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FrieslandCampina tempers profit forecast
Due to the sharp rise in dairy prices, sales volumes on the consumer market are under pressure, FrieslandCampina reports. The current economic developments have a negative impact on the result of the dairy group.
The Members' Council of FrieslandCampina was updated today (13 December) on the latest developments in the company. FrieslandCampina reports that the costs of raw materials, transport and energy have increased sharply. On the other hand, dairy prices have also risen sharply, but the downside is that sales volumes are now under pressure. This is a setback, just now the milk supply shows a significant growth spurt in our country.
The economic developments have a negative impact on the group result of the dairy group this year. The exchange rates are also sometimes unfavourable, FrieslandCampina says.
Affordable nutrition
Despite the economic headwind, CEO Hein Schumacher remains positive about the underlying result development of the company and the realization of the strategy. However, in anticipation of the annual figures that will be published next February, he is staying away from concrete amounts. Providing affordable nutrition is one of the spearheads of the strategy, as is growing in consumer nutrition, ingredients and specialty foods.
The disguised profit warning shows that the wind has started to blow from a different direction in the second half of 2022. The operating result in the first half of this year went from €130 to €328 million, of which €139 million remained below the line. This is an increase of no less than 124% and also the highest level since 2017.
Wouter Job
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