HKFoods Plc, Interim Report, 4 November 2026 at 8:30 a.m. EET
HKFoods' Interim Report 1 January-30 September 2026
July-September 2026
- HKFoods' net sales from continuing operations grew by 3.2 per cent to EUR 255.1 (247.1) million. Sales grew across all sales channels.
- Sales in the retail and food service channels developed strongly in both poultry and ready meals. Higher sales prices of beef also increased net sales.
- The Group's comparable EBIT from continuing operations strengthened by 5.3 per cent to EUR 12.4 (11.8) million, representing 4.9 (4.8) per cent of net sales. The comparable EBIT was strengthened by sales growth in the retail and food service channels.
- The rise in oil prices caused by the war in Iran and the resulting increase in logistics and packaging material costs, together with higher personnel costs, burdened the comparable EBIT. Cost increases resulting from the war in Iran have been incorporated into sales prices from the end of the review period onwards. The challenging global market situation for pork, caused by subdued demand in the Asian markets and oversupply in the EU, together with cases of ASF detected in wild boars in Southeast Finland, weakened export profitability.
- The Group's profit for the period from continuing operations improved to EUR 16.8 (7.4) million, mainly due to a calculational modification gain related to the refinancing of notes.
- Cash flow from operating activities, including discontinued operations, was EUR -0.5 (6.4) million. The decline in cash flow was mainly due to a greater amount of working capital tied up in inventories than in the comparison period. Cash flow for the comparison period was strengthened by the final fixed purchase price instalment of EUR 10 million received in the third quarter of 2025 from the sale of the Baltic operations.
- HKFoods issued four-year senior secured notes of EUR 90 million. The proceeds from the notes were used to partially repurchase the notes maturing in 2027. In addition, HKFoods agreed on a new bank financing arrangement comprising of a EUR 20 million term loan facility and a EUR 72 million revolving credit facility, both with a maturity of three years. The lower margin on the new notes will bring the company annual cash flow savings of approximately EUR 3.5 million.
January-September 2026
- HKFoods' net sales from continuing operations increased by 4.1 per cent to EUR 756.3 (726.5) million. Sales grew in all sales channels except for exports, which stayed at the comparison period's level. Sales in the retail and food service channels developed strongly in both poultry and ready meals. HKFoods' market share in the retail sector remained at the comparison period's level.
- The Group's comparable EBIT from continuing operations strengthened by 13.0 per cent to EUR 25.9 (22.9) million, representing 3.4 (3.2) per cent of net sales. The comparable EBIT was strengthened by sales growth in the retail and food service channels, and by measures under the company's efficiency programme, which increased production efficiency. Beef sales price increases supported net sales growth and improved the profitability of beef products from the comparison period.
- The comparable EBIT was burdened by the rise in oil prices due to the war in Iran and the resulting increase in logistics and packaging material costs, the challenging situation in the pork export market, and increased personnel costs. Cost increases resulting from the war in Iran have been incorporated into sales prices from the end of the review period onwards.
- The Group's profit for the period from continuing operations improved to EUR 22.7 (10.2) million.
- Cash flow from operating activities, including discontinued operations, decreased due to a change in working capital and amounted to EUR 5.5 (23.0) million. More working capital was tied up in inventories than in the comparison period.
- Interest-bearing net debt decreased to EUR 149.6 (159.4) million and net gearing to 72.6 (81.7) per cent.
- Interest-bearing net debt, excluding leasing liabilities under IFRS 16, was EUR 70.0 (74.6) million.
The figures in parentheses refer to the same period in the previous year, unless otherwise mentioned. The figures are unaudited.
Outlook for 2026 (unchanged)
HKFoods expects that in 2026 the Group's comparable EBIT will grow compared to 2025.
KEY FIGURES
| (EUR million) | 7-9/2026 | 7-9/2025 | 1-9/2026 | 1-9/2025 | 2025 |
| Net sales, continuing operations | 255.1 | 247.1 | 756.3 | 726.5 | 996.4 |
| EBIT, continuing operations | 12.3 | 10.9 | 24.9 | 21.8 | 32.9 |
| - % of net sales | 4.8 | 4.4 | 3.3 | 3.0 | 3.3 |
| Comparable EBIT, continuing operations | 12.4 | 11.8 | 25.9 | 22.9 | 34.1 |
| - % of net sales | 4.9 | 4.8 | 3.4 | 3.2 | 3.4 |
| EBITDA, continuing operations | 19.5 | 18.5 | 47.0 | 43.9 | 62.5 |
| Profit before taxes, continuing operations | 21.1 | 8.1 | 27.9 | 12.0 | 18.7 |
| - % of net sales | 8.3 | 3.3 | 3.7 | 1.6 | 1.9 |
| Profit for the period, continuing operations | 16.8 | 7.4 | 22.7 | 10.2 | 14.2 |
| - % of net sales | 6.6 | 3.0 | 3.0 | 1.4 | 1.4 |
| EPS, EUR, continuing operations | 0.17 | 0.06 | 0.20 | 0.06 | 0.08 |
| Comparable EPS, EUR, continuing operations | 0.17 | 0.07 | 0.21 | 0.07 | 0.09 |
| Cash flow from operating activities, incl. discontinued operations | -0.5 | 6.4 | 5.5 | 23.0 | 51.0 |
| Cash flow after investing activities, incl. discontinued operations | -5.8 | 8.4 | -9.9 | 14.0 | 36.1 |
| Return on capital employed (ROCE) before taxes, %, incl. discontinued operations | 10.4 | 4.8 | 6.6 | ||
| Interest-bearing net debt | 149.6 | 159.4 | 141.8 | ||
| Net gearing % | 72.6 | 81.7 | 73.2 |
HKFoods' CEO Juha Ruohola
Our net sales growth and positive profit development continued in the third quarter of 2026, despite cost pressures. Net sales from continuing operations increased by 3.2 per cent to EUR 255.1 million. The comparable EBIT strengthened by 5.3 per cent to EUR 12.4 million, representing 4.9 per cent of net sales. The profit for the period from continuing operations improved significantly and was EUR 16.8 million. In January-September, the company's net sales grew by 4.1 per cent to EUR 756.3 million and comparable EBIT by 13.0 per cent to EUR 25.9 million.
Our sales grew across all sales channels in the third quarter. In retail, growth was particularly strong in Kariniemen® brand's poultry products and in HK® brand's ready meals, in line with our strategy. Higher sales prices of beef also increased net sales. The market for meat products has been sluggish compared with the start of the year. Sales of grilling sausages were below our target. Sales in the food service channel developed favourably.
Our third-quarter comparable EBIT was strengthened by sales growth in the retail and food service channels. Profitability for January-September was also supported by improved profitability of beef and measures under our efficiency programme, which have increased production efficiency.
At the same time, EBIT was subject to significant cost pressures. The rise in oil prices caused by the war in Iran increased logistics and packaging material costs. Personnel costs also rose. Cost increases resulting from the war in Iran have been incorporated into sales prices from the end of the review period onwards. The pork export market remained challenging due to subdued demand in Asia, oversupply in the EU and cases of ASF detected in wild boars in Southeast Finland.
In Finland, pork consumption grew by some five per cent between January and August. The growth was driven by strong pork sales during the summer barbecue season, as well as a shift in consumption from, for example, minced beef to mixed minced meat containing pork.
African swine fever was detected for the first time in July in wild boars in Southeast Finland. HKFoods has no contract pork producers in the infected zone established by the authorities, and the situation has had no impact on our deliveries in Finland or within the EU. However, export restrictions to non-EU countries have suspended exports of pork and pork products to China and Japan, amongst other countries. We have redirected these products to alternative markets and are monitoring the situation in close cooperation with the authorities. ASF does not infect humans, and pork is safe to eat. We estimate that the ASF cases detected will have an impact of approximately EUR 1 million on HKFoods' EBIT for 2026.
During the review period, we also strengthened our financing structure. We issued four-year senior secured notes of EUR 90 million, the proceeds of which were used to refinance notes maturing in 2027. In addition, we agreed on a new bank financing arrangement comprising a three-year term loan facility of EUR 20 million and a three-year revolving credit facility of EUR 72 million. The refinancing extends the maturity of funding and will result in estimated annual cash flow savings of EUR 3.5 million due to the lower margin on the new notes. The refinancing of the notes has been accounted for as a debt modification, resulting in the recognition of a one-off calculational modification gain of EUR 11.2 million in the profit for the period. As a result of this accounting treatment, the future finance costs recognised over the remaining term of the notes will be correspondingly higher. The profit for the period from continuing operations improved significantly to EUR 16.8 (7.4) million. The improvement was mainly due to the above-mentioned modification gain recognised in connection with the refinancing of the notes.
As part of our responsibility work, we finalised the Group's updated greenhouse gas emissions inventory during the review period. We also decided to invest in heat recovery and recycling at the Eura production unit. The aim of the investment is to reduce the use of fossil energy at the production unit by an estimated 70 per cent from the current level. As part of the ETEVÄT producer programme, we continued to collect data from farms and develop the operating model for producer collaboration.
During the autumn, together with our employees and contract producers, we have celebrated the Kariniemen® story which began in 1966. Over the course of six decades, the brand has grown into one of Finland's best-known poultry brands.
We continue to expect that the Group's comparable EBIT for 2026 will grow compared to 2025. We continue our determined work to implement our strategy, pursue our commercial initiatives, streamline our operations and develop strategic growth areas. Our goal is to achieve profitable and sustainable growth, and our focus is on a strong and innovative range of poultry products and on meals and meal components. Our other strategic focus areas are operational excellence, competent and healthy personnel and a sustainable value chain. The refinancing through the new notes supports the implementation of our strategy.
I would like to thank all our employees, contract producers, customers and other partners for their excellent work during the third quarter.
Key events in July-September 2026
ASF detected in wild boars in Southeast Finland
ASF (African swine fever) was first detected in Finland on 30 July 2026 in wild boars found dead in Southeast Finland. During the autumn, ASF cases have also been detected in Virolahti and Pyhtää, outside the core area of the infected zone established by the authorities. The Finnish Food Authority is leading the control measures relating to ASF, such as the search for and disposal of wild boars that have died from the infection, as well as the controlled reduction of the wild boar population.
HKFoods has no contract producers of pork within the infected zone established by the authorities. The detections have no impact on HKFoods' deliveries within Finland or the EU. Export restrictions on pork and pork products to countries outside the EU are now in force. Exports of these products to China and Japan, among other countries, have been suspended until further notice. The authorities have been negotiating the reopening of exports to several non-EU countries. HKFoods has redirected the products subject to the restrictions to other target markets.
ASF does not infect humans, and pork is safe to eat. HKFoods safeguards its production chain by complying with official guidelines and regulations, as well as its own guidelines and contingency plans. All contract farms observe strict disease control measures and good feed hygiene. The authorities regularly assess disease control measures in HKFoods' primary production through farm visits.
Further information is available on HKFoods website (in Finnish).
HKFoods issued EUR 90 million senior secured notes
On 18 September 2026, HKFoods issued senior secured notes of EUR 90 million. The four-year notes mature on 18 September 2030 and carry a floating interest at the rate of EURIBOR 3 months plus a margin of 3.6 per cent. The notes had an issue price of 100 per cent.
The proceeds from the issue of the notes were used for refinancing of notes maturing in 2027. These notes, issued in summer 2024, carried a floating interest at the rate of EURIBOR 3 months plus a margin of 7.5 per cent. HKFoods redeemed the outstanding notes maturing on 17 June 2027 after the reporting period in early October.
In addition, HKFoods agreed on new bank facilities. The new bank financing arrangement with Danske Bank A/S, Nordea Bank Abp and OP Corporate Bank plc comprises a EUR 20 million term loan facility with a maturity of three years and a EUR 72 million revolving credit facility, consisting of EUR 50 million credit facility and EUR 22 million ancillary facilities, with a maturity of three years with an option to extend by up to two further years, as well as an uncommitted EUR 20 million accordion facility.
Details on the matter were provided in the following press and stock exchange releases: 7 September 2026, 9 September 2026, 15 September 2026, 16 September 2026 and 18 September 2026.
Kariniemen® brand celebrates its 60th anniversary
The Kariniemen® story began in 1966 with Hannes Kariniemi's vision of making chicken a part of Finnish food moments. Over the course of six decades, the brand has grown into one of Finland's best-known poultry brands. The anniversary year is celebrated together with employees and primary producers, among others, and by highlighting the brand's history, the importance of eating together, and flavours familiar to Finns. The brand has also refreshed its visual identity and launched new products.
Details on the matter were provided in the following news article (in Finnish): 27 August 2026.
Events after the reporting period
During the reporting period, HKFoods issued four-year senior secured notes of EUR 90 million. The proceeds from the notes issue were used to partially repurchase the notes maturing in 2027. HKFoods redeemed the outstanding notes maturing on 17 June 2027 after the reporting period in early October.
On 16 October 2026, HKFoods announced the composition of the company's Shareholders' Nomination Board. The largest shareholders of HKFoods Plc have, according to the charter of the Shareholders' Nomination Board, nominated as members of the nomination board Veikko Kemppi (Managing Director, LSO Cooperative), Tommi Mäkelä (CIO, Pharmacy Pension Fund) and Petter Langenskiöld (Portfolio Manager, Mutual Fund EVLI Hannibal). Furthermore, the Board of Directors of HKFoods Plc has nominated as member of the nomination board Jari Mäkilä, deputy chair of the Board of Directors. The nomination board elected amongst its members Veikko Kemppi as chairman.
Details on the matter were provided in the following stock exchange release: 16 October 2026.
Turku, 4 November 2026
HKFoods Plc
Board of Directors
Webcast
In connection with its Interim Report, HKFoods will hold a briefing for analysts, institutional investors and media on 4 November 2026 at 10:00 a.m. EET as a webcast at https://hkfoods.events.inderes.com/q3-2026. The event will be held in Finnish, and the recording will be available later in the day at www.hkfoods.com. The 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 reporting and AGM in 2027
- The Financial Statements Bulletin for 2026 will be published on Wednesday 10 February 2027 at approximately 8:30 a.m. EET.
- The Annual Review 2026 will be published in week 13/2027 at the latest.
The Annual General Meeting (AGM) will be held in Turku on Thursday 22 April 2027. The notice of the AGM of HKFoods Plc will be published later as a separate notice.
HKFoods will publish the following financial reports in 2027:
- Interim Report for January-March 2027 on Wednesday 5 May 2027 at approximately 8:30 a.m. EEST
- Half Year Financial Report 2027 on Wednesday 4 August 2027 at approximately 8:30 a.m. EEST
- Interim Report for January-September 2027 on Wednesday 3 November 2027 at approximately 8:30 a.m. EET
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 nearly 3,000 professionals, we make locally produced food for consumers' various food moments. Our well-known brands in Finland are HK®, Kariniemen® and Via®. HKFoods is a publicly listed company, and in 2025, 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
