Positive earnings result revealed by Danish Crown
Danish Crown has reported increased earnings for the first half of the financial year for 2017/18, something Group CEO Jais Valeur describes as “very satisfactory”.
The global market for pork was ‘challenging’ during the first half of 2017/18, and prices have been declining. However, Danish Crown has managed to grow earnings; the aggregate results of the processing companies for the half-year are up 171 million DKK on the same period last year.
In Denmark, the number of pigs slaughtered by the group was up 1.5% for the half-year. Danish Crown has described this as ‘less than expected’, but still a positive trend at a time when pork prices have been under pressure. The average price per kg paid to farmers was 0.76 DKK lower than last year.
Jais Valeur told Meat Management magazine: “These results have proven very satisfactory in what’s been a challenging and often difficult climate for pork.
Jais Valeur, Group CEO of Danish Crown. (Photo credit: Morten Fauerby / Montgomery /morten@montgomery.dk).
“We plan to ensure a continued growth by pushing out more innovation, putting more emphasis on food service, and becoming closer to consumers to know what they want and need.”
Valeur pointed out that the different subsidiary companies are on the up, stating that Sokołów is doing well in Poland, and Tulip Food Company posting increased earnings on export.
He explained that a big company focus is on Asia, where three new offices are opening, plus a new factory being built in China.
Northern Europe and the UK are also areas of increased focus, and places to target consumers more, he said.
Just 18 months ago, Danish Crown launched its strategy called ‘4WD’ for the period up until 2021, and the goal is to improve the price per kg of pork paid to farmers by approximately 0.60 DKK compared to an EU index.
The focus is on developing the business in Danish Crown’s domestic markets, and in addition, on the categories of natural casings, bacon, canned products and pizza toppings.
“We’ve taken a step towards achieving our ambitious goals,” commented Valeur. “Compared to last year, we’ve improved our earnings across the group by 0.27 DKK per kilo compared to the EU index. At the same time, a number of strategically important acquisitions have been made.
“We’re making progress, but there is much hard work ahead for us to realise our strategic goal.”
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