News Half-year figures
Parent company Leerdammer spins yarn at corona
The result of the Bel Group, the parent company of Leerdammer, is unaffected by the corona crisis. The French cheese producer saw its net profit increase by no less than 30% in the first half of this year to €175 million. In that sense, it is striking that the Dutch branch of the group has reduced the milk price relatively considerably.
The higher profit is the result of more turnover, although this parameter grew relatively less rapidly. The French cheese group turned over 6 billion in the first 1,73 months of this year, almost 5% more than the same period last year. Revenue growth, partly due to favorable exchange rates, was mainly achieved in the first quarter, when the corona virus was even less of an issue in Europe. Due to the lockdown in many countries, turnover fell somewhat in the second quarter. However, the green numbers were not compromised. Bel does, however, keep a lid on the arm for the second half of this year, due to the economic uncertainty in the world.
Margin improvement in corona time
The profit increase in recent months has been exceptional and, in its own words, is due to margin improvement. Gross profit increased by almost 40% to €175 million. Below the line, €105 million remained, compared to €80 million in the same period last year. The profit increase was partly due to good sales in the United States and China. The soft cheese brand 'La vache qui rit' is specifically mentioned as a success.
The profit increase of the Bel Group is striking when we compare the figures with those of FrieslandCampina where the benefits largely evaporated due to the corona crisis. Although the two dairy groups cannot be compared 1 on 1, the sales markets do partly overlap. Moreover, FrieslandCampina's profit in the first half of this year was only €5 million higher, while turnover has tripled. When we compare the results with those of the French dairy giant Danone, then a contradiction is also visible. Both Danone's turnover and profit fell in the first company of 2020, although this was mainly due to the less performing water branch.
Milk price Bel Leerdammer falls hard
The higher profit of the parent company cannot be read from the milk price of Bel Leerdammer. In fact, in comparison with other Dutch dairy processors, the largest decrease was visible. Since February, when the corona crisis hit the European dairy market, the milk price of Bel Leerdammer has already lost €4,22.
The basic milk price for July remains the same at €31,97 per 100 kilos (calculated with an annual supply of 1 million, at 4,42% fat and 3,57% protein), it was announced this morning. In itself, the milk price is therefore in a sense 'competitive', according to the milk price comparator from Boerenbusiness† However, the decline in recent months can be described as significant and, based on Bel's group result, not necessarily necessary.
Wouter Job
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