Danish Crown reports satisfactory results despite Russian ban

By Georgi Gyton contact

- Last updated on GMT

The impact of the Russian ban has been a challenge for Danish Crown
The impact of the Russian ban has been a challenge for Danish Crown

Related tags: Generally accepted accounting principles, Danish crown group, Beef, Pork

Danish Crown has seen revenue slip slightly on last year’s figures in its latest financial statement, from DKK 58,164m (€7,824m) in 2012/13 to DKK 58,029m for the current financial year.

Operating profit dropped from DKK 2,018m to DKK 1,995m, while net profit increased to DKK 1,656m, from DKK 1,583m last year.

However the firm said the results were satisfactory considering the impact of the political situation in Russia and its current embargo on meat from the EU.

Danish Crown said the past year had been very challenging, and it was starting to have an impact on its owners.

"For the 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,"​ said Erik Bredholt, chairman of Danish Crown’s Board of Directors.

However he said that despite these challenges it has maintained earnings in the group.

The significant fall in pork production in the US following the spread of porcine epidemic diarrhoea virus in the country, shifted the balance in basically all international markets, said the firm.

Kjeld Johannesen, chief executive, said: "When global markets are affected to this extent, it increases the risk of being wrong-footed. I therefore see the results for the year as confirmation of the strength of the Danish Crown Group’s business model with the role it plays in large parts of the value chain and its significant geographical spread."

However he added that the earnings from its Danish slaughterhouse activities were still unsatisfactory. While the company’s acquisition of the remaining 50% of shares in Polish company Sokołów has strengthened its DC Foods business.

"We are now guaranteed full access to the Polish market, and our efforts to create synergies across the group look promising within all business areas,"​ said Johannesen.

Total employees for the 2013/14 financial year stood at 25,984, compared to 22,676 the year before.

Related topics: Meat

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