Half-year earnings collapse
Danish Crown reported operating profit (EBIT) more than halved to DKr631m ($97.9m) in the first half of the year, down from DKr1.33bn in the same period a year earlier. The company described the result as "as expected" despite significant headwinds. Revenue fell 2.6% to DKr31.6bn, driven by lower slaughter volumes and weaker average sales prices across the European fresh meat market.
African swine fever and supply pressure
The pork side bore the brunt of the downturn. African swine fever outbreaks in Spain, which had been absent for 31 years, returned in 2025 and disrupted supplies across Europe. An EFSA report released on 21 May showed ASF cases surging 76% in domestic pigs and 44% in wild boar compared to the previous year, with the number of affected EU member states rising to 14. Danish Crown cited a "challenging" pork market and broader supply pressure across Europe as the key factors behind the earnings decline.
Gross margin compressed sharply from 14.2% to 11.8% as heavier supply weighed on sales prices. On the positive side, the company narrowed its competitiveness gap with Germany on the pig side by DKr468m and increased its lead over Germany and the Netherlands on cattle by DKr1.97 per kg, equivalent to DKr64m overall.
Beef operations under pressure
The beef division posted revenue of DKr3.74bn with EBIT of DKr63m. Group CFO Anders Aakær Jensen noted that Europe faces a cattle shortage, creating spare slaughter capacity at multiple abattoirs, particularly in Germany. Even with demand present, beef faces competition from cheaper pork and chicken as consumers pull back on spending at higher price points.
Cost control and restructuring
Danish Crown cut distribution and administrative costs by DKr88m and DKr61m respectively, both driven by restructuring completed in November 2024. Net profit for the half year reached DKr552m, up from DKr811m a year earlier, aided by the reversal of a DKr183m impairment charge on the Essen site in Germany, which the company decided not to close.
Mounting pressure ahead
Rising oil and logistics expenses, along with material inflation linked to Middle East instability, created fresh pressure toward the end of the period. Jensen warned that geopolitical instability, higher transport costs, inflationary pressure, and rising interest expenses in 2026 challenge the company's cost control efforts. The company also announced plans in April to shift meatball production away from its Copenhagen factory, with Vejle in southern Jutland as the preferred relocation destination.