HKScan revises its strategy
HKScan Corporation Stock Exchange Release 25 Aug 2017, 12:00 AM
HKScan revises its strategy
HKScan’s Board of Directors has approved the Group’s strategy. Our strategy is to focus on the consumer by leading the food value chain. The strategy positions us uniquely within the Nordic food industry.
The ‘From Farm to Fork’ strategy focuses on active food value chain leadership, with the capability for renewal. It emphasises innovation, cost competitiveness and sustainability, with a strong focus on consumers. By leading the food sector value chain from farming community to consumer, we also emphasise HKScan’s position as a socially and environmentally responsible, as well as sustainability focused member of the Nordic societies.
Sustainability and quality offer growth opportunities
The ‘From Farm to Fork’ strategy validates our mission to make daily life tastier for consumers and customers – both today and tomorrow. We offer sustainably produced, high-quality, and nutritionally sound food.
“We see opportunities for growth. There are several consumer trends supporting the growing demand for sustainably produced high-quality food. We are confident that by creating innovative products and concepts that appeal to consumers, we can strengthen our brands and drive category growth. We set high-quality standards in everything we do. By stressing high-quality and sustainability, we can build sustainability a differentiating edge for both Nordic and international markets. Our values – Inspire, Lead and Care – guide our daily work”, says Jari Latvanen, Group President and CEO.
Strategic focus areas
We aim to expand our playing field to reach a leading market position and presence in key sales channels in our Nordic home markets and develop international growth avenues with a focus on Asia.
Our core business is meat and meals. We will be present in all price segments, but drive growth by building a stronger position in upper mainstream and premium segments.
We have defined five must-win battles to reach our strategic objectives and to effectively execute the strategy.
- Focus on meat. We innovate to meet consumer demand and invest in new concepts and products. We stress high-quality and sustainability in differentiation.
- Leadership in poultry. We target the leader position in poultry with the help of the new, state-of-the-art poultry site in Rauma.
- Continue growing meals business. We invest in increasing market share in attractive meals category with both growth and premiumisation potential.
- Cooperate with our farming community. We establish producer partnerships with our community of farmers to secure responsibly produced, high-quality raw material, to enable commercial innovation and differentiation.
- Drive efficiency and cost-competitiveness. We will improve on-site efficiency and develop asset utilisation in our production network. Our new operating model, in effect since June 1st, 2017, offers the capability for renewal, strengthens our way of working effectively as one Nordic team and drives us to execute our strategy in a cost-competitive manner.
Long-term financial targets
HKScan’s long-term financial targets remain unchanged:
- Operating profit (EBIT): over 4 per cent of net sales
- Return on capital employed (ROCE): over 12 per cent
- Net gearing: under 100 per cent
- Dividends: over 30 per cent of net profit
President and CEO
For further information:
Jari Latvanen, President and CEO, HKScan Corporation
From Monday 28 August 2017 at 12:30 onwards. Kindly submit a call-back request via Marja-Leena Dahlskog, VP Communications, tel. +358 10 570 2142
Invitation to information meeting
Information meeting for analysts, institutional investors and media will be organized at Hotel Haven’s auditorium (address: Eteläranta 16, Helsinki) on 28 August 2017 at 11:30 a.m.–12:30 p.m. Lunch will be served from 11:00 a.m.
Please enrol to the information meeting to Marja Siltala, Communications Director, Finland, email@example.com (phone +358 10 570 2290). She will also answer to your further questions regarding the info.
HKScan is the leading Nordic food company. We sell, market and produce high-quality, responsibly-produced pork, beef, poultry and lamb products, processed meats and convenience foods under strong brand names. Our customers are the retail, food service, industrial and export sectors, and our home markets comprise Finland, Sweden, Denmark and the Baltics. We export to close to 50 countries. In 2016, HKScan had net sales of nearly EUR 1.9 billion and some 7 300 employees.