Scandi Standard AB Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Capex, Interest and Tax Rate Guidance for the Full Year 2018; Provides Earnings Guidance for the Second Half of 2018
August 22, 2018 at 01:30 am EDT
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Scandi Standard AB (publ) reported earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported net sales of SEK 2,252 million against SEK 1,622 million a year ago. Operating income was SEK 67 million against SEK 62 million a year ago. Income for the period was SEK 33 million or SEK 0.51 per share against SEK 33 million or SEK 0.56 per share a year ago. Adjusted EBITDA was SEK 159 million against SEK 124 million a year ago. Adjusted operating income was SEK 90 million against SEK 70 million a year ago. Return on equity was 14.7% against 12.3% a year ago. Capital expenditure amounted to SEK 138 million against SEK 52 million a year ago, mainly due to the ongoing expansion of the facility in Farre, Denmark. Net interest-bearing debt was SEK 2,039 million compared to SEK 1,619 million a year ago. The net debt in the quarter increased SEK 100 million, driven by 3 factors, and the main one was the dividend payment of SEK 118 million; unusually high CapEx, as the company have talked about, SEK 138 million; and a SEK 72 million working capital release also achieved in this quarter. Altogether, that delivered an improvement in adjusted EPS of 26%.
For the period, the company reported net sales of SEK 4,368 million against SEK 3,216 million a year ago. Operating income was SEK 147 million against SEK 120 million a year ago. Income for the period was SEK 77 million or SEK 1.18 per share against SEK 63 million or SEK 1.06 per share a year ago. Adjusted EBITDA was SEK 307 million against SEK 237 million a year ago. Adjusted operating income was SEK 170 million against SEK 129 million a year ago.
For the year 2018, the company expects CapEx to come in on SEK 350 million. Paid interest, one should expect to be around 3% to 3.5% of average net interest-bearing debt. And the effective tax rate should be somewhere between 20%, 21%.
The company expects a strong cash flow in the second half of the year 2018, driven by working capital release as well also some lower CapEx. So having done SEK 228 million year-to-date, the company would expect second half of year 2018 to be somewhere around SEK 120 million, SEK 125 million.
Scandi Standard publ AB is a Sweden-based company that offers chicken-based food products. The Company is operational through Kronfagel AB in Sweden (including SweHatch AB and AB Skanefagel), Scandinavian Standard AS, formerly Cardinal Foods AS, in Norway and Danpo A/S in Denmark. Scandi Standard publ AB produces and sells fresh and frozen chicken as well as other chicken products through its brands Kronfagel, Danpo and Den Stolte Hane and through private label. In addition to chicken production, the Norwegian operations also include egg sales and turkey as well as duck products. Kronfagel AB is a chicken producer, SweHatch AB is an egg hatchery company, and Skanefagel supplies locally produced chicken products to Swedish retail stores, food service/catering and restaurants. Furthermore, Scandinavian Standard AS is engaged in the white meat and egg market, and Danpo A/S is engaged in the production of chicken products.
Scandi Standard AB Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Capex, Interest and Tax Rate Guidance for the Full Year 2018; Provides Earnings Guidance for the Second Half of 2018
SCANDI STANDARD AB (PUBL) 
