Milcobel has 'impressively improved'

In 2020, a turnover of €1,235 billion was achieved and a loss of €21 million was recorded. The better results for 2021 are the result of an 'impressive improvement process', Milcobel reports. It is based on the Feniks strategy, a tightly implemented business transformation, and the Compass savings plan. 

57% on top of the last milk price 2020
The adjustments made resulted in an increase in the standard milk price of €2021 per 15,5 liters in 100, or +57% compared to December 2020 (€27,00 per 100 liters). That is more than the average milk price increase on the Belgian market, which according to the Belgian dairy association was +37%, but Milcobel also had some catching up to do. In addition to the higher milk price, there was a supplementary payment of €0,90 per 100 liters of milk delivered and it is proposed to pay out a 4% dividend. The latter must still be approved by the general membership meeting later this year

Stronger equity
The net profit is used to strengthen equity. Solvency increased from 25,5% in 2020 to 28% in 2021. Net debt decreased by €40 million. This happened on top of a decrease of €26 million already achieved in 2020. This results in a record low leverage ratio of 2,8, Milcobel said. However, in the spring of 2021, the company concluded new financing of €166 million with a term of five years, with a consortium of four banks.

Lower supply reduces turnover
Compared to 2020, Milcobel's turnover decreased by 7,7%. This is due to the termination of the loss-making milk production activities in Schoten and the closure of the factory. Lower ice cream sales due to bad weather and lower milk supplies also played a role. All business units achieved greatly improved profitability. Half of the €40 million turnover of cheese grater Kaasbrik, which was acquired at the end of June 2021, is included in the result.

The strategic shift to products with more added value and higher valorization resulted in 10% more added value of products.