Scandi Standard (SCST) Q2 2025 earnings summary

Executive summary

• Net sales grew 6% year-over-year in Q2 2025, driven by strong demand and growth across all countries and segments.

• EBIT increased 9% to 138 MSEK, reaching all-time highs for both the second quarter and first half, with margin improving to 3.9% from 3.8% year-over-year.

• Lithuania operations delivered positive EBIT ahead of plan; Netherlands (Oosterwolde) plant on track for Q4 2025 startup.

• Dividend of SEK 2.50 per share approved for 2025, paid in two instalments, with the final payment due in September.

• Completed acquisition and integration of Lithuanian chicken farms, supporting backward integration and self-sufficiency.

Financial highlights

• Q2 2025 net sales: 3,543 MSEK (up 6%); EBIT: 138 MSEK (up 9%); EPS: 1.29 SEK (up 18%).

• EBIT per kilo reached 1.88 SEK (1.92 SEK excluding Lithuania startup costs), up from 1.83 SEK in Q2 2024.

• Operating cash flow was -SEK 150 million in Q2, mainly due to timing of receivables, acquisitions, and working capital changes.

• Net interest-bearing debt increased by SEK 341 million to SEK 2,288 million, driven by acquisitions and dividend payments; NIBD/EBITDA at 2.4x, below internal target of 2.5x.

• ROCE improved to 11.1% (from 10.8%); return on equity at 11.1%.

Outlook and guidance

• Further improvements expected in the second half of 2025, with focus on ramping up Lithuania and Netherlands operations.

• Ready-to-eat segment margins to recover as price increases are passed through in Q3 and Q4.

• CapEx for 2025 estimated at SEK 550 million, with an additional SEK 330 million for acquisitions.

• Dividend yield remains strong; blended effective tax rate expected at ~20%.

• Financial targets: EBIT margin >6% (current 3.9%), ROCE 15% (current 11.1%), NIBD/EBITDA <2.5x (current 2.4x).