It recorded a total profit for the year of DKK1,361m, which represents a decrease of DKK151m compared to the profit for 2016/17. Danish Crown’s revenue also declined from DKK62bn to DKK61bn.
Tulip recorded a net operating loss of DKK260m for the 12 months, higher than the DKK231m loss posted 12 months ago. The division was cited as the primary reason for the overall results.
In its report, group chief executive Jais Valeur was frank about the overall Danish Crown and UK performance. “We’re definitely not happy with the financial statements. We’re still badly affected by the problems in our UK business.
“At the same time, a combination of turbulence on the world market, generally low world market prices for pork and a strong euro has significantly undermined our profit in the past year.
“Contrary to expectations, we have therefore not managed to improve our overall performance but have instead gone into reverse. This is not good enough, and more than anything it is frustrating, because in most other respects our strategy is succeeding.”
Following these financial results, the group has decided to revise its strategy targets by two years. Valeur added that this poor performance has also resulted in job losses at Tulip. “A detailed review and analysis of Tulip Ltd has revealed that we have been unable to fully optimise our UK supply chain, while operating costs are far too high,” he said.
“We have therefore launched a comprehensive cost-cutting plan, and in the past two months we had to say goodbye to more than 150 salaried employees in the UK business. Altogether, we expect to reduce costs by more than DKK200m DKK from the 2018/19 financial year.”
Last month, Andrew Cracknell was appointed chief executive of Tulip, taking over Valeur who had temporarily assumed the role alongside his group chief executive duties.
In August, Tulip signed a supply deal with Aldi and announced increased productivity following a £1m investment at its Tipton facility.
Tulip was also named Site Team of the Year at the 2018 Food Manufacture Excellence Awards earlier this month.