Royal Greenland has announced a pre-tax profit for 2022 of DKK235 million, on a turnover of DKK5.8 billion. Acccording to CEO Susanne Arfelt Rajamand, it’s a satisfactory outcome for a very tough year.
‘This year’s satisfactory result is based on our Greenlandic core species, which have performed well. They have continued the positive development that began at the end of 2021 after sales were severely depressed during the Covid-19 pandemic,’ she said, commenting that it is positive that sales to China are growing and are back at their former levels.
‘This means that shell-on shrimp, cooked and peeled shrimp and halibut have returned to normal earnings levels, and even the loss-making cod activity has developed positively. In recent years, we have invested in a number of new, modern trawlers, and this is already having a positive effect, and supports a positive sales trend in the markets.’
On the downside, 2022 was a challenging year and costs rose dramatically.
‘This development is due to rising inflation and especially the rising energy prices that Russia’s invasion of Ukraine has brought about. The crisis has also created an uncertain market situation in Europe with a slowdown in recent months,’ she said.
This affects Royal Greenland, as Europe is one of the group’s key markets. Royal Greenland also ended all sales to the Russian market at the beginning of March 2022, opting out of a turnover of DKK100 million.
Sales of snow crab have declined. This contrasts with the development in previous years, during which snow crab has been central to Royal Greenland’s revenue.
‘Sales have been challenged as a result of very high raw material prices and a weakened market in North America. Sale prices have fallen by more than 50% compared to 2021, when demand in the foodservice and retail segments fell significantly,’ Susanne Arfelt Rajamand said.
