Koninklijke FrieslandCampina

Overview Key strengths Key risks One of the largest global dairy groups with good product, channel, and geographical diversity. Exposure to volatile raw materials and supply chain costs can be mostly passed through to clients, but with delays. Portfolio of well-known local and global brands provide pricing power. Exposure to high-risk countries like Nigeria bring foreign exchange volatility. Large presence in Asia and Africa allows positive volume growth prospects. Declining total demand and high competition in China for infant milk formula. Changes in capital structure should help deleveraging to below 4.0x in 2022-2023. Profitability affected by ongoing efforts to optimize cost structure and drive operating efficiencies. Revenues from this division grew by 4.3% in 2021. This was mostly supported by

...Continued consumer demand and recovery in out-of-home consumption set the stage for revenue growth in Koninklijke FrieslandCampina's (Royal FrieslandCampina or RFC) food and beverage business. Revenues from this division grew by 4.3% in 2021. This was mostly supported by the gradual recovery in out-of-home consumption, strong e-commerce demand, and price increases. In 2021, revenue from the food and beverage business included about 1.5% of adverse currency impact, and the disposal of RFC's Russian consumer activity. For the professional channel, we forecast that RFC will benefit from the likely reducing COVID-19...

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