(Reuters) – FrieslandCampina, one of the world’s largest dairy firms, said first-half net profit doubled, driven by ingredient sales to the food industry and consumer products in emerging markets.
The Dutch firm, formed by a 2008 merger, said net profit was 156 million euros ($197 million), on revenue up 6 percent to 4.3 billion.
Volume of milk supplied by the cooperative’s members rose to 4.51 billion kilograms from 4.44 billion.
The company’s ingredients business is now profitable on the strength of higher selling prices, it said, while its cheese and butter unit posted a narrower loss as cheese exports rose.
The biggest revenue growth was in its Asia, Africa and Middle East business, though, on a mix of volume growth, price rises and currency benefits.
But the firm, whose rivals include Danone (DANO.PA) and Nestle (NESN.VX), said it could not give an outlook for the full year, adding its home region was still struggling in particular.
“The economic recovery in Europe lags behind developments in other areas in the world. In addition, there is fierce competition and consumers continue to be cautious with their spendings,” chief executive Cees ‘t Hart said. (Reporting by Ben Berkowitz; Editing by Dan Lalor) ($1 = 0.7911 euro)
