Danish fishing and seafood company Royal Greenland’s latest interim report shows that lower revenues following the sale of the company’s Wilhelmshaven factory hasn’t put a damper on business, with healthy pre-tax profits and record-low debts.
The company reported a pre-tax profit of DKK 59 million (USD 10.7 million, EUR 7.9 million), which is a drop of DKK 25 million (USD 4.6 million, EUR 3.3 million) compared to the previous year. The company blamed the losses “exclusively” on changes in exchange rates, particularly in relation to the yen. Exchange rates had a total negative impact of DKK 40 million (USD 7.3 million, EUR 5.4 million) compared to the previous year, but the company said core growth managed to compensate for some of the rate decline impacts.
Despite the decline, the company also lowered its interest-bearing debt to a record low of DKK 958 million (USD 174.5 million, EUR 128.4 million), down from a 2007/2008 peak of DKK 2.3 billion (USD 418.9 million, EUR 308.2 million).
“The sell-off of the plant in Wilhelmshaven has helped Royal Greenland to reach a really important milestone, as we have reduced our interest-bearing debt to a record low,” said Group CEO Mikael Thinghuus. “We have thereby met our goal of reducing the debt to less than one billion kroner. Royal Greenland is now much financially and commercially stronger, healthier and more focused than at any other time in the company's recent history.”
