Growth in first half of 2017
It continues to go well for Royal Greenland. Revenues and profit are growing, and despite challenges within shipping and an unfortunate development in pound sterling as a result of Brexit, sales of core products are strong.
In H1 2017, Royal Greenland’s revenue grew by 9%, up from DKK 2.4 billion in 2016 to DKK 2.6 billion in 2017. Profit before tax improved from a loss of DKK 7 million in H1 2016 to a profit of DKK 32 million in H1 2017.
The net profit for H1 2017 totals DKK 1 million, compared to a loss of DKK 12 million last year. Interest-bearing debt has been reduced by DKK 23 million, and is on a par with last year. The first two instalments of the investment in the two new trawlers have been paid. Equity amounts to DKK 1.3 billion, with an equity ratio of 31.8%.
The positive development in profit is particularly due to the company’s core activities shell on shrimp and snow crab, but sales of shrimp in brine, lumpfish roe and smoked products are also growing. In particular, the strong markets in Asia and North America as well as high sales in Scandinavia have been having a positive impact on results.
Even though the land-based Greenland turbot products at the factories have been challenged by operational problems at Royal Arctic Line, Greenland turbot is following last year, as the trawler-produced products have compensated for the missing volumes.
Moreover, the company’s core business cooked and peeled shrimp has been challenged by falling sales prices, especially for the smaller sizes. The drop in the pound sterling in recent months has also had a negative impact on the interim financial results with DKK 18 million.
Sales of white fish, which primarily comprises Greenland cod, and which, like Greenland turbot, has suffered from delayed shipping, have fallen by 5% relative to the prior-year period.
Outlook for 2017
The profit before tax for the entire year is expected to be on a par with FY 2016, even though several of the main currencies in which Royal Greenland sells its products – including the pound sterling, the Japanese yen and the US dollar – have fallen significantly relative to the Danish krone and the euro.
For further information, please contact Mikael Thinghuus, CEO, on tel. +45 5089 3000 (mobile).
