Dutch dairy co-op FrieslandCampina has reported higher revenue and improved profitability in the first half (H1) of 2025.
The latest financial report shows that revenue rose by 6.4% to €6.8 billion, despite lower volumes.
The growth was primarily driven by higher selling prices to offset the increased milk prices and inflation.
Operating profit increased by 20.6% to €363 million , compared to €301 million in the first half of 2024, due to improvements in volume mix and cost savings.
The co-op said that the net result increased to €230 million in the first half of 2025, compared to €183 million in the same period last year.
The cash flow from operating activities in the first half of 2025 was €43 million, compared to €247 million a year previously.
FrieslandCampina
FrieslandCampina is one of the largest dairy cooperatives in the world, with 14,183 member dairy farmers in The Netherlands, Belgium, and Germany.
Member milk supply declined by 1.6% in the first half of 2025 compared to the same period last year, to 4.6 billion kilogrammes.
The co-op said that 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,” FrieslandCampina added.
In the first half of 2025, the guaranteed milk price increased by 19.6% to €55.63/100kg compared to the same period last year.
The pro forma milk price amounted to €59.66/100kg , an increase of 19.1% compared to the first half of 2024.
The co-op said that a supplementary cash payment to suppliers will be determined based on full year results for 2025 which will be announced in February 2026.
Member dairy farmers received a total of €228 million for their sustainability performance in 2024, a decrease of €17 million 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,” the co-op said.
Outlook
FrieslandCampina said 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 co-op said.
FrieslandCampina said its ongoing savings programmes will partly offset these challenges and are on track to deliver at the upper end of the range of €400-500 million in annual gross savings, compared to the 2023 baseline.
