NETHERLANDS: FrieslandCampina H1 profits climb
- Net profit up 8.7%
- Operating profit climbs 3.3%
- Net sales increase 7.8%
“FrieslandCampina can look back on a good first half of 2012,” said CEO Cees 't Hart
Dutch dairy giant FrieslandCampina has booked an increase in first-half profits as sales increased despite tough conditions in Europe.
Earnings in the six months to the end of June amounted to EUR138m (US$218.8m), an 8.7% increase on the prior-year period, the company reported today (30 August). The growth was achieved due to increased operating profit and reduced financing expenses, despite higher tax expenses compared to the first half of 2011.
Operating profit in the period climbed 3.3% to EUR217m, while net sales grew 7.8% to EUR5.01bn.
The acquisition of Alaska Milk Corp contributed EUR63m to revenue growth. Organic sales growth amounted to 6.3%.
"FrieslandCampina can look back on a good first half of 2012," said CEO Cees 't Hart. "Both revenue and result rose despite the difficult market conditions in Europe and the steep drop in the market prices for butter and milk powder."
FrieslandCampina achieves good result in first half of 2012
Volume growth and international focus contributes towards higher revenue and profit
Amersfoort, the Netherlands -
Revenue up by 7.6% to 5,089 million euro
Operating profit up by 3.3% to 217 million euro
Profit up by 8.7%% to 138 million euro
Pro forma performance premium (1.42 euro) and pro forma distribution of member bonds (0.95 euro) in total up to 2.37 euro per 100 kilos of milk
In the first half of 2012 the net revenue of Royal FrieslandCampina N.V. rose by 7.6% to 5,089 million euro. Profit rose by 8.7% to 138 million euro. Volume growth and higher sales prices, to offset the increased costs, contributed towards the revenue growth and improved result. In the first half of 2012 the overall volume rose by 2.4 % but the strategic value drivers achieved a volume growth of 4.5 %. Most of the volume growth was achieved in the consumer and business to business markets for infant & toddler nutrition. The dairy-based beverage category also achieved growth, most of it in Asia.
The results from operating activities were 9.4% higher than for the first half of 2011. After the reservation of 15 million euro (2011: 2 million euro) for the payment of the meadow milk premium (amounts to 0.32 euro per 100 kilos of milk calculated over all member milk) operating profit rose by 3.3% to 217 million euro.
The Consumer Products International and Ingredients business groups once again increased both their revenue and their result. Consumer Products Europe improved its result despite the difficult market conditions in Europe. Its revenue dropped due to pressure on volume. The Cheese, Butter & Milkpowder business group's revenue and result both fell primarily due to low sales prices for butter and milk powder.
Cees 't Hart CEO Royal FrieslandCampina:
"FrieslandCampina can look back on a good first half of 2012. Both revenue and result rose despite the difficult market conditions in Europe and the steep drop in the market prices for butter and milk powder. In part due to this the guaranteed price of milk from the member dairy farmers was less than in the first half of 2011. Asia, where FrieslandCampina achieved a quarter of its total revenue, made a major contribution towards the revenue growth and improved result. The volume of infant & toddler nutrition has increased in both the Ingredients and Consumer Products International business groups."
Original source: FrieslandCampina
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