PKM grows bigger and better!!!

In the financial year 2010/11, PKM A/S extended its property by 22,000 sq m of new buildings, employed a further 14 staff members, and created the best financial results in the history of the horticultural nursery.

"Targeted investment in product development, combined with sales in close dialogue with our customers and exporters, and the ongoing streamlining of production both here in Denmark and in Poland and in Kenya, has produced a result which is the best in the history of the nursery," says PKM’s very satisfied owner, Kristian Madsen, commenting on the company’s financial result for 1 July 2010 to 30 June 2011.

PKM markets its products under the brand name FAIRYTALE FLOWERS®. A significant portion of its production is sold via ongoing fixed contracts with exporters and Danish and international retail chains, which provides a good foundation for planning the nursery’s production and investments. 90% of the nursery’s production goes for export, primarily through Danish exporters. This is supported by the nursery's participation in all of the major European flower exhibitions, usually in close co-operation with Danish flower exporters.

In 2010-11, annual turnover increased by almost DKK 20 million, to DKK 187.1 million. The rise is primarily due to the fact that since the New Year, potted plants have been produced in a further 22,000 sq m of new, modern greenhouses. The new production areas are equipped with the latest technology, and represent an investment of more than DKK 55 million.

In parallel with the increasing activities and the general rises in wage and energy costs, total production at the nursery has grown to almost DKK 110 million, corresponding to an increase of 15%.

Pre-tax profit rose to DKK 15.4 million, from DKK 12.1 million the previous year. After tax, the company's profit was DKK 11.5 million.

In the financial year 2011-12, PKM also expects satisfactory results, on a par with those of recent years.

New plants ready
PKM invests approximately 5% of its turnover in product development. Six people are employed all year round to create new "models" and get them ready for market. Next year will see the marketing of a new, dark blue refinement of the nursery's main culture, Campanula GET MEE®.

In recent years, the launch of and refinements in the new variety Campanula THE CROWN PRINCESS’ BELLFLOWER® have won market share. Production of this variety, which from now on will be marketed under the name MARY MEE®, is being extended. Similarly, other new varieties such as Campanula Sweet MEE® and Pretty MEE® are also gaining a foothold in European markets.

Joint-venture production in Kenya
Since 2004, as part of its ongoing streamlining of production, PKM has contracted out the cutting of Campanula cuttings to a partner in Poland. This partnership has been extended in parallel with the expansions in Søhus. The project in Kenya is now almost complete, and is entirely living up to expectations. The project is a joint venture with a

local nursery northwest of Nairobi; with support from the Danish International Development Agency, Danida, around DKK 7 million has been invested in 10,000 sq m of greenhouse space with associated production and staff facilities. 

All of the nursery's cuttings of the varieties Schlumbergera FLAME® (Christmas cactus) and Rhipsalidopsis FIRE® (Easter cactus) are now being produced in Kenya, and in combination with the development of and investment in two new transplanting robot machines in Søhus, this has greatly rationalised the production of spring and autumn cactus.

Workplace of the year
On Wednesday 26 October, PKM took part in the final round of the Workplace of the Year 2011 competition, organised by the Danish union 3F and its professional journal. More than 100 companies were nominated, of whom four went on to the finals. PKM won a very creditable second place.

PKM is proud that its employees nominated the company for this prize. It shows the commitment of the employees to the company – commitment which has also played a large part in producing this year’s fine financial results.

Business is booming – but future competitiveness is vital
Kristian Madsen is delighted at the rapid development that PKM has undergone over the past five years. In addition to its activities in Poland and Kenya, the nursery has expanded its Danish base in Søhus by more than 50,000 sq m, and has employed a further 57 staff members. "It is however also a sign of our confidence and faith in the future, as this development has required investments of almost DKK 170 million," says Kristian Madsen. "So it is incredibly important that Danish horticulture not only retains, but also enhances its competitiveness on the European markets. If wage and energy costs were to continue to rise more here than abroad it would be lethal to the industry, which for years has been subject to stiff competition and declining market share in export markets."

Principal key figures:

If you have any questions or require further information, please contact Kristian Madsen at +45 4043 0021.