Kaisa and Pauli have prepared a pre-earnings report on HKFoods :), as the company will publish its Q1 report on Wednesday, May 6.
We expect revenue to have turned to growth and adjusted operating profit to have improved from the comparison period, supported by operational efficiency and a better sales mix. However, we have slightly lowered our earnings forecasts for the current year due to cost pressures and typical delays in pricing. Based on our forecasts assuming moderate earnings growth, the stockâs valuation (2026e adj. EV/EBIT: 9x) is neutral, and the expected return on a one-year horizon remains sluggish in our view. Consequently, we are lowering our recommendation to Reduce (prev. Accumulate) and our target price to EUR 1.70 (prev. EUR 2.00), reflecting the forecast changes.
Here are Kaisaâs quick comments on this morningâs result.
HKFoods published its Q1 results this morning, which slightly exceeded our expectations regarding both revenue and earnings. Good momentum in the retail and food service channels supported revenue, and the companyâs efficiency measures successfully offset increased costs. As expected, the company reiterated its guidance pointing towards an earnings improvement for the current year. Overall, we consider the report relatively neutral, especially considering the rising costs. HKFoodsâ briefing, held at 10:00 AM, can be followed here.
Kaisa interviewed HKFoodsâ CEO Juha Ruohola regarding Q1
Topics:
00:00 Introduction
00:13 Return to growth path
00:59 Efficiency measures are working
02:24 Development of the sales mix
03:12 Changes in demand
04:16 Beef prices and availability
05:54 Cost pressures and pricing cycles
08:00 Drivers for achieving guidance
Kaisa and Pauli have published a new company report on HKFoods following the Q1 results
HKFoodsâ streak of earnings improvements continued in Q1. Operationally, the result was largely in line with our expectations, as strong momentum in retail and food service supported revenue growth, and efficiency measures compensated for increased costs. As expected, the company reiterated its guidance for the current year, and we kept our forecasts practically unchanged. Based on our forecasts assuming moderate earnings growth, the stockâs valuation (2026e: adj. EV/EBIT 9x) is neutral, and the expected return on a one-year horizon remains dull in our books. Consequently, we reiterate our reduce recommendation and target price of EUR 1.70.
