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Focus on Core Business Brings Improved Earnings

by 5m Editor
22 November 2007, at 12:34pm

DENMARK - Europe's leading pig meat processor, Danish Crown, has had its best result in five years - in spite of a challenging second half-year. The company said that a continuous keen focus on core business has ensured a competitive position.

During the past year, non-core businesses have been sold off or dissolved, and this had produced a decline in turnover from DKK 48.5 billions to DKK 44.3 billions for this year. However, at the same time, the operating profit from ordinary activities has increased from DKK 1,765.4 millions to DKK 1,903.3 millions.

Danish Crown has also significantly increased its competitiveness with regard to the quoted price compared with countries south of Denmark.

Clear goals
"We have been on a journey with a clear strategic goal, and after a consolidation phase on the core business I'm not afraid to say, that Danish Crown is now ready to take a firm line," said Kjeld Johannesen, CEO.

The company has taken a number of steps during the year to strengthen its position through acquisitions. And, at the end of the year, projects were underway in the UK, Slovakia and Sweden. It has also had to absorb the costs and disruption caused by two large fires which destroyed two of its major slaughterhouses in April and July.

"As a global group we must ensure a competitive position on several markets, ensuring sales of raw materials from the members. This means that when we get the chance we must be able to take an active approach. The ongoing acquisition projects is a reflection of our strategic wish for an increased processing degree," said company Chairman Niels Mikkelsen.

The annual accounts results in supplementary payments to members of:
  • 5 øre per delivered kilo to members, supplying slaughterpigs
  • 55 øre to members, supplying sows
  • 85 øre to members, supplying cattle

"Comparing these result with the large challenges Danish Crown has experienced through the second half-year of 2007 reflects a strong company," said Mr Mikkelsen.

5m Editor