News Dairy

Ice Cream division improves Milcobel's performance

June 28, 2024 - Klaas van der Horst

Milcobel Group is not experiencing the best period since its inception, but the Belgian cooperative dairy company's ice cream operations are performing better. 

Earlier this year, Milcobel reported a lower total revenue for last year compared to 2022, and the company also fell into the red. This was partly due to issues with a software project. An explanation revealed that this led to various additional problems at the Bruges facility, resulting in months-long delays in cheese deliveries, which also led to a loss of customers.

Overall, dairy revenue declined from €1,049 million in 2022 to €901 million in 2023. Conversely, ice cream revenue increased from €317 million to €405 million. Profitability also improved, which Milcobel attributed to rising demand for private-label ice cream, at the expense of branded products. A record quantity of 190 million liters of ice cream was sold.

Milcobel still intends to sell the ice cream division. Despite the lower revenue and losses last year, the company's equity increased according to the annual report. This was due to a revaluation amounting to €14.5 million. Simultaneously, total debt increased by nearly €16 million. In an explanation that may also serve as a warning, the company pointed to the significantly higher interest costs associated with the debt burden.

Klaas van der Horst

Klaas van der Horst is a senior market specialist in dairy at DCA Market Intelligence. He also closely monitors developments in politics and agricultural policy.