FrieslandCampina managed to grow its profits in 2016, a year the Dutch dairy giant described as “turbulent” and one in which the company saw its sales fall.

The co-op today (2 March) booked a 5.5% rise in net profit to EUR362m (US$380.4m) for last year.

FrieslandCampina felt the impact of exchange rate movements on its results. Its underlying net profit was up 8.7% at EUR373m. The Dutch Lady owner’s operating profit fell 2.3% to EUR563m but its underlying operating profit increased 3% to EUR593m.

Looking at FrieslandCampina’s divisions, the co-op said Consumer Products Asia, Consumer Products China and its combined Cheese, Butter and Milkpowder arms all saw their operating profit rise.

However, the owner of Milner cheese and Yazoo milkshake said the operating profit from its Consumer Products Europe, Middle East and Africa division, as well as its ingredients unit declined.

The company’s revenue fell 1.9% to EUR11bn, with FrieslandCampina pointing to the impact of currency fluctuations, particularly on its business in Africa. Stripping out the impact of exchange rates, revenue was flat at EUR11.21bn.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

However, FrieslandCampina also reported a 2.7% fall in sales prices across its business.

The sales volumes of “added-value” products, including infant nutrition and dairy-based beverages, rose 2.8%. The volume of “basic” products
grew by 2.7%.

CEO Roelef Joosten said: “We are looking back on a turbulent year. Political and economic instability has increased in Africa and in the Middle East. Protectionism is increasing throughout the world. In the first half of 2016, the supply of milk in the European Union was of such magnitude that basic products could only be sold below cost. Starting in May, the dairy sector recovered somewhat due to declining milk production in a number of European countries and the relatively low stocks held by buyers. FrieslandCampina anticipated this development by introducing timely price increases in the cheese and butter segment. For the coming year, the company’s decisiveness will become even more key to be able to respond to the rapid changes in the market on a timely basis.”