SWEDEN – Scandi Standard has published its third-quarter 2024 results, reporting gains in key performance indicators.
The quarter saw processed chicken volumes rise by 3%, while operating income (EBIT) increased by 11% to SEK 153 million (US$14M), with a boost attributed to steady growth and refined operations.
Net sales amounted to SEK 3,343 million (US$306 million), marking a 4% increase in constant currency terms.
CEO Leif Bergvall Hansen commented on the quarter’s results, noting that Scandi Standard has achieved improvements in operating income and profit margins, alongside notable growth in product volumes.
According to Hansen, the gains align with Scandi Standard’s long-term goals and were supported by robust performances across both Ready-to-Cook (RTC) and Ready-to-Eat (RTE) categories.
A carefully managed balance of volume growth, product diversification, and efficiency enhancements led to the 11% rise in operating income, now reaching SEK 153 million (US$14 million). In terms of operating margin, the CEO emphasized a positive shift from last year’s 4.2%.
In the RTC category, net sales improved to SEK 2,536 million (US$232 million), reflecting higher volumes compared to the same quarter last year, with operating income also rising to SEK 111 million (US$10.2 million).
The third quarter historically performs well for RTC, largely due to increased demand during the barbecue season.
Meanwhile, the RTE segment, in line with projections, saw a decline in net sales to SEK 677 million (US$62 million), down from SEK 734 million (US$67 million) in the prior year.
The segment did, however, see a 39% jump in operating income, which reached SEK 44 million (US$4 million) following cost adjustments for a period of lower capacity.
Scandi Standard’s ingredients segment, categorized under “Other,” contributed SEK 10 million (US$900,000) in operating income during Q3.
This area has faced market challenges linked to energy costs, affecting profitability in recent months, but remains strategically significant.
The company also reported a reduction in net interest-bearing debt to SEK 1,696 million (US$155 million) from SEK 1,796 million (US$164 million), alongside an improved cash flow position despite a SEK 75 million (US$7 million) dividend issued during the quarter.
The Q3 results come shortly after Scandi Standard closed on a new acquisition—a poultry processor in Lithuania—announced in August.
The company confirmed that all conditions of the acquisition have been met and that operations will commence shortly.
The Lithuanian facility is projected to contribute an annual output between 20,000 and 25,000 metric tons of poultry products, based on grill weight.
Scandi Standard disclosed the transaction’s value at €23.5 million (US$26 million) upon its announcement.
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