Finnish meat processor HKFoods has decided to maintain its bacon production unit located in Swinoujście, Poland.
In a recent stock-exchange announcement on July 3, the company stated it will “continue with the current group structure.” This marks a shift away from the reassessment plans announced in April, which hinted at a potential sale of the Swinoujście facility reported earlier.
Managed by HKFoods’ Polish operations, the Swinoujście plant employs approximately 300 individuals.
HKFoods reiterated its prior estimate, noting that the Polish subsidiary is projected to generate net sales of around €70 million ($82.3 million) in 2025.
Commenting on this decision, HKFoods CEO Juha Ruohola stated: “We have invested in the Polish bacon unit over recent years. The profitable facility is in strong condition, having enhanced its capacity and efficiency through investments, such as a new slicing and packaging line in 2024. Additionally, we are focused on increasing the added value of our Polish operations and progressing our property development project during the first half of 2025.”
“Following extensive restructuring, our goals now center on executing our strategy for HKFoods Group’s operations in Finland and Poland. We aim to enhance the competitiveness and profitability of our core business while expanding commercial activities.”
The Finnish meat processor previously indicated that this evaluation was part of its ongoing efforts to “strengthen the group’s balance sheet.”
In recent years, HKFoods has undergone significant restructuring to improve its financial flexibility. This includes divesting its businesses in the Baltics, Sweden, and Denmark.
In May of last year, the company sold its Danish subsidiary to Plukon Food Group, a Netherlands-based poultry firm, for €44.6 million.
HKFoods also transferred its Swedish operations to local agri-food group Lantmännen in January 2024.
The company’s financial results for 2024, released in February, revealed net sales of €1 billion from continuing operations, marking a 7.4% increase compared to the previous year. This growth was driven by strong consumer demand and effective commercial strategies.
EBITDA from continuing operations rose to €56.3 million, a 24.8% increase from 2023, while the loss for the period narrowed from €17.3 million in 2023 to €1.8 million.
Recent results from May indicate a turnaround, with HKFoods reporting a net profit of €0.8 million for the first quarter of 2025, compared to a €3.8 million loss a year earlier.
Sales increased by 2.2%, reaching €233.7 million in the three months ending March 31, while EBITDA from continuing operations surged 36% to €12.1 million.
In March, HKFoods announced the closure of a slaughterhouse in Paimio, Finland, due to declining cattle numbers. Operations from the Paimion Teurastamo business will transition to Liha Hietanen, an external service provider in Sastamala, by the March 31 deadline.
