News Milk
FrieslandCampina pays out small supplementary payment again
FrieslandCampina achieved a slightly better result in 2021 than in 2020 and saw turnover increase by 3,2% to €11,5 billion. Net profit rose by 117,7% to €172 million, while a supplementary payment is also possible.
At 14 cents per 100 kilos, this is still a modest amount, but nothing was paid back for 2020. The total milk price for member dairy farmers rose by 9,8% to €39,23 ex VAT (2020: €35,72).
Milk supply 3,2% lower
The total compensation to member dairy farmers for the milk supplied increased by 2021% in 6,2 to €3.835 million (2020: €3.610 million). The increase is the result of the higher milk price. Member milk supply decreased by 2021% to 3,2 million kilos in 9.745, mainly due to relatively cold weather in the first months of 2021 and the impact of high feed costs.
FrieslandCampina's turnover increased mainly due to price increases, higher basic dairy prices and a cautious recovery of out-of-home markets in Europe. In the second half of 2021 in particular, turnover and profit grew strongly.
Calculated in terms of Business Groups, Professional business and the Trading business group performed particularly well. The Specialized Nutrition and Ingredients business groups (including infant nutrition) were hit by declining birth rates in the Asian market.
Schumacher quite satisfied
CEO Hein Schumacher is reasonably satisfied: "In the year that we celebrated our 150th anniversary, the result and the subsequent payment to the members were not yet at the level of our targets. We have made good progress, however. The cost measures are good completed and completed ahead of schedule. Good sustainability results were achieved across the board. The newly adopted member financing has strengthened the company's assets. At the same time, the infant nutrition business was under strong pressure. There was a strong performance in the second half of 2021 in particular. turnover growth and improvement of the result of FrieslandCampina Professional compared to."
Challenges for 2022
For 2022, inflation and cost increases will be the main challenge to maintain the result, according to Schumacher. "We are cautiously optimistic about the recovery of the professional market as well as continued high basic dairy prices. Combined with a slightly improved infant nutrition market, we expect a sales increase of two to four percent with constant margins compared to 2021 for the full year."
FrieslandCampina will provide an explanation of the annual figures this morning (Tuesday 22 February).
Klaas van der Horst
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