Interim report, third quarter 2015

26 November 2015

  • Net sales increased by 3 percent to MSEK 1,396.1 (1,358.9), and by 2 percent at constant exchange rates. Net sales increased by 5 percent in Sweden and Norway respectively and decreased by 2 percent in Denmark at constant exchange rates.
  • Adjusted operating income increased by 8 percent to MSEK 71.7 (66.5), corresponding to an adjusted operating margin of 5.1 (4.9) percent.
  • Income for the period amounted to MSEK 48.5 (32.1) and earnings per share were SEK 0.81 (0.53).
  • Adjusted operating cash flow amounted to MSEK 41.4 (65.9).
  • Deliveries to Coop Norway under the new supply agreement started in August.
      
MSEK Q3 2015 Q3 2014 Change 9m 2015 9m 2014 Change
Net sales 1,396.1 1,358.9 3% 4,047.0 4,015.2 1%
Operating income 71.4 57.7 24% 211.8 165.0 28%
Income for the period 48.5 32.1 51% 135.8 13.2 927%
EPS 0.81 0.53 50% 2.26 0.25 824%
Adjusted* EBITDA 119.7 112.0 7% 357.5 351.4 2%
Adjusted* operating income 71.7 66.5 8% 216.3 221.4 -2%
Adjusted* operating margin 5.1% 4.9% - 5.3% 5.5% -
Adjusted* income for the period 48.7 39.1 25% 139.1 97.0 43%
Adjusted* EPS 0.81 0.65 24% 2.32 1.80 29%
Adjusted* operating cash flow 41.4 66.0 -37% 277.7 373.4 -26%

*) Adjusted for non-comparable items in Q3 2015 of MSEK -0.3 (-8.8) in EBITDA and operating income and
   MSEK -0.2 (-7.1) in income for the period, and in the first 9m 2015 of MSEK -4.5 (-56.4) in EBITDA and
   operating income and MSEK -3.5 (-83.8) in income for the period. See page 3.

 
CEO Statement

Trends in sales and income for the Group were positive in the quarter. The adjusted operating margin improved from the previous year. I am pleased to see that our efforts in product development and to increase efficiency in production are paying off and contributing to income.

Net sales in Sweden showed strong growth driven by continued good market growth and successful product launches. We had a strong performance in chilled products, particularly within the barbeque segment, which is an important category during the summer months. The adjusted operating income and margin for the Swedish operation improved.

Net sales in Denmark were slightly down in local currency due to continued price pressure both in the local market and on exports. We expect that the pressure on prices will continue. The adjusted operating income improved, however, with a higher margin thanks to continued efficiency improvements in the supply chain.

It was also encouraging to see net sales in Norway increasing gradually during the quarter after the start of deliveries to Coop Norway in August under the new supply agreement. The new agreement also includes the stores acquired from ICA Norway, but the number of stores is today significantly lower than when they were part of the ICA Group. The Norwegian retail market for chilled chicken products showed some growth in the quarter year over year, after three consecutive quarters of decline. But we believe it will take some time before the market is fully recovered.

The integration of the newly acquired Finnish operation is proceeding according to plan. This operation reported MSEK -8.9 in operating income for the quarter. The factory is running at approximately 15 percent of total capacity and it will take time to reach profitability. Finland is an attractive market long-term with good opportunities for growth. The main focus is to increase volumes and new farming capacity will therefore be added during next year.

We will continue to strengthen cooperation between our operations in the different countries to further increase internal efficiency and to develop new and innovative product concepts.

Leif Bergvall Hansen
Managing Director and CEO

   
Further information

   
 
For further information, please contact:

Leif Bergvall Hansen, CEO, Tel: +45 22 10 05 44
Tobias Wastensson, Head of Group Finance, Tel: +46 10 456 14 86
Patrik Linzenbold, IR, Tel: +46 708 25 26 30

Financial calendar
Fourth quarter and year-end report 2015: 26 February 2016

Interim report for the first quarter 2016: 10 May 2016

This interim report comprises information which Scandi Standard is required to disclose under the Securities Markets Act and/or the Financial Instruments Trading Act. It was released for publication at 07:30 CET on 26 November 2015.

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About Us

Scandi Standard is the leading producer of chicken-based food products in the Nordic region and in the Republic of Ireland. We produce, market and sell ready to eat, chilled and frozen products under the well-known brands Kronfågel, Danpo, Den Stolte Hane, Naapurin Maalaiskana and Manor Farm. In Norway eggs are also produced and sold. Since 2013 our family has grown dramatically with a revenue of 7,101 (2017) with approximately 3 000 employees. Vision: Better Chicken for a Better LifeMission: The Scandi Way – The way we work every day to become better and make a difference, promoting health and wellbeing for people, the chickens and our planet.

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