Continued margin improvement
July -
- Net sales amounted to MSEK 3,308 (3,202). At constant exchange rates net sales decreased by 2 per cent.
- Operating income (EBIT) increased to MSEK 139 (112), corresponding to a margin of 4.2 (3.5) per cent.
-
Income for the period amounted to MSEK 90 (66). Earnings per share amounted to
SEK 1.16 (0.99). - Operating cash flow was MSEK 232 (248).
January -
- Net sales amounted to MSEK 10,003 (9,050). At constant exchange rates net sales increased by 6 per cent.
- Operating income (EBIT) increased to MSEK 352 (191), corresponding to a margin of 3.5 (2.1) per cent.
-
Income for the period amounted to MSEK 207 (83). Earnings per share amounted to
SEK 3.11 (1.17) - Operating cash flow was MSEK 562 (389).
Significant events after the close of the quarter
- In
August 2023 Morningstar Sustainalytics published an updated ESG Risk Rating and rankedScandi Standard 10th globally out of 360 evaluated companies in the Packaged foods category. -
As part of its turnaround process for
Denmark ,Scandi Standard AB (publ) has entered into an agreement to divest its majority stake inRokkedahl Food ApS . The divestment will reduce complexity in production and free up resources to focus on the ongoing turnaround process of our Ready-to-cook business inDenmark .
Key metrics2)
Q3 2023 | Q3 2022 | Δ | 9M 2023 | 9M 2022 | Δ | R12M | 2022 | |
Net sales | 3,308 | 3,202 | 3% | 10,003 | 9,050 | 11% | 13,072 | 12,119 |
EBITDA | 248 | 212 | 17% | 673 | 520 | 29% | 875 | 722 |
Operating income (EBIT) | 139 | 112 | 23% | 352 | 191 | 84% | 451 | 290 |
EBITDA margin % | 7.5% | 6.6% | 0.9ppt | 6.7% | 5.7% | 1.0ppt | 6.7% | 6.0% |
EBIT margin % | 4.2% | 3.5% | 0.7ppt | 3.5% | 2.1% | 1.4ppt | 3.5% | 2.4% |
Non-comparable items1) | 8 | - | - | 8 | - | - | 8 | - |
Adjusted EBITDA1) | 240 | 212 | 13% | 665 | 520 | 28% | 867 | 722 |
Adjusted operating income (Adj. EBIT)1) | 130 | 112 | 16% | 344 | 191 | 80% | 443 | 290 |
Adjusted EBITDA margin1) % | 7.2% | 6.6% | 0.6ppt | 6.6% | 5.7% | 0.9ppt | 6.6% | 6.0% |
Adjusted EBIT margin1) % | 3.9% | 3.5% | 0.4ppt | 3.4% | 2.1% | 1.3ppt | 3.4% | 2.4% |
Income after finance net | 107 | 84 | 27% | 256 | 119 | 116% | 323 | 186 |
Income for the period | 90 | 66 | 35% | 207 | 83 | 149% | 262 | 138 |
Earnings per share, SEK | 1.16 | 0.99 | 17% | 3.11 | 1.17 | 166% | 3.96 | 2.02 |
Return on capital employed % | 10.5% | 5.2% | 5.3ppt | 10.5% | 5.2% | 5.3ppt | 10.5% | 6.7% |
Return on equity % | 11.1% | 4.0% | 7.1ppt | 11.1% | 4.0% | 7.1ppt | 11.1% | 6.2% |
Operating cash flow | 232 | 248 | -6% | 562 | 389 | 45% | 370 | 197 |
Net interest-bearing debt | 1,678 | 1,733 | -3% | 1,678 | 1,733 | -3% | 1,678 | 1,983 |
NIBD/Adj. EBITDA | 1.9 | 2.8 | -31% | 1.9 | 2.8 | -31% | 1.9 | 2.7 |
Lost time injuries (LTI) per million hours worked | 22.5 | 27.8 | -19% | 23.9 | 28.3 | -16% | 24.0 | 27.4 |
Feed efficiency (kg feed/live weight) | 1.50 | 1.50 | 0% | 1.50 | 1.50 | 0% | 1.50 | 1.50 |
1) Restated 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 7 per cent to MSEK 2,431 (2,265) in the third quarter. The operating income improved to MSEK 105 (34), mainly driven by higher sales, lower prices for input goods and clear improvement in profitability in our Danish operations. Earnings were positively impacted by non-comparable items of MSEK 8 pertaining to the divestment of the majority stake in Rokkedahl Food Aps.
Several markets, such as
During the quarter, the change initiatives continued to impact our Danish operations and earnings for Ready-to-cook in
While we noted feed and other input good prices starting to stabilise in the beginning of the fourth quarter, the current macroeconomic situation does, however, entail continued uncertainty about future developments.
Ready-to-eat (RTE) reported a decrease of 8 per cent to MSEK 734 (802) in net sales for the third quarter. The operating income decreased from MSEK 70 for the same quarter last year to MSEK 32, mainly due to lower capacity utilisation at the production facility in Farre,
We see a good underlying demand for our products and the opportunities to diversify our customer base and increase profitability are significant.
Other/Ingredients, our business and product development area aimed at utilising the whole bird and adding value to our products, contributed an operating income of MSEK 11 (22). The performance reflects a gradual normalisation following a period with highly favourable market conditions.
Integrated sustainability and planning to meet climate targets
Efforts to systematically integrate sustainability into both strategy and operations remain a priority focus area, and during the quarter, work continued with developing tangible action plans to reach our ambitious sustainability goals, both at Group level and in each country. One example comprises the ongoing efforts to develop a detailed plan for
I am proud that our systematic sustainability initiatives are receiving increasing external recognition, most recently in Morningstar Sustainalytics' ESG risk rating, where
Strong cash flow
Operating cash flow improved during the quarter, primarily due to stronger earnings and a reduction in working capital, which was mainly driven by reduced inventory, partly due to seasonal effects.
Net interest-bearing debt decreased MSEK 299 and amounted to MSEK 1,678 at the end of the quarter, mainly driven by the strong cash flow and the divestment of Rokkedahl Food Aps. Our assessment is that investment levels in 2023 will be slightly lower than previously communicated and amount to MSEK 340.
Solid foundation for the next step of our continued growth journey
In the past few years,
Our focus has now switched to implementing strategies and processes that will increase long-term value creation in the Group. We are finalising a long-term plan for investments and financial targets, which I will disclose in more detail at our capital markets day on 28 November.
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 Julia Lagerqvist. CFO
Tel: +46 10 456 13 00
Tel: +47 917 47 724
This interim report comprises information which
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