FrieslandCampina FY09 Revenues Decline 14%

FrieslandCampina has reported revenues of EUR8.2bn for fiscal 2009, a decrease of 14% compared to 9.5bn in the prior year. The decrease in revenue was primarily due to low prices of products such as milk powder, caseins and basic cheese.

For the year, operating profit increased 4% to EUR258m from EUR248m in the last year. Profit for the year 2009 was up 35% to EUR182m.

The Consumer Products International business group operating profit significantly was up EUR159m to EUR290m compared with 2008, the main reasons being volume growth, the lower costs of milk and raw materials, and cost control. The Consumer Products Europe business group operating profit amounted to EUR170m.

The Cheese & Butter business group posted increase in its operating profit before non-recurring expenses by EUR6m, primarily as a result of cost control and a sound performance achieved with brand cheeses.

The Ingredients business group's 2008 operating profit of EUR71m turned into a EUR20m operating loss – a EUR91m deterioration, caused, in particular, by the reduced selling prices of milk powder - of which much more had to be produced - and caseins.

Cees 't Hart, chief executive officer of FrieslandCampina, said: Despite the challenging market conditions, we were able to improve the company's financial result compared with 2008. We also succeeded in improving our market share in a number of markets and expanding our customer base. This constitutes the basis for our company's further growth.”

For 2010 the company anticipates demand for its dairy products to edge up slightly around the world, as a result of the slight economic recovery. The company said that minor fluctuations in the supply and demand of milk powder, basic cheese and butter on the global market, in particular, will have substantial consequences for the proceeds of all product categories.