The malt house Viking Malt, located in Ørslev outside Vordingborg, ended 2024 with a profit of 31.6 million kroner after tax. This is an increase of nearly seven million kroner compared to the previous year.
Revenue fell by a good 44 million kroner to 516 million kroner. The result is influenced by lower energy prices, a changed customer segment, and higher earnings from the company's combined heat and power plant, according to the management in the annual report.
The operating profit before interest and tax rose to 43.3 million kroner, and equity has grown to 196 million kroner. A dividend of 30 million kroner is proposed.
Combined heat and power and exports weigh heavily
The company has had additional income from combined heat and power production, which exceeded the expected level. The combined heat and power plant is mentioned as one of the explanations for the improved result.
Two-thirds of the revenue came from exports. In total, sales amounted to 343 million kroner abroad, while sales in the Danish market amounted to 173 million kroner. Exports fell slightly in kroner compared to 2023 but constituted a larger share of the revenue.
Expecting a decline in 2025
Viking Malt expects that revenue in 2025 will fall by about ten percent, mainly due to lower sales and a malt market where there is overcapacity.
- We are experiencing that the breweries are challenged in their beer sales, and it affects us. At the same time, more malt can be produced than can be sold globally, says Karen Mette Krieger Lassen, director of the Danish part of Viking Malt.
The result after tax is expected to fall by around 40 percent, partly due to lower margins and price pressure in the market. Earnings from the combined heat and power plant are expected to remain at the 2024 level but are described as unstable.
Solar panels on the way
Investments in 2025 will be higher than usual, as the company plans to install its own solar panels as part of efforts to reduce energy consumption and environmental impact.
Viking Malt A/S is part of the Finnish Viking Malt group. The company employed 40 staff at the end of the year.
