Valio Group Reports EUR 2.28 Billion in Net Sales Amidst Challenging Market Conditions
Source: The DairyNews
Valio Group, a leading dairy and food company, has announced a net sales increase of approximately 2% compared to the previous year, totaling EUR 2.28 billion in 2023.
Despite facing a challenging operating environment marked by global economic uncertainty and the ongoing war in Ukraine, Valio remained steadfast in implementing its strategy. However, the company encountered significant headwinds, including weakening consumer purchasing power and a sharp decline in global market prices for industrial dairy products, leading to cost inflation and impacting Valio's profitability.
The situation remained difficult for dairy farms, which collectively own Valio through cooperatives. Dairy farmer entrepreneurs grappled with high interest rates, elevated fertilizer prices, and energy price uncertainty throughout the year, albeit with some relief as cost increases moderated.
Valio's financial performance, measured by the milk margin and return, saw a slight decline compared to the previous year. While the average price paid for raw milk increased in 2023, reaching 53.7 cents per litre, the year-end price level was notably lower than at the beginning of the year.
Despite these challenges, Valio CEO Annikka Hurme emphasized the company's resilience and strategic progress. In the domestic market of Finland, Sweden, and Estonia, Valio successfully defended its market position amidst consumer purchasing power constraints. Furthermore, the company continued to innovate and expand its offerings, introducing new dairy and plant-based products to bolster its market position.
Valio's vision to be a leading dairy and food company with beloved brands and innovative solutions remains central to its strategy. The company's investment in plant-based brands and products, alongside the introduction of new items to store shelves, reflects its commitment to meeting evolving consumer preferences and driving growth in both traditional and emerging product categories.
Valio Continues to Drive Finland's Food Exports with Strong International Performance
Valio, a cornerstone of Finland's food industry, maintains its significant contribution to the nation's food exports, accounting for approximately a quarter of the total. In 2023, net sales fr om Valio's international operations reached EUR 778 million, with product exports from Finland to over 50 countries amounting to about EUR 507 million.
Despite facing challenges such as the decline in global market prices of industrial products and adverse economic conditions worldwide, Valio remained resilient in export markets. The company focused on providing value-added ingredients and solutions to international industrial customers, aligning with its strategic objectives.
Throughout the year, Valio witnessed a stabilization in the prices of international industrial products, particularly industrial butter and milk powders, after experiencing a downward trend. Towards the end of the year, the demand for industrial butter surged, albeit remaining below the levels seen in 2022.
In China, Valio intensified its efforts to promote value-added milk powders and expand its market presence. Although market conditions were impacted by inflation and fluctuating food prices, profitability improved as Valio navigated through these challenges.
The United States emerged as a notably profitable market for Valio, while in Sweden, sales increased primarily due to price adjustments. Products such as Oddlygood®, PROfeel®, and Gårdsgoda experienced positive growth trajectories.
Valio's steadfast performance extended to the Baltic States, wh ere it maintained its position as the market leader despite inflationary pressures and subdued consumer purchasing power.
Moreover, through strategic partnerships and acquisitions, Valio expanded its footprint in key markets. Notably, Oddlygood, co-owned by Valio and Mandatum Asset Management, ventured into new territories and acquired the Nordic brand Planti. This strategic move bolstered Oddlygood's market leadership in plant-based products across Sweden and Finland, marking significant growth milestones for the company, The Dairynews.today reports, reporting on Valio's materials.
The situation remained difficult for dairy farms, which collectively own Valio through cooperatives. Dairy farmer entrepreneurs grappled with high interest rates, elevated fertilizer prices, and energy price uncertainty throughout the year, albeit with some relief as cost increases moderated.
Valio's financial performance, measured by the milk margin and return, saw a slight decline compared to the previous year. While the average price paid for raw milk increased in 2023, reaching 53.7 cents per litre, the year-end price level was notably lower than at the beginning of the year.
Despite these challenges, Valio CEO Annikka Hurme emphasized the company's resilience and strategic progress. In the domestic market of Finland, Sweden, and Estonia, Valio successfully defended its market position amidst consumer purchasing power constraints. Furthermore, the company continued to innovate and expand its offerings, introducing new dairy and plant-based products to bolster its market position.
Valio's vision to be a leading dairy and food company with beloved brands and innovative solutions remains central to its strategy. The company's investment in plant-based brands and products, alongside the introduction of new items to store shelves, reflects its commitment to meeting evolving consumer preferences and driving growth in both traditional and emerging product categories.
Valio Continues to Drive Finland's Food Exports with Strong International Performance
Valio, a cornerstone of Finland's food industry, maintains its significant contribution to the nation's food exports, accounting for approximately a quarter of the total. In 2023, net sales fr om Valio's international operations reached EUR 778 million, with product exports from Finland to over 50 countries amounting to about EUR 507 million.
Despite facing challenges such as the decline in global market prices of industrial products and adverse economic conditions worldwide, Valio remained resilient in export markets. The company focused on providing value-added ingredients and solutions to international industrial customers, aligning with its strategic objectives.
Throughout the year, Valio witnessed a stabilization in the prices of international industrial products, particularly industrial butter and milk powders, after experiencing a downward trend. Towards the end of the year, the demand for industrial butter surged, albeit remaining below the levels seen in 2022.
In China, Valio intensified its efforts to promote value-added milk powders and expand its market presence. Although market conditions were impacted by inflation and fluctuating food prices, profitability improved as Valio navigated through these challenges.
The United States emerged as a notably profitable market for Valio, while in Sweden, sales increased primarily due to price adjustments. Products such as Oddlygood®, PROfeel®, and Gårdsgoda experienced positive growth trajectories.
Valio's steadfast performance extended to the Baltic States, wh ere it maintained its position as the market leader despite inflationary pressures and subdued consumer purchasing power.
Moreover, through strategic partnerships and acquisitions, Valio expanded its footprint in key markets. Notably, Oddlygood, co-owned by Valio and Mandatum Asset Management, ventured into new territories and acquired the Nordic brand Planti. This strategic move bolstered Oddlygood's market leadership in plant-based products across Sweden and Finland, marking significant growth milestones for the company, The Dairynews.today reports, reporting on Valio's materials.
