News milk
FrieslandCampina sees major change in results
FrieslandCampina achieved a major turnaround in results last year. Although turnover decreased slightly, the result went from negative to solid positive and there was also a higher than expected additional payment. FrieslandCampina is more cautious about the year that has just started.
Turnover fell from €13,1 billion to €12,9 billion, mainly due to exchange rate fluctuations. However, the result did not suffer. Net profit rose from €149 million negative to €321 million positive. This is the amount that remains 'clean' for the company. Reserves and back payments have already been deducted. The back payment, which was not made last year due to the poor result at the time, now amounts to €1,21 per 100 kilos of milk.
The compensation to member suppliers increased by 10% compared to 2023. A cash milk price of €52,95 per 100 kilos was paid. This amount consists of €49,48 for the guaranteed price, €1,46 for Foqus planet surcharge and €1,21 additional payment. CEO Jan Derck van Karnebeek is happy with the result and proud of the company's employees for achieving this result, he says.
Mix of windfalls
According to him, the strong profit growth is the result of an improved volume mix, the growth of consumer brands in Southeast Asia and Friso infant nutrition in China, the elimination of the cost impact of expensive stocks, higher basic dairy prices, combined with a positive difference between these basic dairy prices and the guaranteed price for conventional farm milk.
In 2024, almost 1.400 full-time jobs were also reduced. FrieslandCampina saved €315 million thanks to internal improvement programs. The production organization realized €222 million in savings. Part of the savings was used to compensate for inflation effects.
Asia and ingredients
Calculated by business groups, money was mainly earned in (Southeast) Asia, with infant nutrition and in the ingredients division. Things went less well in Nigeria and Pakistan, in the latter country due to the introduction of VAT on packaged milk. Steps were also taken in terms of climate targets. Greenhouse gas emissions at member companies fell by 853 kton CO2 equivalent, which amounts to a reduction of 9,8% compared to 2023.
Less milk and limbs
Meanwhile, milk supply fell by 3,4%, from 9.369 million kilos in 2023 to 9.050 million kilos in 2024. The decline is mainly due to a decrease in the number of dairy farm members, from 9.417 to 9.001. A net decrease of 416. FrieslandCampina states that this is due to a lack of succession and the last outflow of members via the DMF scheme that expired in 2023 and from which the last dairy farmers left on 1 January 2024. The weather also played a role. A positive thing in terms of membership is that the inflow of new members also increased again, it is reported.
No repeat in 2025
FrieslandCampina expects that the higher basic dairy prices in the market compared to the guaranteed price and the positive inventory effect, which contributed to the better result in 2024, will not be repeated in 2025. Investments will be slightly lower in 2025. Finally, FrieslandCampina aims to complete the proposed merger with Milcobel before the end of 2025.
Klaas van der Horst
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