Q2 2025 Scandi Standard AB (publ) Earnings Call Transcript
Key Points
- Scandi Standard AB (FRA:0SL) reported a 6% growth in net sales and an increase in volumes, supported by strong European demand for chicken.
- The company's EBIT performance improved, with a 9% increase in the quarter and a 10 basis points margin improvement.
- Lithuanian operations showed a positive EBIT impact ahead of schedule, contributing to the company's financial targets for 2027.
- The company is well-positioned to gain market share with a low-cost, high-quality end-to-end value chain, including a new state-of-the-art processing plant in Lithuania.
- Scandi Standard AB (FRA:0SL) maintains a strong market position in its five home markets, benefiting from consumer preference for domestic produce.
- The Ready-to-Eat (RTE) segment experienced weaker EBIT performance due to rising chicken prices, with a decrease from SEK38 million to SEK23 million compared to last year.
- Operating cash flow was negative SEK150 million in the quarter, primarily due to timing of trade receivables and increased CapEx linked to acquisitions.
- The equity ratio decreased from 36% to 34%, driven by increased investment activity, although the company remains well-capitalized.
- There is a structural lag in passing through price increases in the RTE segment, which may continue to impact performance in the short term.
- The ramp-up of the new plant in the Netherlands will incur start-up costs and low utilization initially, affecting short-term profitability.
Hello, everyone, and welcome to Scandi Standard's interim report for the second quarter 2025. My name is Lydia, and I'll be your operator today. (Operator Instructions) I'll now hand you over to Jonas Tunestal, CEO of Scandi Standard to begin. Please go ahead.
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Thank you very much, and good morning, everyone, and welcome to this presentation of Scandi Standard's results for Q2 2025. My name is Jonas Tunestal, and I'm the CEO and Managing Director of Scandi Standard. By my side, I have Fredrik Sylwan, our CFO, and I'm really pleased to have him by my side. And I'm also glad to report strong growth and results in the quarter. So next slide, please.
And we see a solid growth and improved performance in the quarter. We have a 6% growth in net sales and increase in volumes, and it's supported by business across countries, channels and segments, and the sales are supported by continued strong underlying demand. So there's a strong
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