FrieslandCampina Delivers 25.7% Profit Jump Despite Market Challenges
Global dairy cooperative FrieslandCampina has reported a remarkable financial performance for the first half of 2025. Despite facing pressures on volumes and persistent global uncertainties, the cooperative achieved a 20.6% rise in operating profit to €363 million, with a net profit increase of 25.7% to €230 million.
The company's success was driven by strong demand in its Specialised Nutrition and Ingredients divisions. Additionally, significant cost savings were realized through its Expedition 2030 and Performance+ efficiency programs. As a result, overall revenue grew by 6.4% to €6.8 billion, mainly fueled by price-led gains.
“Despite challenges in some regions, the gross margin increased and we generated positive cash flow,” said Jan Derck van Karnebeek, CEO of Royal FrieslandCampina N.V. “Our focus on market leadership and margin improvement is paying off.”
Key Financial Highlights
| Metric | H1 2025 | YoY Change |
|---|---|---|
| Revenue | €6.8 billion | +6.4% |
| Operating Profit | €363 million | +20.6% |
| Net Profit | €230 million | +25.7% |
| Milk Price to Members | €59.66/100kg | +19.1% |
| Milk Supply | 4.6 billion kg | –1.6% |
| Cost Savings | €132 million | Target: €400–500M annually |
| Operating Cash Flow | €43 million | ↓ from €247M in H1 2024 |
Challenges: Lower Volumes & Cash Flow Pressures
Despite profitability gains, FrieslandCampina experienced volume declines and a significant drop in operating cash flow. The company was affected by reduced member milk supply (–1.6%) due to ageing farmers and environmental pressures, a global market slowdown, particularly in Asia, decline in trade payables and inventory buildup, as well as volatile currency and dairy commodity prices.
Implications for the Global Dairy Sector
The 19.1% YoY increase in farmgate milk price reflects FrieslandCampina’s commitment to value creation for farmers. Additionally, significant cost savings through innovative operational models highlight strategies that could potentially benefit Indian dairy cooperatives as well.
