CEO Otto Drakenberg comments on the interim report

November 12, 2021

Improvement program to address significant challenges.

During the third quarter of 2021, Scandi Standard’s net sales amounted to MSEK 2,632 (2,621), in line with the previous year. Operating income amounted to MSEK 30 (116), in line with the previous trading update.

The Ready-to-cook segment has been affected by a number of external and internal challenges during the quarter. Net sales amounted to MSEK 1,942 (1,983) and the operating income for the segment declined substantially to MSEK 7 (105). The operating income was, among other things, negatively affected by significant price increases on several input factors, a continued low-price situation in export markets, significant under manning in Ireland due to Covid 19 and by the previously announced production challenges in Sweden. The Ready-to-cook in Denmark continue to make major losses and reported a negative operating income of MSEK -60 over the quarter, including a cost for settlement of supplier contracts of MSEK 17.

The Ready-to-eat segment reported net sales for the quarter of MSEK 589 (532), an increase by 11 percent, and a slightly improved operating income, driven by a continued sales increase in the Foodservice sales channel. The increase is explained by the gradual easement of pandemic related restrictions. To meet increased demand, we will therefore increase the capacity of our operations in Denmark through optimized staffing.

Scandi Standard’s assessment is that the significant price increases for many of the input factors which have had a negative effect on the operating income during the third quarter will continue over the fourth quarter. In addition, general cost increases are expected for, among other things, energy, transport and insurance.

Please, see the entire interim report: English Swedish

Otto Drakenberg

Otto Drakenberg,
Interim managing director and CEO