NETHERLANDS – Dutch multinational dairy cooperative Friesland Campina has reported strong fiscal year 2021 results with net sales for the group’s food and beverage division rising 4.3% to €7.9 billion (US$8.76bn).
Overall group revenue increased by 3.2% to €11.5 billion (US$13 billion) while operating profit increased by 32.5% to €355 million (US$402 million).
Profits increased by 117.7% to €172 million (US$195 million) due to lower restructuring costs and improved results of both the professional business and the trading business group.
According to Friesland, the group’s performance was driven by price increases and the growth of out-of-home activities, primarily in Europe.
Plant-based product line Valess performed well over 2021 with a more than 30% increase in revenue, a significantly improved profit margin.
This resulted from innovations such as Valess Nuggets, Beef Style Burger and Family Packs and significant growth in the distribution in the Netherlands and Germany.
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.
The total compensation paid to member dairy farmers for their supplied milk also increased by 6.2% to €3.8 million (US$4 million in 2021 primarily due to higher milk prices.
The improved business result enables a subsequent cash payment of €0.14 per 100 kg of milk to member dairy farmers.
New dairy development center opened in Pakistan
The center will focus on sharing Dutch dairy expertise with Pakistani experts and decision makers in dairy research and the dairy industry.
Ali Ahmed Khan, managing director at FrieslandCampina Engro Pakistan, said, “With FrieslandCampina’s expertise in dairy and our ‘grass to glass’ approach, we are committed to promoting the growth and development of the local dairy sector in Pakistan.
Besides the dairy development activities that FCE has already been executing for many years, the center will accelerate in filling in the needs for knowledge to further professionalize the Pakistani dairy sector.”
The center will support dairy policy development by bringing together dairy companies, the government and academia.
It will also host an annual program of conferences, training, research projects, PhD development, experience visits in an effort to improve Pakistan’s dairy sector.
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