Danish Crown stronger after turbulent year

14-11-2008 | |

It was a stronger Danish Crown which presented its financial statements after what has been a very turbulent year.

Despite many challenges, the company’s global growth continued, and both the processing and the fresh meat sectors stand strengthened at the start of a new financial year. In a year which saw a decline in Danish meat production, Danish Crown’s revenue increased by 6 per cent, among other things thanks to acquisitions abroad.

The year brought considerable challenges, especially with regard to capacity – where shortages at the beginning of the year due to last year’s fires were followed by surplus capacity due to a decline in the production of pigs for slaughter.

The year saw a strong focus on reducing costs, partly due to a dramatic increase in veterinary costs. In a year where economic developments did not favour the international meat industry, Danish Crown demonstrated its ability to tackle the situation and to generate reasonable results nevertheless. The group’s companies in the UK contributed significant robustness in a year of market unrest.

The supplementary payments of DKK 0.60 for pigs, DKK 0.65 for sows and DKK 0.70 for cattle reflect the very tight pricing policy which was pursued during the year due to the financial challenges in the primary production.

The financial crisis which came to dominate the end of the financial year is having a severe impact on the company’s owners, but at the same time the crisis has shown that the cooperative system is a strong and lasting ownership structure.

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