In 2009, net debt fell to 842 million euros. Compared with year-end 2008 (1,494 million euros), this means a 652 million euro decrease. Net debt primarily fell due to the reduced financing need as a result of lower working capital levels and the partial repayment of the debt owed to Zuivelcoöperatie FrieslandCampina U.A. The company amply meets the requirements imposed by lenders, expressed as financial ratios. Pension charges and coverage ratio In 2009, pension charges increased by 26 million euros, the main reason being the lower return on plan assets, which was adversely affected by, in particular, the plan assets’ price movements. The coverage ratio of the pension plan administered by the insurance company was 117 percent at year-end 2009 (2008: 115 percent). The coverage ratio of the company pension fund was 100.1 percent at year-end 2009 (2008: 93.7 percent).
Merger process and conditions set by the European Commission FrieslandCampina formed from the merger between Friesland Foods and Campina on 30 and 31 December 2008. With the company forming from the merger, Friesland Foods and Campina expected they would be better able to anticipate and respond more decisively to the ever-increasing pace of changes in market conditions, such as: the ongoing liberalisation and the deregulation (EU/WTO); a highly volatile world dairy market; increasing competition, regional as well as global; increasing dairy foods consumption levels on a global scale.
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On 17 December 2008, the European Commission approved the merger, subject to a number of preconditions. To meet these, FrieslandCampina had to divest part of its fresh dairy activities in the Netherlands (Friesland Foods Fresh in Nijkerk), a cheese production plant in the Netherlands (Campina Holland Cheese in Bleskensgraaf), and the Yogho! Yogho! and
offering milk in small sachets
Royal FrieslandCampina N.V.
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