Today Royal Greenland publishes its financial statements for 2023
Royal Greenland has undergone a challenging year in 2023, with global and local economic conditions requiring significant adjustments and renewed focus.
“It has been a demanding year, but it is in adversity that we test our resilience and ability to adapt. We have introduced additional cost controls across the business and improved our operational efficiency, which should help soften some of the economic blows we are facing,” says Susanne Arfelt Rajamand, CEO of Royal Greenland.
Last year, the company experienced a market slowdown in Europe due to economic stagnation and changing consumer behavior. The seafood and cod markets in Europe have been affected by continued imports of Russian cod at low prices, and in Japan the snow crab market has suffered from increased imports of Russian snow crab and fluctuations in the JPY exchange rate. In addition, sales prices have been flat to declining and have not kept up with cost developments over the past two years.
Among the key challenges was a loss on the business in Chile after a loss of approval for export to China and a collapse in the US market hit us hard. Interest rates have also been high, which has put additional pressure on the business.
Profit before tax in 2023 amounted to DKK (255) million. Royal Greenland has responded to the challenges by implementing cost-saving measures, including the closure of our factory in Matane as part of a broader strategy to streamline our production footprint.
“We are in the process of a turnaround where we are analyzing several activities and initiatives to drive costs out of the company. The strategy will deliver savings of at least DKK 100 million annually when fully implemented,” explains Susanne Arfelt Rajamand.
Despite a difficult market environment, Royal Greenland has maintained its market position in key product categories such as prawn and snow crab, and we have good expectations for improved sales in the coming periods. We have also intensified sales in stable and growing markets such as China and are working to optimize our product offering to fit the current market conditions.
Royal Greenland has over the last 10 years paid significant amounts in dividends to the national treasury, emphasizing our contribution to the Greenlandic society and economy. Improvement of production facilities continues, with a particular focus on our social responsibility and obligations in communities across the country. This is supported by a planned reduction in interest-bearing debt, which is expected to strengthen finances significantly over the next 3-4 years.
“We look forward to 2024 with renewed optimism. The initiatives we have put in place, together with our committed employees and management, will ensure that we are well equipped to meet the challenges of the future,” adds Susanne Arfelt Rajamand.
For further information, please contact:
Group Communications Manager Merete Lindstrøm
Mobile: +299 28 18 20
