Focus on core business leads to improved earnings

Randers, november 15 2007

Despite a challenging second half-year of 2007, Danish Crown provides its best result in five years.

Continuous keen focus on core business ensures a competitive position for one of the world’s largest slaughtering groups – considering both the world market and supplementary payments to the company owners.

During the last years the non-core businesses have been disposed off, and this makes a decline in turnover from DKK 48.5 billions to DKK 44.3 billions this year, however, at the same time the operating profit from ordinary activity has increased from DKK 1,765.4 millions to 1,903.3 millions.

In addition Danish Crown has increased competitiveness considerably with regard to the quoted price compared to the countries south of Denmark.

- We have been on a journey with a clear strategic goal, and after a consolidation phase on the core business I’m not afraid to say, that Danish Crown is now ready to take a firm line, says Kjeld Johannesen, CEO.

A number of steps have been taken in 2006/07 by way of starting acquisition projects to strengthen the company. At the end of the financial year projects have been started both in the UK, Slovakia and Sweden.

- As a global group we must ensure a competitive position on several markets, ensuring sales of raw materials from the members. This means that when we get the chance we must be able to take an active approach. The ongoing acquisition projects is a reflection of our strategic wish for an increased processing degree, informs Chairman Niels Mikkelsen.

The annual accounts results in supplementary payments to members as follows: 75 øre per delivered kilo to members, supplying slaughterpigs - 55 øre to members, supplying sows and 85 øre to members, supplying cattle.

- Comparing the result with the large challenges Danish Crown has experienced through the second half-year of 2007 reflects a strong company, says Niels Mikkelsen referring in particular to the two large fires destroying two slaghterhouses in April and July.

Key Figures Danish Crown 2006/07