This article first appeared on GuruFocus .
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Net Sales Growth:9% increase in Q4 2025.
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EBIT Increase:46% increase, with margins up to 4.5%.
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Dividend Proposal:SEK 3.36 per share, up 32% from last year.
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EBIT per Kilo:Increased to SEK 2.03 from SEK 1.55, a 31% increase.
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Ready to Cook Segment:9% increase in net sales, EBIT of SEK 120 million compared to SEK 63 million last year, margin improved to 4.6% from 2.6%.
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Ready to Eat Segment:11% growth in net sales, significant drop in EBIT due to raw material cost delays.
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Capital Employed:Increased from SEK 4.7 billion to SEK 5.0 billion.
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Return on Capital Employed:Improved by 70 basis points to 12.5%.
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Return on Equity:Strengthened to almost 14%.
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EBITDA:Exceeded SEK 1 billion on a rolling 12-month basis.
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Operating Cash Flow:Almost SEK 200 million in the quarter.
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Net Interest-Bearing Debt:Reduced by SEK 160 million, leverage at 1.9.
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Capital Expenditures for 2025:Close to SEK 450 million, expected to increase to SEK 650 million in 2026.
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Release Date: February 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Scandi Standard AB ( FRA:0SL ) reported a 9% growth in net sales for Q4 2025, driven by a shift from other proteins to poultry.
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The company achieved a 46% increase in EBIT, with margins improving to 4.5%, largely due to enhancements in the ready-to-cook segment.
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A dividend proposal of SEK 3.36 per share was announced, marking a 32% increase compared to the previous year.
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The company is on track with the integration of acquired entities, supporting its growth strategy.
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Scandi Standard AB ( FRA:0SL ) has a strong market position in its five home markets, benefiting from consumer preference for domestic produce.
Negative Points
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There were lower net sales in Finland due to the exit from a loss-making contract.
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Technical accounting adjustments in Norway impacted the topline, although the market contributed positively overall.
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The ready-to-eat segment experienced a significant drop in EBIT compared to Q4 2024, due to delays in passing through increased raw material costs.
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Feed costs remain a concern, as they constitute one-third of the company's cost base, with ongoing volatility expected.
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The company faces challenges in maintaining low antibiotic use, linked to issues in oil production.
Q & A Highlights
Q: What is the expected market growth in the Swedish market, and how will the reduction in VAT affect demand? A: Jonas Tunestal, CEO, stated that the expected market growth in Sweden is around 5%. Regarding the VAT reduction, it is a temporary measure, and they do not anticipate a significant increase in consumption as it applies to all food categories, not just poultry. However, there might be some channel shifts, such as increased retail presence.
Q: Why don't you expect any impact on demand with a 6% VAT reduction? A: Jonas Tunestal explained that since the VAT reduction applies to all food categories, not just poultry, it is unlikely to significantly impact demand. However, they acknowledge that there could be positive effects, such as increased retail sales, but these are not factored into their current forecasts.
Q: How has Scandi Standard managed to grow above the market rate in Sweden? A: Jonas Tunestal attributed the growth to their strategy of extracting more value from protein, particularly in the Ready to Cook (RTC) segment. This involves deboning more and offering pre-prepared meat, allowing them to capture more value from their products.
Q: What are the expectations for the Ready to Eat segment's recovery? A: Fredrik Sylwan, CFO, mentioned that the Ready to Eat segment's profitability has started to recover and is expected to continue improving in the coming quarters. This recovery is partly due to passing through increased raw material costs and strong food service demand.
Q: How is Scandi Standard managing feed cost volatility? A: Jonas Tunestal noted that while feed prices have softened slightly, they remain volatile. Scandi Standard's model links most input costs to the top line, providing some security against feed cost fluctuations. They also have limited trade with the US and China, which helps mitigate risks.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
