Scandi Standard’s majority stake in Rokkedahl Food, a Denmark-based organic and free-range poultry producer, has been sold back to the minority owner Rokkedahl Food Holding A/S, controlled by the Rokkedahl family.
The financial details of the transaction were not disclosed.
Rokkedahl Food’s products are currently being marketed in Denmark by Danpo, Scandi Standard’s subsidiary. The acquisition of the majority stake in 2018 granted Scandi Standard the option to purchase the remaining 49% stake in 2023, based on an EBITDA multiple of six times.
As part of the initial agreement, Danpo agreed to guarantee Rokkedahl’s interest-bearing debt and leasing obligations, amounting to approximately DKr56m (then $8.7m).
This divestment will have an immediate effect, reducing Scandi Standard’s net interest-bearing debt by approximately Skr170m ($16.6m), according to the latest filing.
Scandi Standard CEO Jonas Tunestål stated, “The deal will reduce complexity and allow us to focus on the ongoing turnaround process of our ready-to-cook business in Denmark. It will also result in a more capital-efficient marketing of organic and free-range products to our customers.”
Despite the divestment, Danpo will continue to market organic and free-range products in Denmark, as confirmed by Scandi Standard.
In Scandi Standard’s fiscal 2022 annual results, the company reported a16% increase in net sales, reaching Skr12.2bn ($1.17bn), compared to the previous year. The operating income also rose to SKr290m, up from SKr222m in 2021.
During the first quarter of 2023, Scandi Standard experienced further growth, with net sales amounting to SKr3.28bn, an 18% year-on-year increase. Additionally, the operating income spiked by 149% to SKr93m.
These developments in the food and beverage industry showcase significant trends in food manufacturing, food processing technology, food distribution, and food and drink industry innovation. By divesting its majority stake in Rokkedahl Food, Scandi Standard is streamlining its operations and focusing on the turnaround of its ready-to-cook business in Denmark. This strategic move allows Scandi Standard to allocate resources more efficiently and cater to customer demands for organic and free-range products. Furthermore, the ongoing marketing efforts by Danpo will ensure continued access to these sustainable food options for consumers in Denmark.
With a 16% growth in net sales in fiscal 2022 and a strong start to 2023, Scandi Standard demonstrates its resilience and ability to adapt to changing consumer trends. These positive financial results highlight the company’s commitment to delivering quality food and drink products to its customers. In an ever-evolving industry, Scandi Standard’s performance reflects its dedication to meeting market demands while driving innovation and ensuring compliance with food and drink regulations. This success is also attributed to effective packaging and marketing strategies, aligning with the evolving preferences and expectations of consumers.
Overall, Scandi Standard’s divestment and strategic focus on its core business illustrate its commitment to growth and sustainability in the food and beverage industry. By capitalizing on industry trends and leveraging its experience and resources, the company remains well-positioned to navigate changing consumer preferences and continue its success in the market.
