FrieslandCampina sees growth in operating profit in first half | Progresiv
Dairy firm FrieslandCampina reported an 18.6% growth in operating profit to 210 million euros in the first half of its financial year from 177 million euros in 2018. 
The Dutch dairy giant's revenue remained unchanged for the period at 5.7 billion euros.
The company attributed the good performance to increased sales of value-added products, particularly cheese.
The reduced milk supply in the Netherlands contributed to improved profit following a decline in the production of its loss-making, basic dairy products like butter and milk powder.
The company's profits rose to 121 million euros, up 11.0%, from 109 million euros in the first half of 2018.
Hein Schumacher, CEO Royal FrieslandCampina N.V., said, "These results show a positive impact from the changes initiated last year and are a reason for cautious optimism.
"After a strong finish in 2018, our consumer business experienced continued growth in a challenging market, and our market shares and margins improved," he added.
The firm reported strong growth in Africa and positive momentum in Asia. In China volumes stabilised due to challenging market conditions and the constrained supply of several key ingredients.
The company will aim for continued growth in value-added products and strengthen its market shares in the branded-dairy category.
However, the company feels that costs and restraints in production that are making it hard to fully meet market demands will have an impact on its full-year results. (www.esmmagazine.com)
