In the first half of the financial year, Danish Crown’s operating profit declined to DKK 631 million, compared to DKK 1.325 billion during the same period last year. The company’s revenue decreased by 2.6% to DKK 31.6 billion, mainly due to lower global meat prices and reduced sales volumes.
According to the company, the results were significantly affected by the consequences of the African swine fever (ASF) outbreak in Spain and the overall pressure from pork oversupply on the European market.
“The difficult market situation, characterized by supply pressure, negatively impacted gross profitability, which declined from 14.2% to 11.8%,” said Danish Crown Group CFO Anders Aakær Jensen.
At the same time, Danish Crown managed to improve its competitiveness compared to Germany. According to the company’s estimates, the competitive gap narrowed by an average of DKK 1.18 per kilogram, corresponding to an overall improvement of DKK 468 million during the first half of the year.
Despite this progress, the company acknowledges that the current pig price level does not ensure farm profitability.
“We are fully aware that the current pig prices do not guarantee economic sustainability for producers. This only underlines the importance of Danish Crown’s transformation into a more efficient and unified group,” Jensen emphasized.
Additional pressure on the company’s performance came toward the end of the reporting period due to geopolitical instability in the Middle East, which resulted in higher oil prices, freight costs, and material expenses.
At the same time, Danish Crown continues its cost optimization program. In particular, the company reduced distribution costs by DKK 88 million and administrative expenses by DKK 61 million.
The beef segment remained relatively stable. Danish Crown Beef generated revenue of DKK 3.74 billion with an operating profit of DKK 63 million. However, this market is also facing livestock shortages and intense competition for raw materials, especially in Germany.
The company also noted that although demand for beef remains stable, the segment has been facing growing competition from cheaper protein sources such as pork and poultry since the beginning of 2026.
Thus, Danish Crown’s results reflect the difficult situation on the European meat market in 2026: pork oversupply, the consequences of ASF, geopolitical instability, and rising costs continue to place significant pressure on producers’ profitability.
PigUA.info based on materials from euromeatnews.com