Latvia’s Food Union dairy and ice cream company had revenues in 2024 which were roughly the same as a year before, the company’s CEO for Europe, Arturs Cirjevskis, has told the LETA News Agency.
Cirjevskis says that 2024 was similar to 2023 for Food Union’s companies in Latvia. There were many external challenges, including rising commodity prices and market volatility. The company’s biggest focus was on profitability and on revising its cost base.
The CEO insisted, however, that 2024 was a successful year despite various strategic, financial and commercial challenges. This success is largely down to improvements in the company’s strategy and to its rededication toward exports. The development of export markets, the launch of new products and various steps taken toward greater efficiency allowed Food Union to maintain stable turnover last year and even to achieve a small profit, as against a loss the year before.
Food Union’s big challenge last year was a sharp increase in commodity prices, particularly in terms of cocoa, butter and cream. These price hikes impacted product costs and required changes to Food Union’s pricing strategy. Late last year, the price of cocoa had quadrupled since a year earlier, for instance.
Similarly, there was a 15% hike in the cost of dairy products, including milk, butter and cream. These are expected to affect the cost of the company’s products this year, as well. Despite these problems, however, Food Union successfully streamlined its processes and maintained the high quality of its products throughout last year.
Cirjevskis notes that the market for ice cream expanded last year after a drop caused by the Covid-19 pandemic, as well as various geopolitical factors.
He also points out that the yoghurt segment has been evolving in the dairy category, which means more niche products with improved functionality in terms of less sugar, no lactose, lower fat higher protein, and other benefits when compared to other products that are on the market.
Food Union completed 2023 with EUR 150.2 million in revenues, which was 12% more than the year before, while the group’s losses shrank 4.2 times over to EUR 1 million.
The Food Union Group includes Valmieras Piens and Rigas Piena Kombinats in Latvia, which merged with Rigas Piensaimnieks in February 2020. Also involved are the Premia ice cream company from Estonia, the Premier Is ice cream company and Hjem Is ice cream distributor from Denmark, the Isbjrn Is company in Norway and the Alpin57Lux ice cream producer in Romania.
Source: BNS
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