HKFoods’ Interim Report 1 January–31 March 2025

January–March 2025

  • HKFoods’ net sales from continuing operations increased by 2.2 per cent to EUR 233.7 (228.7) million.  Sales growth in the food service channel continued, allowing HKFoods to further strengthen its position in the market. Consumer demand in Finland weakened from the comparison period and shifted especially to lower-priced products. In particular, demand for meat products declined. Export sales grew significantly, but the increase was mainly due to the exceptionally weak sales in the comparison period.
  • The Group’s EBIT from continuing operations strengthened and totalled EUR 4.6 (1.2) million.
  • Comparable EBIT from the Group’s continuing operations was EUR 4.6 (1.4) million. A better sales mix, production efficiency measures and cost savings improved HKFoods’ EBIT in the review period. The efficiency programme progressed as planned. Investments in production and efficiency measures increased operational efficiency and improved the company's profitability.
  • The need for less profitable meat exports decreased from the comparison period, which improved HKFoods' sales mix and profitability. Growth in exports of meat products also strengthened the structure of export sales.
  • Cash flow from business operations, including discontinued operations, was EUR -4.7 (1.8) million. The difference from the comparison period is due to the timing of the sale of the Swedish business in Q1/2024 and Easter taking place in the first quarter of 2024.
  • HKFoods’ balance sheet strengthened, and interest-bearing net debt decreased to EUR 160.1 (208.0) million. Net gearing was 74.1 (93.8) per cent.
  • Interest-bearing net debt excluding leasing liabilities under IFRS 16 was EUR 74.0 (114.8) million.
  • The Group’s result for the financial year from continuing operations was EUR 0.8 (-3.8) million.
  • The Annual General Meeting decided on 23 April 2025 that no dividend is to be paid for the financial year 2024. The Annual General Meeting resolved to distribute EUR 0.09 per share from the company's reserve for invested unrestricted equity for 2024. In addition, the Annual General Meeting authorised the Board of Directors to resolve on the distribution of the funds recorded in the reserve for invested unrestricted equity, at its discretion, up to a maximum of EUR 0.05 per share. Under the authorisation, the Board of Directors could decide to distribute funds in one or more instalments.

 

The figures in parentheses refer to the same period in the previous year, unless otherwise mentioned. The figures are unaudited.

 

Outlook for 2025

HKFoods expects that in 2025 the Group’s comparable EBIT will grow compared to 2024.     


 

 

KEY FIGURES, NET SALES, CONTINUING OPERATIONS

(EUR million)

1-3/2025

1-3/2024

2024

Net sales

233.7

228.7

1 001.8

 

 

KEY FIGURES, EBIT, CONTINUING OPERATIONS

(EUR million)

1-3/2025

1-3/2024

2024

EBIT

4.6

1.2

22.4

 - % of net sales

2.0

0.5

2.2

Comparable EBIT

4.6

1.4

27.7

    - % of net sales

2.0

0.6

2.8

 

KEY FIGURES, OTHER

(EUR million)

1-3/2025

1-3/2024

2024

EBITDA, continuing operations

12.1

8.9

56.3

Profit before taxes, continuing operations

1.2

-3.7

4.2

 - % of net sales

0.5

-1.6

0.4

Profit for the period, continuing operations

0.8

-3.8

-1.8

 - % of net sales

0.4

-1.7

-0.2

EPS, EUR, continuing operations

0.00

-0.05

-0.09

Comparable EPS, EUR, continuing operations

0.00

-0.05

-0.04

Cash flow from operating activities, incl. discontinued operations

-4.7

1.8

60.8

Cash flow after investing activities, incl. discontinued operations

-9.9

73.9

141.7

Return on capital employed (ROCE) before taxes, %, incl. discontinued operations

6.8

-0.2

0.9

Interest-bearing net debt

160.1

208.0

149.8

Net gearing %

74.1

93.8

69.5

 

 

HKFoods’ CEO Juha Ruohola

 

The company’s profitability clearly improved in January–March 2025. Net sales from HKFoods’ continuing operations increased by 2.2 per cent to EUR 233.7 (228.7) million. The comparable EBIT for the first quarter was EUR 4.6 (1.4) million. The review period’s comparable EBIT was 2.0 (0.6) per cent. The company’s EBIT target is 4 per cent.

The company’s financial performance has clearly improved. The first quarter of 2025 was already the ninth consecutive quarter for the company in which the comparable EBIT increased from the comparison period. I am particularly pleased that we were able to show strong performance in the first quarter, which is traditionally the weakest quarter of the year. The result for the financial year also turned positive.

 

Investments in production and efficiency measures increased operational efficiency and improved the company's profitability. A better sales mix, production efficiency measures and cost savings improved HKFoods’ EBIT in the review period. The efficiency programme progressed as planned.  

 

Consumer demand in Finland weakened from the comparison period and shifted especially to lower-priced products. Demand for meat products, in particular, declined, which weakened the sales of HKFoods’ own brands. Our food service sector has managed to further increase its share in a declining market and our export sales increased significantly.

 

Our investments are progressing both in the manufacture of ready-to-eat products in our Eura unit and in the ready meals production in our Vantaa unit. With these investments, we will increase the added value of our products in line with our strategy. With the Vantaa investment, we will also increase our meal preparation capacity and develop new high-quality meals for consumers' various food moments.

 

A three-day strike in the meat sector due to a labour dispute in the food industry disrupted our business after the review period in April. HKFoods’ units in Forssa, Mikkeli and Vantaa were covered by the strike. The strike significantly affected the availability of our products and caused a pig backlog at our contract farms. Clearing the backlog will cause additional costs.

The shortage of minced beef became a public issue during the first quarter. The situation is due to a significant reduction in the number of cattle in Finland. Especially the number of dairy farms, and thus the number of dairy cows, has fallen significantly. Forecasts indicate that a similar trend will continue in the future, which means that there will continue to be a shortage of beef. It is important for HKFoods to maintain self-sufficiency in domestic meat. This is also of importance for national security of supply.

HKFoods' vision is to be the most valued partner of food moments. Guided by our vision, we will continue to work with all our employees to meet the changing needs of consumers and customers by creating sustainable, tasty and nutritious solutions for all meaningful food moments. This is a collaborative effort with customers, consumers, contract farmers and other company partners.

HKFoods' first Sustainability Statement under the EU Corporate Sustainability Reporting Directive (CSRD) and ESRS reporting standards was published in March 2025 as part of the report of the Board of Directors. The Sustainability Statement covers issues material to the entire HKFoods value chain, the most important of which are climate change adaptation and mitigation, the wellbeing and skills of our own workforce, consumer health and safety, and animal welfare. We will continue to work even more determinedly on these material themes.

At HKFoods, we will continue to implement our long-term strategy by improving the competitiveness of our core business and the profitability of our operations, as well as restoring the balance sheet health and reducing financing costs.

Key events in January–March 2025

HKFoods to increase efficiency by moving operations away from Paimio

HKFoods is building a stronger foundation for the future competitiveness of its business and improving profitability by streamlining its operations. The company decided to transfer Paimion Teurastamo Oy’s operations to the external service provider Liha Hietanen Oy in Sastamala from 31 March 2025, after which the Paimio-based production unit was closed. The Paimio unit slaughtered cattle and sows.

Through the efficiency plan, HKFoods aims to achieve annual savings of around one million euros, which will start to accrue from Q2/2025. Overall, these savings are expected to be realised in the course of 2026.

Details on the matter were provided in the following release: 7 March 2025

HKFoods Plc cancelled treasury shares

The Board of Directors of HKFoods Plc resolved to cancel 8,376,408 series A and 665,000 series K treasury shares. The cancellation was registered in the trade register on 25 March 2025.

The cancellation reduced the number of issued series A and K shares with the corresponding amount but had no effect on the share capital. The cancelled amount equalled approximately 8.95 per cent of the total number of series A shares, approximately 12.31 per cent of the total number of series K shares and approximately 9.14 per cent of the total number of shares in the Company before the cancellation.

After the cancellation, the total number of shares and votes in the Company are 85,175,373 series A shares, representing the same number of votes, 4,735,000 series K shares, representing 94,700,000 votes and in total 89,910,373 shares, representing 179,875,373 votes.

Details on the matter were provided in the following release: 20 March 2025

Flavoured Salt innovation

HKFoods has developed a new Flavoured Salt that has reduced the salt content of several HK® and Kariniemen® products by up to 25% while retaining the familiar taste. Part of the salt in these products has been replaced by the new Flavoured Salt. There is no sodium in Flavoured Salt.

The new Flavoured Salt consists of potassium chloride and flavourings. HKFoods has exclusive rights to it for the time being. The first renewed products were launched in January 2025.

Details on the matter were provided in Finnish in the following releases: 28 January 2025 and 11 April 2025.
 

Events after the reporting period 

 

Meat sector strike in April due to food industry dispute

Following the failure of the mediation between the Finnish Food Workers' Union (SEL) and the Finnish Food and Drink Industries’ Federation (ETL) in early April 2025, a three-day strike in the meat and staple food sector took place from 8 to 10 April 2025. HKFoods' units in Forssa, Mikkeli and Vantaa were covered by the strike. The strike significantly affected the availability of the company’s products and caused a pig backlog at the company's contract farms, which will generate additional costs.  

 

HKFoods has launched the investigation to assess the future of its Polish bacon unit

Preliminary investigations to assess the future of the production unit in Swinoujście, Poland, include the possible sale of the unit. The investigation is a continuation of HKFoods' assessment of its group structure, and the possible sale is aimed at strengthening the group's balance sheet. HKFoods’ production unit in Poland specialises in bacon production. The net sales of HKFoods Poland Sp. z o.o. is estimated at EUR 70 million in 2025. In addition, the unit has internal sales within the group. The unit employs approximately 300 people.

 

Details on the matter were provided in the following release: 28 April 2025

 

 

Turku, 7 May 2025

 

HKFoods Plc
Board of Directors

 

Webcast

In connection with its Interim Report for January–March 2025, HKFoods will hold a briefing  for analysts, institutional investors and media on 7 May 2025 at 10 a.m. EEST as a webcast at https://hkfoods.events.inderes.com/q1-2025.

The event will be held in Finnish, and the recording will be available later in the day at www.hkfoods.com.
 

The January–March 2025 Interim Report will be presented by CEO Juha Ruohola and CFO Mika Tilli.

To arrange investor calls, please contact Executive Assistant Suvi Oksava, tel. +358 44 554 4231 or
suvi.oksava@hkfoods.com.

 

Financial reports in 2025
 

HKFoods will publish the following financial reports in 2025: 
•   Half-Year Financial Report 2025 on Wednesday 6 August 2025 at about 8:30 EEST
•   Interim Report for January–September 2025 on Wednesday 5 November 2025 at about 8:30 EET

 

For further information

 

Juha Ruohola, CEO, tel. +358 400 647 160

Mika Tilli, CFO, tel. +358 50 538 5793

HKFoods Media Service Desk email communications@hkfoods.com or tel. +358 10 570 5700.

 

With 110 years of experience, we at HKFoods make life tastier – today and tomorrow. With 3,000 professionals, we make responsible and locally produced food for consumers' various food moments. Our well-known brands in Finland are HK®, Kariniemen® and Via®. We are developing a more climate-friendly way of producing food. HKFoods is a publicly listed company, and in 2024, our net sales totalled EUR 1 billion. www.hkfoods.com

 

The brands mentioned in this report – HK®, Kariniemen® and Via® – are registered trademarks of HKFoods Group.

 

DISTRIBUTION: 

Nasdaq Helsinki 
Key media 
www.hkfoods.com 

Attachments