Erik Volden med Q-melk
25. 6. 2018.

The Norwegian-owned food group Kavli last year delivered strong organic growth and will increase their annual donation to the Kavli Trust with to 100 million Norwegian kroner (GBP 9.3 million).

Turnover rose from just over 3 billion (GBP 278 million) in 2016 to more than 3.3 billion (GBP 306 million) last year. The operating profit for the same period rose by a full 11.3 percent, from 269.8 million Norwegian kroner (GBP 25 million) to 300.2 million (GBP 27.8 million).

Aiming for one billion Norwegian kroner

The Kavli Trust is the group’s sole owner, and distributes funds for humanitarian work, research and culture. The Trust has increased its support for public purposes in step with the group’s positive development in later years.

“It has long been our ambition to be able to increase our annual donations to the Kavli Trust to 100 million, and we have reached this aim. For Kavli’s employees, the ownership and the growing donation to good causes has become an important motivational factor, which also makes Kavli a unique workplace,” said Kavli’s CEO Erik Volden.

In 2017, the group’s owner the Kavli Trust donated a full 82.2 million Norwegian kroner (GBP 7.6 million) to good causes, and today the trust has 45 active projects in 17 countries. While 60 percent of the funds go to humanitarian projects, 30 and 10 percent go to research and culture respectively.

“But we don’t stop here, because we have set ourselves a big goal for the coming eight years. From this year until 2025, we will work towards donating one billion (GBP 92.8 million) to the trust. This is a particularly ambitious yet far from unrealistic goal,” said Volden.

Q-Meieriene the main earner

In Norway, the Kavli Group is best known for its ownership in O. Kavli and the Q-Meieriene dairy products company. They also operate in Sweden, Finland and the UK.

Volden said the sales development in the Norwegian daughter companies, led by Q-Meieriene, is the main reason behind the positive trend. One of Q-Meieriene’s new innovations in 2015 was to introduce bags as a new packaging format in the Norwegian dairy sector. This particular format saw considerable sales growth in 2017.

“Last year we benefited from the long-term investment in consumer-driven innovation which we have been working with for several years. It is very nice to see that the measures we have taken lead to organic growth far beyond that of comparable companies,” said Volden.

Uncertainties surrounding Brexit influenced UK results

While the Group’s operations in Sweden and Finland experienced good organic growth and consequently improved results, the UK saw a weaker sales development and falling results. This was, according to Volden, partly due to uncertainties surrounding Brexit and major changes to the grocery trade.

Healthy 125 year-old considers comprehensive expansion of Q-Meieriene

This year it is 125 years since Kavli was founded in Bergen by the farmer’s son Olav Kavli.

“The Group is better prepared for the future than ever before. Continuous improvements in everything from sales to marketing to production provides us with a good foundation for further solid transfers to the Kavli Trust and all the good causes it supports and works with,” said CEO Volden.

During the anniversary year, a final decision will also be taken on a considerable expansion of Q-Meieriene’s production plant in Jæren, on Norway’s south coast.

 “Solid improvement of our own production and fairer competition in Norway’s dairy sector means we can now prepare for the largest expansion in the history of Q-Meieriene. At the same time, we remain humble in the face of competition from a dominating competitor that every year invests nearly twice as much as we have been able to afford to invest in Q-Meieriene in total since the start in 1999,” said Erik Volden in Kavli.

 

Results [1]

In mill. NOK                             2017                    2016             Endring

Turnover                               3 314,4                3 075,9             + 7,8 %

EBITDA                                   407,1                   362,2           + 12,4 %

Operating profit (EBITA)         300,2                   269,8           + 11,3 %

Post tax annual result             186,3                   166,8           + 11,7 %

 

[1] Turnover, EBITA and operating profit corrected for the sale of daughter company and changes to pensions in Norway.

 

For more information:

Erik Volden, CEO

Mob: + 47 47 60 22 00

Mail: erik.volden@kavli.no