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Business

Danish Crown is satisfied with its performance in a turbulent year

PW ReportersBy PW ReportersNovember 24, 20142 Mins Read
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The giant Danish Crown Group says its latest financial results are “satisfactory”, in the context of having to cope with the impact of the Russian ban on pork and the effect of PEDv in the US.

Reporting a “slight” fall in operating profits for the year, from the equivalent of £214.6m to £212.2m, the group’s chairman, Erik Bredholt, said earnings had been maintained and costs had been kept under control.

“I think we should be satisfied with the results,” he added, especially given the challenges faced during the past 12 months.

“For slaughter pig producers, the year started with high hopes for reasonable earnings. However, the situation in Russia has meant a dramatic fall in the quotation in the course of the year, which is having extreme financial repercussions for farmers.”

At the same time, a significant fall in the production of pork in the US, due to PEDv, has shifted the group’s balance in basically all markets.

“When global markets are affected to this extent, it increases the risk of being wrong-footed,” commented group CEO, Kjeld Johannesen.  “I therefore see the results for the year as confirmation of the strength of the group’s business model with the role it plays in large parts of the value chain and its significant geographic spread.”

One continuing downside for the business, however, remains the state of its Danish slaughterhouse activities, which is described as “still unsatisfactory”.

See full Danish Crown statement and results

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