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Stable Half-year for Danish Crown

16 May 2013

DENMARK - Better prices and intense focus on costs see Danish Crown posting an operating profit close to DKK1 billion for the first half, representing a four per cent increase relative to the prior-year period.

In the first half of FY 2012/13, the group generated revenue of DKK28.5 billion, an increase of DKK1 billion on the prior-year period. The net profit of DKK714 million is on a par with last year’s interim profit of DKK737 million.

The stable results are due to slightly better prices for fresh meat, and to the fact that the group’s processing companies have successfully managed to pass on the increasing raw materials prices to the prices in the retail market.

"I am delighted that we have been able to maintain our position in a challenging market," said Danish Crown’s CEO, Kjeld Johannesen.

Danish Crown is the world’s biggest exporter of pork, and the market prices for pork in H1 2012/2013 were therefore impacted by the fact that both the dollar and yen have been weaker relative to the euro.

"In the first half we have seen bigger than expected supplies of pork on the world market, which has obviously had an impact on prices – and on Danish Crown and the company’s owners," said Mr Johannesen.

There are clear seasonal fluctuations in the meat industry, and the delayed start to the barbecue season is affecting price developments at the beginning of the second half of the financial year.

The contribution made by the Swedish part of DC Pork and the Polish company, Sokolow, has been particularly positive.

"Overall, the outlook for the second half is for a profit on a par with the first half given the slightly weaker earnings on fresh meat and improved earnings at DC Foods," said Mr Johannesen.

Key figures for Danish Crown*
DKKmH1 2012/13H1 2011/12
Revenue 28,509 27,565
Operating profit 974 937
Net profit for the period 714 737
Balance 26,309 24,919
Equity 5,240 4,939
Subordinated loans 5,745 5,993
Cash flows from operating activities 526 646
Cash flows from investing activities -612 -763
Supplies by members, millions of kg 676 724
No. of employees 23,036 24,139
* Group accounting figures incl. Leverandørselskabet Danish Crown AmbA

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