"We expect to return to positive earnings in 2025," said acting CEO of Royal Greenland, Preben Sunke.
Photo: Royal Greenland.
Royal Greenland has released its annual report for 2024, reflecting a year of operational improvements tempered by major impairment losses that resulted in a pre-tax loss of DKK 196 million. However, despite this, the company says it expects a return to profitability in 2025.
Revenue for 2024 totaled DKK 5.6 billion, showing a slight decline compared with the previous year, despite a 2% increase in sales volumes. The company attributes the results to substantial gains in its core operations, particularly in key species such as cod, halibut, and cooked and peeled prawns.
“2024 has been a year marked by necessary but difficult decisions to ensure a stronger and more robust company in the future,” the company stated in a news release accompanying the report. "However, operations have not yet returned to previous levels, and combined with the impairment losses made, the result for the year is not satisfactory for Royal Greenland," it added.
The company indicated its "Back to Black" action plan, launched to restore profitability following its loss of DKK -133 million in 2023, has begun to pay off.
“As part of our action plan, we implemented extensive efficiency improvements in 2024, which resulted in savings of DKK 52 million, which, together with the improved market conditions, improved operating profit by DKK 116 million compared to 2023. The effects of the action plan will continue into 2025, and we expect to return to positive earnings in 2025," said acting CEO of Royal Greenland, Preben Sunke, in a news release.
"I am pleased that we have achieved solid results in both cod, halibut and cooked and peeled prawns. Our land-based cod production in Greenland is in balance for the first time, and we see stable demand and rising prices across Europe, Asia and North America. This gives us a good starting point for 2025," Sunke added.
However, Royal Greenland's international operations produced poorer results during 2024. The company said it was now "conducting a thorough evaluation of the future of our Chilean business", after undergoing what it described as "an impairment of receivables of DKK 220 million".
Meanwhile in Norway, regulatory setbacks prevented a partner from accessing crab licenses, leading to an additional DKK 57 million write-down. Together, these impairments amounted to DKK 277 million, Sunke said.
The company reports that during 2024 it reduced its net interest-bearing debt by DKK 264 million. "This means that our financial leverage is now at 7.7 compared to 37.7 last year – a significant step in the right direction," Royal Greenland stated.
In February, Royal Greenland announced it was seeking a replacement for outgoing CEO Susanne Arfelt Rajamand, following "challenges in several areas" faced by the company over the past two years, with Sunke appointed as interim chief executive.
