2024 was a year marked by major challenges and necessary changes for Royal Greenland

Royal Greenland publishes its annual report for 2024

The result for the year reflects significant operational improvements but challenging impairment charges. A profit is expected in 2025.

2024 has been a year marked by necessary but difficult decisions to ensure a stronger and more robust company in the future. Primary operations have improved by DKK 116 million compared to last year, driven by a stronger development for several core species such as snow crab, cod and cooked and peeled prawns – with the exception of shell prawns. We see this as positive.

However, operations have not yet returned to previous levels, and combined with the impairment losses made, the result for the year is not satisfactory for Royal Greenland.

Photo: Royal Greenland

Profit before tax is DKK -196 million, while revenue is DKK 5.6 billion. This reflects a slight decline in the top line, despite a 2% increase in volumes sold. Our clear goal is to rebuild a healthy business and deliver an EBIT margin of 5%.

Positive market development and progress in main categories

2024 has been a positive year for Royal Greenland's main markets, with progress in several of the core categories.

"I am pleased that we have achieved solid results in both cod, halibut and cooked and peeled prawns. Our land-based cod production in Greenland is in balance for the first time, and we see stable demand and rising prices across Europe, Asia and North America. This gives us a good starting point for 2025," says Preben Sunke, interim CEO of Royal Greenland.

The overall cod category is now profitable, supported by trawler fishing in East Greenland and the Barents Sea as well as an increase in the production of Nutaaq cod to 10,000 tonnes. Greenland halibut experience strong demand in key markets in China, Japan and Taiwan, and sales to the US market are growing. The cooked and peeled prawn category also shows positive trends, where efficient production and higher sales prices have made it profitable again.

The 'Back to Black' action plan shows effect

“As part of our action plan, we implemented extensive efficiency improvements in 2024, which resulted in savings of DKK 52 million, which, together with the improved market conditions, improved operating profit by DKK 116 million compared to 2023. The effects of the action plan will continue into 2025, and we expect to return to positive earnings in 2025," says acting CEO of Royal Greenland, Preben Sunke. 

Challenges in Chile and Norway affect the overall result

Despite the significant operational improvements, the annual result was negatively impacted by challenges abroad:

• Chile: The expected returns from our activities have not materialized, which has led to an impairment of receivables of DKK 220 million. We are now conducting a thorough evaluation of the future of our Chilean business.
• Norway: Our partner has not been given access to the expected crab licenses, which has meant that our partner has not been able to start fishing in 2025. On this basis, we have written down our receivables by DKK 57 million.

In total, these write-downs amount to DKK 277 million, which of course will have a significant effect on the annual result, says Preben Sunke.

Strengthened debt position – but there is still a need for improvements

During 2024, we reduced our net interest-bearing debt by DKK 264 million. This means that our financial leverage is now at 7.7 compared to 37.7 last year – a significant step in the right direction.

Photo: Royal Greenland

Good trends for 2025

With a strengthened core business and a clear strategic direction, we have laid a solid foundation for a positive development for the benefit of Greenlandic society. The first months of 2025 show promising development, and we look forward to a year of progress and strengthened competitiveness.

We would like to thank our employees, fishermen and customers for their support and cooperation during this transition period.

Read annual report

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Address:	Postboks 1073
City:	Nuuk
State/ZIP:	(3900)
Country:	Greenland
Phone:	+299 324 422
Fax:	+299 323 349
E-Mail:	[email protected]
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