News Annual figures 2021
Ausnutria sees results increase slightly more calmly
The producer of infant nutrition Ausnutria has realized a turnover growth of more than 11%. Gross profit rose even faster. In terms of sales, the company continues to grow, especially in China, where it achieves solid profit margins. Risks, meanwhile, must be managed properly.
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The above is evident from the annual report of the company, which is listed on the Hong Kong Stock Exchange. Ausnutria Netherlands, where most of the production equipment is located, speaks of one stable growth. Turnover increased by 11,1% to €1,2 billion. Profit increased by 3,6% to €143,9 million. The operating result amounted to €207,7 million, which is 2,6% more than in 2020.
These figures are slightly more moderate than in 2018 and 2019, but still significant. Ausnutria reports a gross profit margin of 50,4% for the entire company and this is even higher for its own brand infant food. Just 57% of our own brand infant food is based on cow's milk and 43% of infant food is based on goat's milk. With this last product, Ausnutria is the market leader in China. It claims an 'off-line' market share for all own brand products in China of 6,9%.
Concern about birth rate in China
Ausnutria is also active in many other markets, but the turnover share of the Chinese market continues to rise. Two years ago it was 86% and last year almost 88%. However, the company is concerned about the Chinese market. Despite all efforts, the number of births is declining. The past year by 11,6%. The hope is that a series of new stimulating measures will turn the tide and that the infant nutrition market will flourish again, the management writes in the annual report.
In October last year, the Chinese dairy giant Yilic announced that it wanted to acquire a controlling share of almost 31% in Ausnutria. This became official in mid-March and there were also representatives of Yili on the board and management of Ausnutria.
Farmel short positions covered
Despite the good profit figures, not everything went as planned. Ausnutria has a 50% interest in Farmel Group and the short positions there - which were taken on the futures market for dairy raw materials - stood at a total of €12,5 million at the beginning of last year. Farmel reports in a response that most of this is covered by fixed supply contracts and inventories, but that the IFRS accounting rules (which Ausnutria applies) do not take this into account. According to Farmel, it is not a cause for concern.