Market Growth Despite Competitive Challenges

On 22 May 2015, in Randers, Danish Crown group reported a revenue of DKK 29.2 billion in the first half of FY 2014/15, marking an increase of over DKK 1 billion from the previous year. This growth is credited to a 4% organic growth and the acquisition of the remaining 50% of Polish Sokołów. The operating profit rose by 28% to DKK 1,108 million, largely due to the full consolidation of Sokołów and the negative impact from extraordinary provisions on the previous year's results. The net profit for the period was DKK 852 million, compared to DKK 813 million in the first half of FY 2013/14, which was significantly boosted by non-recurring income from the divestment of ownership interests in associates. All business areas of the group, including DC Fresh Meat (DC Pork and DC Beef), DC Foods (Tulip Food Company, Tulip Ltd, Sokołów and Plumrose USA) and DAT-Schaub and DC Ingredients, made significant contributions to the results. The continuous investments in foreign companies are also starting to pay off. The acquisition of the remaining 50% of Polish Sokołów has proven to be a particularly good investment. Sokołów is a strong brand in Poland and its full ownership is benefiting product development across borders, creating new synergies, according to Flemming N. Enevoldsen, CEO of DC Foods. The company's efforts to adjust production costs in Denmark are also starting to yield results. Despite the challenges of production in Denmark, the company is seeing a decrease in production costs, according to Group CEO Kjeld Johannesen. Danish Crown aims to run the company for the maximum benefit of its owners and is confident in its ability to tackle international industry challenges, according to Erik Bredholt, Chairman of the Board of Danish Crown. The company expects the second half of the year to be more subdued due to seasonal fluctuations in the industry. However, the positive results from the first half are expected to contribute to the full-year results.