Danish Crown Reports Satisfactory Results in Difficult Market21 November 2013
DENMARK - In the past financial year, Danish Crown has increased revenue by almost DKK 2 billion from DKK 56.5 billion to DKK 58.2 billion, while the operating profit of DKK 2,018 million is slightly up on last year’s result of DKK 2,005 million.
The Board of Representatives has today approved supplementary payments of DKK 0.90/kg for pigs for slaughter, DKK 0.80/kg for sows and DKK 1.50/kg for calves and cattle.
“While earnings have been maintained, during the year we have disbursed more than DKK 800 million more to our owners through a higher and competitive price for the raw materials which they have supplied,” said Erik Bredholt, Chairman of Danish Crown’s Board of Directors.
It is Danish Crown’s global presence and the level of value chain integration which, over the past year, have given the group the robustness to deliver stable results at a time when the competition is tougher than ever.
“At the moment, the food market is characterised by intense competition, and we therefore see considerable fluctuations in the results generated across the group. However, it is here that the diversity of our activities really proves its worth for the benefit of our owners,” said Danish Crown’s Group CEO Kjeld Johannesen.
The targeted focus on processing in DC Foods is once again paying off, as this is where the results have been particularly positive, and positive enough to counter the challenges of falling volumes in the Danish supply chain. At the same time, the results for the year reflect the strength of DC Fresh Meat where, for example, sales to Japan are producing positive results despite significant currency fluctuations.
“In a European perspective, the results are also satisfactory,” said Mr Johannesen.
The average prices paid for pigs for slaughter, sows and cattle have been higher than last year, yet this does not change the fact that many owners are still challenged.
“In the past year, many owners have found it hard to generate earnings from their production. Fortunately, the tide has been turning in recent months, and we are confident that the situation will continue to improve in 2014,” said Erik Bredholt.
The supply of pigs for slaughter to slaughterhouses in Denmark has fallen further over the past year, 3.5 per cent in total.
“ In the past 12 months, we have tried to introduce new solutions in order to safeguard supplies. However, it is far from enough, so this will also be a key focus area in the coming year – and a recurring theme in our dialogue with those who decide the framework conditions for production in Denmark, Mr Bredholt added.
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