Strategy

MISSION

HKScan’s mission is to make daily life tastier for consumers and customers – both today and tomorrow. As a leading Nordic food company, active on multiple markets, we impact on many people’s everyday lives. We have deep insight into our consumers’ needs and we provide them with an extensive offering of tasty products both for daily dining and special occasions. ‘Making life tastier’ not only means offering great flavour, but also giving consumers’ peace of mind: when they choose HKScan, they can be confident they are making a responsible choice.

As the market leader across the Baltic Sea region, HKScan is in a position to exert a positive impact on the culinary culture and economy of many countries. We uphold the principles of sustainability and adhere to high standards of environmental, social and economic responsibility as well as animal health and welfare.

VALUES

Our business is driven by our Group’s mission and values: Inspire, Lead, Care.

  • Inspire – We generate excitement by offering inspirational new flavours and experiences around the world of food. We regard cooking and dining as an important part of enjoying life and sharing good times with friends and family.
  • Lead – We guarantee high standards of quality and responsibility in all our products and actions, all the way from farm to fork. We aim to be meat industry forerunners and contribute to ensuring that the meat value chain continues to thrive in future.
  • Care – Our products offer a balanced combination of great flavour, health, safety and responsibility. We disclose information openly, helping consumers make responsible choices with a clear conscience.

GROWTH THROUGH CONSUMER-DRIVEN BRANDED PRODUCTS AND EXPORTS

HKScan actively seeks profitable growth and we strive to continually push our business in a more consumer-centric direction. We want to continually improve our ability to meet consumer needs and expectations, which entails early-stage insight into consumer values, attitudes and lifestyle trends as a basis for innovative product development. To succeed, we continually upgrade our product categories and concepts. We also invest a growing amount of resources into more dynamic innovation, brand marketing and open communications. We pay attention to internal collaboration to ensure that every team is fully committed to our mission of making daily life tastier and more sustainable.

We are in the process of making strategic investments in growing product categories, such as chicken and bacon. HKScan is currently building a wholly new production facility in Finland specializing in poultry products, which is scheduled for completion at the end of 2017. We are also expanding our existing bacon plant in Swinoujscie, Poland, which is expected to be completed in 2018. These projects will enable us to develop wholly new products in a high value-add category as well as improve our cost efficiency.

HKScan recognizes potential for growth on export markets and is committed to develop its exports in a more demand-driven direction. The Group officially launched business in Asia by opening a sales office in Hong Kong early in 2016.

The circular economy is another area offering interesting growth potential for HKScan. Our Biotech business has developed commercially viable and eco-efficient alternatives for the utilization of meat industry side streams in various applications.

STRATEGIC STRENGTHS

HKScan recognizes the inherent challenges in our operating environment and their potential impacts on our strategy implementation. Our short-term growth prospects could potentially be affected by economic and political uncertainty, export barriers and changing consumer values. We are aware of the risks affecting our business and we strive to actively minimize the impact of said risks. We also strive to leverage maximum gain from our competitive strengths.

We attained one of the key targets of our previous strategy period by successfully having solidified our capital structure. The Group’s balance sheet is currently strong, offering a solid foundation for our future growth. Other key strengths supporting our strategy include our well-known brands, our market leadership on all our home markets, our superior professional meat expertise and the synergies offered by our geographical location.

In the wake of internal restructuring completed over the past few years, HKScan is today a more unified company, which was another key goal of our previous strategy period. Going forward, we will continue upgrading our operational efficiency and harmonizing our operational footprint. HKScan has divested a number of its smaller, noncore operations, which has streamlined our corporate structure and enabled us to focus more resources on our core mission.

The growth and evolution of our business is supported by HKScan’s innate strategic strengths, our active efforts to improve our profitability, as well as numerous market drivers on the market.

 

 

MARKET DRIVERS SUPPORTING OUR Business

Megatrends supporting our growth:

  • Consumption of meat, especially poultry, is on the rise globally.
  • Competition in the meat industry favours larger players such as HKScan.
  • Urbanization and various lifestyle trends are driving demand for convenience meals, semi-cooked foods and on-the-go products.
  • Consumers appreciate pure, wholesome responsibly produced Nordic meat.

LONG-TERM FINANCIAL TARGETS

HKScan’s long-term financial targets are:

  • Operating profit : over 4 per cent of net sales
  • Return on capital employed: over 12 per cent
  • Net gearing: less than 100 per cent
  • Distribution of dividends: over 30 per cent of net profit

HKScan will evaluate its long-term strategic focus areas as part of a strategic review to be initiated in spring 2017.