FrieslandCampina Sees 11% Revenue Increase In First Half
Dutch dairy company FrieslandCampina has announced that revenue increased by 10.7% to €6.1 billion during the first half of 2017.
The company attributes this growth to the increase in sales prices, and its acquisition of Engro Foods in Pakistan at the end of 2016.
Operating profit rose by 7.8% to €275 million, primarily due to the strong recovery of cheese and butter sales prices, while overall profit rose 1.3% to €162 million.
The pro forma milk price paid to member dairy farmers increased by 26.9% to €38.37 per 100 kilos of milk during the first half of the year.
Overall, the total compensation paid by FrieslandCampina to member dairy farmers for their milk increased by 24.1% to €2.1 billion, although milk production was down by 1%.
"The milk price for member dairy farmers recovered this year after a number of disappointing years," said Roelof Joosten, CEO of Royal FrieslandCampina.
"The higher sales prices for primarily butter and cheese lie at the root of this recovery."
He added that strong growth was seen in Indonesia and Vietnam, however, performance was weaker in Germany, the Philippines and Nigeria, as a result of local market conditions and currency effects.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.