HKFoods, previously trading as HKScan, is investing in a factory in its domestic market of Finland to increase capacity for ready meals.
The plant in the city of Vantaa is earmarked for €5m ($5.5m) as HKFoods seeks to cater to what it says is rising demand for ready meals in the retail and foodservice channels.
As well as ready meals, the Vantaa facility also produces meat-based products, both under brands such as HK and Via, for microwave meals and soups.
A new line of products is in development to meet consumer demand for what the company calls “high-quality, tasty and convenient meal solutions”. However, the new items are not targeted for launch until next summer.
“The investment now implemented will strengthen our market and competitive position in higher value-added products strategically important for the company,” said Jari Leija, HKFoods’ executive vice president in Finland.
“It will enable us to meet the expectations of our customers and consumers in both the retail and foodservice sectors for high-quality, ready-to-use products for everyday food moments.”
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By GlobalData
HKFoods, which changed its corporate brand name in May, posted a net loss of €5.5m for its continuing operations in the first six months of its new fiscal year through June, shrinking from a €10.3m loss a year earlier.
“We are determined to improve our profitability and build a stronger foundation for the future competitiveness of our business,” Leija said.
Just Food has asked Lieja for more details on the Vantaa investment, including the extent of the capacity increase and what the pipeline of new ready meals entails.
In the first-half results announcement in August, the company said: “HKFoods strengthened its position in the Finnish consumer market, which reduced the need for less profitable meat exports.
“Profitability of red meat, especially beef, in Finland remained challenging. Sales and profitability of poultry and meat products and ready meals showed a positive trend.”
Elsewhere in the results, sales climbed 6.9% to €483.3m. EBIT for continuing operations rose to €4.3m from €4m.
Comparable group EBIT more than doubled to €5.8m, from €2m a year earlier. The same metric for Finland rose to €10m from €6.6m.
Still trading as HKScan, the company revealed in May it had signed a deal to sell its Danish subsidiary to Netherlands-based poultry business Plukon Food Group.
As 2024 got underway, the company also announced the sale of its Swedish business to local agri-food group Lantmännen.
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