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November 30, 2022
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The financial results of DCH International, which controls Premium Porc Group, strongly affected by African swine fever in 2020

In 2020, DCH International S.A., the parent company of Premium Porc Group, recorded a profit significantly reduced, of approximately EUR 0.2 million, before negative value adjustments of the herd. It is the lowest result of the company since entering the Romanian market over 15 years ago, reflecting the strong impact of African swine fever on its activity.

 

The negative value adjustments of the herd were in the amount of -10.7 million EUR, which led to the company recording a significant loss in 2020. The data results from the 2020 financial report of DCH International S.A., presented at the General Meeting of Shareholders held on May 25, 2021.

 “African swine fever is the biggest challenge at the moment, not only for us, but also for the entire pork industry in Romania and in Europe. We are making significant efforts to protect our business, but it is an epidemic that is spreading very easily and that affects not only directly, through outbreaks, but also indirectly through movement restrictions due to ASF outbreaks around farms. However, we go on with our commitment to Romania – to produce the best quality meat. I would like to thank all our colleagues for their work during this period”, said Lars V. Drescher, CEO of Premium Porc Group.

The company’s turnover in 2020 was EUR 77.2 million before the abovementioned value adjustment, negatively influenced by the low prices for pork at the end of 2020. The average price of pork in 2020 was EUR 1.52 per live kg, 7% lower than in 2019. In 2020, the total pig production reached 427,000 pigs within the 10 production sites in Romania, below the nominal capacity of the group, due to the interruption of production at one of the sow farms due to an identified African swine fever outbreak in early 2020.

Overall, financial performance was negatively affected by direct and indirect costs of African swine fever, amounting to approximately EUR 8.3 million. Due to the African swine fever, productivity fell to 30 sows per sow.

The Board of Directors and the management of DCH International consider that the financial results are low but acceptable, given the spread of this virus in Romania, as well as the major challenges imposed by the management of outbreaks.

In the beginning of 2021, the company was again hit by African swine fever in Romania. The affected farms are in the process of repopulation and are expected to return to full production by 2022. Therefore, the result for 2021 will also be significantly affected by African swine fever. However, the upward trend in pork prices in 2021 is expected to contribute to a positive result by the end of the year.

 

 

 

 

 

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