24 November 2011

3 minute read

Europe

With revenue of DKK 51.8 billion this year against DKK 45.2 billion last year, the group is posting earnings of DKK 1,762 million against DKK 1,648 million last year.

This is a testament to stability – and to the group having succeeded in creating organic growth in a challenged market.

The satisfactory results support higher consolidation than normal for the company, and the Board of Representatives has today approved the distribution of DKK 1,394 million as supplementary payments to the owners, while a total of DK 368 million will be spent consolidating the company.

"The strong results allow us to consolidate with the equivalent of DKK 0.16 extra – in addition to making cash supplementary payments of DKK 0.95. The Board of Representatives is acting responsibly in seizing this opportunity to strengthen the company’s capital base in light of Danish Crown’s plans for the future," said Chairman of the Board Niels Mikkelsen.

Supplementary payments thus amount to DKK 0.95 per kg for pork producers, DKK 0.80 for sow producers and DKK 1.30 for beef producers.

"In the past year, we have spent some time discussing the raising of capital, and the extraordinary consolidation which has been possible means that it is time to continue this discussion until the owners are ready to make a decision," said Mr Mikkelsen.

Today, most value is being created by the foreign companies and in the international markets, but the enduringly competitive prices offered to owners have led to an increase of more than 5pc in the number of animals supplied in Denmark.

"Danish Crown is becoming an ever more international business, and in the past year our access to, for example, the Chinese market has contributed substantially to ensuring competitive settlements – and China has been the fastest-growing market of all. This underlines the importance of maintaining absolutely world-class food standards as this is what gives us access to the markets. Together with our reliable supplies, our sought-after know-how and the quality of our products, this is what makes us such a popular partner," said CEO of Danish Crown Kjeld Johannesen.

Danish Crown’s processing sector is again contributing significantly to the results and is doing well internationally. The European processing industry is currently challenged by increasing commodity prices, especially due to increasing demand from the BRIC countries. A challenge which will not go away in the new year.

"Ours is a long value chain, and all the various parts influence each other. And while the processing sector will be working to absorb the higher commodity prices, we will continue to look at payroll costs in the Danish companies. This is the only way that we will remain competitive," said Mr Johannesen.

TheCattleSite News Desk