Danish Crown, one of the world's largest meat companies, has posted a slight profit of 1.2 % (325 million euros) in the past financial year 2023/2024. However, this positive result is overshadowed by setbacks such as one-off write-downs on company closures, which caused net profit to fall by 29% to almost 140 million euros.
In Denmark, Danish Crown performed well, especially compared to the previous year 2022/2023, slaughtering 1.5% more cattle compared to the previous financial year.
Fewer organic pigs and cattle were slaughtered in Denmark, although organic consumption in the country has increased. The turnover of the organic meat division Friland increased by 5% to more than 129 million euros in 2023/2024.
According to the group's annual report, foreign companies in which Danish Crown has a stake have not contributed sufficiently to the group's profit. Last year, the group had already decided to divest a number of foreign subsidiaries. The Swedish KLS did meet expectations. The Polish Sokołów is facing stiff competition and saw its profit fall by 32%.
To ease the financial pressure, Danish Crown initiated a restructuring and a major cost-cutting plan last year, which now allows non-pig farmers to hold preference shares in the company, and cuts several hundred jobs.
Due to the disappointing figures, only a disappointing additional payment could be made to the shareholders and piglet producers. That is why the new Board of Directors appointed this year has decided to also make a one-off additional payment for the past five years from the company reserves.