Danish Potato Starch cooperative KMC delivers strong financial results and invests in its future

At the annual general meeting last month, Danish potato starch cooperative KMC presented a financial report with several notable accomplishments for the financial year 2023/24

Fiscal year 2023/24 marked a new high for KMC. During the year revenue increased by 6%, driven by growth in potato starch sales and stable production capacity.

Earnings before interest and taxes (EBIT) for the year amounted to DKK 372 million, surpassing last year's result of DKK 362 million.

With a record-high net revenue of DKK 3,583 million in the 2023/24 fiscal year, KMC's positive development has been further strengthened.

The progress is partly due to an increased overall market share regarding potato starch to the food industry, where KMC achieved over 10% growth in sold quantities and total product sales exceeding 400,000 tons. Meanwhile, stable production conditions and minimal impact from energy prices contributed to the financial results.

Based on these solid results, KMC has paid out DKK 276 million in post-payment to its cooperative members, who have faced rising costs for potato cultivation due to challenging weather conditions this year.

Jesper Burgaard, CEO at KMC:

"The year's financial results demonstrate the strength of KMC's value chain, 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."

Investment in Innovation and Future Foods

KMC also marked the year with the opening of a new 5,000 square meter Innovation Center, an investment of DKK 100 million, aimed at strengthening the company's position in plant-based ingredients. The state-of-the-art center is integrated with the headquarters and has doubled KMC’s capacity for innovation and research.

Management emphasizes that this investment supports the company's strategic plan, "Ingredients Tomorrow," which aims to ensure a continuous pipeline of innovative products.

In the video below, you can get a look inside the new Innovation Center.

Expectations for the Future: Revenue Growth and Strong Market Position

KMC 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.