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17 March 2014

Easyfood senses market optimism

Convenience food manufacturer Easyfood increased revenue by 4.2 percent in 2013 to DKK 184 million. The company expects to generate a further 15 percent revenue in 2014. Success comes in the wake of considerable interest from international brands, such as Starbucks and Germany's Tchibo.

When a convenience food manufacturer like Easyfood works with innovation and revival, it needs a market brimming with optimism and the zest required for thinking out of the box. 

In recent years optimism has been a bit thin on the ground but Managing Director Flemming Paasch now finally sees signs of smouldering optimism in the industry, which is creating a resurgence of interest in what Easyfood does best – adapting its products and production to meet market conditions. For example, the Kolding food company is currently communicating with Starbucks and has concluded an agreement to deliver to German coffee-maker Tchibo, which runs 400 coffee shops in Germany and the OK/Q8 filling stations in Sweden. 

"We have done much better in the crisis than many of our colleagues. For example, we did not go into the red at all. But it's great to note an emerging optimism, which is good for Easyfood because our products represent renewal and we create added value for our customers. While a crisis means that customers stick to what they know, we're now seeing them more prepared to try something new. We do not simply aim to adapt to market conditions. We aim to develop the market – and we are doing so once again," states Flemming Paasch. 

"We invest a great deal in making real inroads into export markets. We will succeed and we're getting closer but the process is slower than we had expected. We are working with such large companies and brands and the decision-making processes take much, much longer than we are accustomed to. The signs are that 2014 will be the year we finally make our breakthrough on the important markets. We have the contacts. Now all we have to do is show them what we can do. Many players need to rethink their market and this is where we can help," adds the Managing Director.

Easyfood's annual report 2013 shows a revenue boost of 4.2 percent to DKK 184 million and a modest profit of DKK 0.5 million. Profit after tax is negatively affected by a total of DKK 1.7 million relating to an adjustment of the tax asset due to a reduction of the corporation tax rate, refinancing and non-recurring costs. Volume sales increased by 13.3 percent – and the number of employees increased from 100 to 133 at the bakery in Kolding. Easyfood is optimistic about the future and expects to see a 15 percent increase in revenue in 2014. 

"The first six months of 2013 were tough on us. We were under pressure on several fronts. The convenience stores were hit by abolition of the Shops Act and new discount products challenged many of our conventional bakery customers. However, we have adjusted our operations and reorganised accordingly and the second half of the year was very successful. We hired 33 new employees and secured a number of new and interesting contacts with major, international customers. It's been a long, hard road but we are now all of a sudden getting enquiries from customers who we have never even spoken to. They have discovered a small bakery company in Denmark that, unlike many of its colleagues in the industry, is capable of providing flexible production and innovative products," says Flemming Paasch. 

For further details, please do not hesitate to call Managing Director Flemming Paasch, Easyfood, on +45 76 30 87 00 or +45 40 70 71 07.

See our annual reports here.


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