Revenue of FrieslandCampina increased by 3.2 percent in 2021 to 11.5 billion euros. Adjusted for currency translation effects, revenue rose by 4.3 percent primarily due to price increases, higher commodity dairy prices, and the cautious recovery of out-of-home markets in Europe.
Operating profit increased by 32.5 percent to 355 million euros. Operating profit before currency translation effects adjusted for other income and expenses declined by 1.6 percent to 380 million euros.
In the second half of 2021, revenue grew by 8.4 percent compared to the same period in 2020, and operating profit excluding currency translation effects adjusted for other income and expenses increased by 13.3 percent from 150 million euros to 170 million euros.
Profit increased by 117.7 percent to 172 million euros due to lower restructuring costs and improved results of both the Professional business and the Trading business group.
Operating cash flow remained at a satisfactory level of 594 million euros, the decrease compared to 2020 was primarily due to a one-off 88 million euros defined payment to a pension plan dating back to 2005.
Sharply increased raw material costs necessitate price increases. As a result, business group Trading benefited from increased commodity dairy prices.
Business groups Specialised Nutrition and Ingredients affected by declining birth rates in the Asian market.
The milk price for member dairy farmers increased by 9.8 percent to 39.23 euros per 100 kilos of milk. The performance price increased by 11.6 percent to 39.88 euros per 100 kilos of milk.
The accelerated implementation of Our Purpose, Our Plan strategy is on track. The reduction target of 1,000 jobs was amply achieved with a reduction of 1,745 employees (FTEs) at year-end 2021.
The sustainability programme Nourishing a better planet in 2021 resulted in improvements on all six priorities. Greenhouse gas emissions decreased by 4.0 percent, the percentage of recyclable packaging rose to 90 percent, and FrieslandCampina used 100 percent green electricity worldwide of which 50 percent was produced by its own member dairy farmers.
