Tough year for Royal Greenland
Royal Greenland on Wednesday reported a loss of DKK 196 million (USD 37.8 million, EUR 26.3 million) in fiscal 2009, compared to a loss of DKK 78 million (USD 15.1 million, EUR 10.5 million) in fiscal 2008.
The Danish seafood supplier — one of the world’s largest coldwater shrimp producers — also posted a drop in revenue, from DKK 5.17 billion (USD 997.9 million, EUR 694.8 million) in fiscal 2008 to 4.74 billion (USD 914.9 million, EUR 637 million) in fiscal 2009, due mainly to a 15 percent drop in sales volume.
Royal Greenland attributed its “unsatisfactory” fiscal 2009 results to the global financial crisis, weaker seafood demand, the depreciation of the Norwegian and Swedish krone and the British pound and high raw materials costs.
However, the company rebounded in the last four months of the year and is optimistic about its short-term prospects.
The company plans to invest DKK 200 million (USD 38.6 million, EUR 26.9 million) in improvements over the next two years, and its management team has instituted a range of initiatives to stabilize its operations, including reducing staff and the trawler fleet, reorganizing its structure and focusing on its operating efficiency and investment management.
Meanwhile, the company has cut working capital enough to allow it to release approximately DKK 225 million (USD 43.4 million, EUR 30.2 million) in liquid funds, despite its weak performance.
“The company is now much better placed, in terms of both earnings and capital, to secure and enhance its position as a leading seafood company, while respecting its obligations toward Greenlandic society,” said the company.