Interim Results 2021: Ausnutria realizes modest growth in turnover and net profit

Ausnutria Dairy Corporation Ltd. (Ausnutria) shows a growth in turnover in the first half of 2021 of 10.7 percent to € 557.9 million compared to the same period last year. Net profit rose by 3.4 percent to € 77.6 million. Operating result (EBITDA) amounted to € 107.2 million, an increase of 2.2 percent.

The year 2021 is a year of challenges and uncertainties for Ausnutria. “The global impact of COVID-19 and the intensification of competition in particular in China (Ausnutria's primary market), caused by a substantially lower birth rate and changes in consumer buying behavior, are creating challenging market conditions,” said Bart van der Meer, CEO Ausnutria Dairy Corporation Ltd. However, Ausnutria was able to manage the negative impact of these challenges. Sales of its own brands of infant nutrition grew by 10 percent, with goat milk-based infant nutrition, which Ausnutria sells under the Kabrita brand, showing a clear growth recovery in Q2 2021.

The ongoing constraints caused by COVID-19 took on a more intrusive character in the first half of 2021 and more structural effects became visible as a result. The global trend of declining birth rates has accelerated due to COVID-19 and has manifest in countries where Ausnutria operates. The slowing down of aging in China is a spearhead of the policy of the Chinese government. In July 2021, the Chinese government published its future policy in this perspective. This includes incentive measures, such as the three-child policy and reduction of the burden on Chinese households. The measures are primarily aimed at reducing the cost of raising children with the aim of achieving a more balanced birth rate by 2025 and a better future demographic balance. Ausnutria sees this as a positive future development. Bart van der Meer, CEO Ausnutria Dairy Corporation Ltd.: ”Ausnutria has confidence in future market developments and its position. The investment plans in the Netherlands are unchanged.”