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Tulip Food Company Notes Marked Progress

by 5m Editor
25 November 2010, at 11:03am

DENMARK - Consumers all over the world increasingly prefer products from Tulip Food Company, who just delivered a record-breaking result of more than €35 million.

Focused activities on specific markets and product categories have paid off for Tulip Food Company who has just delivered the historically best result ever.

"There are several reasons for the good result. One of them is that we have been very cost conscious and made a significant reduction of costs, already before the world was struck by the financial crisis. Another reason is that we have been able to generate growth in a number of markets," said Tulip’s CEO, Flemming N. Enevoldsen.

The growth has been obtained not least by concentrated efforts in the company’s most important markets, thereby exclusively focusing on the healthiest parts of the business.

"Tulip is a very complex enterprise with sales to 80 countries and with a very large number of brands. In recent years we have successfully reduced the complexity, and this strategy now pays off," said Mr Enevoldsen.

The better earnings have been generated especially in the foreign markets, and these markets also take up much space in Tulip’s new strategy plan, the term of which started on 1 October 2010.

"We have some of Europe’s and maybe the world’s best products, and therefore Tulip has great potentials for intensified growth abroad. This is one of the targets of the new strategy period. Today Tulip has a number of very modern production facilities and a very competent staff, and we are very well equipped to face the international competition," said Mr Enevoldsen.

In fact, he finds that the most serious threat to Tulip Food Company and other Danish food processing companies comes from increased administrative burdens.

"Denmark has an extensive and very important food production which is of great importance to our export and balance-of-payments surplus. Therefore it is important not only for Tulip but for Danish trade and industry as a whole that we are not burdened with extra administration such as the new meat tax and other directions which weaken our competitive power compared to producers in other countries," said Mr Enevoldsen.

Facts on Tulip’s annual accounts

  • Turnover in 2009/2010: approximately €640 million
  • Result after tax: approximately €35 million
  • Number of employees: 2.300
  • Today, Tulip has 10 factories: six in Denmark, three in Germany and one in Sweden.