HKFoods Q2'26 flash comment: Good report without major surprises
Summary
- HKFoods reported Q2 revenue of 259 MEUR, a 5% increase, surpassing expectations due to strong sales in poultry, meal components, and beef, despite underperforming grill sausage sales.
- Adjusted EBIT rose by 19% year-on-year, exceeding forecasts by 9%, driven by growth in high-margin channels and efficiency improvements, though rising oil prices are expected to impact costs in H2.
- The company maintained its guidance for increased comparable EBIT, supported by a 2.4 MEUR earnings improvement in H1, although challenges like African swine fever and cost inflation pose uncertainties.
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| Estimates | Q2'25 | Q2'26 | Q2'26e | Q2'26e | Diff-% | 2026e | |
| MEUR/EUR | Comparison | Actualized | Inderes | Consensus | Act. vs. Inderes | Inderes | |
| Revenue | 246 | 259 | 253 | 2% | 1021 | ||
| EBITDA | 13.3 | 14.8 | 14.7 | 1% | 65.4 | ||
| EBIT (adj.) | 6.5 | 7.7 | 7.1 | 9% | 35.1 | ||
| EBIT | 6.2 | 7.2 | 7.1 | 2% | 34.8 | ||
| EPS (adj.) | 0.00 | 0.02 | 0.02 | 18% | 0.13 | ||
| Revenue growth-% | -3.5% | 5.3% | 3.0% | 2.3 pp | 2.5% | ||
| EBIT-% (adj.) | 2.6% | 3.0% | 2.8% | 0.2 pp | 3.4% |
Source: Inderes
Translation: Original published in Finnish on 8/5/2026 at 8:54 am EEST.
HKFoods reported slightly better-than-expected Q2 earnings. The guidance for 2026, which indicates rising earnings, remained unchanged, and in our view, there are good prerequisites for this based on H1 earnings growth. Assessing the impacts of African swine fever and cost inflation is still challenging, and these factors add some uncertainty regarding the near future.
Growth from typical growth segments and beef
Q2 revenue grew by 5% to 259 MEUR, which was slightly stronger than we had anticipated (we forecast 3%). Growth was supported by the sales of poultry products, meal components, and ready meals. Additionally, beef sales grew due to improved availability compared to the reference period, which, along with the elevated price level of beef, was likely one of the drivers behind the growth. The foodservice channel also developed well. However, the company mentions that sales of grill sausages did not meet targets.
Profitability strengthened, supported by growth and efficiency improvements
Adjusted EBIT improved by 19% year-on-year and exceeded our forecast by 9%. The improvement in profitability was driven by growth in channels with a favorable margin, such as retail and foodservice, as well as the company's efficiency program. The elevated oil price began to translate into packaging and logistics costs at the end of the quarter. The company expects this cost pressure to be more significant in H2 and is preparing for it with future pricing windows.
Guidance unchanged
HKFoods reiterated its guidance that expects comparable EBIT to increase from the previous year. The earnings improvement for H1 was 2.4 MEUR, so the position to achieve the full-year guidance is already reasonably good. On the other hand, the discovery of African swine fever in Finland may hinder the company's export revenues, and cost pressure is increasing, both of which add some uncertainty.
HKFoods operates in the food industry. The group includes several subsidiaries with business activities in the sale, marketing and production of meat products from pork, beef and poultry. The group operates the entire value chain, from slaughtering, cutting to processing and resale of the raw materials. HKFoods has the largest operations in the Nordic market. The head office is located in Turku.
Read more on company pageKey Estimate Figures06.05
| 2025 | 26e | 27e | |
|---|---|---|---|
| Revenue | 996.4 | 1,021.3 | 1,041.7 |
| growth-% | -0.5 % | 2.5 % | 2.0 % |
| EBIT (adj.) | 34.0 | 35.1 | 36.6 |
| EBIT-% (adj.) | 3.4 % | 3.4 % | 3.5 % |
| EPS (adj.) | 0.09 | 0.13 | 0.18 |
| Dividend | 0.08 | 0.09 | 0.11 |
| Dividend % | 5.4 % | 5.5 % | 6.7 % |
| P/E (adj.) | 16.6 | 12.6 | 8.9 |
| EV/EBITDA | 4.9 | 4.9 | 4.7 |
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