HKFoods (HKSAV) Q4 2024 earnings summary

Executive summary

• Net sales grew 7.4% year-over-year to EUR 1,001.8 million in 2024, driven by strong retail and food service channels and successful commercial activities.

• Comparable EBIT rose to EUR 27.7 million from EUR 11.6 million in 2023, reflecting improved sales mix, production efficiency, and cost savings.

• Major restructuring included divesting Swedish and Danish businesses, strengthening the balance sheet and reducing net debt.

• Strategic investments in ready meal production and efficiency projects at Vantaa, Eura, Rauma, and Forssa units supported growth.

• No dividend proposed for 2024; instead, a capital repayment of EUR 0.09 per share is proposed, with a possible further EUR 0.05 per share.

Financial highlights

• Q4 2024 net sales increased 6.9% year-over-year to EUR 266.9 million; full-year net sales reached EUR 1,001.8 million.

• Comparable EBIT for Q4 was EUR 10.3 million (EUR 3.0 million); full-year comparable EBIT was EUR 27.7 million (EUR 11.6 million in 2023).

• Profit for the period was EUR -1.8 million, a significant improvement from EUR -17.3 million in 2023.

• Cash flow from operating activities increased to EUR 60.8 million (2023: EUR 50.6 million); cash flow after investing activities was EUR 141.7 million.

• Full-year EBITDA reached EUR 56.3 million (2023: EUR 45.1 million); EBIT margin improved to 2.2% (2023: 1.5%).

Outlook and guidance

• Expects Group's comparable EBIT to grow in 2025 compared to 2024.