DENMARK, Randers. Danish Crown’s earnings are still challenged by problems in the UK business as well as under-performance in some other business units. This means that it is now necessary to initiate further cost savings across the group. The target is to reduce the total costs by 350 mill. DKK this financial year.
In November 2018, Danish Crown announced 150 immediate job losses, plus a 200 mill. DKK savings programme for Tulip Ltd in the 2018/19 financial year. The group’s British subsidiary has proposals for further reductions in headcount as part of this savings programme, subject to the appropriate employee consultation.
Tulip Food Company in Denmark is also being impacted by the fierce competition in the Danish retail sector, and earnings in the group’s largest business area, Danish Crown Pork, are not living up to expectations. On the other hand, the companies which have been acquired in Denmark, Poland and the Netherlands are all performing above expectations.
The company still expects the settlement prices for the animals supplied by its owners to increase during the spring, but it is very difficult to say when the market will turn.