Amsterdam | July 2025 – Global dairy cooperative FrieslandCampina has reported a strong financial performance for the first half of 2025, with operating profit rising 20.6% to €363 million, and net profit jumping 25.7% to €230 million, despite pressure on volumes and persistent global uncertainties.
The growth was driven by robust demand in its Specialised Nutrition and Ingredients divisions, along with significant cost savings from its Expedition 2030 and Performance+ operational efficiency programs. Revenue grew 6.4% to €6.8 billion, mainly due to price-led gains.
“Despite challenges in some regions, the gross margin increased and we generated positive cash flow,” said Jan Derck van Karnebeek, CEO of Royal FrieslandCampina N.V. “Our focus on market leadership and margin improvement is paying off.”
🔍 Key Financial Highlights – H1 2025
| Metric | H1 2025 | YoY Change |
|---|---|---|
| Revenue | €6.8 billion | +6.4% |
| Operating Profit | €363 million | +20.6% |
| Net Profit | €230 million | +25.7% |
| Milk Price to Members | €59.66/100kg | +19.1% |
| Milk Supply | 4.6 billion kg | –1.6% |
| Cost Savings | €132 million | Target: €400–500M annually |
| Operating Cash Flow | €43 million | ↓ from €247M in H1 2024 |
📉 Challenges: Lower Volumes & Cash Flow Pressures
Despite profitability gains, FrieslandCampina experienced volume declines and a significant drop in operating cash flow due to:
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Reduced member milk supply (–1.6%) driven by aageingfarmers and environmental pressures
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Global market slowdown, particularly in Asia
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Decline in trade payables and inventory buildup
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Volatile currency and dairy commodity prices
🔬 Business Segment Performance
🍼 Specialised Nutrition & Ingredients
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Strongest performance among all divisions
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Driven by infant formula, medical nutrition, and sports nutrition
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High-margin growth partially offset volume losses elsewhere
🛒 Consumer Dairy – Europe & Americas
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Revenue growth from priority retail brands in Europe
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Volume growth in the Americas amid channel expansion
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Margin management supported by pricing and innovation
🌏 Asia
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Performance is impacted by rising competition, lower consumer demand, and channel disruptions
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Profitability dropped due to unfavourable macroeconomic conditions
🌍 Middle East, Pakistan & Africa
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Stable performance with solid margin protection despite currency volatility
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Portfolioptimisation continueded in key urban centres
👨🍳 Foodservice (Professional)
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Revenue grew in select categories, but profitability fell due to rising input and energy costs
🐄 Implications for the Global Dairy Sector
✅ Higher Milk Payouts
The 19.1% YoY rise in farmgate milk price to €59.66/100kg demonstrates FrieslandCampina’s commitment to value creation for farmers—even during uncertain times.
🔁 Sustainable Cost Leadership
€132 million saved in just six months” under “Expediti”n 203” and “Perfo”mance+” reflects how innovative operational models can balance inflationary pressure—a model Indian dairy cooperatives could emulate.
📉 Supply Side Pressures
Declining milk supply from members highlights systemic issues—such as succession planning, regulatory pressure, and climate concerns—which resonate with challenges in India’s dairy landscape.
📈 What It Means for Indian Dairy
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Cooperatives like Amul, Nandini, and Verka can pivot to specialised nutrition and value-added segments to diversify their revenue.
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Feed & formulation firms can track how protein-rich byproducts from expanded nutrition portfolios could shape cattle feed costs and formulations.
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Policy makers and FrieslandCampina’s approach to supporting corporate cost structures—a blueprint for balancing farmer welfare with profitability.