FINLAND – Valio Group, one of the largest dairy manufacturers in Finland, has reported net sales of €1.92 billion (US$2.02 billion), a 6.1% rise over the previous year’s € 1.81 billion (US$1.90 billion).
In a statement, the farmer-owned company attributed its impressive performance to growth in retail sales and strengthened demand for international industrial products.
The dairy product business continued to strengthen: in the domestic dairy market, Valio focused on its much-loved consumer brands, and in international markets on value-added ingredients for industrial customers.
Valio’s domestic net sales were €1.18 billion (US$1.24 billion), 10.9% higher than the previous year’s €1.06 billion (USD$1.11 billion)
The company attributed the strong rise in sales to its HoReCa business segment where sales increased considerably with the acquisition of Heinon Tukku and the easing of covid-19 restrictions.
Stronger demand for international industrial products led to Net sales from international operations totaling € 740 million (US$ 740).
Valio stated it has improved its profitability and recorded a good financial performance in 2021, despite the fact that a second consecutive year of coronavirus impacted Valio’s operations in all markets.
Valio also carried out many strategic undertakings: The letter of intent on the production of manure-based biogas with St1 Oy, and the spin-off of the business operations of Valio Oddly good plant-based products.
The most significant new products launched during the year were Valio Eila® NUTRI F+ powder for the Korean company Maeil Dairies, and Valio Eila® Pro lactose-free skim milk powder as an ingredient for Nestlé’s baby food powder.
In the challenging situation punctuated by a pandemic, the successful business operations enabled Valio to keep the raw milk price paid to the cooperatives higher than the average European price.
The milk returns increased, as in previous years with the basic raw milk price paid to the cooperatives being 8.5 cents higher than in the previous year.
Valio which is owned by 4,000 dairy farms, revealed that it paid all its profit to the farms at an average price paid for raw milk was US$45cents per liter which is an increase in the price paid for raw milk to the cooperatives by US$ 2 cents per liter from November onwards.
The price included an extra US$1.6 cents per liter for ordinary raw milk received in the first half of the year, plus an after payment of US$1.3 cents per liter from January to December 2021.
Valio which has a goal of reducing the carbon footprint of milk to zero by 2035 further paid a sustainability bonus of US$ 2 cents per liter to encourage the continuous improvement of animal welfare.
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