March 27, 2009
FrieslandCampina 2008 profits fall 43.7 percent on-year
FrieslandCampina, the dairy giant formed by the merger of Friesland Foods and Campina, has posted a 43.7-percent drop in 2008 profits as compared with the previous year.
Net profit reached EUR135 million, down from EUR183.3 million in 2007. A large supply of dairy products due to increased world milk production has forced down prices, the company said.
Operating profit dropped to EUR248 million from EUR373 million in 2007. External costs related to the merger reached EUR28 million, the company said.
Revenue rose 5 percent to EUR9.5 billion, thanks to price increases earlier in 2008 and the contributions of acquisitions.
FrieslandCampina's revenue growth for international consumer products business reached 9 percent, ingredients at 7 percent, cheese and butter at 3 percent, and 1 percent for the company's western European consumer products unit.
Selling prices in 2009 would remain under pressure as a result of the economic downturn therefore the company would reduce capital expenditures this year and focus on cost control and production efficiency, FrieslandCampina said.
