While Royal Greenland’s net revenue rose by DKK 39 million to DKK 5.798 billion (US $837 million) in 2023, the Nuuk-headquartered seafood company posted a pre-tax loss of DKK 255 million ($34.2 million). A financial statement issued on May 3 reported that sales in Europe dipped 5% due to economic stagnation and changing consumer behavior. The cod market was affected by continued imports of low-priced fish from Russia.
In Japan the snow crab trade suffered from increased imports of Russian product and exchange rate fluctuations in the Japanese yen. In addition, sales prices were flat to declining and have not kept up with cost developments over the past two years.
The company’s business in Chile was impacted after it lost approval to export to China. Furthermore, lower demand in the United States hit Royal Greenland hard, and high Interest rates put additional pressure on the bottom line.
“2003 was a demanding year, but it is in adversity that we test our resilience and ability to adapt. We have introduced additional cost controls across the business and improved our operational efficiency, which should help soften some of the economic blows we are facing,” said CEO Susanne Arfelt Rajamand.
Royal Greenland has responded to the challenges by implementing cost-saving measures. This included the closure of its factory in Matane as part of a broader strategy to streamline the production footprint.
“We are in the process of a turnaround where we are analyzing several activities and initiatives to drive costs out of the company. The strategy will deliver savings of at least DKK 100 million annually when fully implemented,” said Arfelt Rajamand.
Despite a difficult market environment, Royal Greenland has maintained its position in key product categories such as coldwater prawns and snow crab, and has good expectations for improved sales in the future. It has also intensified sales in stable and growing markets such as China, and is working to optimize product offerings to fit current market conditions.
The fully vertically integrated enterprise, which owns and operates 45 plants in Greenland, Canada and Germany, combines a fishing fleet of inshore and offshore ships and trawlers with processing, logistics and sales teams in order to deliver wild-caught seafood of high quality from catch to consumer. In addition to cod, coldwater prawns and crab, its product line includes place, lobster, lumpfish roe, Greenland halibut and Patagonian toothfish. The company’s employee roster numbered 2,296 in 2023, of which 63% were on the job in Greenland, while 20% worked in Canada.
