News Milk
FrieslandCampina sees the tide turning after top result
FrieslandCampina had an excellent first half of 2025. While sales volumes declined, this did not hinder net profit, which rose by a quarter. However, the dairy cooperative does not yet feel comfortable making an interim supplementary payment, even though a higher amount has been reserved for this than in 2024. The outlook for the dairy market is clearly becoming less favorable, partly due to low consumer confidence.
CEO Jan Derck van Karnebeek speaks of strong results achieved across the company. Higher dairy prices boosted net revenue by 6,4% to €6,8 billion. Net profit rose from €183 million to €230 million compared to the same period last year. Besides improved sales volumes, cost savings also contributed to this increase. FrieslandCampina reports that it has reserved a higher amount of €103 million for a supplementary payment than last year in its half-year results.
The specialized nutrition divisions – which includes infant nutrition – and ingredients performed best. Results also improved in Europe. The division linked to the Middle East, Pakistan, and Africa reported stable margins amid increasing economic pressure. Increasing competition and uncertainties in the Asian market led to lower results.
Milk supply decline continues
FrieslandCampina is still unable to halt the decline in milk supply, although the decline is leveling off, falling from €1,6 billion to €4,6 billion. Moreover, the decline is in line with the national average for the first six months of this year. The decline is a result of people quitting, rather than switching. The ongoing decline could well be halted soon. FrieslandCampina proudly reports that new members have joined in recent months and will make a "significant contribution" to the milk supply.
Low consumer confidence
The positive first half of 2025 is unlikely to continue into the second half of this year. The dairy cooperative is facing challenges that weren't present in recent months. Among other things, it points to the low level of consumer confidence globally.
Currency developments are also unfavorable, particularly for sales of basic dairy products. Although not mentioned, this will likely relate to the relatively strong euro against the dollar. The dairy cooperative's management expects that the expected decline in profits can be partially offset by further cost savings.
Wouter Job
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