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International Internet Magazine. Baltic States news & analytics Sunday, 09.08.2020, 02:49

HKScan Latvia turnover increases 12.4% in 2019

BC, Riga, 16.07.2020.Print version
HKScan Latvia, which produces meat products under the Rigas Miesnieks brand, posted EUR 43.414 mln in turnover last year, an increase of 12.4% on 2018, while the company's losses amounted to EUR 394,342 as compared to a profitable 2019, according to Firmas.lv informed LETA.

According to the company's management report, the increase in turnover last year was thanks to customer loyalty and increasing sales of the company's products.


HKScan Latvia's turnover increased both in Latvia and abroad. In addition to the existing markets, HKScan Latvia also successfully continued to develop exports to Central Europe, especially Germany, where sales increased twofold as compared to 2018, mostly thanks to a new dumpling production facility.


At the same time, the report says that production costs increased by 19 %. One of the main reasons for the increase in production costs was the higher cost of raw materials, supplies and finished products due to an increase in pork prices in the European Union countries and other markets, as well as changes in the calculation of transfer prices among the Baltic companies of HKScan Group.


The company's management also points out that last year HKScan Group invested approximately EUR 8 mln in increasing the production capacity of Rakvere plant, and this year plans to introduce new Rakvere products on the Latvian market.


Commenting on the impact of Covid-19 on the company, HKScan Latvia points out that so far this year the company's sales have remained at the same level as in the respective period of last year. Although the turnover of HoReCa customers - hotels, restaurants and cafes - has fallen and some customers have suspended operations, the decrease in the company's turnover in the HoReCa segment has been offset by higher retail turnover.


According to Firmas.lv, HKScan Latvia turnover in 2018 increased 12% to EUR 38.635 mln, while the company's profit increased by 77.5% to EUR 1.071 mln.


HKScan Latvia was founded in 1992, it has been part of HKScan Group since 1998. The company's share capital is EUR 2.214 mln. HKScan is one of the largest food companies in the Nordic countries and includes meat processing companies in Finland, Sweden, Denmark and the Baltic countries.






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