At the Annual General Assembly held on 15 November 2019, KMC’s Chairman of the Board Peter C. Petersen presented yet another satisfying account.
The turnover of the year increased by a little more than 4% from 1.62 billion DKK to 1.69 billion DKK. The ordinary result after tax was 163.6 million DKK, which is a little more than 20% higher than last year’s result of 135.5 million DKK.
The Chairman told that e.g. the long-standing processing strategy contributed to the result. This means that a relatively higher share of turnover originates from processed products. Thus, the segment for high-value ingredients solutions again set new records in several areas.
The very warm and dry summer of 2018 had great impact on the result and the activities of the year. A summer that affected the harvest of potatoes to such degree that the KMC group received less potatoes than expected. Simultaneously the starch content was lower than usual, which is an unfortunate combination. The situation in the rest of Europe was not any better – on the contrary. This caused a deficit of potato starch in the world market in proportion to the request during the financial year 2018/2019. This increased prices, which partly compensated the farmers for the lower yield and increased costs for watering etc.
In granules, the KMC activities continues the good results from recent years where the production capacity is utilized 100%. The high production economy in combination with the market development caused a stable level for the settlement price on granules potatoes.
To make sure that KMC is able to meet the changing demands, wishes and expectations of the customers and the market – also in the future – we focus on extending and optimizing the KMC product program. The product program contains a broad range of starch, protein, fiber and granules products. Latest KMC launched a potato protein for human nutrition. A product that matches the international food trend where we see a tremendous increase in the demand for plant-based proteins.
KMC is positive towards the future development. Heavy investments in the KMC value chain accompany the growth plan consisting of increased production capacity and continuous investments in product development and strengthening of employee competences.
Unfortunately, also the current production campaign causes big challenges for the farmers – this time due to the record-wet fall, which in some places causes many troubles salvaging the harvest. Right now, potatoes are still in the fields and some of them will not come up. In spite of this, we expect a bigger harvest than in 2018 and a more normal market situation during the new financial year.
For further information please contact KMC CEO Jesper Burgaard on phone: 2033 8811 or Chairman of the KMC Board Peter C. Petersen on phone: 4018 2738.