Good Year For FrieslandCampina
FieslandCampina has reported a 10.8% increase in revenue to Eur11.4 billion for 2013 driven by volume growth and higher prices. Profit before a goodwill impairment charge of Eur200 million was up by 17.6% to Eur327 million and the Netherlands-based dairy co-operative paid a historically high milk price to its dairy farmers. The goodwill impairment charge was due to the expectations regarding results inEuropehaving to be adjusted downwards due to the persisting economic crisis.
Profit at Eur157 million was adversely affected by a goodwill impairment and negative currency translation effects in the second half of the year.
Nearly all the business groups improved their result. FrieslandCampina is also ahead of schedule to achieve of its route2020 strategy objectives. All the strategic growth categories except dairy-based beverages inEuropeimproved their performance. The infant nutrition category achieved the strongest volume growth. The Cheese, Butter & Milkpowder business group achieved the best result improvement in 2013.
Cees ’t Hart, chief executive of Royal FrieslandCampina.
Cees ’t Hart, chief executive of Royal FrieslandCampina, comments: “2013 was a good year for FrieslandCampina. The improved result was due primarily to volume growth in the three strategic growth categories (infant nutrition, dairy-based beverages and branded cheese), the passing on of the higher guaranteed price, far-reaching efficiency improvements in production, and cost control in the European operating companies.”
He continues: “We are ahead of schedule with our route2020 strategy. At the same time we are continuing to improve our processes and will pay even closer attention to costs. We will also continue investing in the renewal and expansion of our milk processing capacity so as to ensure that we can continue processing all the milk supplied by our members, now and after the withdrawal of the milk quota in 2015, into dairy products for which there is a demand elsewhere in the world. All in all we have invested 1.8 billion euro during the past five years.”
The performance premium (Eur1.81) and distribution of member bonds (Eur1.23) was up by 28.3% to Eur3.04. The guaranteed price rose by 16.5% to Eur39.45 and the milk price for the cooperative’s member dairy farmers improve by 17.2% to Eur42.49
