HKFoods Plc, Interim Report, 6 May 2026 at 8:30 a.m. EEST
HKFoods' Interim Report 1 January-31 March 2026
January-March 2026
· HKFoods' comparable EBIT from continuing operations improved once again from
the comparison period. The profit for the period from continuing operations also
increased clearly.
· HKFoods' net sales from continuing operations grew by 3.8 per cent to EUR
242.5 (233.7) million. Sales strengthened clearly in the Finnish retail channel,
and there was also growth in the food service channel, which improved the sales
structure.
· In retail, sales of HKFoods' own HK® and Kariniemen® brands in particular
grew across all main product groups. Sales in the food service channel developed
positively due to commercial measures and a comprehensive product range.
· The Group's comparable EBIT from continuing operations strengthened by 23.7
per cent to EUR 5.7 (4.6) million, representing 2.4 (2.0) per cent of net
sales. The comparable EBIT improved due to a more favourable sales structure as
well as savings generated by the company's efficiency programme and improved
production efficiency.
· The sharp rise in the purchase price of beef due to the shortage of beef
continued. In addition, the rise in salary costs and significantly increased
energy costs resulting from the cold winter weakened the comparable EBIT. The
increases in sales prices and electricity price hedging measures only partially
covered the rise in costs.
· The Group's profit for the period from continuing operations improved to EUR
2.8 (0.8) million, driven by a stronger EBIT and lower financing costs.
· Cash flow from operating activities, including discontinued operations, was
EUR -5.9 (-4.7) million.
· Interest-bearing net debt declined to EUR 153.5 (160.1) million. Net gearing
was 78.1 (74.1) per cent.
· Interest-bearing net debt excluding leasing liabilities under IFRS 16 was
EUR 70.9 (74.0) million.
The figures in parentheses refer to the same period in the previous year, unless
otherwise mentioned. The figures are unaudited.
Outlook for 2026
HKFoods expects that in 2026 the Group's comparable EBIT will grow compared to
2025.
KEY FIGURES
(EUR million) 1-3/2026 1-3/2025 2025
Net sales, continuing operations 242.5 233.7 996.4
EBIT, continuing operations 5.4 4.6 32.9
- % of net sales 2.2 2.0 3.3
Comparable EBIT, continuing operations 5.7 4.6 34.1
- % of net sales 2.4 2.0 3.4
EBITDA, continuing operations 12.7 12.1 62.5
Profit before taxes, continuing 3.1 1.2 18.7
operations
- % of net sales 1.3 0.5 1.9
Profit for the period, continuing 2.8 0.8 14.2
operations
- % of net sales 1.2 0.4 1.4
EPS, EUR, continuing operations 0.02 0.00 0.08
Comparable EPS, EUR, continuing 0.03 0.00 0.09
operations
Cash flow from operating activities, -5.9 -4.7 51.0
incl. discontinued operations
Cash flow after investing activities, -9.9 -9.9 36.1
incl. discontinued operations
Return on capital employed (ROCE) before 6.7 6.8 6.6
taxes, %, incl. discontinued operations
Interest-bearing net debt 153.5 160.1 141.8
Net gearing % 78.1 74.1 73.2
HKFoods' CEO Juha Ruohola
HKFoods' strong development continued in the first quarter of 2026. The
comparable EBIT from continuing operations has improved for 13 consecutive
quarters compared to the comparison period. Net sales from continuing operations
grew by 3.8 per cent to EUR 242.5 (233.7) million. The Group's comparable EBIT
from continuing operations strengthened by 23.7 per cent to EUR 5.7 (4.6)
million, representing 2.4 (2.0) per cent of net sales. The profit for the period
from continuing operations improved to EUR 2.8 (0.8) million.
Sales strengthened clearly in the Finnish retail channel, and there was also
growth in the food service channel, which improved the sales structure.
Industrial sales increased whereas export sales declined. In retail, sales of
HKFoods' own HK® and Kariniemen® brands in particular grew across all main
product groups. Sales in the food service channel developed positively due to
commercial measures and a comprehensive product range.
The comparable EBIT improved due to a more favourable sales structure as well as
savings generated by the company's efficiency programme and improved production
efficiency. The sharp rise in the purchase price of beef due to the shortage of
beef, the rise in salary costs and significantly increased energy costs weakened
profitability. We were able to only partially offset the cost increases with
higher sales prices during the early part of the year. Global uncertainty will
continue to put upward pressure especially on energy, packaging and logistics
costs. The situation regarding beef availability has remained tight, and
consumption has shifted towards poultry and pork, which supports HKFoods'
strategic priorities.
Our investment capacity has improved in recent years as profitability has
increased. Operations have been developed through efficiency investments as well
as reforms in working methods and sustainability. Even now, several smaller
efficiency investments are underway at the company's production units. We are
also developing commercial activities.
We advanced our responsibility programme by launching the ETEVÄT programme for
contract meat producers in the early part of the year. The programme aims to
improve profitability and production results for both producers and the company,
as well as to promote the wellbeing of animals and people, a vital environment
and a reduced environmental footprint. In addition, we expanded the use of
Flavoured Salt in meat products and poultry products, among others. This
innovation makes it possible to reduce the sodium content of individual products
by up to 25 per cent.
Our strong first-quarter performance is the result of excellent cooperation. For
this, I would like to thank our employees, contract producers, customers and
other partners.
Key events in January−March 2026
HKFoods' buy-back programme of own shares was completed
In February 2026, HKFoods completed the buy-back programme concerning the
company's own Series A shares. In trading organised by Nasdaq Helsinki Ltd, the
company acquired between 18 February 2026 and 24 February 2026 a total of 90,000
of its own Series A shares with an average price of EUR 1.9315 per share. The
total purchase price for the shares was EUR 173,833.90. The shares were acquired
at market price in public trading on Nasdaq Helsinki Ltd using the company's
nonrestricted equity and in compliance with the price and volume limits
applicable under the safe harbour rules.
The buy-back programme for the company's own shares was based on the
authorisation received from the Annual General Meeting held on 23 April 2025.
The repurchased shares are used to fulfil obligations related to the company's
share-based incentive schemes.
Following the completion of the programme, on 25 February 2026, the total number
of HKFoods Plc shares issued was 89,910,373, of which 85,175,373 were Series A
shares and 4,735,000 Series K shares. After the repurchases, HKFoods Plc holds a
total of 90,000 own Series A shares, which corresponds to approximately 0.1 per
cent of all HKFoods shares in the company.
Details on the matter were provided in the following stock exchange releases: 13
February 2026 (https://www.hkfoods.com/en/newsroom/stock
-releases/2026/02/hkfoods-commences-a-share-buy-back-c5305454/) and
25 February 2026 (https://www.hkfoods.com/en/newsroom/stock
-releases/2026/02/hkfoods-share-buy-back-programme-c5312482/).
Changes in HKFoods' own shares
Based on the resolution made by the company's Board of Directors, HKFoods
transferred on 12 March 2026 without consideration 89,332 own Series A shares
held by the company to the company's CEO to pay the first instalment of the
rewards from performance share plan 2023-2027, in accordance with the terms of
the plan. The transfer of own shares was based on the authorisation granted by
the Annual General Meeting held on 23 April 2025. After the transfer of shares,
HKFoods holds 668 own shares.
Details on the matter were provided in the following stock exchange release: 11
March 2026 (https://www.hkfoods.com/en/newsroom/stock-releases/2026/03/changes
-in-hkfoods-own-shares-c5321983/).
Turku, 6 May 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 6 May 2026 at 10:00 a.m. EEST as
a webcast at https://hkfoods.events.inderes.com/q1-2026.
The event will be held in Finnish, and the recording will be available later in
the day at
www.hkfoods.com (https://www.hkfoods.com/fi). (https://www.hkfoods.com/fi)
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 in 2026
HKFoods will publish the following financial reports in 2026:
· 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 2025, 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/)