Royal Greenland has billions in turnover, but the bottom line is in the red

Although the 2025 turnover barely reached the aforementioned 5.7 billion kroner and the operating profit was 299 million kroner, Royal Greenland A/S's result after tax ended at a loss of 107 million kroner.

That is a deficit on the bottom line, which, among others, the owners, the Greenland Self-Government led by Naalakkersuisut, have noticed. On Monday, May 18, there will be a general meeting at Royal Greenland.

This is the third year in a row that Royal Greenland has red figures on the bottom line in 2025.

In 2024 and 2023, the deficits after tax were 265 and 211 million kroner, respectively.

The figures appear from the financial statements for 2025, which Royal Greenland sent out on 4 May this year.

In a press release on the annual financial statements on 4 May, Royal Greenland chose to highlight that there was a profit before tax of six million. The press release failed to mention the result after tax of minus 107 million kroner.

Writes down 189 million kroner in Chile

The year's profit before tax - of six million kroner - is significantly affected by activities that do not directly originate in Greenland and Canada. However, Royal Greenland can, for the second year in a row, achieve a significant improvement in its primary business, which provides a solid basis for further development.

This is what management writes in the annual report for 2025. among other things, affected by a write-down in Chile.

Last year, Royal Greenland decided to initiate a process with a view to selling the loss-making Chilean activities.

According to the report, there has been a dialogue with potential buyers. However, when Royal Greenland closed its books for the 2025 financial statements, no binding agreement had been made with the buyers.

Therefore, Royal Greenland's total receivables in the Chilean business, read loans, of DKK 189 million, have been written down in Royal Greenland's 2025 financial statements, according to the annual report.

As we have previously written, money has flowed out of the coffers of Royal Greenland's largest foreign business venture, the company in Chile, in recent financial years.

In 2023, Royal Greenland had a deficit of DKK 85 million in Chile. In 2024, the group's receivables in the Chilean business were written down by 220 million kroner.

Norwegian snow crab boat put up for sale

Royal Greenland also decided last year to exit the Norwegian snow crab fishery and the collaboration with the Norwegian partner, shipowner Bengt Are Korneliussen.

He owns the shipping company Maniitsoq AS, which owns an old vessel that has lost its license to fish snow crabs. This means that the basis for the business's existence is gone.

- It is a boring matter. Both for our Norwegian partner Bengt Are Korneliussen and for Royal Greenland. It is a matter I would rather have avoided.

This was said by Preben Sunke, Royal Greenland's then CEO and current Deputy Chairman of the Board, on October 6th last year in Sermitsiaq in a comment on a court decision in the Hålogaland Regional Court in Tromsø in Northern Norway.

For Royal Greenland's partner, the Tromsø shipowner Bent Are Korneliussen, the decision meant that he definitively lost his business license and the right to fish for snow crabs. He can no longer get quotas.

The shipowner and Royal Greenland have long had Maniitsoq's snow crab boat, whose operation Royal Greenland has helped to finance through loans over the years, for sale.

The court's decision meant that there is no longer any basis for business cooperation between him and Royal Greenland, concluded the Greenlandic fishing group. The snow crab project and cooperation were doomed, as we wrote at the time.

Royal Greenland's annual report does not indicate how much Royal Greenland lost in 2025 in Norway, when things are settled after the expected sale of the vessel.

According to Sermitsiaq's information, Royal Greenland has had significant double-digit, possibly triple-digit, million-dollar losses on the Greenlandic-Norwegian cooperation over several years.

Must pay German additional tax

According to the annual report for 2025, Royal Greenland's result after tax is primarily affected by a decision made by the German tax authorities in connection with a transaction from 2013 in connection with the sale of the group's factory in Wilhelmshafen in northern Germany.

The German tax authorities have imposed an additional tax payment of 68 million kroner on Royal Greenland, the company writes.

Royal Greenland disagrees with the tax authorities and has appealed the decision. The Group has therefore set aside the amount for 2025 until a final decision is made in the case.

Great growth in primary operations

In 2025, Royal Greenland had great growth in primary operations of 86 percent to DKK 299 million compared to 2024.

Last year, investments of over DKK 300 million were made. This was done to ensure future growth and maintain competitiveness.

Last year is among the best operating results in Royal Greenland's history. Over DKK 300 million were invested during the year.

- Although we have had fewer raw materials to work with, we have managed to maintain our turnover. This is due to rising market prices, but to a very high degree also a targeted effort in the organization with tight cost control and efficiency improvements, so that we ultimately get more value out of the raw materials, said CEO and Group President Toke Binzer in the press release from Royal Greenland on May 4.

He continued:

- We have strengthened our earnings and our financial foundation, and this gives us a much better starting point when we invest in our production and land facilities in this country in the coming years.

Streamlining and efficiency

According to the company, streamlining and efficiency have contributed to Royal Greenland's pre-tax profit in 2025 of six million kroner compared to a deficit of 196 million kroner in 2024.

During 2025, the group has implemented a series of initiatives and cost savings that have had an impact on operations, cross-functional collaboration and, not least, the economy.

For 2024 and 2025, the initiatives have collectively reduced costs by over 150 million kroner.

The initiatives include:

• Reduction of inventories.

• Better planning throughout the entire value chain.

• Fewer administrative layers outside Greenland.

• Greater use of digital tools that make it easier to plan and make decisions.

Good start to 2026

2026 has started well for Royal Greenland, among other things helped by continued good prices for products on the market.

At the same time, the company maintains its focus on efficient operations and the good pace, as stated in the annual report.

- My most important task is to ensure that Royal Greenland continues to be a strong Greenlandic company that creates jobs and value for the country. And I am convinced that we are on the right track, says Toke Binzer in the press release.

Chairman of the Board Niels Thomsen says in the 2025 annual report that Royal Greenland is a business that rests on a robust and secure foundation for navigating an industry that is subject to constant changes.