Improved margins and strong cashflow
October -
- Net sales amounted to MSEK 3,011 (3,069). At constant exchange rates net sales decreased by 3 per cent.
- Operating income (EBIT) increased to MSEK 105 (99), corresponding to a margin of 3.5 (3.2) per cent.
-
Income for the period amounted to MSEK 66 (55). Earnings per share amounted to
SEK 1.01 (0.86). - Operating cash flow was MSEK 109 (-192).
January -
- Net sales amounted to MSEK 13,014 (12,119). At constant exchange rates net sales increased by 4 per cent.
- Operating income (EBIT) increased to MSEK 457 (290), corresponding to a margin of 3.5 (2.4) per cent.
-
Income for the period amounted to MSEK 273 (138). Earnings per share amounted to
SEK 4.11 (2.02) - Operating cash flow was MSEK 671 (197).
The Board of Director proposes a dividend for the financial year 2023 ofSEK 2.30 (1.15) per share, corresponding to MSEK 150 (75).
Significant events during the quarter
-
On the 28th of
December 2023 Scandi Standard's Finnish subsidiaryNaapurin Maalaiskana Oy entered into an agreement to acquireLandeli Oy Group's Ready-to-eat activities in Honkajoki. In recent years the Finnish operations Naapurin Maalaiskana have had a good level of growth, primarily driven by the continued positive development of its own brand Naapurin Maalaiskana. Through the acquisition, further capabilities are added and an opportunity to differentiate the business and strengthen the brand.
Key metrics2)
Q4 2023 | Q4 2022 | Δ | 2023 | 2022 | Δ | |
Net sales | 3,011 | 3,069 | -2% | 13,014 | 12,119 | 7% |
EBITDA | 206 | 202 | 2% | 880 | 722 | 22% |
Operating income (EBIT) | 105 | 99 | 6% | 457 | 290 | 57% |
EBITDA margin % | 6.9% | 6.6% | 0.3 ppt | 6.8% | 6.0% | 0.8 ppt |
EBIT margin % | 3.5% | 3.2% | 0.3 ppt | 3.5% | 2.4% | 1.1 ppt |
Non-comparable items1) | - | - | - | 8 | - | - |
Adjusted EBITDA1) | 206 | 202 | 2% | 871 | 722 | 21% |
Adjusted operating income (Adj. EBIT)1) | 105 | 99 | 6% | 449 | 290 | 54% |
Adjusted EBITDA margin1) % | 6.9% | 6.6% | 0.3 ppt | 6.7% | 6.0% | 0.7 ppt |
Adjusted EBIT margin1) % | 3.5% | 3.2% | 0.3 ppt | 3.4% | 2.4% | 1.1 ppt |
Income after finance net | 77 | 67 | 14% | 333 | 186 | 79% |
Income for the period | 66 | 55 | 20% | 273 | 138 | 97% |
Earnings per share, SEK | 1.01 | 0.86 | 18% | 4.11 | 2.02 | 103% |
Return on capital employed % | 11.0% | 6,7% | 4.3 ppt | 11.0% | 6.7% | 4.3 ppt |
Return on equity % | 11.4% | 6,2% | 5.2 ppt | 11.4% | 6.2% | 5.2 ppt |
Operating cash flow | 109 | -192 | -157% | 671 | 197 | 241% |
Net interest-bearing debt | 1,571 | 1,983 | -21% | 1,571 | 1,983 | -21% |
NIBD/Adj. EBITDA | 1.8 | 2.7 | -34% | 1,8 | 2.7 | -34% |
Lost time injuries (LTI) per million hours worked | 23.3 | 24.8 | -6% | 23.8 | 27.4 | -13% |
Feed efficiency (kg feed/live weight) | 1.49 | 1.51 | -1% | 1.50 | 1.50 | 0% |
1) Adjusted for non-comparable items, see note 5.
2) For definition of alternative KPIs, see page 22.
CEO Comments
The earnings improvement for
Strong improvement continues in Ready-to-cook
Ready-to-cook (RTC) reported sales growth of 5 per cent to MSEK 2,278 (2,164) in the fourth quarter. The operating income improved to MSEK 77 (31), mainly driven by higher sales, lower prices for input goods and clear improvement in profitability in our Danish operations.
Several of our markets contributed strongly to the profitable growth. The robust demand in a period of reduced purchasing power for our end consumers proves the value offer of our products.
Ready-to-cook in
Continue to rebuild Ready-to-eat's orderbook
Ready-to-eat (RTE) reported net sales of MSEK 600 (756) and an operating income of MSEK 22 (53) in the fourth quarter, mainly due to lower capacity utilization at the production facility in Farre,
During the quarter,
Other/Ingredients, contributed an operating income of MSEK 10 (25). As for the third quarter, the reduced earnings were driven by more normalizing pricing following a period of exceptionally high pricing. The segment markets about 50% of the weight of live birds processed by
Good progress in structured sustainability approach
I am proud of the progress that have been made during the year, including improving the lost time injury frequency rate with 13%, antibiotics use with 25% and our main animal welfare indicator with 19% compared to 2022. During 2024, we will continue refining our roadmap towards 2030, including development of our Climate Transition Plan as well as implementing the EU Corporate Sustainability Reporting Directive (CSRD). The implementation of CSRD will further strengthen the integration of sustainability in our strategy, value chain and operations and facilitate comparability and further transparency.
Reduced net interest-bearing debt and good conditions for the long-term strategy
Net interest-bearing debt continue to decrease. Increased outflows for investments and the acquisition in
We have defined a long-term strategy and updated financial targets, which was communicated in connection with the capital markets day in November. Our target is to grow the top line by 5-7% p.a. and to growth EBIT per kilo to at least
A comprehensive investment programme has been defined to support the growth and margin improvement objectives set for 2027. Under this programme investments of approximately MSEK 500 are expected during 2024 of which the most important is efficiency and expansion within RTC, the roll-out of our new business system and investments linked to our climate transition plan.
I am confident that we have all the prerequisites to reach our new targets and thus create a good return for our shareholders. In the light of strengthened profitability and positive future outlook the Board will propose a dividend of
Jonas Tunestål,
Managing Director and CEO,
Conference Call
A conference call for investors. analysts and media will be held on
Dial-in numbers:
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
Tel: +47 917 47 724
This interim report comprises information which
Financial calendar
Interim report for Q1 2023 | |
Annual General Meeting | |
Interim report for Q2 2024 | |
Interim report for Q3 2024 |
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