Scandi Standard: A Chicken Empire on the Rise
May 3, 2025, 4:00 am
In the world of poultry, Scandi Standard AB (publ) is carving out a niche that is hard to ignore. As the leading producer of chicken-based food products in the Nordic region and Ireland, the company is not just clucking along; it’s soaring. Recent reports from the first quarter of 2025 and the annual general meeting reveal a company that is not only growing but also strategically positioning itself for future success.
The annual general meeting held on April 29, 2025, was a pivotal moment for Scandi Standard. Resolutions were passed with unanimous approval, reflecting a strong consensus among shareholders. A dividend of SEK 2.50 per share was declared, to be distributed in two equal payments. This move is a clear signal of confidence in the company’s financial health and future prospects. The re-election of board members, including Johan Bygge as chairman, underscores stability at the helm.
Scandi Standard’s financial performance in the first quarter of 2025 tells a compelling story. The company reported a net sales increase of 7% year-over-year, reaching MSEK 3,376. This growth is not just a blip; it’s a trend. The demand for chicken is rising, and Scandi Standard is meeting that demand head-on. Operating income also saw a modest increase, rising to MSEK 124, despite the challenges posed by ramp-up costs in Lithuania.
The acquisition of six poultry farms in Lithuania is a strategic masterstroke. This move will make Scandi Standard self-sufficient in bird supply, a crucial step in controlling the supply chain. The acquisition price of approximately MSEK 200 is a small price to pay for the long-term benefits of operational independence. Four of the six farms have already been acquired, with the remaining two expected to follow suit. This self-sufficiency will not only enhance production capabilities but also bolster the company’s competitive edge in the market.
In addition to the Lithuanian farms, Scandi Standard acquired a production facility in Oosterwolde, Netherlands, from Tyson Foods. This facility houses two of Europe’s largest and most efficient product lines for ready-to-eat products. Such acquisitions are not merely expansions; they are strategic investments that will pay dividends in efficiency and output.
Despite the costs associated with these expansions, Scandi Standard’s operating cash flow turned positive, moving from a negative MSEK 70 to a positive MSEK 8. This turnaround is a testament to the company’s operational resilience and adaptability. The ability to generate cash flow while investing in growth is a delicate balance, and Scandi Standard is managing it well.
The company’s focus on sustainability is also noteworthy. Scandi Standard received an ‘A’ rating from CDP for its climate actions in 2024. This recognition is not just a badge of honor; it reflects the company’s commitment to environmental responsibility. Initiatives such as climate mapping and science-based climate targets are paving the way for a greener future. In an era where consumers are increasingly concerned about sustainability, this commitment could enhance brand loyalty and market share.
Moreover, Scandi Standard is making strides in workplace safety. The lost time injury (LTI) rate has dropped significantly, showcasing the company’s dedication to employee well-being. A safer workplace is not just a moral obligation; it’s a business imperative. Fewer injuries mean lower costs and higher productivity.
Looking ahead, Scandi Standard is well-positioned to capitalize on the growing demand for chicken. The first quarter of 2025 has set a strong foundation, with robust underlying demand and strategic investments in place. The company’s operations in Lithuania are expected to play a crucial role in meeting this demand, combining cost efficiency with high-quality production.
The company’s strategy is clear: enhance operational efficiency, expand production capabilities, and maintain a strong focus on sustainability. This trifecta of goals will not only drive growth but also solidify Scandi Standard’s position as a leader in the poultry industry.
In conclusion, Scandi Standard is not just a player in the poultry market; it’s a formidable force. With strategic acquisitions, a commitment to sustainability, and a focus on operational excellence, the company is poised for continued success. As it navigates the complexities of the market, Scandi Standard is not merely surviving; it is thriving. The future looks bright for this chicken empire, and investors would do well to keep an eye on its progress.
The annual general meeting held on April 29, 2025, was a pivotal moment for Scandi Standard. Resolutions were passed with unanimous approval, reflecting a strong consensus among shareholders. A dividend of SEK 2.50 per share was declared, to be distributed in two equal payments. This move is a clear signal of confidence in the company’s financial health and future prospects. The re-election of board members, including Johan Bygge as chairman, underscores stability at the helm.
Scandi Standard’s financial performance in the first quarter of 2025 tells a compelling story. The company reported a net sales increase of 7% year-over-year, reaching MSEK 3,376. This growth is not just a blip; it’s a trend. The demand for chicken is rising, and Scandi Standard is meeting that demand head-on. Operating income also saw a modest increase, rising to MSEK 124, despite the challenges posed by ramp-up costs in Lithuania.
The acquisition of six poultry farms in Lithuania is a strategic masterstroke. This move will make Scandi Standard self-sufficient in bird supply, a crucial step in controlling the supply chain. The acquisition price of approximately MSEK 200 is a small price to pay for the long-term benefits of operational independence. Four of the six farms have already been acquired, with the remaining two expected to follow suit. This self-sufficiency will not only enhance production capabilities but also bolster the company’s competitive edge in the market.
In addition to the Lithuanian farms, Scandi Standard acquired a production facility in Oosterwolde, Netherlands, from Tyson Foods. This facility houses two of Europe’s largest and most efficient product lines for ready-to-eat products. Such acquisitions are not merely expansions; they are strategic investments that will pay dividends in efficiency and output.
Despite the costs associated with these expansions, Scandi Standard’s operating cash flow turned positive, moving from a negative MSEK 70 to a positive MSEK 8. This turnaround is a testament to the company’s operational resilience and adaptability. The ability to generate cash flow while investing in growth is a delicate balance, and Scandi Standard is managing it well.
The company’s focus on sustainability is also noteworthy. Scandi Standard received an ‘A’ rating from CDP for its climate actions in 2024. This recognition is not just a badge of honor; it reflects the company’s commitment to environmental responsibility. Initiatives such as climate mapping and science-based climate targets are paving the way for a greener future. In an era where consumers are increasingly concerned about sustainability, this commitment could enhance brand loyalty and market share.
Moreover, Scandi Standard is making strides in workplace safety. The lost time injury (LTI) rate has dropped significantly, showcasing the company’s dedication to employee well-being. A safer workplace is not just a moral obligation; it’s a business imperative. Fewer injuries mean lower costs and higher productivity.
Looking ahead, Scandi Standard is well-positioned to capitalize on the growing demand for chicken. The first quarter of 2025 has set a strong foundation, with robust underlying demand and strategic investments in place. The company’s operations in Lithuania are expected to play a crucial role in meeting this demand, combining cost efficiency with high-quality production.
The company’s strategy is clear: enhance operational efficiency, expand production capabilities, and maintain a strong focus on sustainability. This trifecta of goals will not only drive growth but also solidify Scandi Standard’s position as a leader in the poultry industry.
In conclusion, Scandi Standard is not just a player in the poultry market; it’s a formidable force. With strategic acquisitions, a commitment to sustainability, and a focus on operational excellence, the company is poised for continued success. As it navigates the complexities of the market, Scandi Standard is not merely surviving; it is thriving. The future looks bright for this chicken empire, and investors would do well to keep an eye on its progress.