FrieslandCampina, the Dutch dairy giant, today (27 August) booked a jump in half-year earnings despite flat sales, helped by lower raw milk costs, foreign exchange and sales of "added-value" products.
The company said its net profit jumped 85% to EUR192m. Revenue stood at EUR5.64bn, level with the sales generated in the first half of 2014.
The co-operative said the milk price for member dairy farmers fell to EUR36.48 per 100 kilos of milk, compared to EUR44.19 a year earlier. FrieslandCampina pointed to an increase in the pay-out to its farmer members from EUR0.83 in the first six months of 2014 to EUR2.02 in the first half of this year.
CEO Roelof Joosten said: "In the current uncertain markets we were able to achieve a good result. Thanks to our strong market positions and cost reductions we have managed to compensate the drop in the guaranteed price for the member dairy farmers to an extent in the milk price. As a result we will be able to pay the member dairy farmers an interim pay-out of just over EUR2."
Sales volumes were up 1.6%. The increase in volumes, plus a positive impact from foreign exchange, offset a 6.4% fall in sales prices.
FrieslandCampina said it had seen growth in China, Hong Kong, Indonesia, Africa and south-east Europe. Volumes in western Europe fell due to "difficult market conditions", it said.
The company also reported growth from its ingredients arm.
