HKFoods (HKSAV) Q1 2025 earnings summary

Executive summary

• Profitability improved significantly in Q1 2025, driven by food service and poultry sales growth, production efficiency, and cost savings.

• Net sales rose 2.2% year-over-year to €233.7M, with export sales rebounding from a weak prior period and Finnish consumer demand shifting to lower-priced products.

• Efficiency program, production investments, and new ready-to-eat and meal lines enhanced operational performance.

• Cash flow from operating activities was -€4.7M, impacted by timing of the Swedish business sale and Easter; net debt decreased to €160.1M, and net gearing improved to 74.1%.

• AGM decided not to pay a dividend for 2024 but approved a capital repayment of €0.09 per share and authorized an additional €0.05 per share at the Board's discretion.

Financial highlights

• Net sales: €233.7M (up 2.2% year-over-year); comparable EBIT: €4.6M (up from €1.4M); EBIT margin: 2.0%.

• EBITDA: €12.1M (up from €8.9M); profit for the period: €0.8M (up from -€3.8M); EPS: €0.00.

• Cash flow from operating activities: -€4.7M (down from €1.8M); net gearing: 74.1% (improved from 93.8%).

• Return on capital employed (ROCE): 6.8% (up from -0.2%).

• Equity ratio: 41.0% (up from 37.1%).

Outlook and guidance

• Expects comparable EBIT to grow in 2025 compared to 2024.