Higher turnover and more profit for A-ware

A-ware saw its turnover grow by 5% last year to €1,5 billion. At the bottom of the line, the dairy producer also retains more profit, despite the substantial investments that have been made. 

The company's annual results, which the company published today (Aug. 5), show that profit increased by €3,5 million to €21,5 million. A-ware itself speaks of stable turnover figures and a modest improvement in results. CEO Jan Anker calls it an excellent result.

Underlying gross profit (Ebitda) is €72 million, compared to €64 million in 2018. What is also striking is that more and more people are joining the 'payroll' at A-ware. The number of employees increased by 7% to more than 2.800 last year. In terms of average milk price, A-ware scored in the middle bracket last year, depending on the milk flow, according to the milk price comparator from Boerenbusiness† Dairy farmers shared in the better results in December and received an 'end-of-year bonus' of €1 per kilo, on top of the milk price.

New factory in Heerenveen
A-ware invested more than €100 million in the construction of a new mozzarella and cream factory in Heerenveen that was put into operation at the end of 2019, all in all a substantial amount. During the operation, the company will produce cheese for 'competitor' FrieslandCampina, of which A-ware has welcomed many dairy farmers as suppliers in recent years. Initially, the New Zealand dairy cooperative Fonterra was supposed to start using the factory, but they decided against it.

A-ware is also working on the construction of a new cheese factory in Ireland, which will be realized jointly with the Irish dairy cooperative Glanbia. Despite the uncertain prospects due to the corona crisis, the construction plans will not be postponed. For that reason, A-ware, like many other companies, does not venture to predict results.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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