Financial Year 2023 – Fayrefield continues its growth journey

11. April 2024

Looking back at the market and the result in 2023

The financial year 2023 for Fayrefield Ingredients Holding A/S was characterized by several notable events and results. The consolidated accounts for this year revealed a profit before tax of DKK 35.2 million DKK. The primary earnings came from the subsidiaries Fayrefield Foods A/S and P.B. Foods ApS, both of which are 100% owned by Fayrefield Ingredients Holding A/S.

Throughout 2023, the Group increased its ownership in Fayrefield Foods USA, resulting in a 55% stake at the end of the year. This acquisition partially contributed to the group’s revenue increase of DKK 325 million DKK. The increased revenue was not only due to the consolidation of Fayrefield Foods USA, but also to a general increase in the activities of the group.

Despite declining market prices for many of the group’s products, it succeeded in achieving a satisfactory result that exceeded the budgeted expectations. This resulted in the second best result in the group’s 25-year history. However, there were challenges with reduced margins due to falling market prices, especially for the part of the business that involves inventory items. Despite these challenges, we succeeded in reducing the ties in inventories.

“In 2023, the organization was exposed to a number of challenges, but thanks to the agility and determination of our global organization, we managed to continue developing on a global scale.

Agility will be even more important in 2024 as the year looks set to be even more challenging. We expect to have to navigate through uncertain global market conditions, affected by various factors, including potential changes in milk consumption in Europe, due to weather conditions and possible CO2 taxes.

Despite these challenges, we look forward to tackling them with the same determination and agility that we have shown in the past. We are determined to maintain our commitment to our partners and customers and continue to grow our business despite the challenges we may face.

The expectations for 2024 are optimistic, as we anticipate further revenue growth. This is due, among other things, to the employment of additional staff, expected to contribute to increased sales volume. This expansion of the staff will naturally lead to increased costs in the form of wages and other personnel costs. Consolidate earnings at group level of approximately DKK 35 million is therefore budgeted for”.