Message from the CEO
Your expert partner in dairy
We proudly present our 2022 annual report. For the first time, we have combined our annual financial reporting with an explanation of how we as an organization manage environmental, social responsibility and corporate governance (ESG) themes.
Previously we reported on these aspects through various means. This year we have combined them into one integrated report. We have made this decision in anticipation of the European Union’s Corporate Sustainability Reporting Directive (CSRD), which will become compulsory in the next few years. And we have established a concrete link with the GRI (Global Reporting Initiative) standards, which ensures the completeness of our reporting.
Our mission is “to be the best and most sustainable supplier in the dairy industry.” And perhaps we should also add “the most transparent.” To be transparent means to be accountable for the full range of activities that we undertake as an organization. We do this not because our stakeholders ask for it, but because it has become an intrinsic motivation for our organization. Since our establishment more than eleven years ago, we have maintained a high degree of transparency with respect to our stakeholders.
We want to deliver a positive impact on the world around us. Not only for this present moment, but also with a look toward the future. We can only achieve this if we put sustainability front and center. It is no coincidence that we have been a sustainability frontrunner in the dairy market for more than five years. We are seen as an example not only within the dairy world, but also beyond. That is a position that we want to maintain. For that reason, we must take further innovative steps, which you can read more about in this report.
Our focus on long-term relationships – with employees, suppliers, customers, business partners and other people and organizations connected to Numidia – is evidence that we care about all of our stakeholders.
As you will read in this report, we are not only looking at the world of today. We also consider future generations. Through our Charity Foundation, we support children in need by giving them access to better living conditions and a proper education.
We want to be the most sustainable company in the dairy supply chain. In 2019, we became the first global dairy trading company to voluntarily compensate for its carbon footprint. Not only the carbon footprint resulting from our company’s activities, but also from third-party warehousing and transports that we arrange for our customers.
The past year was a record year for Numidia in terms of turnover and profitability. This turnover was mainly driven by higher dairy prices. We have been quite selective in the physical trade that we engage in. The high prices made it necessary to make more balance-driven choices. We would like to strengthen our current position through controlled growth in profitability and volume.
Diversification of our activities contributed to our positive results. The trading in derivatives plays a progressively important role in our business. We address the growing complexity in the global dairy business by managing and leveraging our external and internal data. The use of artificial intelligence and business intelligence tools to support decision-making is unavoidable.
We achieved these results against the backdrop of an increasingly volatile world. The event with the biggest impact in the past year was, of course, Russia's invasion of neighboring Ukraine. It is regrettable what is happening there. Of a different order – but also with a major impact on the dairy world – were the COVID-19-related measures in China, the largest dairy-importing country in the world. The adoption of severe restrictions, followed by the sudden relaxation of the restrictions, had significant consequences on our industry.
Given this volatility, the role of dairy traders is becoming more and more valuable. They specialize in mitigating price risks over time and can help customers and suppliers through sophisticated risk management strategies.
As indicated, traders will play an increasingly important role in the dairy market, especially those who, like Numidia, trade in both fat and protein products, are active worldwide and know how to combine derivatives and physical product positions. This is why we face the future with confidence.
The market will provide sufficient opportunities to grow steadily in the coming years. We also think this is important because it will provide opportunities for personal and professional development for our employees. And this in turn will enable us to continue to hire the best people. People who will make the difference for us in the market.
We would not be where we are today without the hard work and dedication of our employees, "The Numidians." We are grateful to them. And that is why our priority lies in creating a safe and inspiring work environment for our employees, whether they are working at the office, working from home or traveling to meet our business partners.
In addition, we would like to thank all our stakeholders for their cooperation over the past year and for the trust they have placed in us. That makes it worthwhile to commit ourselves 100% (and more) every day.
I hope you enjoy and feel inspired by reading this report. Please feel free at any time to contact me or one of my colleagues with questions, remarks or ideas which can make Numidia a better company.