FrieslandCampina Achieves Good First Half Result
Reflecting volume growth and a strong international focus, Royal FreislandCampina has increased first half revenue by 7.6% to Eur5.09 billion and profit rose by 8.7% to Eur138 million. Volume growth and higher sales prices, to offset the increased costs, contributed towards the revenue growth and improved result. In the first half of 2012 the overall volume rose by 2.4 % but the strategic value drivers achieved a volume growth of 4.5 %. Most of the volume growth was achieved in the consumer and business to business markets for infant and toddler nutrition. The dairy-based beverage category also achieved growth, most of it in Asia.
The results from operating activities were 9.4% higher than for the first half of 2011. After the reservation of Eur15 million (2011 – Eur2 million) for the payment of the meadow milk premium (amounts to Eur0.32 per 100 kilos of milk calculated over all member milk) operating profit rose by 3.3% to Eur217 million.
The Consumer Products International and Ingredients business groups once again increased both their revenue and their result. Consumer Products Europe improved its result despite the difficult market conditions inEurope. Its revenue dropped due to pressure on volume. The Cheese, Butter & Milk powder business group’s revenue and result both fell primarily due to low sales prices for butter and milk powder.
Cees ’t Hart, chief executive of Royal FrieslandCampina, comments: “FrieslandCampina can look back on a good first half of 2012. Both revenue and result rose despite the difficult market conditions inEuropeand the steep drop in the market prices for butter and milk powder. In part due to this the guaranteed price of milk from the member dairy farmers was less than in the first half of 2011. Asia, where FrieslandCampina achieved a quarter of its total revenue, made a major contribution towards the revenue growth and improved result. The volume of infant & toddler nutrition has increased in both the Ingredients and Consumer Products International business groups.”
