Danish Crown’s earnings hit by rates and casings

Danish Crown’s semi-annual report displays a decrease in after-tax profits, falling from 902 million to 764 million kroner. The dip is partly due to increased interest expenses and lower earnings from DAT-Schaub, which faces a shift in consumer preference towards cheaper, artificial sausage casings. Despite a drop in revenue from 34.5 billion to 33.5 billion kroner, operational earnings grew by 2% thanks to stringent cost control. The efficiency plan, Horizon, is halfway to its goal, aiming to save about one kroner per kilo of pork. The CEO, Jais Valeur, mentions that while inflation has peaked, improving profitability will require ongoing enhancements, such as closing the Ringsted slaughterhouse. They anticipate that events like the European Football Championship and Paris Olympics will increase demand for their products.