Finishers

News 1080 views last update:Feb 25, 2016

Danish Crown - strong position in challenged market

Danish Crown has successfully maintained its strong position in a sector which has been faced with serious challenges in recent years.

This year, Danish Crown is posting a profit of DKK 1,732 million relative to a profit last year of DKK 1,762 million, while revenue has increased from DKK 51.8 billion to DKK 56.5 billion.

Today, the Board of Representatives has approved supplementary payments of DKK 0.90/kg for pigs for slaughter, DKK 0.80/kg for sows and an impressive DKK 1.50/kg for calves and cattle. It is the breadth of its product range which makes Danish Crown such a credible business partner, and it is thanks to the experience gained through 125 years of operating in the world market that we are able to accommodate the massive price increases being seen in the market slightly faster.

“The past year has seen rocketing price increases for raw materials, and while it puts our processing companies under considerable pressure, it benefits the owners when it comes to sales of fresh meat. During the year, we have paid out DKK 1 billion more to Danish Crown’s owners, which is very positive,” says Danish Crown CEO Kjeld Johannesen.

At the same time, Danish Crown is able to consolidate by more than DKK 400 million - the biggest amount ever.

“It equates to almost a quarter of the profit for the year, and it is a clear signal from Danish Crown’s owners, who are thereby supporting the cooperative,” says Kjeld Johannesen.

Weaker euro
The weaker euro has made Danish Crown’s market composition even more valuable, and with its unbroken value chain the group is now able to guarantee reliable supplies throughout the entire supply chain. Business partners greatly value this.

“We find that customers choose us instead of other suppliers because of our stability and market experience. This also gives us a certain amount of clout in the negotiating situation,” says Kjeld Johannesen.  Danish Crown ends the financial year with a quoted price of DKK 12.40 against DKK 10.30 at the start of the year, and this development is set to continue.

“For many pig producers, the situation has turned. Their products are simply worth more because supplies have fallen more than demand. If we look at what the international analysts are saying, the future looks rosier for pig producers, which is very good news,” says Danish Crown’s Chairman of the Board Erik Bredholt.

Financial highlights for Danish Crown
DKKm                                                            2011/12      2010/11
Revenue                                                         56,462         51,754
Profit from primary activities                             2,005           2,029
Net profit for the year                                       1,732          1,762
Balance sheet                                                 25,522        23,935
Equity                                                                5,797          5,391
Capital base including subordinated loans        6,303          6,444

Pig Progress

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