Artoparto's Blog: February 2015

Friday, February 27, 2015

HKScan's small associate Siljans Chark on the move

Siljans Chark, a relatively small HKScan's associated Swedish company, ownership approximately 40%, net sales of just below €20 million, is now in the headlines. Its new managing director is a man straight from HKScan, Thomas Perkiö. He says in an interview that in addition to production efficiency, focus will be on brand development.

As discussed also on this blog, a few years ago HKScan was going to increase its stake in the company but the locals put up a resistance. It will be interesting to see where HKScan now aims to. It's no coincidence that in January, HKScan sold Bertil Erikssons Slakteri slaughterhouse precisely to Siljans Chark.

We’ll see what happens next. Siljans Chark’s products are aimed at somewhat more affluent than average consumers and local origin is emphasized. Cool packages, light mood, Black Pudding here’s as an example.

Right now the most visibility is brought by ongoing Nordic Skiing World Championships, held in the company's home region in Falun. Siljans Chark is one of the official suppliers, which is of course a great opportunity to enhance brand awareness.

We will discuss HKScan later but on Friday, March 13^th, we are going to look at Atria’s businesses. Skiing 101.

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Friday, February 13, 2015

Atria Finland’s Q4 EBIT €15.6 million

Unbelievable result it is. Not much more to say. Financial statement tells the reason:

The increase in comparable EBIT was due to improved cost management and higher average sales prices year-on-year.

Higher average sales prices might be quarter dependent, Christmas sales are quite special, but one would think that better cost management is not going anywhere, which means that performance improvements will continue in the future.

Should one now expect that good results will follow from quarter to quarter? Maybe, maybe not.

Report’s Outlook for the whole Group’s future tells this:

In 2014, consolidated EBIT without non-recurring items was EUR 39.6 million. In 2015, EBIT is projected to be at the same level and net sales are expected to decrease.

It is an utterly disturbing statement specifically with regard to operating profit. It means that cost management improvement in Atria Finland has not been significant or some foreign business areas will continue to decline.

Rather contradictory feelings, to say the least, so let’s have some sausage ice cream. Warning: Very Swedish.

We will look at Atria again later but on Friday, February 27^th we are going to look at HKScan’s businesses. No sausage here. All warnings.

This is Artoparto and here is my Disclaimer. Please read it.