FrieslandCampina Reports Surge in Operating Profit to €301 Million in First Half of 2024
Source: The DairyNews
FrieslandCampina, the Dutch dairy giant, reported a significant increase in operating profit for the first half of 2024, rising from €47 million in the previous year to €301 million. This substantial gain was attributed to strategic improvements in product volume mix, reductions in inventory costs, and effective cost containment measures under its Expedition 2030 strategy, according to the company’s latest financial update.
Despite these gains, total revenue for the period dropped by 6.7% to €6.4 billion, primarily due to lower milk prices and adverse currency translation effects. Excluding these translation impacts, the revenue decline stood at 2.9%.
Jan Derck van Karnebeek, CEO of Royal FrieslandCampina N.V., highlighted the success of the company's focused approach since launching Expedition 2030 late last year. The strategy targets optimizing operations across its seven business groups, each dedicated to enhancing the valorization of milk from member dairy farmers. These efforts have been supported by a streamlined supply chain and efficient corporate structure.
"The first half of 2024 has witnessed substantial progress across our performance metrics, driven by better market positioning, margin expansion, and robust cash generation," van Karnebeek stated. Noteworthy is the company’s success in Southeast Asia with consumer brands and the Friso infant nutrition brand in China, which contributed to the positive financial outcomes.
However, the company also noted some challenges, such as the uncertainty around future milk supply, prompting strategic measures to ensure sustainability and attractiveness to both existing and prospective cooperative members.
On the environmental front, FrieslandCampina has integrated its sustainability strategy across all business units and the cooperative, emphasizing alignment with global sustainability goals.
Net profit for the first half of 2024 also saw a remarkable increase to €183 million from just €8 million in the corresponding period last year. This was bolstered by a strong operating cash flow of €397 million, up significantly from €90 million in the first half of 2023.
In response to ongoing global dairy market volatility and economic uncertainties, the company has deferred any interim payments to member dairy farmers, focusing instead on laying a solid foundation for a substantial supplementary cash payment later in the year.
Jan Derck van Karnebeek, CEO of Royal FrieslandCampina N.V., highlighted the success of the company's focused approach since launching Expedition 2030 late last year. The strategy targets optimizing operations across its seven business groups, each dedicated to enhancing the valorization of milk from member dairy farmers. These efforts have been supported by a streamlined supply chain and efficient corporate structure.
"The first half of 2024 has witnessed substantial progress across our performance metrics, driven by better market positioning, margin expansion, and robust cash generation," van Karnebeek stated. Noteworthy is the company’s success in Southeast Asia with consumer brands and the Friso infant nutrition brand in China, which contributed to the positive financial outcomes.
However, the company also noted some challenges, such as the uncertainty around future milk supply, prompting strategic measures to ensure sustainability and attractiveness to both existing and prospective cooperative members.
On the environmental front, FrieslandCampina has integrated its sustainability strategy across all business units and the cooperative, emphasizing alignment with global sustainability goals.
Net profit for the first half of 2024 also saw a remarkable increase to €183 million from just €8 million in the corresponding period last year. This was bolstered by a strong operating cash flow of €397 million, up significantly from €90 million in the first half of 2023.
In response to ongoing global dairy market volatility and economic uncertainties, the company has deferred any interim payments to member dairy farmers, focusing instead on laying a solid foundation for a substantial supplementary cash payment later in the year.
23.09.2024
Carbon emissions in global milk production - the elephant in the room
I have been thinking to make this post yes/ no. I decided for yes and like to ask everyone to not "shoot the messenger". The chart shows an analysis of IFCN Dairy Research Network from the 2024 supporter conference in Poland.
