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ROYAL Greenland, one of Europe's leading seafood companies, has announced first half (after tax) profits of 12 million Danish kroners - about 2.28 million US dollars.
This is the first time for five years that the group, which has facilities in Greenland and throughout Europe, including the UK, has announced positive interim results.
Royal Greenland said it experienced significant growth, with a rise in revenue of 13 per cent compared to the previous year. There has been growth in virtually all markets, but France, China and the Nordic markets have shown particular progress. A significant portion of the growth was created on the basis of Greenland products, including both boiled and peeled prawns, and shell-on prawns. In addition, as a direct result of its acquisition of the factory in Cuxhaven in northern Germany last spring, Royal Greenland has posted some very positive figures for lump-sucker roe.
The company said demand for its Greenland products was favourable, but earnings were being challenged by rising raw materials prices for halibut and prawns. "The average cost per kg of these species is about 20 per cent higher than last year," said the company. "
It added that the cost of electricity, water and transport is much higher in Greenland than in other countries where Greenland species are otherwise fished. "As consumer prices are approximately the same irrespective the country of origin of the fish, Royal Greenland must as far as possible seek to compensate for its higher infrastructure costs by investing in automation and processing."
Royal Greenland's financial flexibility was intact, with a positive cash flow from operations of 129 million Danish kroners. The group's liquidity binding will continue to be a constant area of focus, it said.
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