RESULTS: Slightly lower profits for pork processor Danish Crown
For the first half of the year 2011/2012, Danish pork and meat processor Danish Crown has posted slightly lower profits, but higher revenues.
Danish Crown reported profits of DKK733 million (€99 million) – a slight decrease when compared to the DKK742 million (€100 million) n the similar timeframe last year.
Consolidated revenue for the half year is DKK27.6 billion (€3.7 billion), which is higher than last year’s DKK24.7 billion (€3.3 billion). This is due to both organic growth and acquisitions of companies like D&S Fleisch (Germany) and Parkham Foods (United Kingdom).
Rising pig prices
The slight decrease in profits is mainly due to rising commodity prices (i.e. pigs), which hit processing companies. In a press release, the company stated: “In light of market developments over the past six years, the result is an expression of a robust company.”
Danish Crown CFO Preben Sunke said: “When commodity prices rise, it is our responsibility to ensure that price increases arising out into the last link of the chain, but there is a delay in the market, which means that price increases in different stages of the value chain do not go together.”
Related website:
• Danish Crown
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