May 15, 2013

Danish Crown posted an operating profit close to DKK1 billion (US$173 million) in the first half of fiscal year 2012-13, representing a 4% increase compared to the prior year period.

In the first half of fiscal year 2012-13, the group generated revenue of DKK28.5 billion (US$4.9 billion), an increase of DKK1 billion (US$173 million) on the prior-year period. The net profit of DKK714 million (US$124 million) is on a par with last year's interim profit of DKK737 million (US$127.6 million).

The stable results are due to slightly better prices for fresh meat, and to the fact that the group's processing companies have successfully managed to pass on the increasing raw materials prices to the prices in the retail market.

"I am delighted that we have been able to maintain our position in a challenging market," says Danish Crown's CEO, Kjeld Johannesen.

Danish Crown is the world's biggest exporter of pork, and the market prices for pork in first half 2012-13 were therefore impacted by the fact that both the dollar and yen have been weaker relative to the euro.

"In the first half we have seen bigger than expected supplies of pork on the world market, which has obviously had an impact on prices and on Danish Crown and the company's owners," says Kjeld Johannesen.

There are clear seasonal fluctuations in the meat industry, and the delayed start to the barbecue season is affecting price developments at the beginning of the second half of the financial year.

The contribution made by the Swedish part of DC Pork and the Polish company Sokolow has been particularly positive.

"Overall, the outlook for the second half is for a profit on a par with the first half given the slightly weaker earnings on fresh meat and improved earnings at DC Foods," says Kjeld Johannesen.