June 11, 2010

Danish seafood supplier Royal Greenland has improved its primary operating profits of DKK 82 million (US$13.36 million) and DKK 100 million (US$16.29 million) before tax compared to H1 2008-09.

The net result confirms the budgeted estimate for the interim with a deficit of DKK 57 million (US$9.29 million).

Despite rough market conditions, Royal Greenland has maintained its market position with positive development and consequent higher revenues. Major markets such as Germany and Japan share this trend, most recently corroborated by the award of major contracts in the German retail sector.

The lower turnover is mainly attributable to the divestment of unprofitable activities.

The seafood company recently acquired a lumpsucker roe factory in Germany to fortify its market position, and thus boosted sales of said product.

Royal Greenland works continually to sharpen its competitive edge, for instance, via investments in processing and production automation. A complete upgrade was recently carried out in the prawn processing plant in Ilulissat, one of the most efficient of its kind in the world.

Efforts are also being made on the distribution side to streamline logistics, cut costs and advance competitiveness. Fixed costs are and will stay in focus and have been lowered by 12% against H1 2009.

The company's financial latitude has improved, partially due to the capital injection in the summer of last year, and partly resulting from a substantial positive cash flow from operations. Interest-bearing debt has been slashed by DKK 549 million (US$89.44 million), and the company's equity ratio comprises 29%, including the subordinate loan capital.