In 2012, Valio Group net sales reached the two billion euros mark for the first time in the company’s history. Net sales increased by 3.7 per cent on the previous year. All market profits generated by Valio are paid through the dairy co-operatives to Valio milk producers who numbered around 7 900 at the end of 2012. The milk return rose to 46.6 cents/litre in 2012 and was the highest ever recorded by Valio. The price paid for raw milk including after payment stood at 46.7 cents/litre, up 2.6 cents on the previous year. The after payment accounted for 2.5 cents/litre.
Valio is a company owned by Finnish milk producer co-operatives, whose mission is to process all the milk produced by its owners as profitably as possible and pay the return on operations to the milk producers. Valio’s most significant key figure is the milk return generated by the company, on the basis of which the price paid for raw milk is determined. Valio does not strive to make a profit for the company per se. In 2012, Valio paid Finnish milk producers a total of 883 million euros (44% of net sales).
Dairy farming is the most important source of agricultural income in large parts of Finland. Milk production also maintains a number of related businesses and professions. Valio’s 15 production plants in Finland, milk collection, product distribution, and Valio Group milk producers, employ a total of some 30 000 people in Finland.
Around 36% of Valio’s net sales were generated from exports and by the subsidiaries. Valio Group alone improved Finland’s current account by exporting products made in Finland from Finnish ingredients, at a total value of more than 700 million euros. Russia is Valio’s biggest export market. Valio Russia’s net sales increased in 2012 by around 10% to stand at 341 million euros.
Valio key figures in 2012
Valio Group net sales for 2012 stood at 2 000 million euros. Net sales increased by 4.7% in international markets and 3.1% in Finland. The Valio Group milk margin** stood at 991 million euros (2011: MEUR 961). The milk return* was the best in the company’s history at 46.6 cents/litre (2011: 44.9 c/l). Valio Group’s book profit for 2012 after taxes stood at 43 million euros (2011: MEUR 54).
Loans from financial institutions at the end of 2012 totalled 171 million euros (2011: MEUR 90). Valio Group’s equity/assets ratio was 47% (2011: 48%). Investments totalled 105 million euros (2011: MEUR 85), of which 93% were made in Finland.
The milk volume taken in by Valio from its owners totalled 1 865 million litres (2011: 1 870 million litres).
*Milk return = (Milk margin less the requirement for depreciation of fixed assets i.e. financing requirement for investments) / milk volume supplied by the owners.
**Milk margin = Net sales less other costs excluding depreciation and the price paid for raw milk and interest on shareholder loan paid to owners.
Board of Directors’ Report and Financial Statements »