firstname.lastname@hkscan.com, tel. +358 10 570 2290.
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 ten countries and has some 11 400 employees. It had net sales of
EUR 2.5 billion in 2011.
DISTRIBUTION:
NASDAQ OMX Helsinki
Main media
www.hkscan.com
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