News Annual figures
FrieslandCampina records significantly higher turnover and profit
FrieslandCampina has increased both turnover and profit for 2022 compared to the previous year. The supplementary payment is also higher than in 2021. In addition, 21 cents per 100 kilos were added to the pro forma supplementary payment from August last year. The prospects for this year are less.
This is evident from the annual figures for 2022, which the company has published. Turnover increased by 22% to €14,1 billion, but this was mainly due to higher dairy prices. Nevertheless, the consumer dairy business failed to fully pass on the high cost increases to customers, the dairy group reports.
The best results were made with basic dairy. Gross profit increased by almost 33% to €471 million. Net profit increased by almost 70% to €292 million. The high prices, high financing costs and high inventories did have an impact on FrieslandCampina's cash flow. Cash flow from operating activities was approximately €200 million tighter than the previous year, falling to €293 million. Less volume was also converted due to the high prices and inflation.
FrieslandCampina achieved a performance price of €58,69 per 100 kilos of milk for member dairy farmers, an increase of 47,25% compared to last year (2021: €39,88). The supplementary payment increased from €0,14 to €0,90 per 100 kilos. The number of members fell by 619 to 9.927, the volume of member milk fell by 234 million kilos to 9,5 billion kilos.
Significant effect
FrieslandCampina expects more difficult circumstances for the current year. In the fourth quarter of 2022, market conditions have become more unfavorable and a sharp decline in basic dairy prices has started, it is reported. The negative effect of this on the result in the fourth quarter is expected to continue in 2023. The impact of this is significant in the first half of the year. In addition to the negative effect of these basic dairy prices on profitability, market conditions are expected to become more difficult, as reduced purchasing power of consumers in many markets will put further pressure on volumes.
Klaas van der Horst
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
