FrieslandCampina saw improved performance across its business groups in full-year 2024 with operating profit increasing to €527 million from €75 million in 2023.
The Dutch dairy giant was also boosted by implementing cost reductions and favourable market developments, such as higher commodity dairy prices.
FrieslandCampina's net profit increased to €321 million during the year from a loss of €149 million in 2023.
Revenue for the year declined by 1.1% to €12.9 billion due to unfavourable impact from currency translation. On a constant currency basis, it increased by 1.3%.
Jan Derck van Karnebeek, CEO of Royal FrieslandCampina N.V. stated, "2024 was a year of transformation for FrieslandCampina, characterised by the implementation of Expedition 2030 and a new organisation model with seven business groups, supported by a global supply chain organisation and efficient support services."
Annual Highlights
FrieslandCampina generated a positive operating cash flow of €900 million, up from €831 million in 2023.
The dairy group achieved cost savings of €315 million, including €222 million from its supply chain organisation.
Total compensation for member dairy farmers increased by 5.5% to €4.8 billion in 2024, with an average milk price of €52.95 per 100 kilograms of milk, including a supplementary cash payment of €1.21.
The year also saw milk supply from members decline 3.4% to 9.1 billion kilograms due to unfavourable weather conditions and dairy farmers shutting down their farms.
Greenhouse gas emissions at member dairy farms decreased 9.8% during the year in comparison to 2023.
Outlook 2025
With inflation expected to persist in 2025, FrieslandCampina expects cost reductions in the range of €100 to €150 million during the year.
It will be used to offset inflation, facilitate growth, and support the company’s profitability.
FrieslandCampina noted that the higher commodity dairy prices compared to the guaranteed price, and the positive effect of stocks that in 2024 contributed to a better result will not reoccur in 2025.
Investments will be somewhat lower in 2025, due to the completion of large projects in 2024, it added.
Van Karnebeek stated, "I am grateful for what we have accomplished together this past year. The results for 2024 prove that we are on the right path, and in 2025 and beyond we will continue to work hard on a future-proof and successful FrieslandCampina for members, employees, and all other stakeholders of this great cooperative."
