The Royal Greenland Group has registered profits on its operating activities (EBIT) were DKK 50 million compared to DKK 98 million in the previous year. This includes start-up costs in Poland of DKK 46 million, losses on the purchased AGF plants of DKK 11 million and non-recurring costs in the United States of DKK 14 million. According to the company it has experienced rising costs as it was not possible to raise the prices of finished goods to absorb these adverse industry conditions and exchange rate developments for the British pound and American dollar have eroded any gains.
The company told that its profit has gone down due to falling prawn and Greenland halibut volumes in Greenland, a decrease in trawler catches due to a severe winter in Greenland and a reduced share of the cod quota all affected profits in Greenland in addition to losses incurred on our takeover of the 10 AGF plants.
The financial results for 2008-2009 shows a loss of DKK 78 million compared to profits last year of DKK 52 million. Rising financial costs constituted DKK 14 million and earnings simultaneously fell in our associates as a result of market conditions. It should be emphasised that financial results in the financial year 2006/07 were positively affected by net earnings of DKK 87 million from the sale of assets and tax adjustments.
The group has adopted new measures to to create growth in EBIT profits. This was done by extensive adaptation of activities, prioritisation of investments, improvement in productivity and efficiency and cost cutting. The programme also includes the running in of our factory in Poland which after its initial phase in 2007/08 will make a positive contribution to the growth and earnings of Royal Greenland.
