Effects of TINE’s on-going improvement project Styrk and favourable exchange rates contributed to a good result for 2015. In the third quarter of 2015, operating profit was NOK 562 million compared with 458 million in the same period of 2014. Operating quarterly income was 5.551 million, compared to 5.385 million in the same period in 2014.
Revenues in the third quarter grew by 3.1 per cent (up 0.6 per cent adjusted for changes in exchange rates) compared to the third quarter 2014.
– Through all quarters of 2015, TINE has shown solid effort from most areas in the company. This gives results, and I am proud of what we have achieved together. The job from here will be to ensure that all the good work gets a foothold in the organization and that we can point to good results from the improvement in the future. Sales are still marked by the continued decline in sales of fresh milk. But strong sales of Norvegia and TINE Grated Cheese contributed to TINE had value growth in the cheese category in this quarter, says CEO Hanne Refsholt in TINE.
STYRK IN LINE WITH THE SCHEDULE
After strengthening was initiated in the Autumn of 2013, a total of 16 of 17 defined subprojects has been started. So far measures intended to provide a full-year effect of NOK 716 million have been implemented. This is in line with the timetable and targets that have been prepared for the project. Implemented effects contributed 93 million of the improvement from third quarter 2014 to 2015.
The weakening of the Norwegian kroner against the US dollar contributed to improved profitability in the export of Jarlsberg®. Exports of whey based powders also had a positive currency effect, but falling world market prices have more than offset this. The weakening of the Norwegian krone against the euro has during the third quarter resulted in higher purchasing costs, and thus reduced the positive effect of exchange rate fluctuations.
GROWTH IN CHEESE
There was a decline in both volume and value of fresh milk in both the third quarter and year to date. TINE had somewhat greater decline than the overall segment, with lower sales volume of both fresh milk and flavoured fresh milk in the third quarter compared with the same period last year. There is good progress in niche products, especially lactose-adjusted products.
TINE drove value growth in the cheese category in both the third quarter and year to date. Growth in total tab was mainly driven by firm white cheese. For TINE was Norvegia and TINE Grated Cheese drove growth compared to the same period last year.