Randers, 19 november 2014

In the past financial year, Danish Crown posted revenue of DKK 58 billion, which is on a par with the previous financial year. The operating profit was DKK 1,995 million, slightly below last year’s profit of DKK 2,018 million.

Today, the Board of Directors has recommended supplementary payments to the company’s owners of DKK 0.90/kg for slaughter pigs, DKK 0.80/kg for sows and DKK 1.40/kg for calves and cattle. In total, DKK 1,218 million will be disbursed to the owners.

- The past year has been very challenging due to the situation in Russia, and it is having an impact on our owners. For the slaughter pig producers, the year started with high hopes for reasonable earnings. However, the situation in Russia has meant a dramatic fall in the quotation in the course of the year, which is having extreme financial repercussions for farmers, says Chairman of Danish Crown’s Board of Directors Erik Bredholt, adding:

- Despite the considerable challenges thrown up by Russia’s ban on first pork and then basically all EU foods, we have maintained earnings in the group. At the same time, we have successfully kept costs under control, so I think we should be satisfied with the results, says Erik Bredholt.

Internationally, a significant fall in the production of pork in the US resulting from a deadly virus among weaners has contributed to shifting the balance in basically all markets.

- When global markets are affected to this extent, it increases the risk of being wrong-footed. I therefore see the results for the year as confirmation of the strength of the Danish Crown Group’s business model with the role it plays in large parts of the value chain and its significant geographical spread, says Danish Crown Group CEO Kjeld Johannesen.

At the same time, he emphasises that earnings from the Danish slaughterhouse activities are still unsatisfactory, and that the robust results can be ascribed to the group’s international structure.

The changing market conditions internationally have led to considerable variations in the results across the group. On the other hand, the group’s geographical spread means that the challenges encountered in the US are more than offset by the European processing companies in DC Foods.

DC Foods has in fact been further strengthened in the past year through the acquisition of the remaining 50 per cent of the shares in the Polish company Sokołów.

- We are now guaranteed full access to the Polish market, and our efforts to create synergies across the group look promising within all business areas, says Kjeld Johannesen.

In relation to cattle, DC Beef has seen an influx of cooperative members in the past year. In addition, the running-in of the world’s most advanced cattle slaughterhouse has been a key focus area.