Danish Crown files “expected” H1 as EBIT halves

Danish Crown said its half-year show was “as expected” adjacent arsenic African swine fever successful Spain disrupted supplies and weighed connected nett earnings.

The Denmark-headquartered firm's operating nett (EBIT) much than halved to DKr631m ($97.9m) from DKr1.33bn successful the corresponding six months.

Adjusted for what Danish Crown said was a revised quotation argumentation that channels much funds to farmers, EBIT stood astatine DKr736m.

The nutrient cooperative issued a connection contiguous (22 May) attributing the downturn to a “challenging” pork market, driven by African swine fever outbreaks successful Spain and broader “supply pressure” crossed Europe.

An EFSA study released connected 21 May showed African swine fever (ASF) outbreaks surging crossed the EU successful 2025, rising 76% successful home pigs and 44% successful chaotic boar compared to the erstwhile year. The illness returned to Spain aft 31 years, bringing the fig of affected subordinate states to 14, arsenic per the report.

Danish Crown's gross declined 2.6% to DKr31.6bn, reflecting little slaughter volumes and weaker mean income prices amid dense unit successful the European caller nutrient market, partially owed to accrued proviso linked to Chinese tariffs.

Despite the headwinds, Danish Crown outlined it “narrowed” the competitiveness spread with Germany connected the pig broadside by DKr468m.

On the cattle side, the institution said it “increased” its pb implicit Germany and the Netherlands, improving by DKr1.97 per kg, equivalent to DKr64m overall.

Danish Crown said it has reversed its determination to adjacent the Essen tract successful Germany, with the withdrawal of a DKr183m impairment charge.

As a result, nett net for the fractional twelvemonth ended 31 March reached DKr552m, down from DKr811m a twelvemonth earlier.

Anders Aakær Jensen, the radical CFO of Danish Crown, said: “Improved competitiveness and amended outgo power corroborate that we are moving successful the close direction. We are gathering our expectations for the result, portion the hard marketplace situation, characterised by proviso pressure, has enactment unit connected our gross margin, which has fallen from 14.2% to 11.8%.”

The institution besides chopped organisation and administrative costs by DKr88m and DKr61m, respectively.

“Both decreases are driven by the afloat effect of the restructuring of the organisation successful November 2024,” added the company.

However, rising lipid and logistics expenses, on with emerging worldly ostentation linked to Middle East instability, created caller unit toward the extremity of the period, the institution said.

“We are seeing unstable markets owed to the geopolitical situation, and - similar different ample companies - we indispensable navigate successful higher transport costs, inflationary unit and rising involvement expenses successful 2026. This challenges the effectual outgo absorption that is portion of Danish Crown’s transformation,” Jensen said.