Danish Crown loses revenue; profit is stable
Danish Crown has managed to maintain the net result in the fiscal year 2008/2009, which ended September, at the same level as the previous year.
The food company published its figures this week. The net profit was €137 million, a touch higher than in the previous fiscal year; revenue last year (€6.3 billion) however was a little bit higher than in the fiscal year 2008-2009 (€6 billion).
Low exchange rates
Kjeld Johannesen, Danish Crown CEO, said that revenue losses were due to lower exchange rates in the British Pound Sterling, Swedish Crown and the Polish Zloty. He added that positive results were made in the foreign production and breeding sector.
According to his comments, British meat subsidiary Tulip even made record results, despite currency exchange problems. Another success factor was DC Future, a cost reduction programme, mainly targeted at Danish activities.
Niels Mikkelsen, chairman of the board, Danish Crown, is convinced the company's competitive position is improving as well. The company has reduced the slaughter capacity and thhe number of employees went down 1,500 from 10,600.
The supply of finisher pigs on the Danish market, however, is still under pressure, as the meat price at Danish Crown is lower than those of competitors. To pork producers, however, Danish Crown pays an after-payment of €0.094/kg for the last fiscal year, which is higher than last year.
• Danish Crown
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