CEO Leif Bergvall Hansen comments on the third quarter
Another quarter with strong growth and improved results.
I am proud to present another quarter of strong growth and improved results. Compared to the third quarter last year, our top line increased by 12 percent, to MSEK 2,541, and our adjusted EBIT increased by 23 percent to MSEK 125, implying a margin of 4.9 percent.
We continue to see a strong demand for our products in all our markets. Although our top line growth is somewhat inflated due to the successful implementation of price increases to mitigate corresponding increases in raw material costs, our underlying growth is very strong and remains higher than the average organic growth of approximately 6-7 percent annually demonstrated in recent years. This is driven by a good mix between market growth, increased market share and a more favorable product portfolio driving price realization. Given the increased product prices to consumers, I am particularly pleased to report a quarterly volume growth of 4 percent.
The strongest growth was generated in the Ready-to-eat product category (31 percent) and in the Ready-to-cook Chilled product category (13 percent). We continue to observe a decline in the less profitable Ready-to-Cook Frozen product category (-9 percent) and the export category grows at a slower pace than the categories with better profitability.
Leif Bergvall Hansen,
Managing Director and CEO Scandi Standard