Snellman boosted its operations and improved its results

In 2016, Snellman Group's revenue stood at EUR 296.0 (309.7) million, a decrease of 4.4% from the previous year. The decrease in revenue was affected by the optimisation of the product range. Of the Group's business areas, Ready Meals Finland, Pet Food and Panini increased their revenue and operating result. The revenue of Meat Processing and Snellman Pro decreased, but their operating results improved. This improvement was affected by more effective operations, better management of raw material flows and the optimised product range.

The various business areas had successful product launches during the year: The Savustajan product range from Meat Processing became popular among consumers. The increased popularity of vegetarian meals was taken into account in products from Ready Meals. In addition, Food Service launched a genuinely Finnish pork product for restaurants in the Smoked product range. Panini and Pet Food gained firm footholds in the retail sector.

Snellman Group's balance sheet improved from the year before, and the degree of indebtedness decreased. The Group's equity ratio increased to 42.8% (37.0%).

According to Leena Laitinen, CEO of Snellman Group, these good results are based on continuous operational improvements and investments in quality. The continuous development of business processes, product development, cost control and more effective working capital are starting to pay off. The Group has been determined to implement its strategy, which was revised in 2015. The strategy is based on four cornerstones: profitability, growth, processes and cooperation.

“Our many ongoing development projects support the development of our business operations and our future growth. We have standardised our operating methods, improved our cooperation, boosted our operations, and thereby, we have achieved savings”, Laitinen says.

In 2016, the Group invested in expanding the Kokkikartano plant in Kerava. The value of the investment is EUR 10.5 million. The expansion will be completed in spring 2017, and it will be commissioned in stages. Snellmanin Kokkikartano has grown profitably, and its market share in the ready meals market continued to increase during the year. Snellman Group's total investments stood at EUR 10.3 million in 2016.

The year 2016 was a challenging one for meat processing and producers. However, we were able to improve the relative profitability of Snellmanin Lihanjalostus towards the end of the year.

“We want to take account of the valuable work of our producers and their investments in cooperation in this challenging economic situation”, says Henrik Snellman, chairman of the Board of Directors. Snellman will pay a total of EUR 1.2 million in remuneration to its producers. This remuneration will be paid to Snellman contract farms under the Maatilan Parhaat (Best of Farms) agreement in proportion to last year's animal sales.