Scandi Standard (SCST) Q1 2025 earnings summary

Executive summary

• Net sales grew 7% year-over-year to MSEK 3,376, driven by strong demand, favorable product mix, and substitution from red meat.

• Underlying EBIT improved to MSEK 124 (up 2%), despite a negative impact from Lithuanian startup costs (EUR 7 million/MSEK 17).

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

• Strategic acquisitions and plant startups in Lithuania and the Netherlands are expected to accelerate integration and future growth.

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

Financial highlights

• Net sales: MSEK 3,376 (3,160), +7% year-over-year; at constant FX, +8%.

• EBIT: MSEK 124 (122), +2% year-over-year; EBIT margin 3.7% (3.9%).

• EBITDA margin: 6.9% (7.1%); EPS SEK 1.01 (1.07).

• Operating cash flow strengthened by higher EBITDA and improved working capital.

• Net interest-bearing debt: MSEK 1,948 (1,709), NIBD/EBITDA 2.1x (1.9x).

Outlook and guidance

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

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

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

• Lithuanian and Oosterwolde plants expected to materially improve EBIT per kilo in 2025.

• QSR market expected to improve later in 2025; Oosterwolde plant startup planned for Q4 2025.