German dairy giant Deutsche Milchkontor (DMK) has posted sales amounting to €5.8 billion in its financial year 2019, up from €5.6 billion in 2018.
The company’s equity capital ratio remained stable at 30%, while net income for the year amounted to €24.5 million.
In 2019, the dairy company underwent a massive restructuring programme, which impacted its earnings and payment performance.
CEO of the DMK Group, Ingo Müller, commented, “2019 has demanded an enormous amount from all of us, the farmers, the employees in the DMK Group and the entire industry. Our milk price was not where we wanted it to be in 2019.
“In the past year, however, we were able to overcome many of the issues that had been a hindrance for us - the restructuring of DMK is now complete.”
The Restructuring Programme
In this period, the company invested, among others, in the new plant in Strückhausen for baby milk powder and a new powder tower in Beesten.
The company commenced the construction of a new plant for specialty cheeses in Russia and acquired full ownership of the former joint venture DVN in the Netherlands.
It also continued to consolidate its ice cream division with a focus on production at the Everswinkel and Prenzlau facilities.
In addition, the company strengthened its baby food business with the acquisition of Alete.
The company plans to continue with the planned changes in managing costs and said it is coping well with the challenges posed by the pandemic.
Müller explained, "The exceptional situation resulting from coronavirus requires a particularly high degree of solidarity. As a cooperative, this sense of “we” is in our blood. I am proud of our employees and farmers who, despite the difficult circumstances, do their best every day to ensure normal operations.
“There are signs that markets are stabilising. We will benefit from this as we look ahead. As DMK, we have so far come through this crisis relatively well.”
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.