Friesland­Campina delivers strong results in the first half of 2025

Jan Derck van Karnebeek, CEO Royal FrieslandCampina N.V.:

‘FrieslandCampina delivered strong results in the first half of 2025. The balanced spread of our business across markets, products, and channels demonstrates to prove its value. Our focus on winning in the market and improving margins is paying off. Despite challenges in some regions, the gross margin increased, and we generated a positive operating cash flow.

Further progress has been made in the area of sustainability in first half of 2025, such as partnerships with various stakeholders in the field of regenerative agriculture. In addition, member dairy farmers received a total of 228 million euros based on sustainability achievements on their dairy farms in 2024.

Our strong performance in the first half of 2025 is the result of excellent teamwork, the dedication of our employees and the engagement of our members. Together we are making the difference. The ongoing economic uncertainty is expected to put pressure on profit in the second half of 2025, resulting in a lower outcome. We continue to build on a future in which we create value for our members, consumers and customers, while at the same time contributing to a more sustainable world. This is what FrieslandCampina stands for, Doing DAIRY Right.’

Improved revenue, margin and result in first half of 2025

FrieslandCampina achieved higher revenue and improved profitability in the first half of 2025. Revenue rose by 6.4 percent to 6.8 billion euros, despite lower volumes. This growth was primarily driven by higher selling prices to offset the increased milk prices and inflation. Operating profit increased by 20.6 percent to 363 million euros, partly due to strong performances in the business groups Specialised Nutrition and Ingredients, as well as cost savings realised by the Expedition 2030 and Performance+ programmes. Net result rose by 25.7 percent to 230 million euros. Of the cost savings projected for 2025, 132 million euros were achieved in the first half of the year.

Operating cash flow

The cash flow from operating activities in the first half of 2025 was 43 million euros, compared to 247 million euros in the same period last year. Working capital was higher than at year-end 2024, when the level of outstanding trade payables was high.

Infant nutrition and functional ingredients drove results

In the first half of 2025, the business groups Specialised Nutrition and Ingredients performed strongest. Both business groups achieved growth in market shares and operating profits compared to the first half of 2024, driven by sustained demand for high-quality, specialised nutritional products and ingredients for specific target groups such as children and athletes. The Europe business group experienced a positive development in its priority brands. Overall, the business group’s volume declined slightly, in line with strategic choices made, due to lower volumes of non-priority brands. The Retail & Americas business group reported a solid first half year, with volume growth and strengthened market positions thanks to successful collaboration with retail partners. The Middle East, Pakistan & Africa business group maintained stable margins despite economic pressure in some core markets. The Asia business group faced market uncertainties and increasing competition, leading to a decline in demand and operating profit. Finally, the Professional business group achieved revenue growth in strategic categories compared to the same period last year but saw results decrease due to rising costs.

Towards an efficient and sustainable production network

In the first half of the year, FrieslandCampina continued to invest in a more efficient and sustainable production network. In the Netherlands, the company invested in various areas, such as electrification, circular water use and more sustainable packaging. The network was further strengthened internationally through the opening of a new distribution centre in Malaysia. Considerable progress was also made within the chain: the number of dairy farmers participating in the regenerative agriculture pilot was doubled to sixty farms, and FrieslandCampina’s refined climate goals were validated by the Science Based Targets initiative (SBTi), in line with the Paris Agreement.

Milk supply

Member milk supply declined by 1.6 percent in the first half of 2025 compared to the same period last year, to 4.6 billion kilograms. This was mainly due to farm closures resulting from an ageing population of farmers and ongoing uncertainty in the sector. In the first half of 2025, new members were successfully recruited who will make a significant contribution to the milk supply.

Higher milk price

In the first half of 2025, the guaranteed price increased by 19.6 percent to 55.63 euros per 100 kilograms of milk compared to the same period last year. Despite an increased accrual compared to the first half of 2024, no interim payment will be paid. The supplementary cash payment will be determined based on the results for the full year 2025 and will be announced upon publication of the financial statements in February 2026. The pro forma milk price amounted to 59.66 euros per 100 kilograms of milk, an increase of 19.1 percent compared to the first half of 2024.

Remuneration for sustainability performance on dairy farms

Member dairy farmers received a total of 228 million euros for their sustainability performance in 2024, a decrease of 17 million euros compared to the previous year. This decrease is related to the annual refinement of the climate threshold and top value within the framework of Foqus planet Sustainable development. In addition, in 2024 dairy farmers were confronted with challenging conditions, such as a disappointing year for harvesting roughage and pasture grazing, and the impact of bluetongue on animal health and farming operations.

Outlook: more challenging second half-year

FrieslandCampina is confident about the company’s future. Our balanced portfolio provides a strong foundation, and the cost reduction programmes are delivering significant savings.

In the second half of 2025, we expect to face several headwinds that were not present in 2024 or earlier in 2025. Consumer confidence is low worldwide, which will impact volumes. Currency developments are expected to have a negative effect, and commodity dairy markets are becoming less favourable. These factors will lead to a lower profitability.

Our ongoing savings programmes will partly offset these challenges and are on track to deliver at the upper end of the range of 400 million to 500 million euros in annual gross savings, compared to the 2023 baseline.