Uhrenholt Achieves New Financial Record
with a record-breaking profit of 67.5 million DKK pre-tax – an increase of nearly 100
While the divestment from loss-making activities in Russia set the agenda for several years, Uhrenholt was again able to fully focus on its core business from the end of 2019. Uhrenholt’s exit from Russia is the primary reason that an otherwise Covid-19 affected 2020 turned into the best financial year the company has experienced yet.
The pre-tax profit comes to 67.5 million DKK compared to a loss of -25 million DKK the previous year. Turnover of 2.2 billion DKK is comparable to the year before. The losses of 2019 were exclusively driven by the Russian arm of the business and the divestment thereof.
“2020 was one of the most difficult and unpredictable years ever. However, the agility of the Uhrenholt organisation has enabled us to keep our operations running, delivering goods to our many customers and creating satisfying results in the midst of a demanding year”, says CEO Sune Uhrenholt.
Uhrenholt supplies dairy products and frozen vegetables to a global market, in addition to developing its own food brands. The two divisions, Trading and Consumer, contributed equally to the substantial growth of the business, even as Covid-19 has forced the prioritisation of crisis management over actual growth initiatives in almost all markets.
Retail Sales Have Grown Substantially
Over the course of 2020, Uhrenholt allocated many resources to solving the challenges posed by the Covid-19 pandemic, including the implementation of new procedures to reduce potential contagion and to protect employees around the world as best possible.
At the same time, by having a more focused organisation, Uhrenholt has also been better able to handle the crisis and adjust to the rapid changes to demand and consumption.
“As sales into the hospitality sector began to plummet due to lockdowns, we were able to quickly refocus our efforts in the retail area, especially in Asia and Africa, where the demand for high quality food products was increasing”, says Sune Uhrenholt.
The contraction in food service was therefore more than compensated for through increased sales in the retail business, as evidenced by the substantial increase in the sales of Emborg-branded dairy and vegetable goods.
The growth of the Emborg-brand comes through the sale of new products, which have been developed and launched within the last 36 months, including cheeses and frozen berries, as well as a number of plant-based cheese alternatives. In coming years, Uhrenholt will be expanding its portfolio into plant-based foods, which are becoming increasingly popular among climate-conscious consumers across the world.
2020 Result Reflects Potential
The Covid-19 lockdowns have spurred the digital development of the business world. This is very much also the case at Uhrenholt, who in 2020 invested heavily in online sales channels, as well as the digitalisation of support functions and the value chain. The focus on digitalisation will continue into 2021, where the overall aim is to strengthen the financial position of the company as well as continued profitable growth in Consumer and Trading.
“We are pleased to now be able to look toward a positive future, following some challenging years with divestment in Russia. We believe that the 2020 results reflect the potential of our core business moving into the future”, says Sune Uhrenholt.
The strong 2020 results have resulted in substantial consolidation for Uhrenholt, with equity rising from 6 million DKK to 56 million DKK, while the interest-bearing debt has been heavily reduced by more than 150 million DKK.