22. 7. 2014.

Annual sales by the Norwegian-based Kavli food group set a new record in 2011, not least thanks to an aggressive commitment in Sweden and a record year for the Q-Meieriene dairy arm.

Consolidated sales exceeded NOK 2.2 billion in 2011 – an underlying growth of more than NOK 150 million or 7.7 per cent from the year before. Operating profit came to NOK 130 million, up by NOK 5 million from 2010. Progress in 2011 reflected new product launches and improvement work.

Swedish commitment
“We’ve taken several steps to strengthen our position in the Swedish market,” says Erik Volden, chief executive of the Kavli group. “We believe it has a particularly substantial growth potential for coming years.”
Among other moves, Kavli acquired Sweden’s Druvan in the summer of 2011 and launched its Skyr product in the Swedish market last autumn. It also recently acquired the Bärry and Tiger yoghurt brands from Arla. That means Kavli’s annual Swedish sales are set to rise from a little over SEK 400 million to almost SEK 700 million.
Activities in the group’s principal markets – Norway, Sweden, Denmark and the UK – all showed an underlying growth in profits during 2011. That was achieved despite substantial investment in innovations and new production equipment. Significant one-off costs were also taken in connection with integrating Druvan.
Dairy success
Progress was good in 2011 for new product launches in the group’s most important category – spreadable cheese. Market shares grew in Norway and Sweden but contracted slightly in the UK. Q-Meieriene contributed the biggest sales growth in the group through a number of successful innovations and increased distribution. Market shares for this company’s most important categories made good progress.

“Q-Meieriene was a locomotive for us in 2011,” says Mr Volden. “We finally achieved almost a full return on all the investment and work devoted to this sector in recent years.”

Charity 
The progress achieved by the Kavli group means that it can transfer a record NOK 50 million to the Kavli Trust for 2011. The latter ensures that revenues from products like Kavli spreadable cheese and Q-Milk are devoted to research, culture and humanitarian causes.
Kavli is the only large Norwegian-owned food group to belong to a charitable trust, and all the profits not reinvested in operations are transferred to this owner.
Results for the Kavli Group (NOK mill):

2011

2010

% change

Total operating revenue

2 267

2 027

+11.8%

Operating profit before goodwill

136

129

+5.4%

Operating profit

130

125

+4.0%

Pre-tax profit

119

111

+7.2%