Profit from dairy trader Numidia gets a big boost

Numidia saw revenue increase by 5% last year to a record €939 million. Almost three quarters of this is achieved in the sale of milk powder, the rest comes from butter, cheese and a small amount from the liquid dairy trade. After a decline in 2021, profit shows a significant increase and rises by 487% to €20,8 million. This is also a record. This also leads to improved cash flow and solvency, which amounts to just under 25%, but is still on the low side.

Be selective
Numidia owes the improved result to strong margins, both in physical dairy trading and in derivatives trading. According to the company, trading in derivatives has now become at least as important as trading in physical flows. In recent years, a strong foundation has been laid for further growth. In addition to higher turnover, the high prices also brought challenges, because the company had to be more selective when it came to taking up physical trading positions, CEO Han van Hagen explains in the annual report. After all, the high prices are a drain on cash flow. As a result, turnover growth may lag somewhat behind the competition. 

Competition
This is what the dairy trader saw Inter food turnover increases by 60% to €3,6 billion. Market leader Hoogwegt achieved a turnover growth of 37% to €3,8 billion, but saw Interfood come dangerously close in terms of turnover. Van Hagen gave in in February an interview wants to grow into the second largest dairy trader in the Netherlands, but based on the turnover development in 2022, that seems to be quite ambitious. 

With a net profit margin of 2,21%, Numidia is already in the lead. At Hoogwegt, this measurement figure was just above 2022% percent in 1, while Interfood remained just below that.