The growth was mainly driven by higher sales of flavoured milk and yoghurt at TINE, as well as price adjustments that offset rising costs. According to Group CEO Ann-Beth Freuchen, dairy products fit well with the trend towards natural and pure ingredients, giving TINE a solid position for continued growth.
However, a surplus of milk following increased quotas is putting pressure on margins, though Freuchen expects the situation to stabilise next year.
Norwegian subsidiaries grew by 4.7 per cent, thanks to a record-warm July that boosted sales at Diplom-Is. Products such as Royal Trippel, Krone-Is and Sandwich were among the summer’s most popular. The EBIT margin also improved compared with last year.
Internationally, sales rose by 3.6 per cent – adjusted to 4.7 per cent when currency effects are considered. Profitability is, however, affected by tariffs, exchange rates and higher raw material costs. Freuchen emphasises that global uncertainty highlights the need for a robust and sustainable Norwegian food system, which TINE will continue to work to strengthen.
Read more about TINE’s growth HERE
Photo: TINE
By LWM
