FDBusiness.com

Dynamic Year For FrieslandCampina

 Breaking News
  • Carlsberg Group Upgrades Full Year Operating Profit Outlook Carlsberg Group has delivered organic operating profit growth of 17.7% for the first half of 2019 with reported growth of 18.2% to DKr 5.17 billion (€693 million). Organic net revenue growth was 4.2% and on a reported basis net revenue rose by 6.5% to DKr32.99 (€4.42 billion). Operating margin improved by 160bp to 15.7%. Reported net [...]...
  • Diageo Forms New Rum Joint Venture Diageo and Corporación Cuba Ron, a leader in the production of premium Cuban rums, have created a joint venture – Ron Santiago. The joint venture will have exclusive global distribution rights to Santiago de Cuba, a premium Cuban heritage rum brand. Globally, premium and above rum segments are growing ahead of the category overall, with premiumisation [...]...
  • Stirring Times For US Yogurt – Innovation is Vital in a Changing Consumer Environment Over half of all U.S. consumers now buy yogurt as part of their typical grocery basket, according to a new report from Innova Market Insights, but their habits appear to be evolving. Convenience themes are becoming increasingly important, for example, with 17% of consumers naming this as a significant choice factor in 2018, which is [...]...
  • FrieslandCampina Significantly Expands its VLOG Production Due to the sharp increase in demand in Germany, FrieslandCampina is increasing the number of participating dairy farms that supply VLOG milk from 400 to more than 600. All VLOG milk produced by Dutch FrieslandCampina dairy farmers is used to make cheese for the German market. VLOG (Verband Lebensmittel Ohne Gentechnik) is a German association responsible [...]...
  • English Food Manufacturers Sign Up to Made Smarter Support A number of food manufacturing firms in the North West of England have signed up to a business-led programme which aims to use digital technology to boost growth and success. By implementing advances in data analytics, Artificial Intelligence (AI), Augmented Reality (AR), Industrial Internet of Things (IIoT), 3D-printing and robotics, firms can enhance their profitability [...]...

Dynamic Year For FrieslandCampina

Dynamic Year For FrieslandCampina
March 16
09:35 2015

Geo-political tensions and adverse currency effects during 2014 exerted more influence on FrieslandCampina’s business operations, revenue and financial results than in previous years. The international dairy co-operative reported a 0.6% rise in revenue to Eur11.3 billion as a result of higher sales prices and increased sales of Friso infant nutrition. Currency translation effects had a net negative impact of Eur176 million on total revenue. The volume in the growth categories dairy-based beverages, branded cheese and ingredients dropped as a result of lower consumption, in part due to higher sales prices in Asia, increased competition in several countries, and the Russian boycott of dairy products.

Operating profit rose by 56.2% to Eur489 million. In 2014 a one-time income of Eur131 million was recognised due to an adjustment to the pension plans for employees in the Netherlands. Corrected for this one-time income the operating profit fell by 19.7% compared with the operating profit before goodwill impairment in 2013. Corrected for negative currency translation effects operating profit fell by 10.7%.

FrieslandCampinaWheyIngredientsOperating profit was also adversely affected by the Russian boycott of dairy products. The estimated direct effect (loss of revenue and profit) and indirect effect (negative market effects) amounted to at least Eur80 million. Other one-time items were a book profit of Eur20 million as a result of the fire at FrieslandCampina Cheese in Gerkesklooster in the Netherlands and an expense of Eur20 million as a result of the announced closing of the production facility of FrieslandCampina Branded Belgium in Sleidinge.

The Consumer Products Europe, Middle East & Africa and Consumer Products Asia business groups improved their operating profit. The main reasons were margin improvement due to higher net prices and cost reductions, especially in Western Europe. In the second half of 2014 cost savings contributed towards the operating profit and market conditions improved slightly.

FrieslandCampina’s pay-out to member dairy farmers remained stable. At Eur42.70 per 100 kilos of milk the pay-out was only fractionally lower than in the record year of 2013 (Eur42.90).

FrieslandCampinaCampinaMilkCees ’t Hart, chief executive of Royal FrieslandCampina, comments: “The year 2014 could accurately be described as ‘dynamic’. Although the disappearance of the EU milk quota will quite possibly lead to even more volatility on the dairy market, the prospects for FrieslandCampina and the member dairy farmers remain positive. The company is well positioned.”

In 2015 FrieslandCampina anticipates volume growth from infant nutrition in Asia and Africa and also expects it will once again be able to achieve volume growth with ingredients and dairy-based beverages. The recovery of the growth of dairy-based beverages will take place primarily outside of Europe. Expenditure on advertising and promotion will increase to support this growth and strengthen the brand positions and market shares. Expenditure for research & development will increase slightly. Investments in infrastructure and production capacity are expected to total around Eur600 million.

In view of the uncertainties following the abolition of EU milk quotas, FrieslandCampina is not making any concrete predictions regarding the expected results for 2015. However, taking a longer-term view the outlook remains positive. As the world’s population grows and welfare increases in many regions the demand for food, and in particular food rich in nutrients including dairy products, will continue rising.

About Author

mike

mike

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2019Packaging Innovations & Luxury Packaging London 2019
  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements