Randers, 24 May 2016
Danish Crown posted a net profit of DKK 819 million for the first six months of the 2015/16 financial year.
Jais Valeur, new President and CEO of the global food group which is domiciled in Randers, Denmark, but which has activities and sales in more than 130 countries, is reasonably satisfied with the results:
- The retail market is extremely competitive, it is dominated by ever-larger chains, and it is characterised by an increasing focus on discount products and a constant demand from consumers for lower prices. This is putting pressure both on livestock farmers and on the prices paid to farmers in general. Seen in this light, posting results which are marginally below those for the prior-year period is satisfactory, says Jais Valeur.
The challenges facing Danish Crown on a daily basis include a weak demand for and an excess supply of meat in neighbouring European markets. The UK subsidiary Tulip UK Ltd has been battling particularly strong headwinds, and targeted efforts are being made to strengthen the company’s position.
However, positive market developments are also being seen: Sales in Asia, in particular, are increasing, and Danish Crown’s fresh meat activities have actually succeeded in increasing earnings in this part of the world through dedicated sales efforts.
Despite fierce competition in the retail market for processed products such as sausages, cold cuts, canned products and soups, Danish Crown Foods has maintained earnings.
Overall, this means a flat development in revenue – Danish Crown generated revenue of DKK 29.4 billion, while equity at the end of the first half was DKK 6.4 billion.
In the first half, Danish Crown took over control of the Swedish subsidiary Dalsjöfors, which now is being integrated with the existing
activities in Sweden.
- Altogether, the interim results confirm what I have been saying since taking over as President and Group CEO in mid-January: Danish Crown is a well-managed and well-invested business. However, we are also a part of a food sector which is under pressure and undergoing rapid change. For Danish Crown to maintain its leading position in the market, we must become even better and work even harder to create value for our 8,000 owners and suppliers, says Jais Valeur.
Danish Crown – financial highlights*
| DKKm | H1 | H1 |
| Revenue | 29,420 | 29,228 |
| Operating profit before special items | 1,113 | 1,164 |
| Operating profit | 1,104 | 1,154 |
| Profit for the period | 819 | 852 |
| Balance sheet | 25,954 | 28,245 |
| Equity | 6,432 | 6,453 |
| Cash flows from operating activities | 1,777 | 1,567 |
| Cash flows from investing activities | -852 | -682 |
| Supplies by members, millions of kg | 647 | 683 |
| No. of employees | 25,842 | 25,923 |
* Consolidated financial results incl. Leverandørselskabet Danish Crown AmbA