FDBusiness.com

Netherlands-based dairy co-operative Royal FrieslandCampina increased revenue by 8.5% to Eur5.52 billion and profit by 17.1% to Eur164 million during the first half of 2013. Higher sales prices and the sale of more products with added-value contributed towards the revenue increase and improved result.

The Consumer Products International and Ingredients business groups once again improved their revenue and result with the most robust growth being achieved by infant & toddler nutrition in both the consumer and business to business markets. The Cheese, Butter & Milkpowder business group achieved a positive result thanks to higher sales prices. The Consumer Products Europe business group’s revenue and result lagged behind due to reduced consumer spending in Europe. The company’s performance in respect of its member dairy farmers rose by 28.7% to Eur3.05.

In the first half of 2013 operating profit rose by 25% to Eur275 million primarily due to higher sales prices for cheese, butter and milk powder, increased sales of added-value products and the improved margins of the Consumer Products International and Ingredients business groups.

Cees ’t Hart (pictured), chief executive of Royal FrieslandCampina, comments: “FrieslandCampina achieved a good result in the first six months of 2013. We are strategically on course. Nevertheless FrieslandCampina must also find an appropriate way to deal with the consequences of lagging consumer spending in Europe.”