DENMARK, Randers. Danish Crown recorded a 10 per cent increase in revenue to an all-time high of DKK 64 billion (around € 8,6 billion). The improvement was achieved primarily through price increases for beef and processed products, so in spite of a challenged global pork market the group closed out the financial year with a good operating profit on a level with last year.
The supply crisis brought on by the war in Ukraine, COVID-19 and very high inflation set the agenda for Danish Crown throughout the 2021/22 financial year. Prices of energy, transport and packaging were historically high, and with overall costs rising DKK 1.5 billion, the focus throughout the year was on raising prices on all of the group’s products.
Revenue was up 10 per cent from DKK 58.3 billion to DKK 64.2 billion. Operating profit (EBIT) rose from DKK 2.82 billion to DKK 2.89 billion, but due to an increase in interest expenses and higher tax expenses, the net profit for the year landed at DKK 2.18 billion, against DKK 2.26 billion in the 2020/21 financial year.
“We achieved stable results in a year of great challenges and a historically difficult business environment. Before we had fully recovered from COVID-19, inflation hit us far harder than anticipated, so against that background our overall result is in fact quite acceptable,” says Jais Valeur, Group CEO of Danish Crown.
Danish Crown Beef had a really good year. A low supply of beef in Europe helped ensure high prices, and the group has optimised operations of the core Danish business, the two abattoirs in Germany and Scan-Hide, which processes cattle hides for the leather industry.
DAT-Schaub, which processes parts of the pig for food ingredients and raw materials for the pharmaceutical industry, delivered a record-strong financial result, continuing its impressive growth rate. During the year, the business consolidated its operations by acquiring the outstanding shares in its US and Spanish subsidiaries.
Based on a strong position in their domestic markets, KLS in Sweden and Poland-based Sokołów performed at a high level, while our trading company ESS-FOOD once again improved its performance, delivering a historically strong financial result.
Throughout the year, pork prices were squeezed by a massive slump in exports to China and general consumer restraint. Consequently, Danish Crown failed to deliver on its strategy target of a settlement price for pork that is DKK 0.60 above the European index.