Danish potato starch co-operative KMC has reported a 6% increase in revenue to DKK 3.6m (£4m) for the 2023/34 financial year, driven by growth in potato starch sales and stable production capacity.
Earnings before interest and taxes (EBIT) for the year were DKK 372m, up from the previous year’s DKK 362m.
KMC said the result is partly due to an increased overall market share supplying potato starch to the food industry, where KMC achieved over 10% growth in sold quantities and total product sales exceeding 400,000 tons. Stable production conditions and minimal impact from energy prices also helped, it added.
Based on these solid results, KMC has paid out DKK 276m in post-payment to its co-op members, who have faced rising cultivation cultivation costs due to challenging weather conditions.
”The year’s financial results demonstrate the strength of KMC’s value chain,“ said CEO Jesper Burgaard, “where both modern production facilities and the adaptability of potato growers play a major role. We are, of course, pleased to be able to return a very reasonable profit to the Danish potato growers.”
KMC also marked the year with the opening of a new 5,000 sq m Innovation Center, following an investment of DKK 100m, aimed at strengthening the company’s position in plant-based ingredients. The site is integrated with the co-op’s headquarters and has doubled KMC’s capacity for innovation and research.
The co-op – whose former CEO Nicolai Hansen gave a presentation on its work at January’s SAOS conference in Scotland – said it expects continued high demand for its products and a revenue increase of between 6% and 12% in the coming fiscal year.
Despite expected high raw material and cost levels, management anticipates profitability that continues to make it attractive for potato growers to cultivate starch and powder potatoes.
KMC is also continuing its energy initiatives to reduce dependence on natural gas, supporting the group’s sustainable growth strategy.
