Switzerland’s Cremo saw less milk, more sales in 2020
Though the Swiss dairy group Cremo in 2020 on average paid around three cents per kilo of milk above the 2019 level, the company struggled with a lack of milk last year and therefore processed 7.6% less (363 million kg less).
But by purchasing more semi-finished products, Cremo was able to largely compensate for the milk shortage and increased annual sales in 2020 by CHF1.6 million to CHF493.4 million.
Cremo has made public that losses were mainly due to the pandemic-induced slump in sales via “Petits Cremiers” (especially in the catering, canteen and hotel sectors) and the amortisation of the new production facilities at the Villars-sur-Glâne site. These are intended to make the company’s processes more rational. Together with the value entitlements made on financial investments, this results in an annual loss of CH 3.1 million.
But despite losses, financially the group is healthy and could last year even increase the equity ratio slightly to 57.1%. In addition, debts have been reduced.
Cremo describes the closure of the site in Steffisburg in Bern as part of the ongoing optimisation and rationalisation process. This should reduce production overcapacity and improve the company’s competitiveness.