Nortura Group CEO Not Satisfied With Growth

Nortura

writer icon Samuel Christiansen     Torben Flickinger   |   Business     🕐 02. Oct. 2020


Nortura is one of Norway's largest food producers, whereof Gilde and Prior are some of their most well-known brands. Nortura is in the process of a turnaround operation, and things are looking good.

The result for the Nortura plant has gone from minus to plus, but CEO Anne Marit Panengstuen still uses the word "risky".

"Nortura has for some time now had poor financial results and not enough competitive prices for our farmers. We are, therefore, constantly working to improve the company's finances." This is what Group Chairman of Nortura, Trine Hasvang Vaag, writes in the company's recent annual report.

Nortura had in 2017 initiated a plan to improve years of poor financial results, a plan which is now "beginning to yield results," according to Vaag.

However, the plan has not yielded enough of a result to satisfy CEO Anne Marit Panengstuen. "It is a weak result for the second year in a row", she said and pointed out that the operating profit ended at 0.8 percent.

Nortura's 2018 and 2019 Results
In 2018, Nortura SA lost NOK 12 million before tax. In 2019, they were on the plus-side with NOK 63 million. These accounts include all Nortura facilities in Norway.

While the Nortura Group's additional companies have had a profit of NOK 25 million in 2018, before tax, and NOK 109 million in 2019.

"When we have almost NOK 24 billion in income and are left with NOK 109 million on the bottom line before tax, it is quite risky in such a volume-sensitive industry. It can just as easily end up at zero," said Panengstuen.

Development Plan for Red Meat
In June, Nortura presented a four-year industrial development plan for red meat. They planned a new structure which, according to the company, will have consequences for between 200 and 300 employees. The plan also includes NOK 1.4 billion in investments in new technology.

"We are pleased to invest in our own competitiveness," Panengstuen said.

Panengstuen explains that Nortura must compete to win both consumers and producers.

"The program consists of many elements. Among other things, we have reduced the number of administrative positions," said Panengstuen.



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