Satisfactory Interim Results from Danish Crown

DENMARK - Danish Crown is posting stable earnings in a market which has seen massive challenges in the first half of 2011/12. Despite high commodity prices in the processing companies, the group is posting satisfactory earnings.
calendar icon 10 May 2012
clock icon 2 minute read

Danish Crown is posting a profit for the first half of DKK 733 million against a profit of DKK 742 million for the first half of last year.

This represents a slight fall, which is primarily attributable to the processing companies having been hit by increasing commodity prices, but in light of market developments in the past six months, the results are deemed to reflect the robustness of the company.

"When commodity prices go up, it is our responsibility to ensure that this is reflected in the end prices, but there is a slight delay in the market which means that the price increases do not take place concurrently in the various parts of the value chain," explains Danish Crown's CFO Preben Sunke.

At DKK 27.6 billion, consolidated revenue for the first half is up relative to revenue of DKK 24.7 billion last year. This is attributable to organic growth as well as the acquisition of D&S Fleisch in Germany and Parkham Foods in the UK.

The results also reflect increasing earnings by the Pork Division, but in a cautious market.

"We are noting a certain hesitation among consumers in several parts of the world, and although we are largely able to adapt to new trends, for example an increasing demand for inexpensive cuts or different product mixes, we are very much aware of this trend," says Mr Sunke.

Together with the uncertainty about future demand, turbulence in the financial markets is also a factor to be reckoned with when engaging in cross-border trading.

"Given the state of the market and the intensifying competition, the results are satisfactory and testament to Danish Crown's stability and adaptability, also in response to sudden new developments," concludes Mr Sunke.

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