Rising pig prices saw Danish Crown's raw material costs increase during the six-month period which negatively affected margins.
ADVERTISEMENT
Danish Crown, the Denmark-based pork processor, has said it has taken some months to pass on rising pigmeat costs to its retail customers. Jais Valeur, chief executive of Danish Crown said that pig prices paid to primary producers had risen rapidly over the last six months but that retailers were slow to pass this increase on to consumers.
Valeur made the comments as Danish Crown revealed a 4% increase in sales to €4.1bn for the first six months of its financial year to the end of March. The company said this was the first time in its history that half-year sales had surpassed the €4bn mark.
However, rising pig prices saw the company’s raw material costs increase during the six-month period which negatively affected margins. Half-year operating profits declined 7% to €138m, as margins narrowed 40 basis points to 3.3%. Danish Crown said it paid an extra 15%, or €81m, to pig producers during the year for pork.
ADVERTISEMENT
European pig prices have risen sharply over the last year as a result of strong demand from Asia, primarily China, coupled with tightening pig numbers in Europe. Danish Crown processed 630m kilos of pigmeat in the first half of the year, a 3% decline on last year.
Danish Crown reported a solid performance in its beef operations as market prices remained stable since October. The company processes in excess of 500,000 head per annum and controls 67% of all cattle slaughtering in Denmark.
Register for free to read this story and our free stories.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
Danish Crown, the Denmark-based pork processor, has said it has taken some months to pass on rising pigmeat costs to its retail customers. Jais Valeur, chief executive of Danish Crown said that pig prices paid to primary producers had risen rapidly over the last six months but that retailers were slow to pass this increase on to consumers.
Valeur made the comments as Danish Crown revealed a 4% increase in sales to €4.1bn for the first six months of its financial year to the end of March. The company said this was the first time in its history that half-year sales had surpassed the €4bn mark.
However, rising pig prices saw the company’s raw material costs increase during the six-month period which negatively affected margins. Half-year operating profits declined 7% to €138m, as margins narrowed 40 basis points to 3.3%. Danish Crown said it paid an extra 15%, or €81m, to pig producers during the year for pork.
European pig prices have risen sharply over the last year as a result of strong demand from Asia, primarily China, coupled with tightening pig numbers in Europe. Danish Crown processed 630m kilos of pigmeat in the first half of the year, a 3% decline on last year.
Danish Crown reported a solid performance in its beef operations as market prices remained stable since October. The company processes in excess of 500,000 head per annum and controls 67% of all cattle slaughtering in Denmark.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS