Annual sales by the Norwegian-based Kavli food group exceeded NOK 2 billion for the first time in 2010. Substantial profit improvements were secured internationally and a number of successful launches took place.

The increase in sales during 2010 represents an underlying (with comparable exchange rates) growth of more than NOK 100 million from the year before. Kavli can report an operating profit of NOK 125 million, up by NOK 25 million from 2009. No less than NOK 40 million of this sum has been transferred directly to the Kavli Trust as owner.
 
“These results are a sign that the aggressive moves we initiated at the beginning of 2010 have been a success,” says Erik Volden, chief executive of the group. “The most important consideration in this context is that we’ve managed to reverse the trend in Denmark as well as achieving a substantial improvement in profits in the highly demanding UK market.”
 
Kavli embraces companies in Norway, Sweden, Denmark, Finland and Britain, which produce goods for sale in more than 20 countries. Progress in Denmark was primarily achieved through enhanced cost efficiency, while developments in the UK were driven by an increased commitment to marketing which has boosted market shares. In addition, Norway’s Q-Meieriene dairy products manufacturer has had success with its recently introduced Q Skyr and chocolate milk. However, higher raw material costs for milk had a negative impact on results.
 
“Product development is important not only for a challenger company like Q-Meieriene, but also for the whole group,” says Mr Volden. “We’re now working actively in both Norway and internationally to develop new products and variants which are genuinely innovative.”
 
Processed cheese remains Kavli’s core product. The group faced increased competition in 2010 from neighbouring cheese categories. But new products launched in this area made good progress in 2010.The share of the various markets was on a par with 2009, with exception of a slight decline in Sweden.
 
Kavli is the only large group in Norway to be owned by a charitable trust. The Kavli Trust has been awarding grants for research, culture and humanitarian purposes for almost 50 years.

(MNOK)                 2010       2009        % change
Total reveues          2027       1955        + 3,7 %
Operating profit       125        100         + 25,0 %
Profit before tax      111        75          + 48,0 %

For further information please contact:

CEO Erik Volden, mob: +47 47 60 22 00