Valio turnover €1,734 million and milk margin €800 millionChristian Fernsby ▼ |
European businesses Valio continued to see moderate growth in their turnover
For Valio, 2018 was variable.
Valio continued to see moderate growth in their turnover, and they launched completely new categories during the year.
Valio continued their sustainability work throughout the supply chain, and they initiated partnerships in various projects, with the goal of resetting milk’s carbon footprint by 2035.
From a business perspective, 2019 has been proceeding in the right direction.
Valio Group’s turnover was €1,734 million (1,709), which means a growth of 1.5 percent compared to the previous year.
Net sales in Finland grew by half a percent, and net sales abroad grew by 3 percent.
Valio Group’s milk margin was €800 million (797) and their milk return was 38.4 percent per litre (37.9).
The situation on the global milk market, however, remained challenging.
Supply exceeded demand, which reflected in the prices for both Finnish and export sales.
It was a challenging year for Valio’s owner-entrepreneurs: milk prices fell and the summer was record-setting hot and dry.
Valio and four other dairies reached a settlement in late 2018 and early 2019 in a compensation process regarding base milk pricing.
One-off compensation pay-outs resulting from this process were a burden on Valio’s operational profits.
In the Finnish market, Valio’s turnover grew by roughly half a percent compared to the previous year, which is a good performance in a tight competitive space.
This growth was supported by the successful development in their product portfolio as well as a strong supply chain. ■
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