CO-RO: Satisfying results for 2016

A moderate decline in revenue (4%), compared to the record-setting year 2015.

• Profit after tax remains at a high level, 249 mDKK.
• Increase in equity (+15%), to a total of 1,947 mDKK

CO-RO group has presented another year with good results – not far from the record-setting year 2015.

President Søren Holm Jensen explains: ”With the results for 2016 we continue the positive development of our business – although with a small decline on both top- and bottom-line. This is due to challenging market situations in the Middle East – but still the second-best result in our history.”

The decline in profits is due to increased investments in new markets and product development. Other markets such as China, South East Asia, Europe, and Africa has improved throughout, thereby contributing to the good result. In the Middle East, we gained market share in Saudi as well as other key markets, but our overall sales declined due to lack of access to war-stricken markets like Libya and an overall economic decline in the region.

Focusing on new markets

In 2015, CO-RO settled for a new strategy named “Shape for growth”. As of this, the group has increased heavily in developing new markets. Investments that are expected to contribute positively in the coming years.

One example of this is the stronger presence on the German market. Here the company started operations late 2015 offering home freeze ice lollies to German consumers. Consumers have responded well to the products and CO-RO now holds a second place on the market.

Markets in both Asia and Africa developed positively, especially high growth rates were seen in China, Sri Lanka, and Senegal.

New products contributing to the results

“The focus on innovation set forth in 2015 are continued,” says Søren Holm Jensen. Throughout the year heavy investments have been made in innovation, product development, and production capacity.

An excited Søren Holm Jensen adds: “We have introduced many new products, one being Sun Top Berry Mix which is now sold in 20 markets – and helped us winning markets share on our core market, Saudi Arabia”.

At the edge of 2016 the well-known Sunquick concentrate was launched as a ready to drink fruit drink in Malaysia: “50 years ago we launched our famous fruit concentrate Sunquick – now; as a result of our strategy, we have developed this further – to unleash the full potential of our brands and offer them to consumers in new occasions and situations.”, says Søren Holm Jensen.

Sun Lolly, which is a very well-known brand on the home market, Denmark, had a good year in 2016. A highly successful launch of new fruit drinks in Denmark and entering new European markets meant an impressive growth in the volume of 30%.

”We expect that market situation will continue to be challenging in 2017, but CO-RO has a strong foundation to withstand these challenges. We have firm strategy, and a willingness to invest further to improve our position – and create new products”, Søren Holm Jensen finishes.