FDBusiness.com

Revenue Grows at FrieslandCampina But Profits Fall

 Breaking News
  • 2 Sisters and Standards in Poultry Processing Report Published The Environment, Foods and Rural Affairs Committee in the UK has published its report into 2 Sisters Food Group and Standards in Poultry Processing. The Committee launched an inquiry into 2 Sisters and poultry standards following the undercover footage released by The Guardian and ITN. The evidence sessions looked at the issues raised at the 2 [...]...
  • ADM Wins ‘Most Innovative Food Ingredient’ at Gulfood Excellence Awards Archer Daniels Midland Company has been awarded ‘most innovative food ingredient’ for its natural sweetening solution, Fruit Up® Fiber, at this year’s Gulfood Manufacturing Industry Excellence Awards. The awards recognize best practices and innovation within the food manufacturing industry value chain. Entries were judged on the additional value the innovations brought to developers, as well as [...]...
  • Bayn Europe Enters China Sugar Reduction Market Bayn Europe has signed a strategic framework agreement with Kong Wua Group in China, outlining the establishment of a R&D center for sugar reduction and production of sugar replacer solutions. Through the agreement, Bayn and Kong Wua will bring sugar replacer solution to the market to help tackle the sugar over-consumption social problems. “It is important [...]...
  • It’s Time to End Food Waste – White Paper Among the most interesting topics in the publication ‘It’s time to end food waste’ is a closer look at the psychology of food waste by Nina Waldhauer at the University of Wageningen. Waldhauer explains how “(…) the food sector business can create opportunities for reducing consumer-related food waste. It can be done in ways that acknowledge consumer´s goal [...]...
  • Orkla Sells K-Salat to Stryhns Orkla Foods Danmark has agreed to sell its K-Salat business to Stryhns, which is part of the Norwegian Agra group. The purpose of the sale is to concentrate Orkla’s activities on fewer categories. K-Salat has a product portfolio of salad spreads, mayonnaise, remoulade, dressings and potato salads in Denmark. Under the agreement, Stryhns will take over [...]...

Revenue Grows at FrieslandCampina But Profits Fall

Revenue Grows at FrieslandCampina But Profits Fall
August 29
10:02 2014

Royal FrieslandCampina has reported a 3.5% increase in revenue to Eur5.713 billion for the first half of 2014. However, operating profit fell by Eur102 million (37.1%) to Eur173 million with currency translation having a negative effect of Eur59 million.

The revenue growth was due to higher sales prices (6.4%) and acquisitions (1.7%) which offset a negative currency translation effects of minus 3.2% and lower volumes (down 1.4%). Organic revenue growth was 5.0% for the first half.

The most robust growth was achieved in China, Hong Kong and the Philippines. The sales volume of infant nutrition increased. Sales volumes of dairy-based beverages, cheese and ingredients decreased due to unfavourable market conditions in Europe, Indonesia and Vietnam. Exports of cheese to Russia also decreased.

The first half drop in operating profit was due to the sales prices of commodities such as foil cheese, butter and milk powder, being too low to offset the high guaranteed price for the member dairy farmers. On top of that, difficult market conditions in Asia and Europe plus negative currency translation effects amounting to Eur59 million put volumes and margins under pressure. Operating costs in the first half of 2014 rose by 5.5% to Eur5.54 billion due to higher raw materials and packaging materials costs.

Profit over the first half year fell by Eur60 million (37.1%) to Eur104 million due to unfavourable currency translation effects of Eur44 million and higher operating costs.

The pro-forma milk price over the first half of 2014 was up by 9.1% to Eur44.19 per 100 kilos of milk.

Cees ’t Hart, chief executive of Royal FrieslandCampina, comments: “The combination of a strong euro, a high milk price, falling sales in a number of Asian markets and general political unrest all affected FrieslandCampina’s results during the first six months of 2014. Despite these developments, higher sales prices led to a further growth in revenue. In the consumer market, infant nutrition, which is one of our strategic growth categories, performed especially strongly.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • November 28, 2017Fi Europe
  • December 4, 2017Plastics and Paper in Contact with Foodstuffs 2017
  • January 8, 2018RAI Exhibition
  • January 16, 2018Sival Plant Production Trade Show
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements