DMK says corporate restructuring program proving effective

By Jim Cornall contact

- Last updated on GMT

DMK's preliminary figures show a rise in sales to €5.8bn.
DMK's preliminary figures show a rise in sales to €5.8bn.
The DMK Group, Germany’s largest dairy cooperative and fourth biggest supplier to German retailers, said it is seeing positive initial bottom-line results from its ongoing restructuring program.

Launched in the summer of 2017, the realignment of the dairy company as a customer- and consumer-oriented food manufacturer is reflected in the key figures for the past fiscal year: sales, net profit and the milk price paid to the cooperative organization’s farmers have taken a turn for the better, DMK said.

Preliminary figures show a rise in sales to €5.8bn ($7.1bn) in 2017, compared to €5.1bn ($6.3bn) in 2016.

The operating result improved to €29.5m ($36.3m), up from €13.5m ($16.6m) the previous year.

The milk price paid to the farmers over the year averaged out at around 36.29 eurocents ($0.45) per kilo including all average bonuses and the dividend. This means that DMK succeeded in paying a higher milk price in 2017 than its average competitors.

‘On the right track’

The company is to announce details of its full results at the time of the Annual Assembly in mid-June.

DMK’s CEO Ingo Müller said in 2017, the company defined clear goals as to how it planned to future-proof the DMK Group.

“Today, we can safely state that we’re on the right track and have already made good progress,”​ Müller said.

“The first wins are evident. However, that’s no reason for us to sit back and relax, we will continue to make constant improvements in DMK in the future.”

Related topics: Manufacturers, Consolidation

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