HKFoods Plc, Interim Report, 5 November 2025 at 8:30 a.m. EET
HKFoods' Interim Report 1 January-30 September 2025
July-September 2025
· HKFoods' good profitability development continued in the third quarter.
Comparable EBIT continued to grow and was better than in the comparison period.
The result for the period from continuing operations also increased.
· HKFoods' net sales from continuing operations decreased by 1.8 per cent to
EUR 247.1 (251.6) million.Sales to the Finnish retail channel and food service
channel grew, and industrial sales and exports decreased as planned, which
improved the sales structure.
· Retail sales increased particularly in meat products, and HKFoods
strengthened its position in the meat product market. Sales also increased in
poultry products and pork. Despite the challenging market situation, food
service sales increased due to successful commercial measures and a
comprehensive product range.
· The Group's comparable EBIT from continuing operations increased to EUR 11.8
(11.6) million or 4.8 (4.6) per cent of net sales. Comparable EBIT improved due
to a better sales structure, savings generated by the company's efficiency
programme and increased production efficiency. The sharp increase in the
purchase price of beef due to the shortage of beef weakened the comparable EBIT.
· The Group's result for the period from continuing operations increased to
EUR 7.4 (6.4) million.
· The new EUR 20 million capital securities issued in August and the
redemption of the old capital securities will generate annual interest savings
of EUR 2.4 million.
· Cash flow from business operations, including discontinued operations,
decreased to EUR 6.4 (7.5) million.
· In connection with the sale of its Baltic operations, HKFoods received the
final EUR 10 million fixed purchase price instalment and made a write-down of
EUR 6.9 million on the conditional purchase price receivable. The write-down
will not affect the comparable EBIT and will have no impact on cash flow. The
write-down will be reported as a result of discontinued operations.
· The Board of Directors of HKFoods approved the company's updated strategy
and long-term financial targets.
· On 3 July 2025, the company announced that it had completed the assessment
of the future of its unit in Swinoujście, Poland, and that the Polish production
unit would continue to operate as part of the HKFoods Group.
January-September 2025
· HKFoods' good profitability development continued and comparable EBIT
increased.
· HKFoods' net sales from continuing operations decreased by 1.2 per cent to
EUR 726.5 (735.0) million. Sales grew in the food service channel and were
almost at the comparison period's level in domestic retail. The decline in net
sales was mainly due to a planned reduction in industrial sales and a decrease
in exports.
· Nutritional recommendations have had a negative impact on demand for meat
products in 2025. The decline in demand levelled off at the end of the review
period. Sales increased in poultry products and pork.
· The Group's comparable EBIT from continuing operations increased to EUR 22.9
(17.4) million or 3.2 (2.4) per cent of net sales. The comparable EBIT was
increased by the significant savings resulting from the company's efficiency
programme and a better sales structure. The overall sales structure improved due
to growth in food service sales, a decline in less profitable meat exports, and
a planned reduction in industrial sales, among others. Profitability was
weakened by the food industry strike in April, and the overtime and shift change
bans related to labour market negotiations as well as the increase in the
purchase price of beef due to the shortage of beef.
· The Group's result for the period from continuing operations increased to
EUR 10.2 (0.9) million.
· Cash flow from business operations, including discontinued operations,
strengthened to EUR 23.0 (22.4) million.
· Interest-bearing net debt decreased to EUR 159.4 (213.8) million. Net
gearing was 81.7 (96.4) per cent.
· Interest-bearing net debt excluding leasing liabilities under IFRS 16 was
EUR 74.6 (124.2) million.
The figures in parentheses refer to the same period in the previous year, unless
otherwise mentioned. The figures are unaudited.
Outlook for 2025
HKFoods expects that in 2025 the Group's comparable EBIT will grow compared to
2024.
KEY FIGURES, NET SALES, CONTINUING OPERATIONS
(EUR million) 7-9/2025 7-9/2024 1-9/2025 1-9/2024 2024
Net sales 247.1 251.6 726.5 735.0 1,001.8
KEY FIGURES, EBIT, CONTINUING OPERATIONS
(EUR million) 7-9/2025 7-9/2024 1-9/2025 1-9/2024 2024
EBIT 10.9 11.6 21.8 15.9 22.4
- % of net sales 4.4 4.6 3.0 2.2 2.2
Comparable EBIT 11.8 11.6 22.9 17.4 27.7
- % of net sales 4.8 4.6 3.2 2.4 2.8
KEY FIGURES, OTHER
(EUR million) 7-9/2 7-9/2 1-9/20 1-9/2024 2024
025 024 25
EBITDA, continuing operations 18.5 19.2 43.9 39.4 56.3
Profit before taxes, continuing 8.1 7.0 12.0 1.9 4.2
operations
- % of net sales 3.3 2.8 1.6 0.3 0.4
Profit for the period, continuing 7.4 6.4 10.2 0.9 -1.8
operations
- % of net sales 3.0 2.5 1.4 0.1 -0.2
EPS, EUR, continuing operations 0.06 0.05 0.06 -0.03 -0.09
Comparable EPS, EUR, continuing 0.07 0.05 0.07 -0.02 -0.04
operations
Cash flow from operating activities, 6.4 7.5 23.0 22.4 60.8
incl. discontinued operations
Cash flow after investing activities, 8.4 6.8 14.0 77.4 141.7
incl. discontinued operations
Return on capital employed (ROCE) before 4.8 -2.4 0.9
taxes, %, incl. discontinued operations
Interest-bearing net debt 159.4 213.8 149.8
Net gearing % 81.7 96.4 69.5
HKFoods' CEO Juha Ruohola
Our good profitability development continued in the third quarter. Comparable
EBIT continued to grow and was better than in the comparison period, now for the
eleventh consecutive time. The result for the period from continuing operations
also showed growth.
In July−September, HKFoods' net sales from continuing operations decreased by
1.8 per cent to EUR 247.1 (251.6) million. However, January−September net sales
of EUR 726.5 (735.0) million were almost at the comparison period's level. Sales
to the Finnish retail channel and food service channel grew, and industrial
sales and exports decreased as planned, which improved the sales structure.
Our sales grew in the retail channel, especially in meat products, where we
strengthened our market position. Sales also increased in poultry products and
pork. It was particularly positive that, despite the challenging market
situation, sales in our food service channel grew thanks to our successful
commercial measures and comprehensive product range.
The company's comparable EBIT increased to EUR 11.8 (11.6) million in the third
quarter. The comparable EBIT margin was 4.8 (4.6) per cent. The improvement was
seen both compared to the comparison period and the previous quarter. Comparable
EBIT was increased by an improved sales structure as well as efficiency measures
and investments in production that improved operational efficiency and
profitability. The sharp increase in the purchase price of beef due to the
shortage of beef weakened the comparable EBIT.
Our production investments in Vantaa and Eura have been completed. The
investments enable growth in meals, meal components and snacks, which increases
added value and improves profitability.
The new EUR 20 million capital securities issued in August and the redemption of
the old capital securities will generate annual interest savings of EUR 2.4
million.
In connection with the sale of its Baltic business, HKFoods received the final
EUR 10 million fixed purchase price instalment in the third quarter of 2025. At
the end of the review period, HKFoods wrote down the conditional purchase price
receivable related to the sale of its Baltic business.
We updated our strategy and long-term financial targets in August. Our goal is
to achieve profitable and sustainable growth and a strong presence in consumers'
food moments as a valued partner in line with our vision updated in 2024. Our
focus is on growing product segments: strong and innovative poultry products as
well as meals and meal components. The company's core business continues to be
pork, beef and poultry meat, meat products, ready meals and meal components. Our
strategic focus areas are: growth in selected food moments, operational
excellence, competent and healthy personnel and a sustainable value chain.
Following the successful restructuring of our business and strengthening of our
profitability and balance sheet, we also updated the company's financial targets
and raised target levels for EBIT margin, net gearing and dividend.
In the review period, HKFoods also completed its new responsibility programme
for 2026-2028, which is based on the material responsibility topics identified
in the company's double materiality analysis in 2025. The key themes of the
programme are environment, people, animal welfare and good governance and
corporate culture. Our goals include reducing greenhouse gas emissions and
waste, increasing the recyclability of packaging and preventing biodiversity
loss in our value chain. In addition to the occupational safety and wellbeing of
our own personnel, it is important to us that our producer community is
competitive and socially sustainable. Safe food that supports wellbeing is at
the heart of everything we do. We will continue our determined efforts to
develop in these areas.
Key events in July-September 2025
Polish production unit to continue as part of the Group
HKFoods completed the assessment of the future of its unit in Swinoujście,
Poland, and announced on 3 July 2025 that the Polish production unit will
continue its operations as part of the HKFoods Group. The company has invested
in the unit over the past years, and the unit is profitable. HKFoods Poland Sp.
z o.o.'s net sales in 2025 are estimated at EUR 70 million. The unit also has
intra-group sales and employs approximately 300 people.
Details on the matter were provided in the following stock exchange releases: 28
April 2025 (https://www.hkfoods.com/en/newsroom/stock-releases/2025/04/hkfoods
-has-launched-the-investigation-c5039662/) and 3 July
2025 (https://www.hkfoods.com/en/newsroom/stock-releases/2025/07/inside
-information-hkfoods-assessment-c5136180/).
HKFoods Plc issued EUR 20 million capital securities and redeemed its
outstanding capital securities issued in 2018
In August, HKFoods issued unsecured subordinated capital securities of EUR 20
million. The capital securities do not have a specified maturity date, but the
company is entitled to redeem the capital securities at their nominal amount on
the reset date of 21 August 2028 and on each interest payment date thereafter.
The capital securities bear a fixed interest rate of 8.750 per cent per annum
until the reset date 21 August 2028. From the reset date, the capital securities
will bear a floating interest as described in the terms and conditions of the
capital securities.
The net proceeds of the issue of the capital securities are used for general
corporate purposes of the company. The proceeds were used particularly for
refinancing the existing capital securities issued earlier. In connection with
the issue of the new capital securities, HKFoods redeemed in full, on 17
September 2025, the existing capital securities issued on 17 September 2018,
which had a fixed interest rate of 16.0 per cent (original coupon rate 8.0 per
cent) and a remaining total nominal value of approximately EUR 25.9 million.
Details on the matter were provided in the following stock exchange releases: 13
August 2025 (https://www.hkfoods.com/en/newsroom/stock-releases/2025/08/inside
-information-hkfoods-plc-c5190432/) and 14 August
2025. (https://www.hkfoods.com/en/newsroom/stock-releases/2025/08/hkfoods-to
-redeem-its-outstanding-c5190893/)
HKFoods updated its strategy and long-term financial targets
On 26 August 2025, HKFoods' Board of Directors approved the company's updated
strategy. HKFoods' core business continues to be pork, beef and poultry meat,
meat products, ready meals and meal components. HKFoods' strategic focus areas
were specified as growth in selected food moments, operational excellence,
competent, healthy personnel, and a sustainable value chain. HKFoods is looking
for new growth and pursues strategic business opportunities within the limits of
its financial resources. Due to the favourable financial development, HKFoods'
Board of Directors updated the company's long-term financial targets and raised
the targets for EBIT, net gearing and dividend.
The matter was announced in the following stock exchange release: 26 August
2025 (https://www.hkfoods.com/en/newsroom/stock-releases/2025/08/hkfoods-updates
-its-strategy-and-c5197477/).
HKFoods wrote down conditional purchase price receivable related to the sale of
Baltic operations
On 26 September 2025, HKFoods announced that it would write down a conditional
purchase price receivable related to the sale of Baltic operations to Estonian
AS Maag Grupp on 31 August 2023. As announced in HKFoods' Half Year Financial
Report published on 6 August 2025, the fair value of the conditional purchase
price was determined to be EUR 6.9 million at the end of June 2025.
At the end of August 2025, African swine fever (ASF) was detected in the largest
pork production unit of AS Maag Grupp. The animal disease outbreak is expected
to have a significant and long-term negative impact on the company's
performance, which is the basis for calculating the conditional purchase price.
HKFoods' management estimated that the receipt of the conditional purchase price
would not materialise, for which reason a write-down of EUR 6.9 million was made
in the third quarter of 2025. The write-down will not affect the comparable EBIT
and will have no impact on cash flow. The write-down will be reported as a
result of discontinued operations.
Details on the matter were provided in the following stock exchange release: 26
September 2025 (https://www.hkfoods.com/en/newsroom/stock
-releases/2025/09/hkfoods-writes-down-conditional-c5220698/).
Events after the reporting period
On 15 October 2025, 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 Veikko
Kemppi (Managing Director, LSO Cooperative), Tommi Mäkelä (CIO, Pharmacy Pension
Fund) and Petter Langenskiöld (Portfolio Manager, Mutual Fund EVLI Hannibal) as
members of the Nomination Board. Furthermore, the Board of Directors of HKFoods
Plc 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: 15
October 2025 (https://www.hkfoods.com/en/newsroom/stock
-releases/2025/10/composition-of-hkfoods-plcs-shareholders-c5231723/).
Turku, 5 November 2025
HKFoods Plc
Board of Directors
Webcast
In connection with its Interim Report for January-September 2025, HKFoods will
hold a briefing for analysts, institutional investors and media on 5 November
2025 at 10:00 a.m. EET as a webcast at https://hkfoods.events.inderes.com/q3
-2025.The event will be held in Finnish, and the recording will be available
later in the day at www.hkfoods.com. (http://www.hkfoods.com/fi)
The Interim Report for January-September 2025 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 2026
· Financial Statements Bulletin for 2025 will be published on Friday 13
February 2026 at approximately 8:30 a.m. EET.
· HKFoods' Annual Review 2025 will be published in week 14/2026 at the latest.
The Annual General Meeting (AGM) will be held in Turku on Wednesday 22 April
2026. The invitation to HKFoods' AGM will be published later as a separate
invitation.
HKFoods will publish the following financial reports in 2026:
· Interim Report for January-March 2026 on Wednesday 6 May 2026 at about 8:30
a.m. EEST
· Half Year Financial Report 2026 on Wednesday 5 August 2026 at about 8:30
a.m. EEST
· Interim Report for January-September 2026 on Wednesday 4 November 2026 at
about 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 responsible and 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 2024, our net sales totalled EUR 1 billion.
www.hkfoods.com (https://www.hkfoods.com/en/)
The brands mentioned in this report - HK®, Kariniemen® and Via® - are registered
trademarks of HKFoods Group.
DISTRIBUTION:
Nasdaq Helsinki
Key media
www.hkfoods.com (https://www.hkfoods.com/en/)