Increased revenue and profit for FrieslandCampina

Compared with the first half-​year of 2009, revenue rose 5.5% to €4.3bn. Profit doubled to €156m. In particular, the sale of basic and special ingredients to the food industry and consumer products in Asia and Africa contributed to the positive results.

Brands such as Frisian Flag (Indonesia), Peak (Nigeria), Foremost (Thailand) and Friso (baby and infant foods) did extremely well.

Within cheese, Noord-​Holland and Milner cheese performed well. The guaranteed price for milk supplied by the member farmers of FrieslandCampina rose by 16% to €30.25 per 100kg of milk. The performance payment based on the first half-​year will be €1.33 per 100kg of milk. Thus, the pro forma milk price (guaranteed price plus performance payment) amounts to €31.58 per 100kg of milk.

Highlights

• Revenue rose by 5.5% to €4.3bn (first half-​year 2009: €4.1bn) due to higher sales of consumer products in Asia and Africa, sales of special ingredients, and as a consequence of higher selling prices for products such as foil cheese, milk powder and caseinates (milk proteins).
• Currency movements had on balance a positive effect on revenue in the amount of €51m.
• Operating profit doubled up to €238m (first half-​year 2009: €110m).
• Profit doubled to €156m (first half-​year 2009: €78m) due to improved margins and volume growth.
• The cash flow from operational activities dropped to €49m (first half-​year 2009: €269m) as a consequence of the increase in working capital resulting from higher prices.
• The solvency ratio (group equity as a percentage of total assets) increased to 37.2% (end 2009: 36.7%), attributable to the stronger equity position.
• The pro forma performance payment quadrupled to close to €1.33 per 100kg of milk excluding VAT (first half-​year 2009: €0.34 per 100kg of milk).
• The pro forma milk price (guaranteed price plus performance payment) rose by 19.7% to €31.58 per 100kg of milk (first half-​year 2009: €26.38 per 100kg of milk).

Source: Royal FrieslandCampina

See also

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