HKScan is considering divesting from its Denmark business after agreeing to sell its Swedish business earlier this year.
In a stock exchange statement, the Finland-based food group said it is in “preliminary negotiations regarding the divestment of its Danish business”. It added there is “no certainty” on the outcome of the discussions nor the terms of any potential transaction.
HKScan said: “The negotiations are linked to HKScan’s continued assessment of its group structure and the strengthening of the balance sheet, in line with previously communicated objectives.
“The company reviews the positioning of its market areas as part of the group’s long-term strategy with a target to grow into a versatile food company.”
The company has refused to comment further on the negotiations.
HKScan employs around 677 workers throughout the full chain of operations in Denmark, and its primary brand is poultry producer Rose. Its production units are located in Vinderup, Skovsgaard and the head office of HKScan’s Danish operations in Aarhus.
The news comes after HKScan confirmed earlier this year it would it sell its Swedish business to local agri-food group Lantmännen for around €60m ($65.9m).
At the time, HKScan CEO Juha Ruohola said: “The divestment of the Swedish business will strengthen HKScan’s balance sheet. In addition, the sale will allow us to better focus on our remaining businesses and implement our long-term strategy.”
Before that, HKScan completed the sale of its Baltic business to Estonia’s AS Maag Grupp in August.
If the Turku-headquartered company were to sell off its Danish assets, it would solely operate its Business Unit Finland, where its Polish unit’s figures also fall under.
In 2023, the Danish business accounted for €230.2m in net sales, up from €220.4m in 2022. The group as a whole generated €1.16bn in total in 2023.
HKScan’s comparable EBIT reached €14.9m which was equivalent to 1.3% of net sales. In Denmark, the group’s comparable EBIT was €3.3m which equalled 1.4% of net sales there.
The company said it achieved its best full-year result in Denmark for more than a decade.
The Finnish company’s total EBITDA was €52.7m for the twelve months until 31 December, up from €30.1m in 2022. However, it reported a loss of €15.6m in 2023, a slight improvement on a loss of €16m in 2022.
