Increasing turnover and stable operation in ESS-FOOD
The operating earnings are largely unchanged, but the financial costs have almost doubled from DKK 16.9 million to DKK 28.2 million, so the result goes back from DKK 41.9 to DKK 30.9 million. kroner.
"It has been a wild year in many ways. At the start of the financial year, everything was about inflation and the war in Ukraine. Since we entered 2023, we have seen a significant decline in pig production in Europe, from which we source a large proportion of our tonnage, and at the same time we have had occasional outbreaks of bird flu, which has caused the poultry market to crash, so against the turbulent backdrop, we can only be satisfied with our result", says Morten Holm, CEO of ESS-FOOD.
Despite the decline in tonnage, price increases on virtually all goods have ensured ESS-FOOD an increase in turnover of almost half a billion kroner from 5.3 billion kroner in 2021/22 to 5.8 billion kroner in the just ended financial year.
This has been achieved in a year in which the global market for meat proteins has at times been affected by significant imbalances between supply and demand.
The Asian markets have generally been difficult to navigate, and in particular the opportunities to sell pork on the otherwise normally attractive Chinese market have been challenged. Sales to other parts of the world have compensated for this, and ESS-FOOD has had a higher level of activity in Europe than before.
"We have seen a market for pork that in Europe has gone from being a buyer's to a seller's market. But at the same time, the price level in Europe has been much higher than in the markets in Asia in particular, which we have a good grasp of, and this has cost us our volume. On the other hand, we have stuck to our strategy of focusing our efforts on the customers who give us a healthy business, and that is the explanation for our success in maintaining our operating earnings at a relatively high level", says Morten Holm.
In the short term, there is no prospect of the turbulence on the world market for meat proteins abating.
"In the current market, it's about keeping the focus on optimizing our business. It is hard work to ensure ongoing earnings due to rising interest rates, but we believe we can succeed if we focus our work on having access to the right goods through a strong interaction with our customers and suppliers", says Morten Holm
ESS-FOOD has activities on five continents and employs around 150 employees.
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