Weaker sales for TINE

By Jim Cornall

- Last updated on GMT

TINE's CEO said the company must increase growth and competitiveness. Pic: TINE/BO Mathisen
TINE's CEO said the company must increase growth and competitiveness. Pic: TINE/BO Mathisen

Related tags Milk

Norway's TINE Group had sales revenues of NOK 5.51bn ($706m) in the second quarter, down 1.1% compared with the second quarter of 2016.

Operating profit was NOK 452m ($58m), NOK 58m ($7.4m) weaker than in the same period last year, according to its second quarter results announcement.

In the second quarter, there were improvements in operating activities of approximately NOK 35m ($4.5m), compared with the same quarter last year.

The effects were related to operational and process improvement, as well as purchasing effects.

"We see that the improvement effects are diminishing while we see a decline in our sales revenues. We are not pleased with this and will take action to reverse this development. We must significantly increase both growth and competitiveness and will return with measures to achieve it,” ​Hanne Refsholt, CEO of TINE, said.

Currency issues

Rising world market prices for whey ingredients compared to the second quarter of 2016 contributed to a NOK 36m ($4.6m) operating profit in the second quarter of 2017.

A weaker Norwegian krone against foreign currency yielded a net positive effect in the second quarter compared with the same period in 2016. This was a result of positive currency effects from Jarlsberg exports.

For Dairy Norway, the second quarter was characterized by increased competition from national and international players. For TINE, decline in value was driven by a decline in dairy-based cooking products, while the bulk of the decline in volume was attributable to sweet milk.

The total category of sweet milk had a weak value growth, but the long-term trend of reduced sweet milk volume continued in the second quarter. TINE weakened both in value and volume shares, most associated with delisting of certain varieties of sweet milk.

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