Valio Group position is ‘good’

Finnish Valio Group has described its financial position for the first eight months of 2007 as “good”.

Net turnover increased by 5% compared with the same period in 2006. Domestic net turnover rose by 3%, while turnover from international operations grew by 10%.

Sales of milk and cheese in particular increased in Finland, with the rise in ingredient prices making the biggest contribution to the increased value of exports. Valio said its market position developed favourably in Estonia, Sweden and Russia.

Operating profit for January-August stood at €52 million and pre-tax profit at €47 million. Each was up by €15 million on the previous year. Profit was improved by the rise in export prices.

Valio’s procurement share of Finnish dairy milk volumes stood at 86%, the same as the year before. The price of raw milk rose by 2 cents/litre on 1 October 2007, and further increases are to be expected at the turn of the year. One cent on the price equates to around €20 million in extra costs for Valio, as the company compensates Valio milk producers’ increased production costs.