CEO Otto Drakenberg comments on the interim report

Growing net sales, unsatisfactory result.

Scandi Standard reports another quarter of growth as net sales increased by 5 percent to MSEK 2,564 (2,448), equivalent to 7 percent growth in local currency. Profitability is unsatisfactory, particularly due to negative result in our Ready-to-cook business in Denmark and continued effects from bird flu. Raw material prices for feed are at historic high levels in the whole Group. The general approach we have with clients to adjust product prices for changes in feed raw material prices forms a good hedge to the largest cyclical driver for our industry, although there are some phasing effects. In addition, costs relating to management changes impacted the result negatively. Adjusted operating income (adjusted EBIT) decreased to MSEK 79 (105), implying a margin of 3.1 (4.3) percent.

My assessment of Scandi Standard after the first weeks as interim managing director and CEO of Scandi Standard is that the company has strong growth potential, based on both external and internal factors. From an external perspective we experience a market which shows strong opportunities for development and our products match increasing preference for tasty, healthy, sustainable, and affordable products. Internally, the company possesses many of the prerequisites required to take full advantage of these opportunities, including financial resources and high industry competence within the organisation. The financial result in the quarter does not live up to its potential and has been negatively affected by a number of organizational and leadership shortcomings. We are now in the process of resolving these and I am confident that Scandi Standard will capitalize on the dynamic opportunities in our markets and therefore be able to deliver significant improvements in growth and profitability.

Please, see the entire interim report: English Swedish

Otto Drakenberg,
Interim managing director and CEO