Danish Crown’s Half-Year Result in Line with Expectations 

Randers, 8 may 2008

Challenges in primary production and rates of exchange effects the half-year result, however, increased food prices are expected to work through in the second half- year.

Net profit generated by Danish Crown in the first half-year of 07/08 amounts to DKK 517 million, compared to DKK 645 million in the first half-year of 06/07. This is in line with expectations after a half-year where Danish Crown through the quoted price system has tried to cushion the huge challenges in the primary production among the company’s members.

- The difficult situation in the primary production means that we currently have paid as much as possible to the members in the first half-year. As expected, rising food prices will not really work through in the meat production until the second half-year, says Kjeld Johannesen, CEO, Danish Crown.

Danish Crown’s pork division has re-established its slaughter capacity after the two large fires in 2007. The slaughter tonnage in the first half-year has therefore been 2.5 percent larger compared to the same period last year.
An adjustment of capacity has lately been carried through as the slaughter surplus after the fires is gone.

The meat division’s half-year results are fully in line with expectations.

The picture is somewhat varied in the processing sector – large parts of the processing have delivered good results while other areas have seen essential challenges – for example as a consequence of the rates of exchange.

- Market prices are now heading in the right direction and that will influence the result both in primary production and in Danish Crown in the second half-year, says Kjeld Johannesen, CEO.