FrieslandCampina surprises with strong result

FrieslandCampina has achieved an excellent result for 2025, the company reports. Revenue and net profit also increased, despite challenging market conditions and a sharp decline in base dairy prices in the second half of the year. Even the supplementary payment rose compared to 2024. However, the first months of 2026 are proving to be more difficult. Revenue rose to €13.4 billion, compared to €12.9 billion in 2024. Operating profit did decline slightly, from €527 million to €507 million. However, net profit was slightly higher at €328 million, compared to €321 million in 2024. The milk price paid to member dairy farmers increased from €52.95 in 2024 to €56.93 per 100 kilos last year. The cash supplementary payment also increased, from €1.21 per 100 kilos in 2024 to €1.31 last year. Company expanded and also more members Besides these results, the management of FrieslandCampina lists a number of other achievements that were established or prepared in 2025. The merger with Milcobel effective January 1, 2026, has created a European dairy cooperative with increased scale and strengthened market positions. The acquisition of Wisconsin Whey Protein enables FrieslandCampina to expand its market position in ingredients in Europe and Asia to North America. There was also successful recruitment of members, resulting in an additional 411 million kilos of member milk being secured, particularly in Germany, as cooperative chairman Sybren Attema indicated earlier. The company further reports that a larger share of nutritious consumer products was produced last year and that further reduction of greenhouse gas emissions took place. Later market recovery, lower results The global dairy market is expected to remain challenging in the first half of 2026. High milk production, particularly in the second half of 2025, has led to an ample milk supply and falling base dairy prices on the world market. Market recovery will only become visible once milk supply and market demand come back into balance, expected in the second half of 2026. In addition to the developments in supply and demand and lower base dairy prices, (geo)political developments are expected to lead to currency fluctuations, possibly higher trade tariffs, and related margin pressure. As a result of the above developments, FrieslandCampina expects profitability in the first half of 2026 to be significantly below the results in the first half of 2025, after which improvement is anticipated in the second half of 2026.