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Ausnutria realizes €1 billion in turnover and 15% profit growth in a challenging year

Ausnutria Dairy Corporation Ltd. (Ausnutria) has published its annual results for 2020. Ausnutria shows a growth in turnover of 18.6 percent to € 1 billion compared to the same period last year. Profit increases by 15.0 percent to € 135.8 million. The operating result amounts to € 194.9 million, an increase of 14.7 percent.

Impact COVID-19

Ausnutria is seeing growth flattening compared to 2019. The COVID-19 virus has disrupted markets and competitive positions worldwide and is leading to economic uncertainty. Bart van der Meer, CEO Ausnutria Dairy Corporation Ltd: “This has a temporary effect on the development of our company. The market position of our Kabrita brand came under pressure due to the lock-down in China in early 2020 and will need time to recover. We also saw the negative effects of COVID-19 outside of China.”

Forward-looking, Ausnutria has increased the supply of fresh goat’s milk since the second quarter of 2020 to increase the availability of certain key ingredients for the production of its Kabrita brand. The market prices and sales of the by-products resulting from this have come under pressure as a result of the COVID-19 pandemic. This, together with costs arising from a better integration of its sales organization in China, negatively impacted the group’s gross profit margin. Excluding the above factors, the group’s gross profit margin remained fairly stable compared to 2019.

Market China

Market shifts are occurring within Ausnutria’s main market China: increasing domestic production at the expense of foreign imports, stricter regulations and government compliance and lower birth rates. Bart van der Meer: “Ausnutria has armed itself against this by means of a better integration of its sales organization and a strong sales platform in China. In 2020 we successfully kept the negative impact of the challenges manageable and were also able to achieve growth in this challenging year. Through increased efforts we expect to be able to maintain our market positions and to strengthen them in the super premium segment.”

Future

Bart van der meer: ​​“In order to maintain our profitability, our policy will focus on operational efficiency in the future. Innovation and product diversification remain spearheads of our policy.” Ausnutria wants to realize a “Goat Excellence Center” in Heerenveen in the coming years. Ausnutria Netherlands has launched Ausnutria Nutrition Institute in 2020. The aim of the institute is to promote scientific research into infant nutrition and the nutritional composition of goat’s milk, together with health and nutrition experts, and to inform professionals.

Various investment projects were started and completed in 2020 to make the Ausnutria factories in Kampen, Ommen and Leeuwarden future-proof. It is expected that both the new tin manufacturing plant that Ausnutria is building in collaboration with Trivium, and the new ultrafiltration plant that Ausnutria is building for the production of goat WPC, will be operational by mid-2021. Both factories will be built in Heerenveen, next to the current Ausnutria factories in Heerenveen.

In the course of 2021, construction will also start there on a 40-meter-high drying tower. This drying tower will be equipped with the latest technologies, has a high degree of automation and meets environmental and climate requirements. Gasless and zero CO2 emissions. The provincial permit is expected in June. Bart van der Meer emphasizes the good cooperation with FUMO.

Growth organization

Ausnutria currently has more than 900 employees in the Netherlands and expects to grow by approximately 20 percent in the coming years in connection with further growth and implementation of investment plans. Bart van der Meer: “We are proud of what our organization has achieved in this difficult year. We have been able to continue our production under difficult circumstances and to provide our customers and consumers worldwide with our products. It is good to see how together we make a strong commitment to each other and our organization, and how we demonstrate flexibility and resilience.”

Want to know more about our company? Please visit our corporate website: https://www.ausnutria-netherlands.com/contact