This is compared to profits of EUR 104 million for the first half of 2014.
The Company has said that margins rose due to the sale of more products with a higher added-value, positive currency translation effects, lower purchasing costs and the lower guaranteed price for raw milk. Turnover remained stable for Royal FrieslandCampina at 5,645 million euro (turnover was EUR 5,635 million for the same period last year).
Royal FrieslandCampina not making a statement on their expected results for 2015
Commenting on the results, Roelof Joosten, CEO of Royal FrieslandCampina, said, “In the current uncertain markets we were able to achieve a good result. This proves the success of the route 2020 strategy, aimed at achieving sustainable growth and value creation, which we have followed since 2010. Thanks to our strong market positions and cost reductions we have managed to compensate the drop in the guaranteed price for the member dairy farmers to an extent in the milk price. As a result we will be able to pay the member dairy farmers an interim pay-out of just over 2.00 euro.”
The Company expects the worldwide offering of milk to increase slightly in the second half of 2015. Demand for dairy products in local markets and on the world market is likely to increase very little due to the lagging demand for dairy raw materials in China and Russia’s on-going boycott of dairy products from the European Union. This is likely to continue putting considerable pressure on the sales prices of dairy products in the second half of the year. As such, Royal FrieslandCampina has said it is not making any concrete statement regarding the expected result for the whole of 2015.
Source: New Food Magazine