Ausnutria Dairy Corporation Ltd. (Ausnutria) has published its 2023 annual results. Ausnutria shows a decline in turnover of 11.7% to € 931 million compared to 2022. Profit drops by 24.9% to € 22 million. The operating result amounts to €59.8 million, a decrease of 8.7%.
|
|
2023 |
Daling % |
2022 |
|
Revenue |
931 M |
11,7 |
1.054 M |
|
EBITDA |
59,8 M |
8,7 |
65,5 M |
|
Net profit |
22,0 M |
24,9 |
29,3 M |
Currency developments had a negative impact on turnover and results of more than 6%. Reorganization costs that have been included are €6 million in 2023.
Challenges
Ausnutria is a producer of baby and infant formula and China is its most important market. Demand from China has been declining for several years due to declining economic growth, a declining birth rate and increasing local competition. This has a significant effect on Ausnutria's results. Bart van der Meer, Executive Director: “We see signs of recovery driven by growth outside China, efficiency improvements and cost savings. Our position from raw (goat) milk to end products and a state-of-the-art production environment from 2025 will significantly strengthen our value chain.”
Reorganization
Last year Ausnutria announced that it would reduce its production capacity in Leeuwarden as a result of changing market conditions. At the beginning of this year, it was announced that Ausnutria will close its factory in Ommen at the end of this year and that jobs will also be lost in Kampen. This involves a total of 150 jobs. Linsey Nijhuis-Pierik, HR Director: “The social plan has now been signed by Ausnutria and the trade unions. We are pleased that we have reached an agreement and that this offers our employees clarity and a solid starting position. Ausnutria will continue to support all employees involved in finding a job within Ausnutria or support them to find the next step in their career outside of the organization.”
Recalibration business strategy
In addition to anticipating changing market conditions and therefore our production capacity per location, Ausnutria is also working on recalibrating its business strategy, in which the need for cost savings and increased efficiency are key points of our policy. In addition, increasingly higher quality requirements, sustainability and higher process reliability play a role. Richard Hickson, CEO Ausnutria B.V.: “To remain competitive in this challenging market, we will focus even more on quality, sustainability, efficiency and process improvement in the coming years. But innovation and market development (or new business development) also play an important role. Milk, especially goat's milk, is a wonderful product with many good properties. This offers many opportunities for new products and new markets.”
Global growth
Despite the major challenges in the Chinese market, developments outside China show a positive trend. Bart van der Meer: “After the FDA approval last year, the successful launch of our Kabrita infant formula (0-12 months) on the American market followed in January 2024. This is an important step in the further international growth of Ausnutria. But markets such as the Middle East and Southeast Asia are also interesting and show a lot of potential.”
China
The market in China is in a consolidation phase. The birth rate in China is not expected to decline further but will increase slightly, partly under the influence of demographic policy of the Chines government. Strict rules and laws apply to accessing the Chinese market and these were further tightened last year. Ausnutria has now re-registered all of its brands for this market and therefore has the confidence that it can strengthen its position in this market, especially for products based on goat milk.
New factory in Heerenveen
The construction of Ausnutria's new and sustainable factory in Heerenveen has now been completed and the project is in the test phase. Bart van der Meer: “Against the backdrop of the difficult Chinese market, although encouraged by the growing demand for goat's milk formula in the rest of the world market, the factory will be commercially operational at the end of this year. This factory will be completely free from gas, nitrogen emission and will operate in a very high quality and very efficient manner. After the extensive test phase, Heerenveen, together with the factory in Kampen, will take over the activities of the factory in Ommen.”
