Danish Crown, Europe’s largest meat processor, has reported a 1.2% decline in first half profit to DKr733 million (Eur98.6 million), chiefly due to increasing commodity prices. Consolidated revenue increased from DKr24.7 billion in the first half of the previous year, to DKr27.6 billion, reflecting organic growth as well as the acquisition of D&S Fleisch in Germany and Parkham Foods in the UK
”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 Preben Sunke, chief finance officer of Danish Crown.
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,” he says.
Danish Crown is Europe´s largest pig slaughtering business and the world’s largest exporter of pork. It is also Denmark´s largest cattle slaughterhouse company.
”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.” Preben Sunke adds: “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.”