FrieslandCampina N.V. - 2019 Half-Year Results
Date 07.26.2019 | Category: News
FrieslandCampina's revenue stabilised in the first half of 2019 in comparison to the same period last year. Operating profit increased by 18.6 percent to 210 million euros (first half of 2018: 177 million euros). Results improved due to an increase in the sale of value-added products, mainly consisting of cheese. Our activities in Africa in particular showed strong growth and also exhibited positive momentum in Asia; overall the Consumer Dairy business group’s branded volumes grew by 4.8 percent.
The reduced milk supply in the Netherlands contributed to improved profit due to a decrease in the production of (still loss making) basic dairy products, such as butter and milk powder. Increased protein prices put pressure on overall margins as sales prices continued to lag market input costs developments. In China volumes stabilised due to challenging market conditions and the constrained supply of a number of key ingredients.
Profit for the entire company rose to 121 million euros, an increase of 11.0 percent (first half of 2018: 109 million euros).
• Revenue of 5.7 billion euros unchanged (first half of 2018: 5.7 billion euros)
• Operating profit increased by 18.6 percent to 210 million euros (first half of 2018: 177 million euros)
• Transformation on track: value-added volumes increased and margins improved in line with plan
• Significant progress on sustainability across all indicators
• Milk price for member dairy farmers increased by 3.2 percent to 37.90 euros per 100 kilos of milk (first half of 2018: 36.74 euros)
• Milk supply decreased by 5.0 percent to 5,088 million kilos (first half of 2018: 5,356 million kilos)
According to Hein Schumacher, CEO Royal FrieslandCampina N.V.: “These results show a positive impact from the changes initiated last year and are reason for cautious optimism. Following the launch of our market-driven strategy, we are seeing a positive momentum. After a strong finish in 2018, our consumer business experienced continued growth in a challenging market, and our market shares and margins improved. However, increasing protein prices put pressure on the development of the result in essentially all business groups. Throughout the entire chain, from grass to glass, our ambition to lead with sustainability is taking further shape and significant progress has been made.” For more visit frieslandcampina.com.
Source: FrieslandCampina Author: COX