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Introduction & Market Context
Scandi Standard (STO:SCST) reported solid second-quarter 2025 results on July 17, showing continued momentum with 6% revenue growth and a 9% increase in operating income (EBIT). The company’s stock closed at 99.1 SEK on July 16, near its 52-week high of 101.4 SEK, reflecting investor confidence in the company’s growth strategy and market positioning.
The Nordic poultry producer continues to benefit from strong consumer trends favoring chicken products, with data showing 44% poultry growth in the Nordics and Ireland from 2010-2023 and projections for another 13% growth through 2030. The company highlighted chicken’s positioning as an affordable protein option compared to alternatives like beef, pork, and salmon.
As shown in the following chart of poultry consumption trends, Scandi Standard operates in a market with strong growth fundamentals:
Quarterly Performance Highlights
Scandi Standard reported net sales of 3,543 MSEK for Q2 2025, up 6% from 3,350 MSEK in Q2 2024. Operating income (EBIT) increased 9% to 138 MSEK, compared to 127 MSEK in the same period last year. The EBIT margin improved slightly to 3.9% from 3.8%, while earnings per share rose more significantly to 1.29 from 1.09, representing an 18% increase.
The following slide summarizes the key financial metrics for Q2 2025:
The company’s performance was driven primarily by the Ready-to-cook segment, which saw a 6% increase in both net sales and chicken processed volume. The Ready-to-eat segment reported 4% growth in net sales but experienced a decline in EBIT to 23 MSEK from 38 MSEK in Q2 2024, primarily due to the negative impact from rising chicken prices that have not yet been fully passed through to customers.
The segment breakdown shows the contribution of each business line to the overall results:
Geographically, Sweden was the strongest performer with 10% growth, representing 28% of total sales. Denmark grew by 3% (21% of sales), while Norway declined by 2% (8% of sales) and Finland decreased by 9% (16% of sales). Ireland remained flat at 3% of sales. Lithuania is becoming an increasingly important market for the company.
The Ready-to-cook segment’s growth was driven by multiple channels, with particularly strong performance in retail and foodservice:
Strategic Initiatives
Scandi Standard continues to execute on its strategic expansion plans, with significant progress in Lithuania and the Netherlands. The Lithuanian operations, which include a 20-25 kt state-of-the-art processing plant, are now underway with a positive EBIT impact. The company is building a fully integrated hub in Lithuania, with recent farm acquisitions accelerating the process.
The following slide details the Lithuanian expansion:
In a significant strategic move, Scandi Standard has acquired two of Europe’s largest and most efficient breaded product lines in the Netherlands, with Factory C providing 48 kt annual capacity. The total investment of 28 MEUR (including acquisition price and required investments) replaces a planned 30 MEUR investment in Denmark. Operations are expected to start in Q4 2025.
This acquisition elevates Scandi Standard’s position in the European breaded market:
The company expects the European frozen breaded market to grow by approximately 60kt by 2029, providing additional growth opportunities. The combined Lithuanian and Netherlands operations position Scandi Standard to gain market share through low cost, high quality end-to-end operations, efficient logistics, and state-of-the-art breaded capability.
Forward-Looking Statements
Scandi Standard is progressing toward its 2027 target of achieving an EBIT per kilogram exceeding 3.00 SEK, compared to the current 1.88 SEK/kg in Q2 2025 (up 2% from 1.83 SEK/kg in Q2 2024). The company has outlined a clear roadmap to reach this target through climbing the value ladder, balancing supply to domestic fillet demand, and optimizing utilization.
The following chart illustrates the company’s path to achieving its EBIT/kg target:
The company’s strategic roadmap includes specific initiatives to improve EBIT/kg:
For 2025, Scandi Standard plans significant investments of approximately 550 million SEK, with a planned dividend of 163 MSEK. Despite these investments and the ongoing integration of acquisitions, the company has maintained a solid financial position with an improved Return on Capital Employed (ROCE) of 11.1% (up from 10.8%) and an Equity Ratio of 33.7% (down from 36.3%).
Looking ahead, Scandi Standard expects continued strong demand for chicken products, supported by favorable consumer trends toward affordable, sustainable protein options. The company’s expansion in Lithuania and the Netherlands positions it well to capitalize on these trends and achieve its long-term financial targets.
Detailed Financial Analysis
Scandi Standard’s balance sheet remains solid, with working capital management a continued focus. Inventory decreased by 13% compared to year-end and by 5% versus Q2 2024. However, receivables were unfavorably impacted by timing issues.
The company’s EBIT per kilogram (EBIT/kg) metric, which management considers a good measurement of value creation, showed positive momentum toward the 2027 target. Q2 2025 EBIT/kg was 1.88 SEK/kg, a 2% increase versus Q2 2024, though this figure was negatively impacted by the inclusion of Lithuania start-up costs.
Feed prices, which represent approximately one-third of the company’s cost base, have remained stable. The company noted that changes in feed costs are largely transferred to customers, with end consumers currently benefiting from lower costs. The short production cycle for chicken compared to other proteins enables a more agile supply chain.
Export prices approached historical highs in Q2 2025, up 3% compared to Q1 2025. This improvement reflects higher bird prices in Europe and the company’s efforts to enhance market performance through long-term partnerships with prioritized customers.
As Scandi Standard continues its expansion and integration of new facilities, the company remains focused on maintaining financial discipline while investing for future growth. The combination of organic growth and strategic acquisitions positions the company well to achieve its long-term financial targets and capitalize on the favorable trends in the poultry market.
Full presentation:
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