Dagrofa's Foodservice Arm Sees Profits Increase

By Steve Wynne-Jones
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Dagrofa's Foodservice Arm Sees Profits Increase

Dagrofa Foodservice, the foodservice arm of Danish retailer Dagrofa, has reported profit of DKK 40.6 million (€5.44 million) in its 2023 financial year.

The group said that during 2023, it focused on improving its operational and logistical solutions, attracting new customers and reducing food waste, while its goal for 2024 is to further improve the customer experience.

As part of its #FremgangSammen strategy, Dagrofa is seeking to make its Dagrofa Foodservice a consistently profitable business, and its profit performance for the year is DKK 1.7 million higher than the previous year, a gain of approximately 4%.

"I am delighted that we have succeeded in building on the positive development of recent years, and that for the second year in a row we [...] can report progress in our earnings," commented Niels Miles Frandsen, administrative director of Dagrofa Foodservice.

"We have had a lot of focus on streamlining our operations, and we are constantly working to optimise all our logistics processes in order to deliver an even better service."


New Contracts

The group also signed a number of notable commercial agreements during the year, including a three-digit million DKK contract with Compass Group and the extension of its cooperation with Scandic Hotels. It also signed new partnerships with customers such as Konvemtum Hotel – Conference Centre, Søly, Cocina Kantiner, and Helenekilde Badehotel.

In 2024, Dagrofa Foodservice said that it will focus on improving the customer experience both physically and digitally. This includes initiatives such as 'Fremtidens Cash & Carry', and the launch of a new e-commerce solution to strengthen the digital customer experience.

"We have also been successful in positioning ourselves as more than 'just' a traditional food wholesaler. Increasingly, we take on an advisory and partner role," added Frandsen.

Tackling Food Waste

The company is also aiming to reduce food waste by 50% from 2020 to 2030, and it currently collaborates with organisations such as Stop Spild Lokalt and JunkFood as part of its efforts to achieve this goal.

The final annual accounts for 2023 will be approved on 8 April. Dagrofa Foodservice operates 30 cash & carry stores across Denmark, and is a major supplier to the HoReCa channel.

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