A quick query from AI:
1. Years 2021–2022: Pandemic aftermath and severe cost inflation
- Prolonged COVID restrictions: In Fodelia’s outlook reports, management stated that the pandemic hit B2B and wholesale sales (restaurants and public kitchens) hard, which shifted growth to the end of the year. [1]
- War in Ukraine and inflation: The war that began in 2022 dramatically increased the prices of raw materials, packaging materials, and energy. Management explained the erosion of profit margins by noting that increased costs could not be passed on to customer prices quickly enough due to long-term contracts. [1, 3]
2. Year 2023: Growth investments and inefficiency
- Capacity expansion: Management justified the soft earnings with the extensive expansion work at the Pyhäntä factory and the ramp-up of new production lines. [1, 2]
- Inefficiency: Initial production challenges and the startup costs of a new organizational model weighed on profitability, even though revenue itself grew. [1, 2]
3. Year 2024: Business cleanup and non-recurring items
- Structural arrangements: The group had to sell off poorly performing segments, such as Perniön Liha, Helsingin Makkaratehdas, and the pita bread business. Management explained the weakness in reported earnings through one-off costs and write-downs caused by these divestments.
4. Year 2025: Headwinds for Oikia and Fodbar (Major profit warning)
- Oikia’s private label issues: In a Fodelia profit warning issued in July 2025, management admitted that the profitability of the Oikia business (snacks) had collapsed. The reasons were price adjustments and loss of market share for private label products. [1, 2]
- Fodbar’s startup costs: The joint venture Fodbar won new major contracts, but management explained the unit’s negative earnings by citing industry-typical startup costs for contracts that were heavier than anticipated.
- Modest Foodservice market: The public and private food service market developed sluggishly, which hindered Feelia’s wholesale sales. [1, 2]
5. Year 2026: Production delays and new financing costs
- Pyhäntä factory production investments: According to Inderes’ robo-analysis, Feelia’s growth and profitability in the latest interim reports continued to be hindered by factory development investments. [1]
- Financing costs: The earnings reports were burdened by a capital loan granted to the Fodbar joint venture, which weakened the group’s reported net income. [, 2]
- Geopolitical tensions: Management has also referred to indirect cost pressures on global markets caused by the conflict in the Middle East. [1]