Pandemic won’t shift DMK Group on path to 2030 targets

By Jim Cornall contact

- Last updated on GMT

DMK Group said it continued to implement and deliver stable results in 2020. Pic: DMK
DMK Group said it continued to implement and deliver stable results in 2020. Pic: DMK

Related tags: Dmk, Dairy

Despite all the unexpected challenges posed by the Covid-19 pandemic, Germany’s largest dairy cooperative DMK Group said 2020 was a stable fiscal year.

DMK Group said it continued to implement and deliver stable results: its payment performance for its associates evaded the negative market trend. While the industry-wide payout was lower than in 2019, DMK was able to keep the payout price stable in a year-on-year comparison. DMK’s total revenue was €5.6bn ($6.8bn), similar to the previous year (€5.8bn/$7bn), and the equity ratio remains stable at 33.8%. At €24.9m ($30.2m), earnings were similar to the previous year’s level of €24.5m ($29.7m).

By the time the explosion in demand in food retailing – and a simultaneous near collapse in the food service business – occurred during the first lockdown, it was clear the pandemic would lead to major upheavals in the market and produce far-reaching challenges for the entire supply chain, the company said. DMK Group said it actively steered through the pandemic and fulfilled its mandate to safely supply the population with food products. Despite the challenges involved, the company said it has not lost sight of its Vision 2030 and the implementation of important milestones.

These included: the sale of the ice cream plant in Haaren; the sale of the subsidiary Sanotact; the complete takeover of DV Nutrition and integration into wheyco (BU Industry); the construction of a new plant in Russia (commissioning in 2021); the full integration of the Alete brand into BU Baby; the reorganization and modernization of the entire finance area; and the screening of the purchasing of all services and goods except milk, and the implementation of cost saving potentials.

DMK Group said it considers itself well-positioned for future crises, market fluctuations and new opportunities.

"2020 has challenged us on the Covid-19 side of things, but has not taken us off course. We are working through the upcoming projects within the framework of our strategy - that's what we did in 2020 despite the pandemic and that's what we will do in 2021," ​said CEO Ingo Müller.

 

Related topics: Manufacturers, COVID-19, Dairy Health Check

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