HKFoods Q4'25 flash comment: Profitability developed well
By Pauli Lohi
Summary
- HKFoods' Q4 revenue grew by 1.2% year-on-year to 270 MEUR, slightly below estimates, with positive developments in retail and foodservice channels improving the sales structure.
- Adjusted EBIT increased by 8% year-on-year to 11.2 MEUR, exceeding expectations due to an improved sales mix and efficiency measures, despite pressure from rising beef prices.
- The Board of Directors proposes a dividend of EUR 0.08 for 2025, with a potential additional profit-sharing of EUR 0.07, surpassing previous estimates.
- HKFoods' guidance for 2026 indicates growth in comparable EBIT from 2025's 34.1 MEUR, aligning with expectations for moderate improvement.
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Translation: Original published in Finnish on 02/13/2026 at 09:08 am EET
| Estimates | Q4'24 | Q4'25 | Q4'25e | Difference (%) | 2025 | |
| MEUR / EUR | Comparison | Actualized | Inderes | Act. vs. Inderes | Actualized | |
| Revenue | 267 | 270 | 273 | -1 % | 996 | |
| EBITDA | 16.9 | 18.5 | 18.0 | 3 % | 62.5 | |
| EBIT (adj.) | 10.3 | 11.2 | 10.4 | 7 % | 34.1 | |
| EBIT | 6.5 | 11.2 | 10.4 | 7 % | 32.9 | |
| EPS (adj.) | -0.02 | 0.02 | 0.04 | -45 % | 0.08 | |
| DPS | 0.14 | 0.15 | 0.07 | 114 % | 0.15 | |
| Revenue growth-% | 6.9 % | 1.2 % | 2.1 % | -1 pp | -0.3 % | |
| EBIT-% (adj.) | 3.9 % | 4.1 % | 3.8 % | 0.3 pp | 3.4 % |
Source: Inderes (the dividend in the table includes a potential additional profit distribution)
HKFoods released its Q4 financial statements bulletin this morning. Revenue grew in higher-margin channels but decreased as planned in industrial sales. Profitability slightly exceeded our expectations The company provided upward guidance for 2026 — as expected. The proposed profit distribution was also higher than our estimates, including the possibility of an additional profit distribution later. As a whole, we feel the report leaned moderately to the positive side.
Moderate growth, sales structure improved
Q4 revenue grew by 1.2% year-on-year to 270 MEUR, which was 1% below our estimate. The company reports that sales developed positively in retail and foodservice and decreased as planned in industrial sales, improving the sales structure. The company strengthened its market position in the foodservice channel, e.g., in poultry products, and we believe this may be partly related to the recently launched new ready-to-eat product line in Eura.
Profitability slightly stronger than expected
Adjusted EBIT was 11.2 MEUR, increasing 8% y/y. Earnings also exceeded our estimate by 7%. Earnings grew as a result of an improved sales mix and the efficiency measures implemented by the company. The increase in beef prices partly weakened profitability, as the increase in sales prices only partially covered the rise in costs. We estimate this is due to continued beef price pressure during Q4, which is typically passed on to sales prices with a delay. Net profit from continuing operations strengthened to 4.0 MEUR (Q4’24: -2.7 MEUR) but missed our EUR 5.1 million forecast. In addition to the operational result, net profit was supported by a decrease in financial expenses and taxes. On the other hand, the earnings share from joint ventures and associates fell short of our estimate.
Profit distribution proposal is higher than our expectations
Net debt at the end of the period was 142 MEUR, which was clearly lower than our estimate of 153 MEUR. The Board of Directors proposes a dividend of EUR 0.08 for 2025, in addition to a potential additional profit-sharing of EUR 0.07, which the Board could decide on until the beginning of the next Annual General Meeting. The basic dividend was EUR 0.01 above our estimate, and we had not estimated any additional dividend.
No surprises in guidance, but the starting level of earnings is higher than estimated
In 2026, HKFoods guides that the Group's comparable EBIT will grow from 2025 (34.1 MEUR). Our latest estimate for 2026 EBIT was 35.3 MEUR, which would represent only a moderate improvement from the realized level.
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 Figures30.12.2025
| 2024 | 25e | 26e | |
|---|---|---|---|
| Revenue | 1,001.8 | 999.1 | 1,024.1 |
| growth-% | -13.9 % | -0.3 % | 2.5 % |
| EBIT (adj.) | 27.7 | 33.3 | 35.3 |
| EBIT-% (adj.) | 2.8 % | 3.3 % | 3.4 % |
| EPS (adj.) | -0.05 | 0.11 | 0.14 |
| Dividend | 0.14 | 0.07 | 0.09 |
| Dividend % | 18.2 % | 3.9 % | 5.1 % |
| P/E (adj.) | neg. | 16.9 | 12.5 |
| EV/EBITDA | 4.1 | 5.2 | 4.8 |
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