The deepening crisis influences Group’s financial results

16 LUT, 2018 GODZ: 16:32

The consolidated revenue of the PKM DUDA Group amounted to PLN 1,01 billion in the first half of 2012 in comparison to PLN 748,8 million last year, which made the financial results higher by 35%. In the second quarter of 2012, the Group has compensated for the loss in the 1st quarter and closed that half of the year with the net profit of approximately PLN 1 million.
During that time the parent company, PKM DUDA, recorded the revenue amounting to PLN 497,4 million (an increase by 56,3% y/y). A significant revenue increase occurred also in the trade segment, where the turnover increased by 27% within a year, amounting to PLN 576,8 million. Until now the Group was not present in the modern channel, but recently it has started selling meat within four trade networks.

In the first half of 2012 the market experienced a continuation of the trend of decrease within the pig breeding sector. According to GUS, the pig number in the end of March 2012 equaled 11 478 thousand pieces and was lower by 12,4 percent in comparison to the corresponding period of 2011, which then influenced further increase in the pork livestock purchase prices. Only within the last year, the Polish livestock prices grew by 21,9%*, which, paired with the insignificant (11,6%) increase in the half-carcass price negatively influenced margins in the meat business. The purchase prices increase totaled 50,5% since the beginning of 2011.**

The situation in the red meat business is also becoming growingly difficult due to the fact that it is being developed under the influence of the internal competition, where pork fights its way forward against poultry, which is cheaper. Additionally, the bigger increase in purchase prices on the home market in comparison to the average EU prices resulted in weakening the competitiveness in export of Polish pork.

In the first half of 21012 the consolidated sales revenue equaled over PLN 1 billion and were higher by 35% than in the first half of the previous year. It was possible thanks to the increasing number of slaughtered pieces in the production plant of Grąbkowo, which amounted to 594 770 thousand pieces, which equals the increase by 23% in comparison to 2011.

In the same time, the Company is going through the process of changing structures and sales in the pork segment, where the half-carcasses are more and more often being replaced by deeply dissected meat. As a result of the hereinabove changes, the Company became selling pork in the modern channel. Within the last half-year, the Company became delivering meat under its own brand to four trade networks.

The increased slaughter was recorded by the Beef Slaughter Plant. The slaughter in the first half-year increased by 60% in comparison to the corresponding period of 2011. Until the end of 2012 it should reach the level of the 100% growth.

„We are working in the possibly worst market environment. In the second quarter we were also facing bad conditions in the meat business. The record prices of raw material negatively influenced our operating results”. – said Maciej Duda, president of the Board of PKM Duda SA. 

The operating results were improved within the companies of the agricultural segment. The plant segment recorded PLN 13,7 million in the 1st half of 2012 in comparison to the last year’s PLN 12,3, which improved the operating results by 12%. In the Animals sector, the revenue grew by 21% and improved the operating results by 46%.

The 2nd quarter was also a good period for the trade segment. Within that time, the segment worked a 27% growth in the annual revenue and improved its operational results by 18 percent. The HoReCa branch has also been maintaining the high sales Dynamics and improved its turnover by 12,40% y/y. This segment has been continuously widens its Polish sales areas.

”We observe great potential in, among else, the modern sales channel. That is why we decided to begin co-operating with four supermarket food networks, which will then sell our meat. We have not said the last word in the realization of a plan of improving our share in meat processing and distribution, either. This can happen through mergers and acquisitions of other companies". – says Dariusz Formela, Vice-President of PKM Duda SA and President of the Board at CM Makton.

Press releases

Presentation

More information:

Daniel Ratajczak
Marketing Director
d.ratajczak@pkmduda.pl
Phone. + 48 65 547 70 20


* the average month-price price in June 2012 in comparison to the average month-price in June 2011 according to the Integrated System of Agricultural Market Information (ZSRIR)
** the average month-price price in June 2012 in comparison to the average month-price in January 2011 according to ZSRIR

More newses

Gobarto launches the Zalesie breeding farm

The restocking of pedigree pig breeding  farm in Zalesie will start soon. The investment of the Gobarto Group worth almost PLN 100 million will be heated exclusively with the use...

10 GRU, 2020 GODZ: 11:00

Gobarto 500 livestock building opened in Mazovia

In Osiek (Zawidz Kościelny municipality) in the Mazovia region, another livestock building completed under Gobarto 500 was put into service. It is the first facility of this type in...

23 MAR, 2020 GODZ: 13:16