HKScan adjusts its full-year outlook - Operating profit to be below expectations

HKScan Corporation             Stock Exchange Release, 16 June 2014 at 5.30pm

HKScan adjusts its full-year outlook - Operating profit to be below expectations

HKScan Group has continued to face a tough business environment throughout the second quarter, particularly in the retail sector. Consumer demand for meat and meat products has not picked up as expected and thereby, sales volumes and prices remain lower than forecasted. Profit trend has been weaker than anticipated, especially in Finland. The challenges have been exacerbated by Russia’s ban on pork imports from the EU, which has had both direct and indirect impacts on the Group’s profitability.HKScan expects its full-year operating profit (EBIT) margin excluding non-recurring items, to be 0.5-1.0 per cent. Performance in the last quarter is anticipated to be the strongest. HKScan’s earlier forecast for its operating profit (EBIT) margin excluding non-recurring items was 1-2 per cent. In 2013, the corresponding figure was 0.5 per cent.

However, the full-year reported operating profit including non-recurring items is estimated to be significantly higher as a result of the sale of HKScan’s shares in Saturn Nordic Holding AB. The financial impact of the transaction is reported as part of the HKScan Group’s interim report for January-June 2014, which will be published on 6 August 2014.

HKScan will continue to intensify its profit development programmes and speed up strategic work to invest in the development of its brand offering and production facilities and technologies.

HKScan Corporation

Hannu Kottonen
President and CEO

For further information, please contact:

Hannu Kottonen, President and CEO, HKScan Corporation.

Kindly submit a call-back request to Marja-Leena Dahlskog, SVP Communications, firstname.surname@hkscan.com tel. +358 50 50 200 60.

HKScan is the leading Nordic meat expert. We produce, market and sell 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. HKScan’s net sales is EUR 2.1 billion and it has some 7 700 employees, making the Group one of the Europe’s leading meat companies.

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www.hkscan.com