FrieslandCampina reports US$425.94M profit in first half- year 2025

NETHERLANDS – FrieslandCampina, a giant dairy manufacturer, has reported a profit of 363 million euros (US$425.94 million), compared to 301 million euros (US$353.22 million) in the first half of 2024, due to improvements in volume mix and cost savings.

Revenue rose by 6.4 per cent to 6.8 billion euros (US$7.98 billion), despite lower volumes. Higher selling prices primarily drove this growth, offsetting the increased milk prices and inflation.

Operating profit increased by 20.6 per cent to 363 million euros (US$426.13 million), 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 per cent to 230 million euros (US$269.95 million). Of the cost savings projected for 2025, 132 million euros (US$154.94 million) were achieved in the first half of the year.

Jan Derck van Karnebeek, CEO Royal FrieslandCampina N.V., said, “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.”

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.

Outlook

The company stated that it is confident about its future. Its 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,” the company stated.

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