Summary of the year: KGS SA with profit

At the end of September, Krajowa Grupa Spożywcza SA ended the 2023/2024 financial year. For another year in a row, the company achieved a financial result higher than originally planned. The profit generated is undoubtedly proof of the effectiveness in building the Group’s important role in the agri-food sector.

Successful implementation of the company’s strategy

Recent months have clearly shown how important it is to use synergy effects, which provide additional support for the implementation of strategies within the Group’s companies. KGS SA is consistently developing its branches, an example of which is the commissioning of a modern sewage treatment plant worth PLN 95 million in the Malbork Cukrownia, which was financed entirely from KGS SA’s own funds. Previously, a similar investment was carried out in the Nakło Cukrownia. Allocating funds for the construction and modernization of sewage treatment plants in plants is a beneficial solution from both financial and pro-ecological points of view. At the same time, the entities of the Capital Group undertook a number of modernization and investment activities.

In less than 10 months, Danko Hodowla Plant built one of the most modern barns in Europe for 390 dairy cows and 65 high-calf heifers, as well as a calf shed, with innovative technological solutions in the field of cattle breeding and breeding, milk extraction and herd management. The company plans to implement a twin investment. In turn, Małopolska Hodowla Plant, investing funds obtained from the National Reconstruction Plan, will build a warehouse and drying complex in Muszkowice, with installations extending the scope of services provided to include the purchase, storage and forwarding of grain from the local market.

Practices with farmers in mind

With Polish farmers in mind, the good practices of cooperation with sugar beet growers developed by the company are implemented in the starch segment. Przedsiębiorstwo Przemysłu Ziemniaczanego Trzemeszno is starting to implement the assumptions of the recently concluded agreement, which gives growers the certainty that their production will be profitable and the raw material will be sold. Additionally, by meeting certain conditions, growers can count on the right to an additional cash benefit, which is an important benefit and motivation for further cooperation with the KGS SA Group

The synergy effect of functioning within the Group has been proven in recent months by Poznańska Hodowla Plant and Danko operating in the seed segment, which have joined forces within the framework of marketing and product policy, jointly promoting their brands on the Polish and European market. The companies have also extended this cooperation in the production area, Danko uses PHR land to produce its propagating seed, and PHR seed is sold through Danko’s distribution channels.

Krajowa Grupa Spożywcza SA takes advantage of the potential of its subsidiaries, but also supports them, as evidenced by the recent adoption by the Management Board of KGS SA of a resolution on increasing the share capital of “Zamojskie Zakłady Zbożowe” sp.
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To sum up, the information presented is only part of the achievements that Krajowa Grupa Spożywcza SA achieved in the past financial year. The effectiveness of operations confirmed by the above examples helps build the competitiveness of the National Food Group on the agri-food market and confirms its credibility in implementing the mission, an important element of which is ensuring the country’s food security.