Finnish dairy firm Valio has said that HoReCa sales increased 'considerably' in its most recent financial year, boosted by its recent acquisition of Heinon Tukku, while retail sales were also up.
The group reported a 6.1% increase in net sales in 2021, to €1.92 billion, with domestic net sales increasing 10.9%, and international net sales dropping 0.7%.
The group said that despite the 'challenging situation' owing to prolonged COVID-19 effects, the group was able to keep the the raw milk price paid to cooperatives higher than the average European price. It recently announced the cessation of its operations in Russia.
Domestic Performance
In Finland, Valio reported net sales of €1.18 billion, with the first half of the year seeing a surge in retail sales due to the continuation of the pandemic, and the second half seeing a revival in the HoReCa business.
During the year, as well as its acquisition of Heinon Tukku, Valio also stated its intention to commence production of manure-based biogas with St1 Oy, and spun off the business operations of Valio Oddlygood plant-based products.
“I am especially proud of the fact that we were able for the second consecutive coronavirus year to grow our net sales, strengthen our result, and advance our strategy with determination," commented CEO Annikka Hurme.
"We succeeded in securing our employees’ health and, despite the challenging conditions, our personnel managed to keep all Valio’s factories operating normally throughout the year; delivery reliability to customers continuously exceeded 99%."
International Sales
Net sales at the group's International operations were down slightly, totalling €740 million (compared to €746 million the previous year), with growth 'particularly strong' in Sweden, where sales grew 10%.
Demand for international industrial products, i.e. butter and milk powder, also was strong, the group added.
In China, sales grew by around 16%, similar to that of the previous year, while in the US, sales returned to pre-pandemic levels.
© 2022 European Supermarket Magazine – your source for the latest fresh produce news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
