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Iran war squeezes margins of dairy giant Lactalis
Dairy giant Lactalis recorded revenue of €31,2 billion in 2025, representing an increase of 2,9% compared to the previous year. Read more about the annual figures and why the outlook for 2026 is less rosy.
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This is evident from an explanation by Lactalis regarding the annual figures. The full annual report has not yet been published.
Net profit amounted to €528 million last year, corresponding to a margin of 1,7%. With this, the group shows an improvement compared to a year earlier and is moving towards the target of a 2% margin. Growth was driven primarily by activities in North, Central, and South America, where revenue crossed the €10 billion mark for the first time.
Meanwhile, Lactalis continues to invest heavily. In 2025, approximately €1,1 billion was invested in production sites. The consumer division of New Zealand-based Fonterra was also acquired, with a turnover equivalent to €2,85 billion. This deal was finalized early this month.
War leads to higher costs
In the current financial year, headwinds have emerged due to the war in Iran. This is resulting in tens of millions of euros in higher costs for the group, including for energy and packaging materials. Lactalis states that price increases are necessary but aims to limit the impact on consumers as much as possible.
Lactalis has more than three hundred production sites worldwide and is active in dozens of countries. In the Netherlands, Lactalis owns two cheese factories and a packaging facility.