Business Danish Crown discloses Tulip's losses
Revenue in Tulip declined from DKK 7.3 bn. in 2017/18 financial year to DKK 7 bn. in 2018/19, while the profit after tax and interest improved from a loss of DKK 370 mill. in 2017/18 to a loss of DKK 210 mill. in 2018/19. At the same time, DKK 575 mill. of goodwill has been written down.
Tulip was sold for DKK 2.4 bn. The company had debt of DKK 1.9 bn., so despite the operating loss for the 2018/19 financial year and the write-down of goodwill, Danish Crown’s balance sheet is being strengthened.
In a week’s time, DC will be publishing its financial statements for the 2018/19 financial year, which will be based on the group’s continuing operations, while the results of Tulip will feature as a single line in the accounts. The loss in Tulip will, of course, still be included in the financial statements for 2018/19, but the write-down of goodwill will not affect the supplementary payments paid to Danish Crown’s owners.