CAPSA FOOD beats revenue record, although reduces its profit by 73% due to the strong impact of the price of milk paid to farmers and increased costs

  • Revenue increased 18% to 895 million euro as a result of the increase in inflation during the year.
  • The dairy company exceeds 100 million in revenue in the foreign market, contributing more than 50% towards achieving its results.
  • CAPSA FOOD strengthens its leadership in the milk, cream and butter markets.

The CAPSA FOOD (Corporación Alimentaria Peñasanta S.A.) Board of Directors has formulated the annual accounts and presented the results for the 2022 financial year.

The company closed the 2022 financial year with 895 million euro turnover, which is 18% above the previous year, and net profit of 5.14 million euro, 73% less than in 2021. This profit represents 0.5% of its sales figure.

In 2022, 839.3 million litres of 100% Spanish-origin milk was collected, which places collection at 4% below the previous year.

The macroeconomic context this year has been marked by the start of the Ukraine invasion by Russia, a situation that has affected the economies of these countries and also the results of CAPSA FOOD. The rise in cereal prices added to higher energy costs further raised the inflation levels that had been dragging on since mid-2021, reaching 20.5% in the case of industry. The increase in consumable prices caused great pressure on the primary sector due to the lack of profitability of their livestock, which led to them reducing the head count on their farms. This action gave rise to great tensions in supply and demand, added to a historic rise in cow’s milk prices from 0.364 euro/litre in December 2021 to 0.597 in December 2022 (Source: FEGA). Despite this increase in prices, there was a 1.97% decrease in production.

This situation has weighed on the results of CAPSA FOOD, with a 73% reduction compared to 2021, placing its net profit at 5.14 million euro. This year, the company has had to address an impact on its costs of more than 175 million euro, of which: 100 million corresponds to the rise in the price of milk at source, 30 million to increased energy costs and the remaining 45 to other costs.

Despite this unfavourable context for the company due to the rise in inflation and the increase in consumption of distributor brands, CAPSA FOOD continues to fulfil its purpose of giving farmers a future to guarantee their sustainability. It therefore continues to remunerate its farmers fairly with the aim of guaranteeing the viability of their farms in the future. In its commitment to Spanish consumers, the dairy company has also assumed part of the costs against its profit to help it during this inflationary period.

CAPSA continues to strengthen its leadership in the Spanish dairy market (Source: Nielsen, YTD s52-22). In liquid milk, it closes 2022 with an 18.4% share in value. In the cream market, it also defends this first position, closing the year with a 20.2% share. It also leads the butter family with 25.5% market share by value.

Spanish consumers continue to value the dairy company’s brands. In fact, for another year, Central Lechera Asturiana continues to be the third-most-chosen brand in Spain and the leading dairy brand with presence in 56.7% of households. LARSA also revalidates this leading position for the fifth consecutive year.

In the hospitality channel, the company maintains its leadership and profitability with 40% market share.

In this financial year, the operations carried out in the international market are noteworthy because they contributed more than 50% towards achieving the result obtained by CAPSA. The company currently has a presence in more than 50 countries, with record revenue in this market: 101 million euro.

Fulfilling its purpose to generate a positive impact

As a B CORP company, CAPSA FOOD endorses the transformative power of its way of working, which, supported by its Triple Impact Plan (Economic, Social and Environmental), enables it to fulfil its purpose by generating a positive impact through its activity taking the communities that are part of its value chain into account in its decision-making.

One of the most outstanding milestones in 2022 was the launch of the new carbon-neutral Tetrapak carton certified by AENOR, whose cardboard comes from 100% sustainable sources. In addition, and anticipating the new Waste Act that enters into force in mid-2024, in September it launched the new cap attached to the Tetrapak carton in its commitment to environmental care. The company continues to take steps in this direction towards achieving climate neutrality by 2035.

With regard to new product launches, CAPSA FOOD has launched Vegetanea on the market this year, its new brand of 100% plant-based drinks.

For the seventh consecutive year, the company has been recognised as one of the best to work for, once again certifying as a TOP EMPLOYERS company.

CAPSA VIDA, an investment vehicle for food development, also invested in DAIRYPET, the start-up that owns YOWUP, a brand specialising in pet food, and in NARIA (nobody without their daily ration), a circular economy project that uses a pioneering tool that enables companies to manage sell-by dates and thus facilitate delivery to those most in need through different entities and organisations.