FrieslandCampina has reported moderate declining markets in its full-year results due to lasting effects of the Covid-19 pandemic.
The Dutch dairy giant’s full-year reported revenue increased by 3.2% to €11.5 billion. This was primarily driven by “higher commodity dairy prices, price increases and the cautious recovery of out-of-home business in Europe”.
The company’s food and beverage unit revenue increased by 4.3%, taking its total to €7.9 billion compared to €7.6 billion the previous year. This was partly due to higher basic dairy prices.
FrieslandCampina saw a significant decrease in its specialised nutrition unit by 3.5% to €1.2 billion, which the company says was impacted by declining birth rates in the Asian market due to the pandemic.
The decrease in infant nutrition unit revenue was offset by growth in the company’s premium ingredients unit – and the positive performance of the medical, seniors and sports nutrition segments – which saw a moderate increase of 1.5% to €1.3 billion.
Hein Schumacher, CEO of FrieslandCampina, commented: “The year in which we celebrated our 150th anniversary, the result, and therefore the subsequent cash payment to members, still fell short of our objectives. However, we did make excellent progress in strengthening the company’s foundation. The cost-saving measures were effectively implemented and completed ahead of schedule. Excellent results were obtained across the entire line in relation to sustainability. The adopted new member financing has strengthened the company’s equity.”
He continued: “At the same time, infant nutrition activities were under severe pressure and consequently the results of our ingredients and specialised nutrition business as well. A declining market due to a strong decrease in the birth rate and strong local competition were the key reasons for a weak start to the year. This was contrasted by sharp growth in revenue and an improved result for FrieslandCampina Professional, particularly in the second half of 2021. ”
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