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Yogurt maker Fage to start working in the Netherlands later
Greek yogurt maker Fage still plans to proceed with the construction of a new factory in Hoogeveen, but it will be delayed by several years. The company announced this during its presentation of its 2024 results to the Greek press.
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This presentation took place a few weeks ago. The figures are now also on the international website, but the news doesn't seem to have caught on outside Greece. The Filippou family's yogurt company continues to perform excellently, particularly outside Greece itself. Only 10% of the total €645 million in sales in 2024 will be generated in the home country.
Fage generates its highest revenue in the United States. Last year, sales reached €406 million, a 22% increase compared to 2023. Fage is the fourth-largest yogurt brand in the country and the number one natural yogurt brand. Most of its yogurt production there is at a new facility in Johnston, Illinois. This facility has a capacity of 1 tons of yogurt per year. Italy is its second-largest market, and the United Kingdom is its third. Sales there are growing fastest, up almost 160.000% last year.
Besides revenue, the company's net profit is also doing well. Last year, it amounted to €96 million, despite setbacks caused by lawsuits in its own Greek market. Meanwhile, it repaid a bond and freed itself from what it considered an overly restrictive credit agreement with the American Citibank. Financially, there therefore appear to be few concerns.
New factories
For the British market, as well as other markets in Northwest Europe, Fage plans to build a new factory with an initial capacity of 40.000 tons in Hoogeveen, on the Riegmeer industrial estate. This has been known for some time. The factory was originally scheduled to be operational last year, but due to nitrogen issues and a larger sewer connection, construction is now scheduled to begin in 2028. The new factory will be emission-free, powered by electricity. A connection to the sewage treatment plant near Echten is being established. Until then, more yogurt will be produced in Greece.
Fage hasn't invested much in the new construction yet: only a little under €8 million, according to reports. However, once the conditions are met, it still intends to invest significantly, it has stated. According to Fage, the money for this must simply come from the existing cash flow.