Rise of revenue, decline of profit for FrieslandCampina

Dutch dairy company FrieslandCampina on Wednesday reported an increase of revenue in 2013, but a decrease in profits. Revenue rose by 10.8 percent to 11.49 billion euros (15.83 billion U.S. dollars) in 2013. This revenue growth was achieved through volume growth and higher milk prices. Cees 't Hart, CEO of FrieslandCampina, said: "The improved result was due primarily to volume growth in infant nutrition, dairy-based beverages and branded cheese." FrieslandCampina implemented a goodwill impairment of 200 million euros because expectations regarding results in Europe have been adjusted downwards due to the persisting crisis. Operating profit before goodwill impairment increased by 5.3 percent from 487 million euros in 2012 to 513 million euros in 2013. However, including the goodwill impairment operating profit declined by 35.7 percent to 313 million euros. "Our profit was adversely affected by a goodwill impairment and negative currency translation effects in the second half of the year," 't Hart added. In 2014, FrieslandCampina anticipates achieving further growth with infant nutrition and dairy-based beverages in Asia and Africa, while Europe is expected to continue to deal with consumers who limit their expenditure because their incomes are under pressure from higher costs and increasing unemployment.