FrieslandCampina attracts extra working capital

FrieslandCampina has concluded a refinancing of €1,25 billion for the next five years. The existing credit facility worth €1 billion will therefore be replaced early. The cooperative dairy group is in need of extra working capital.

The increase of the credit facility provides for an increased need for working capital, FrieslandCampina states. The half-year figures showed that the operating cash flow decreased from €46 million to €89 million negative. This decrease is a result of higher working capital due to higher milk and sales prices, according to the report semi-annual report.

“Despite challenging credit market conditions, we were able to refinance our revolving credit facility on favorable terms,” said CFO Hans Janssen. The financing is linked to various sustainability criteria. In concrete terms, this means that FrieslandCampina has complied with the reduction of greenhouse gas emissions and extra efforts on recyclable packaging.

The existing €1 billion funding was initially scheduled to end in two years' time, but is now being replaced early and increased by €250 million.

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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