Globale dyresygdomme forgylder dansk desinfektionsproducent. Arkivfoto: Camilla Bønløkke

A global agricultural market affected by ASF (African swine fever), and avian influenza outbreaks has given the Danish manufacture of hygiene and disinfection products for livestock, Jorenku A/S, an increased bottom line.

For the third year in a row the Danish company Jorenku A/S, the producer of e.g. Staldren®, has increased the bottom line.
The company’s result for 2022 ends with DKK 2.7 million compared to the previous year, where the result ended at DKK 2.1 million. That is an increase of 27.3 %.
The operation – the EBITDA – ends with DKK 4.1 million and is thus also higher than the previous year.

According to the founder and CEO of Jorenku, Johnni Pedersen, the positive development is a result of great demand for the company’s flagship product, Staldren®.
Johnni Pedersen states: “The profit is mainly due to the fact that more and more people have discovered our product Staldren®, which we export to more than 65 countries worldwide, and which we over the past 30 years have ensured is among the world’s best disinfectants.”
He continues: “Additionally due to avian influenza and ASF around the world, as well as generally many infections among cattle, pigs, and especially among broilers and layers, it has generated an extra great demand for our type of products.”

The director acknowledges, that the situation of world is an unfortunate background upon which to grow but is pleased that Jorenku’s products are among the first to be chosen in the fight against zoonoses. In particular, markets such as Southeast Asia has been the driving force behind the year’s profit.

Consolidation and a new focus

Because of the profits during the past three years, Jorenku can now consolidate and invest in optimizing and improving the production facilities.
Among other things, the director tells that Jorenku has built a new factory which produces liquid vitamins, minerals, organic acids, and liquid disinfectants. These products are made both under the Jorenku brand, but also as private label, which other companies in the industry can buy into.

Does this mean, that private label is something Jorenku now will focus more on?
“Yes, it does. We are experiencing an increasing demand for private label. There are many, very large companies, that would like to have our products, but would prefer them under their own brand. Therefore, we produce a lot of private label products”, says Johnni Pedersen.

“The advantage is that it helps to increase turnover significantly, because many large companies would like to sell products like ours, but don’t want them, if our name has to be on them. So, it was a no-brainer for us to expand into this market and thus get another new client base by making our liquid products on a private label basis”, he adds.

Permanent growth

When it comes to challenges during the past year, according to the management, there is no fault to find, apart from an enormous pressure of busyness.
The director explains that the biggest challenge has been keeping up with the huge demand for Jorenku’s products qua the many global disease outbreaks among livestock. And even years of corona with limited travel have not obstructed the company either. Here, the use of online meetings was just made more efficient – also with customers – which has contributed to ensure an increase in the customer segment.

Jorenku is not worried for the year 2023 either. “We don’t see any major challenges for the current year, and we also expect a small increase in 2023 compared to 2022. An increase of 10 % has been budgeted, both for the top and bottom line. And we believe we can live up to this after looking at a sound first quarter”, says Jorenku’s director.

The company’s equity amounts to DKK 7.4 million in 2022 which is an increase compared to DKK 5.7 million the previous year. The solvency ratio for the year 2022 is 47.5 % and thus it remains at a stable level.

Read the Danish version of the article: Effektivt Landbrug, 20. April 2023, page 10