DENMARK, Randers. After a successful 2019/2020 fiscal year, the cooperative is now paying its suppliers historically high six-figure bonuses.
Thanks to the high export demand from China, Danish Crown (DC) was able to increase its profits in the 2019/2020 fiscal year (October to September). Members now also benefit from the good results, receiving an additional payment of DKK 1.6 bn. This corresponds to the equivalent of € 215 mill. Danish Crown improved its turnover by 8% to € 8.16 bn. The operating result rose by 13% to € 380 mill., while the net result reached the record level of € 290 mill.
Of this, the owners will receive more than DKK 1.6 bn. The back payment for fattening pigs is DKK 1.35 per kg, for sows DKK 1.2 per kg, while cattle-owning shareholders receive a back payment of DKK 1.25 per kg. In addition, € 15 mill. will be transferred to the personal shareholder accounts. According to Danish Crown, a member farm that delivers 10,000 pigs per year will receive a total of approximately € 174,000. The board's recommendation for the additional payment still has to be approved by the representatives' meeting.
Despite the Corona crisis, the Group considers itself well positioned for the future. The Group subsidiary DAT-Schaub, which specializes in marketing slaughter by-products such as natural casings, increased its operating result by 50%, the Swedish company and the meat processor Danish Crown Foods by 30% each. The sausage business was driven by a high demand for canned food and pizza toppings.
These earnings increases contribute to the Group's historically strong balance sheet and capital base. Consolidations have also contributed to this. The sale of the loss-making British subsidiary Tulip Ltd alone brought in € 2.18 bn. Interest-bearing liabilities were thus reduced by € 390 mill. The equity ratio rose from 26 to 33%.