Dairy firm FrieslandCampina has reported a 22.4% increase in revenue in its 2022 financial year, to €14.1 billion, with its performance primarily driven by price increases.
Operating profit was up by a third (+32.7%), to €471 million.
In a statement, FrieslandCampina said that all its business groups 'largely offset' higher costs of raw materials, packaging and energy through price increases, meaning that all segments showed 'significant revenue growth'.
At the same time, high inflation meant that consumer dairy volumes and margins came under pressure, as it was not possible to fully pass on price increases to customers, it added.
'An Extraordinary Year'
Commenting on the group's performance, Hein Schumacher, chief executive, said “2022 was in many ways again an extraordinary year. Consider, for example, the elimination of the corona measures, the nitrogen debate, the war in Ukraine, the energy crisis and above all the high inflation that has hit everyone hard in the chain, producers, retailers, and consumers.
"Primarily due to high inflation, the results of our consumer activities in the Food & Beverage business group were under pressure as we were unable to fully pass on the huge cost increases to our customers.
"However, this was more than offset by the excellent results achieved by the Specialised Nutrition, Ingredients and Trading business groups and by the strong results of the new Professional foodservice business."
Performance By Division
The Dutch group said that its Food & Beverage Professional business reported improved operating profit, due to the reopening of foodservice operations after the pandemic, while its Ingredients business was lifted by the recovery of the infant and adult nutrition markets.
Elsewhere, profits in its Specialised Nutrition division were boosted by improved sales in China, and its Trading division benefited 'historically high commodity dairy quotations'.
This set of full-year results will be the last overseen by Schumacher, who is due to take up the role of chief executive at consumer goods giant Unilever in July.
"I would like to sincerely thank all member dairy farmers, employees and partners for the enormous effort in 2022 that they have put into achieving the results and making FrieslandCampina more sustainable and future-proof," he added.
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© 2023 European Supermarket Magazine – your source for the latest fresh produce news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
