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Major investment in China affects Jorenku’s bottom line: “These were planned investments”, says CEO Johnni Pedersen to the Danisch trade publication Effektivt Landbrug, which has written a great article in connection with the publication of the annual accounts for 2024.
The deficit at Jorenku A/S has decreased in the recent financial year, though the result is still slightly negative. However, the management is satisfied with the outcome and is well aware of the reason behind the result.
A loss of DKK 95,408. That is the annual result for the latest financial year at the disinfection producer Jorenku A/S, based in Denmark. It also represents an improvement of DKK 3 million from the previous year, which ended with a loss of DKK 3.1 million.
Johnni Pedersen, CEO and founder of Jorenku, is pleased with the results from the past year.
“It’s been a very good financial year, and we’re satisfied. Our result improved by DKK 3 million, and we haven’t lost any turnover. In addition, we’ve made some planned investments. This means that the 2025 accounts won’t include the same expenses as in recent years,” he told Effektivt Landbrug.
The Chinese market
The large deficit in the previous financial year was mainly due to long-term supply contracts that forced Jorenku to pay more for goods than they could sell them for. These were contracts the company couldn’t exit during the 2023 fiscal year, but this has not been an issue in 2024.
The main reason for this year’s result lies in the company’s focus on the Chinese market.
“We’ve spent a lot of time and energy getting one of our key products, the calcium supplement Calci-Liq, approved in China. It’s a product that strengthens bones and joints in broilers and improves eggshell strength in layers. It’s a huge blockbuster for us,” says the CEO.
The major push into the Chinese market has led Jorenku to invest significantly in order to better prepare for the future.
“We’ve spent nearly DKK 3 million upgrading our facilities. We now have a fully automated production line, so we’re ready to meet demand. We’ve made structural changes, and today we have packing robots and mixing systems. We financed these DKK 3 million directly from operations—otherwise, we would have posted a profit of DKK 3 million,” explains Johnni Pedersen.
A long process
The Danish disinfection company is already established in China with its popular disinfectant Staldren®, which it has sold there for 25 years.
Nevertheless, it has been a long process getting the latest product approved. After several years of documentation work and regulatory processing, Calci-Liq was finally approved in early May this year.
“It’s been a long process where everything had to be approved. China is one of the biggest poultry markets in the world, and we’re now actively selling the product through distributors,” says Johnni Pedersen.
Positive feedback
The main purpose of the newly approved product in China is to prevent eggs from breaking during transport. Since distances are long in China, shell strength is critical. The first responses have also been positive, says Johnni Pedersen, who is already looking toward new markets for the company’s products.
“We’re focusing heavily on the Asian market and have feelers out in several countries. We’re looking at Malaysia, Indonesia, Thailand, Vietnam, the Philippines, and Korea. We have high expectations there. At the same time, we also have prospects in several countries in the Middle East,” the CEO explains.
Johnni Pedersen also notes that Jorenku is the first company to launch a calcium product aimed at strengthening bones and joints in broilers and improving eggshell quality in layers.
Many years of experience with Staldren® have made the company well aware of competitors who might be watching closely.
“When you’re a first mover in some areas, you need to stay alert. You won’t have the market to yourself for long – at some point, competitors will enter. We’re prepared for that,” says the CEO.
A solid 2025 ahead
Whether competition arises or not, Johnni Pedersen believes Jorenku is entering an exciting phase and looks forward to launching the product globally. Last year’s investments have also ensured that the company is well-equipped for the tasks ahead.
“Before we received the approval, we had already set up our mixing and filling equipment, so we’re ready. We have plenty of capacity, and we’re well prepared for what’s coming,” he says.
The CEO is also confident that Jorenku will post a healthy profit in the current fiscal year.
“2025 will be a solid year. We won’t have to spend money on new equipment or repairs. The focus will be on operations and revenue, and we expect to land with a profit of around DKK 3 million,” says Johnni Pedersen.
Source: Effektivt Landbrug, 6 June 2025, page 12