The Danish pig slaughterhouse Danish Crown looks back with a positive feeling on the first 6 months of the broken financial year 2020/2021. Despite the fact that the net result showed a slight decrease, the company is satisfied with the results achieved in very challenging market conditions. The corona pandemic and the outbreak of African swine fever (ASF) in Germany had a major impact on the company, but by focusing on sustainability, new international customers were brought in, the company said.
Despite the volume shipped to China falling by 30%, the total amount of meat sold during this period (October 1, 2020 to March 31, 2021) was 3% higher. Jais Valeur, the CEO of Danish Crown, indicates that the focus on sustainability has opened new doors for the company: "Sustainability has proven to be a crucial factor in negotiations with new customers over the past six months. We have completed significant orders from major international players. in consumer goods and retailers. This gives energy and confidence."
Corona, AVP and exchange rates reduce turnover
The outbreaks of corona and ASF put pressure on pork prices, causing turnover to decline. Unfavorable exchange rates between the Danish Krone/US Dollar further depressed turnover. Total revenue from sales fell 9% to DKK 28,937 billion, which is just €3,9 billion.
Due to the lower meat prices, the pig prices paid to suppliers were also at a lower level than the previous year. The company does indicate that it was able to pay Danish Crown to pig farmers a "very competitive price" for the pigs, which was slightly above the European average.
Net result also lower as a result of corona measures
The net result fell by DKK 56 million (€7,5 million) to more than DKK 1,3 billion (€179 million). This was mainly caused by the extra costs the company incurs due to corona testing and extra cleaning procedures as a result of the corona outbreak. Nevertheless, given the special circumstances, the company is very pleased that the net result almost equals the high result of the previous year.