Significant sales growth and increased operating income despite ramp up cost for Lithuania
January - March 2025
- Chicken processed (grill weight) amounted to 72 (70) thousand tonne which corresponds to a 2 per cent increase.
- EBIT/kg amounted to 1.73 (1.74) SEK.
- Net sales amounted to MSEK 3,376 (3,160). At constant exchange rates, net sales increased by 8 per cent.
- Operating income (EBIT) increased with 2 per cent to MSEK 124 (122), corresponding to a margin of 3.7 (3.9) per cent
- Income for the period amounted to MSEK 66 (70). Earnings per share amounted to SEK 1.01 (1.07).
- Operating cash flow was MSEK 8 (-70).
Significant events during and after the quarter
- During the quarter, Scandi Standard has agreed to acquire six poultry farms in Lithuania. The acquisition price amounted to approximately MSEK 200. Through the acquisition, Scandi Standard's Lithuanian business will become self-sufficient in bird supply. Subsequent to the close of the period, four of the six farms have been acquired, with the remaining two being acquired gradually over the year. The acquisitions will be classified as asset acquisition.
- Scandi Standard acquired a production facility in Oosterwolde, Netherlands from Tyson Foods. The facility has two of Europe's largest and most efficient product lines for Ready-to-eat product. The acquisition been classified as an asset acquisition.
Key metrics1)
| MSEK | Q1 2025 | Q1 2024 | ? | R12M | 2024 |
| Net sales | 3,376 | 3,160 | 7% | 13,239 | 13,024 |
| EBITDA | 233 | 225 | 4% | 939 | 931 |
| Operating income (EBIT) | 124 | 122 | 2% | 511 | 509 |
| EBITDA margin % | 6.9% | 7.1% | -0.2ppt | 7.1% | 7.1% |
| EBIT margin % | 3.7% | 3.9% | -0.2ppt | 3.9% | 3.9% |
| Income after finance net | 84 | 88 | -4% | 351 | 354 |
| Income for the period | 66 | 70 | -5% | 271 | 275 |
| Earnings per share, SEK | 1.01 | 1.07 | -5% | 4.15 | 4.20 |
| Return on capital employed % | 11.4% | 11.1% | 0.4ppt | 11.4% | 11.8% |
| Return on equity % | 10.7% | 11.6% | -0.9ppt | 10.7% | 11.0% |
| Operating cash flow | 8 | -70 | -111% | 520 | 443 |
| Net interest-bearing debt | 1,948 | 1,709 | 14% | 1.948 | 1,935 |
| NIBD/EBITDA | 2.1 | 1.9 | 10% | 2.1 | 2.1 |
| Chicken processed (tonne gw) | 71,775 | 70,133 | 2% | 281,510 | 279,868 |
| EBIT/kg | 1.73 | 1.74 | -1% | 1.82 | 1.82 |
| Lost time injuries (LTI) per million hours worked | 13.9 | 24.1 | -42% | 24.3 | 27.0 |
| Feed efficiency (kg feed/live weight) | 1.50 | 1.50 | 0% | 1.49 | 1.49 |
1) For details about alternative KPIs, see note 4.
For definitions of key figures, see page 20.
CEO Comments
The first quarter of the year is characterized by continued strong development, and Scandi Standard reports an operating profit of 124 (122) MSEK. The operating profit is the highest ever for a first quarter, despite the previously communicated costs related to the start-up of operations in Lithuania, which burden the result by 17 MSEK. Adjusted for the operations in Lithuania, EBIT/kg increased to 2.05 SEK (1.74). The earnings improvement was driven by continued positive demand for chicken both in our local markets and in Europe. All markets posted growth in the quarter, which resulted in respective increases in net sales and operating income of 7 and 2 per cent, for the Group. Our establishment in Lithuania has been received well both by existing and by new customers, and the work to further escalate volumes in the forthcoming quarters are proceeding as planned.
Ready-to-cook (RTC) reported a 7 per cent increase in net sales and amounted to MSEK 2,612 (2,441). Strong demand, with increased volumes in all sales channels, drove growth in the quarter. Operating income amounted to MSEK 93 (96) and included the anticipated start-up costs of MSEK 17 related to the establishment in Lithuania. In our five domestic markets, underlying business continues to strengthen with growth both in sales and in operating income. Scandi Standard maintains a stable position in our local markets and, through investments in efficiency and additional improved production processes, meets the underlying local demand. In Lithuania, Scandi Standard acquired more land for rearing chickens during the period and operations will be gradually scaled up in this year's second and third quarters to make us self-sufficient in terms of birds in the Baltic states.
Ready-to-eat (RTE) posted a 9 per cent increase to a total of MSEK 646 (594) in net sales and operating income amounted to MSEK 31 (25). Income improved during the period despite us relocating some of the production in the Nordic countries with the aim of raising long-term efficiency, which has had a slight negative impact on income. Performance in quick service restaurants (the QSR segment) has also been somewhat weaker as a result of a few isolated external market events. However, the long-term trend in RTE remains positive, even if we anticipate fluctuating performance between individual quarters. Our investment in the Oosterwolde production plant in the Netherlands, which was completed in the quarter, will give us favourable conditions for meeting future demand in the segment.
Other by-products strengthened operating income to MSEK 12 (7) compared with the year-earlier period. The other by-products area has the potential to significantly boost the company's profitability. Utilising a greater proportion of each bird and further processing by-products means we can strengthen earnings and support sustainability through increased resource utilisation in our value chain.
'A' rating from CDP and historically low LTI rate
During the quarter, the global investor rating CDP awarded Scandi Standard an 'A' rating for climate actions for 2024, which was an important confirmation of our ambitious sustainability efforts and high level of environmental transparency. We have implemented a number of tangible measures in recent years, including complete climate mapping, a climate-risk analysis, science-based climate targets (SBTs), a Climate Transition Plan and emission reductions both in own operations and in the value chain, and we continue to drive climate initiatives in line with our long-term sustainability strategy. We have applied targeted efforts to raise awareness and strengthen Group-wide processes in terms of occupational health and safety, which resulted in our best results to date for lost time injuries (LTI). The LTI rate amounted to 13.9, compared with 24.1 in the year-earlier period. A clear improvement is shown in the long-term trend since 2021, and continuing to reduce LTIs remains a prioritised area for Scandi Standard.
Financial position
Net interest-bearing debt increased MSEK 13 to MSEK 1,948 during the quarter, impacted by the acquisition in Netherlands. Investments amounted to MSEK 221 (85), including the acquisition in Netherlands. Scandi Standard's assessment remains that investments in 2025 will amount to MSEK 550 and will primarily focus on increasing efficiency and capacity in Ready-to-cook, and completing RTE plant in Oosterwolde, Netherlands to enable the start of operations in the second half of 2025. We are also continuing efforts to decrease tied-up working capital, including initiatives such as improving synergies between bird purchases, and our sales and operational planning.
Strategy and outlook
The first quarter can be summarised with healthy growth, strong operating income and robust underlying demand. Chicken is a protein with growing demand both in our local and in European markets, and our efforts to meet demand are proceeding as planned. Our Lithuanian operations are performing in line with prior forecasts and are set to play a key role in meeting growing market demand by combining cost efficiency and high quality. The acquisition of chicken farms enables us to exercise greater control over the value chain in Lithuania, providing with us favourable preconditions to supply customers with raw materials that meet our stringent standards. In combination with the RTE plant in Oosterwolde, Netherlands our acquisitions in the Baltic states enable the creation of a unique and high-quality offering to our customers.
We note a continued stable trend in our markets despite prevailing global uncertainty, and our position as a European food company with no US market exposure means that the direct impact on our operations is limited. Our geographical presence together with structurally strong demand for chicken means we are well-positioned to manage the current operating environment. This is clearly confirmed by the positive first quarter trend. Growth is driven by continued high demand, while our work to further strengthen animal welfare, streamline local operations, strengthen joint processes and develop partnerships are yielding results. Our plan stands firm, and I believe we have the conditions in place to elevate our positions in terms both of financial and of sustainability-related targets in 2025.
Stockholm, 29 April 2025
Jonas Tunestål,
Managing Director and CEO,
Scandi Standard
Conference Call
A conference call for investors, analysts and media will be held on 29 April 2025 at 8.30 AM CET.
Dial-in numbers:
UK: 020 3936 2999
Sweden: 010 884 80 16
US: +1 646 664 1960
Other countries: +44 20 3936 2999
Slides used in the conference call can be downloaded at www.scandistandard.com under Investor Relations. A recording of the conference call will be available on www.scandistandard.com afterwards.
Further information
For further information, please contact:
Jonas Tunestål, Managing director and CEO and Fredrik Sylwan, CFO
Tel: +46 10 456 13 00
Henrik Heiberg. Head of M&A, Financing & IR
Tel: +47 917 47 724
This interim report comprises information which Scandi Standard is required to disclose pursuant to EU market abuse regulation. It was released for publication at 07:30 AM CET on 29 April 2025.
Financial calendar
| Interim report for Q2 2025 | July 17. 2025 |
| Interim report for Q3 2025 | October 25. 2025 |
| Interim report for Q4 2025 | February 5. 2026 |
Forward looking statement
This report contains forward-looking information based on the current expectations of company management. Although management deems that the expectations presented by such forward-looking information are reasonable, no guarantee can be given that these expectations will prove correct. Accordingly, the actual future outcome could vary considerably compared with what is stated in the forward-looking information, due to such factors as, but not limited to, changed conditions regarding finances, market and competition, supply and productions constraints, changes in legal and regulatory requirements and other political measures, and fluctuations in exchange rates.
About Scandi Standard
Scandi Standard was founded in 2013 and is today the leading producer of chicken-based food products in the Nordic region and Ireland. The Group operates in Sweden, Norway, Denmark, Finland, Ireland, Lithuania and Netherlands with market leading positions in several of our local markets. Our home markets are characterised by a strong demand for locally produced food and our brands - Kronfågel, Danpo, Den Stolte Hane, Naapurin Maalaiskana and Manor Farm - are well established and have a strong position.
Scandi Standard also has production operations in Lithuania and a plant in Netherlands. We export to international customers as a part of our global growth strategy.
We are approximately 3.400 employees with annual sales of more than SEK 13 billion.
