#11 - Business news from the Economic Mission of the French Embassy in Denmark [fr]

#11 - Business news from the Economic Mission – 17.05.2021

Disclaimer - The Economic Mission strives to provide accurate and up-to-date information and will correct, to the extent possible, any errors that are brought to our attention. However, it cannot be held responsible for the use and interpretation of the information contained in this publication.

Industry

Partnership of Carrefour and Coop Nordics
Carrefour Partenariat International and Coop Nordics Group have announced the signature of a commercial agreement focused on own brands. This partnership will allow the different entities of Coop Nordics to purchase Carrefour’s own brands in food and non-food (including French, Italian and Spanish food brands), and will facilitate synergies for the manufacturing of these brands. Thus, customers of Coop Trading and its 4 affiliates in Finland (SOK Group), Denmark (Coop Denmark), Norway (Coop Norway) and Sweden (Coop Sweden) will have access to a wider variety of products through Carrefour’s own brands.Finans

New contract for Falck in San Diego
Falck is set to sign a five-year, $2.5 billion contract to operate the ambulance service in the U.S. metropolis of San Diego. It is one of the largest ambulance contracts in the world, which Falck will conclude after more than three years of negotiations - final approval by the San Diego city government having been repeatedly delayed following protests by Falck’s competitor, American Medical Response. The United States is one of Falck’s most important markets, accounting for more than 25% of its sales. With this new contract, California could become a larger market than Denmark for Falck. Finans

DSV acquires Global Integrated Logistics (GIL) from Agility
Agility’s GIL division, a Kuwait-based logistics company, operates in more than 100 countries, primarily in the Middle Eastern, African and Asian markets. With a turnover of $4 billion (€3.3 billion), it is the 21st largest logistics company in the world. Its acquisition by DSV, for a value of DKK 26 billion (€3.5 billion), will be financed by the issue of just over 19 million new shares by DSV (an increase of 8%). Agility will thus become one of the largest shareholders of the Danish transport and logistics company. With this acquisition, DSV’s number of employees will increase to approximately 70,000 (+17,000) and its turnover is expected to increase by 23% to DKK 142 billion (€19 billion). DSV is expected to move from being the 5th to the 3rd largest freight forwarder in the world, behind DHL Logistics and Kuehne + Nagel. Finans, Finans

Reimbursement by Scandlines of the ‘corona’ aid received to cover its fixed costs
Despite pessimistic growth forecasts for 2020, the ferry company Scandlines finally achieved a profit margin of 31% (compared with the usual 40%), with revenues of DKK 625 million (€84 million). Although passenger traffic decreased by 56% in 2020, freight traffic remained almost stable, allowing the company to maintain a healthy profit. In light of these good results, Scandlines decided to repay the "corona" subsidies it had received to cover its fixed costs, totaling DKK 9 million (€1.2 million). The ferry company used the rest of its profits to maintain the same level of investment as in previous years (about DKK 156 million, or €21 million) - including financing a "rotor sail" device, which uses wind power to reduce the ferries’ fuel consumption.Børsen

Three Danish companies among Times Magazine’s 100 most influential companies
The American magazine Times has published a list of the 100 most influential companies in the world. Among them are three Danish companies: A.P. Møller-Mærsk, Ørsted, and Lego. Mærsk is in the "leaders" category, having performed well during the coronavirus crisis, and having played a central role in the transportation of several Covid-19 vaccines around the world. None of Mærsk’s main competitors are included in the Times’ list. On the other hand, Ørsted and Lego are listed in the "innovators" category: Ørsted is recognized for its support of renewable energy and its contribution to the green transition, and Lego for the significant increase in its sales during the crisis, and its ability to grow and adapt to the challenges of digitalization. For the record, the Times Magazine list does not include any French companies. Berlingske

Danish business confidence up in the first quarter of 2021
The latest survey from Statistics Denmark indicates that Danish business confidence has reached its highest level in 2 years. The indicator, which includes confidence in industry, construction, services and retail, increased from 100.7 to 104.3 between March and April 2021. The most significant increase was in retail trade (+7), followed by services (+5) and construction (+2). According to Jeppe Juul Borre, chief economist at Arbejdernes Landsbank, this is a sign that the reopening has made consumers and businesses more optimistic - and this trend is likely to increase with the continued easing of restrictions. Børsen

New investments in Too Good To Go for its development in the United States
The startup, founded in 2015 in Denmark, took out a DKK 223M convertible loan from Vækstfonden - one of the 10 largest investments in the history of the Danish sovereign wealth fund -, and increased its equity with the sale of 5% of its shares to Dutch Volt Investment Holding. The Danish startup will leverage the new investments for its U.S. expansion: in September 2020, the Too Good To Go app launched in New York City, Boston and New Jersey City, and is now also available in Philadelphia, Washington D.C. and San Francisco (as well as soon in Portland, Seattle and Chicago). The anti-waste food company is looking to invest in marketing, sales staff and office space for its U.S. business, which looks to be as promising as the one in Europe in terms of demand and growth. Finans

Better Collective acquires American company The Action Network
Danish sports gaming and e-sports platform company Better Collective has established itself in the U.S. sports betting market with the acquisition of The Action Network. This is the largest acquisition in Better Collective’s history, giving the Danish company a leading position in the U.S. market, which is particularly dynamic due to the lifting of the online sports betting ban in 2018. The Action Network has about 100 employees, and expects to double its revenue by 2021 to about DKK 250m (€34m). Better Collective expects the acquisition to result in revenues of more than DKK 600 million (€81 million) in the US market by 2022. Finans

Economy

Increase in the number of social welfare recipients in 2020
The number of people receiving money from the state increased by 52,600 between 2019 and 2020. This increase is mainly due to the coronavirus crisis, which notably led to an increase in the number of unemployed (+32,700 in 2020, or +38%). The number of people receiving sickness benefits increased by 16,500 over the same period, i.e. by 29%, and the number of early retirees by 10,200 (+5%). With the gradual reopening of society, the chief economist of the think tank Arbejderbevægelsens Erhvervsråd expects the number of people on social benefits to fall again. Berlingske

Increase in average Danish income in 2020
Despite the coronavirus crisis, average incomes of Danes increased significantly in 2020. According to data from Danmark Statistics, the pre-tax income of Danes reached DKK 304,000 (€41,000) in 2020, compared to DKK 291,900 (€39,000) in 2019, an increase of 4.2%. This is a significant development, given the economic situation marked by the coronavirus crisis, which among other things has led to an increase in unemployment in 2020. This development is partly explained by the numerous aid packages put in place by the government, as well as the advance payment of vacation pay to Danes, which amounted to DKK 9,400 (€1,300) per person on average. Without it, the average Danish income in 2020 would have risen by only 1% compared to 2019. Finans

Infrastructure

Return of night trains in Denmark
Transport Minister Benny Egelbrecht has announced the introduction of night train services in Denmark by August 2022, in cooperation with Sweden and Germany. According to him, the night trains should help raise awareness of climate-neutral transport solutions, offering an alternative to air travel. The trains will be operated by Sweden on the Malmö - Brussels and Stockholm - Hamburg routes. In Denmark, they will stop in Copenhagen, Odense and Kolding, and there will also be connections with trains from Aalborg, Aarhus and Esbjerg. In the long term, the goal is that Denmark, where the last night train operated in 2014, will be able to run night trains by itself. Finans

Deployment of fiber in Denmark: nearly 75% of homes connected
The fiber optic network for high-speed internet connection is spreading rapidly in Denmark to cover the massive increase in data consumption. More than 100,000 addresses are connected to fiber each year, and more than 900,000 are expected to be connected by 2022. Excavation crews (to bury the fiber cables) have, for now, covered three-quarters of Danish households and businesses, with some disparities between regions. Soon, the new 5G mobile networks should be strong enough to fill the gaps in the fiber networks.Berlingske

Alert for more than half of the state’s IT projects
Twice a year, the Danish State IT Council brings together IT experts from the public and private sectors to check that government-initiated IT projects - currently worth DKK 6 billion (€810 million) - remain sustainable in terms of schedule and budget. To do this, the IT Council categorizes projects as red (high risk), yellow (moderate risk), and green (no risk). Of the 35 IT projects currently in place, the IT Council reported red risk for 7, up 2 from six months ago, and yellow risk for 14, also up from the last report. This means that 60% of the state’s IT projects are currently considered risky, the highest proportion ever recorded. In addition, the report from the Danish State IT Council states that 57% of the government’s IT systems have problems: for example, 27% of them do not have sufficient security.Berlingske

Dernière modification : 17/05/2021

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