Danish Crown reports lower first half earnings as ASF and supply pressures weigh on margins

DENMARK – Danish Crown reported a sharp decline in first-half earnings after disease outbreaks in Europe and weaker pork market conditions reduced margins and affected sales performance.

The Danish meat processor said earnings before interest and tax for the six months ended 31 March dropped to US$97.9m from US$206.4m recorded during the same period last year, while adjusted EBIT reached US$114.2m after accounting for changes to its farmer payment structure.

At the same time, the company said trading conditions across the European pork sector remained difficult due to African swine fever outbreaks in Spain and wider supply pressures affecting fresh meat markets.

An updated report from the European Food Safety Authority released on 21 May showed ASF outbreaks in domestic pigs across the European Union rose by 76% in 2025, while infections among wild boar increased by 44% compared to the previous year.

The report also confirmed the return of ASF cases in Spain for the first time in 31 years, increasing the number of affected EU member states to 14.

Meanwhile, Danish Crown’s revenue declined 2.6% to US$4.9bn as lower slaughter volumes and weaker average selling prices weighed on performance, with the company also citing increased meat supply in Europe linked to Chinese tariffs.

The company said it reduced the competitiveness gap with German pork producers by US$72.6m during the period, while its cattle business widened its lead over producers in Germany and the Netherlands by the equivalent of US$9.9m.

Danish Crown also reversed plans to close its Essen facility in Germany after withdrawing an impairment charge of US$28.4m related to the site.

As a result, net profit for the half year fell to US$85.7m from US$125.8m reported a year earlier.

Cost pressures continue

Group chief financial officer Anders Aakær Jensen said unstable global conditions, rising transport expenses and inflationary pressures continued to create operational challenges during the period.

The company added that restructuring measures introduced in November 2024 helped reduce distribution costs by US$13m and administrative expenses by US$9m.

Danish Crown’s beef division generated revenue of US$580.8m and posted EBIT of US$9.8m as cattle shortages across Europe continued to leave several slaughterhouses operating below capacity, particularly in Germany.

The company also stated that beef demand remained under pressure from cheaper pork and chicken products during the opening months of 2026.

Separately, Danish Crown confirmed it is still considering the future of its Aalborg production site after announcing plans in April to move meatball production away from its Copenhagen factory to other facilities in Denmark, with Vejle identified as the preferred location.

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