After the record high growth of 25% in the last financial year, Chairman of the KMC Board Peter C. Petersen presented yet another satisfying financial statement at the annual general meeting on November 16, 2018.
The annual turnover increased by 10% from 1.48 Bill. DKK to 1.62 Bill DKK. The ordinary result after taxes was 135.5 mio. DKK, which was a bit higher than last year’s result of 134 mio. DKK.
Like previous years, the growth was broadly based in both product and market areas. Hence, new production records were set for potato-based starches, Granules and proteins.
The sale for global food customers increased as well. The growth was geographically, broadly founded and took place in both established markets and new developing markets. Good work by the sales organization in KMC is the reason for the fulfillment of the sales objectives of the year.
A high production, a successful sale and a good utilization of the capacity resulted in lower costs per unit and contributed to the good result.
The international food trends that e.g. request plant based and allergen free raw materials and more convenience products have contributed to the good result. Furthermore, an increasing middle class in Asia request quality food that matches the product range of KMC.
Over the years, the product range of KMC has become more differentiated and sophisticated and today it includes a broad specter of potato-based starches, protein, fiber and granules products. This development has taken place according to the KMC strategy plan that i.e. includes increased focus on high-value ingredient solutions.
Also, the KMC activities within granules products have continued the good tendencies from the latest years. Again, we experienced a new production and sales record. Therefore, the settlement price on granules potatoes is also this year at an acceptable level.
KMC is positive concerning the future development as well. The growth plan is backed by significant investments in the value chain of KMC. We are talking about a modernization and expansion of the production machinery and continuous investments in product development and strengthening of employee competences.
The current production campaign, is influenced negatively by the warm summer.
In spite of the fact that large parts of the shareholders of KMC have had the necessary water facilities, the heat has resulted in a lower starch content of the potatoes. Therefore, KMC acts carefully in relation to the market and tries to find the right balance between supplying our customers and optimizing our earnings for the benefit of our owners.
However, we expect the sales prices to be at a level that compensates the farmers for the low starch content and the increased costs for watering etc.
In connection with the annual general meeting, information was given that CEO Nicolai Hansen on own request resigns from his position by the end of June 2019. By then, he will be 62 years old. Chairman of the board Peter C. Petersen thanked Nicolai for his engaged effort and informed that the Board aims to have a new CEO ready before Nicolai leaves KMC next summer.