“Over the past five years, thanks to a very capable organisation that is motivated to create value for good causes, we have been able to transfer 484 million kroner (GBP 42.5 million)  of our profits to the trust,” said Kavli’s CEO.
13. 5. 2019.

Bergen, 13 May 2019 – The Kavli group’s organic turnover growth reached a solid 6.7 percent last year. As a result, for the second year running, the group can donate 100 million Norwegian kroner (GBP 8.8 million) to its sole owner – the charitable Kavli Trust.

The turnover rose from just over 3.314 billion kroner (GBP 291 million) in 2017 to 3.535 billion (GBP 310 million) in 2018.

“The increase in turnover stems from our success with new products, our capacity to revitalise our soft cheese across all markets and the fact that we have managed to increase our market shares. We have also had success with our innovations from Q-Meieriene, not least with the Skyr® brand,” said Kavli’s CEO Erik Volden.

Kavli operates in Norway, Sweden, Finland and the UK, and is best known for Primula and Lyckans Ost soft cheeses, milk and yoghurt from Q-Meieriene and Tiger’s Yoghurt, goats’ milk products from St Helen’s Farm and mustard products from Johnny’s.

Half a billion in donations over five years

The Kavli Trust has considerably increased its support for humanitarian work, research and cultural activities in line with the group’s positive Development.

“Over the past five years, thanks to a very capable organisation that is motivated to create value for good causes, we have been able to transfer 484 million kroner (GBP 42.5 million)  of our profits to the trust,” said Kavli’s CEO.

Higher commodity costs only partially passed on to consumers

Last year’s profit and annual turnover after tax fell from 2017. While profits fell from 300.2 million kroner (GBP 26.3 million) to 287.4 million (GBP 25.6 million) (a fall of 4.3 percent), the annual turnover after tax fell from 186.3 million kroner (GBP 16.4 million) to 178 million (GBP 15.6 million) (down 4.5 percent).

“The main reasons for the falling results are movements in commodity prices and currencies, which we have only partially recouped through price increases. A weak UK market has also contributed to the falling results,” said Volden.

The CEO also notes that capacity challenges have played a part.

“We have been working on several large projects with a view to increasing our production capacity. This has resulted in less cost-efficient operations than we would have wanted throughout the year. But we will see the positive impact of these investments going forward,” said Volden.

New growth areas

Last year Kavli celebrated 125 years since the company was founded in Bergen by Olav Kavli, a farmer’s son. The group has seen solid growth in the past few years, including the acquisition of companies operating in new growth areas. Earlier this year, Kavli bought Finnish Verso Food, which has been successful with products based on fava beans.

“We have an ambitious growth strategy, and for us it is particularly important to invest in rapidly developing food categories,” said Kavli’s CEO Erik Volden.

Results

In mill. NOK

 

2018

2017

 

Turnover

3535,8

3314,4

6,7 %

EBITDA

380,6

407,1

- 6,5 %

Operating profit (EBITA)

287,4

300,2

- 4,3 %

Post tax annual result

178,0

186,3

- 4,5 %

For more Information:

Erik Volden, CEO

Mob +47 47 60 22 00