Snellman returns to growth

Snellman’s operations in early 2019 were marked by the sales restrictions caused by the meat shortages of the previous year and their negative impact. Sales momentum accelerated in the second half of 2019, ending with an increase of 6% for the whole year at the group level. Revenue grew by 13% in the fourth quarter.

The strongest growth was in the Ready Meals unit, which showed an increase of 8% in revenue at the annual level. In challenging market conditions, revenue in the Meat Processing unit increased by 4.5%. By contrast, the operating environment in Sweden in the market for fresh prepared foods remained challenging.

Snellman Group’s balance improved from the previous year. The Group’s equity ratio was 44% (46%), and total investments amounted to EUR 15 million (EUR 12 million).At the end of 2019, Snellman had 1,667 employees.

The Kokkikartano boxed casserole product cooking line investment, worth about EUR four million, was launched in the autumn of 2019. The line will be completed in the spring of 2020 and will improve production efficiency, as well as bringing additional capacity. Other 2019 investments were the construction of the Fodax pet feed factory in Sweden and the acquisition of Quality Meals operations.

In 2019, Snellman continued to systematically implement the sustainability programme across the whole group. Its main themes are the wellbeing of staff, producers and animals, work and employment in Finland, minimising losses, improving energy efficiency, increasing the use of renewable energy, and reducing the amount of plastics.

In the Meat Processing unit, minced meats were packaged in new flow packs, reducing the amount of packaging plastic for minced meat by 76%. The Ready Meals unit also invested in reducing the amount of plastic packaging, e.g. by thinning the materials. By the autumn of 2020, Kokkikartano will completely abandon the use of black plastic.

- We’ve begun 2020 in a confident mood. We’ve returned to the growth path, and our goal is to outperform the market this year as well. According to consumer surveys, our brands are the most desirable and respected in the market, and we’re the best in our field when it comes to quality, Finnishness, likeability and general image. In addition to growth, we are also striving to improve our operating result, says CEO Erkki Järvinen.