Scandi Standard (SCST) Q1 2025 earnings summary

Executive summary

• Net sales grew 7% year-over-year to MSEK 3,376 in Q1 2025, driven by strong demand for chicken and convenience products and favorable product mix.

• Underlying EBIT improved to MSEK 124 (up 2%), despite a -17 MSEK impact from Lithuanian start-up costs.

• Strategic acquisitions in Lithuania and the Netherlands support backward integration and future growth.

• Dividend proposal increased to SEK 2.50 per share, up from SEK 2.30 last year.

• Sustainability efforts recognized with an 'A' CDP rating and a 42% reduction in lost time injuries.

Financial highlights

• EBIT per kilo was SEK 1.73 (Q1 2024: SEK 1.74); excluding Lithuanian startup costs, EBIT per kilo rose to SEK 2.05, up 18% year-over-year.

• EBITDA rose to MSEK 233 (225), with an EBITDA margin of 6.9% (7.1%).

• Operating margin (EBIT) was 3.7% (3.9%), and EPS was SEK 1.01 (1.07).

• Operating cash flow improved, supported by lower working capital; NIBD/EBITDA at 2.1x, below the 2.5x threshold.

• Return on capital employed improved to 11.4% (11.1%), while return on equity was slightly below last year.

Outlook and guidance

• Targeting 5-7% net sales growth and EBIT margin above 6% by 2027.

• EBIT per kilo target set at SEK 3 by 2027; current underlying EBIT per kilo is SEK 2.05.

• 2025 investments projected at MSEK 550, focused on efficiency, capacity expansion, and plant ramp-ups.

• Expecting material EBIT per kilo improvements in 2025, with significant contributions from Lithuania and Oosterwolde.

• QSR market expected to improve later in 2025; ready-to-eat margins anticipated to normalize as ramp-ups complete.