Danish Crown feels stronger after turbulent year

by Editor fleischwirtschaft.com
Thursday, November 20, 2008

Danish Crown increased it annual turnvover in fiscal year 2007/08 up to DKKm 46,972 (6,3 bn €). In 2006/07 revenue was DKKm 44,346. Number of employees in the current year is 25,059 (24,896).

Net profit for the year went down to DKKm 997 (1,230), number of cooperative members traced back to 12,152 (13,465). For CEO Kjeld Johannesen it was a stronger Danish Crown which presented its financial statements after what has been a very turbulent year.

Despite many challenges, the company’s global growth continued, and both the processing and the fresh meat sectors stand strengthened at the start of a new financial year. In a year which saw a decline in Danish meat production, Danish Crown’s revenue increased by 6 per cent, among other things thanks to acquisitions abroad.

The year brought considerable challenges, especially with regard to capacity – where shortages at the beginning of the year due to last year’s fires were followed by surplus capacity due to a decline in the production of pigs for slaughter.

Up 40 per cent on the year before, veterinary costs seriously challenged Danish Crown’s competitiveness in the global market. Moreover, the global market saw considerable changes. Danish Crown’s primary high-price markets came under substantial pressure, among other things due to falling exchange rates, Kjeld Johannesen explains.

The supplementary payments of DKK 0.60 for pigs, DKK 0.65 for sows and DKK 0.70 for cattle reflect the very tight pricing policy which was pursued during the year due to the financial challenges in the primary production.