26. 5. 2017.

Bergen 26 May 2017 – The Norwegian owned foodstuffs group Kavli shows a solid improvement in its 2016 results, and as a result it can transfer 84 million kroner to its sole owner, the charitable foundation the Kavli Trust.

Each year the Kavli Trust donates funds for humanitarian work, research and culture, and in step with the group’s positive development in later years, the trust has also increased its own activities considerably.

“We have seen a positive increase in the surplus payed to the Kavli Trust over several years, and last year’s result provides the basis for an even larger contribution. The ownership and increased contributions to charitable activities is a motivational factor for Kavli’s employees, making Kavli a special workplace,” says Kavli’s CEO Erik Volden.

Considerable cost reductions

The Kavli Group operates in Norway, Sweden, Finland and the UK, and is best known at home for its ownership in O. Kavli and Q-Meieriene. Last year the Group presented a pre-tax operating profit of just over 269 million kroner, up from 235 million in 2015.

“Over several years our results have been coloured by restructuring and acquisitions. We are now seeing the results from these measures in the form of a considerably more profitable operating year. We also have plans for continued improvement in 2017,” Volden says.

Volden points out that the main cause for the improved results is good cost management. Kavli’s Swedish operation, which integrated an acquired business in 2015, has seen particularly good improvement in this area.

The foodstuffs group experienced underlying organic growth of 2.8%, but reports falling operating income after selling its Danish operation to Orkla Foods in early 2016. The turnover was also influenced by currency fluctuations.

New category became growth winner

As less and less of the turnover now goes to cover running and indirect costs, the group has been free to increase investments considerably in innovation and marketing. Planti, the group’s foray into plant-based alternatives to dairy products in Finland and Sweden, was the group’s growth winner in 2016, and strengthened its market position.

”We are always looking for good candidates for acquisition, but in the immediate future we will focus our attention on organic growth through investments in our own product portfolio,” says Volden.

Results[1]

In mill. NOK                             2016                    2015                Change

Turnover                               3075.9                 3226.3                 - 4,7 %

EBITDA                                  362.2                   340.2                + 6,5 %

Operating profit[2] (EBITA)    269.8                  235.2              + 14,7 %

Post tax annual result            166.8                     87.9              + 89,7 %

 

For more information

Erik Volden, CEO, telephone +47 476 02 200

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[1] Turnover, EBITDA og operating profit corrected for sale of daughter company

[2] Before writing off goodwill and brand