Lower commodity dairy prices weigh on FrieslandCampina’s result
- Lower commodity dairy prices due to high global milk supply put pressure on operating profit: 269 million euros compared with 363 million euros in the first half of 2025.
- Solid volume growth in almost all markets.
- Strong protein markets, growth in higher-value-added products and cost savings partly offset the pressure on the result.
- Operating cash flow improved to 292 million euros (H1 2025: 43 million euros), partly due to better working capital management.
- Integration of Milcobel and Wisconsin Whey Protein is proceeding according to plan and strengthens economies of scale, market positions and the portfolio.
- The guaranteed price was 40.49 euros per 100 kilograms, and the pro forma milk price was 43.09 euros per 100 kilograms of milk compared with 55.63 and 59.66, respectively, a year earlier.
- Progress was made on sustainability, including the publication of the Nutrition Impact Report 2025.
- Member dairy farmers received over 230 million euros for their sustainability efforts in 2025.
- It is expected that the result in the second half of 2026 will be higher than in the second half of 2025.
Jan Derck van Karnebeek, CEO of Royal FrieslandCampina N.V.:
“The first half of 2026 was marked by a sharp imbalance in the dairy market. Global milk supply was high, while demand for commodity dairy products was lagging. This put pressure on prices, margins and our result. In Northwestern Europe, milk supply also exceeded available processing capacity, limiting our ability to process additional volumes into products of the highest possible value.
At the same time, we saw positive developments. Sales volumes increased in almost all markets, and we benefited from the positive protein trend. Our focus on higher-value-added products, cost control and commercial execution also paid off. The improved results in the Europe, Asia, Ingredients and Middle East, Pakistan & Africa business groups underline the strength of these choices. In addition, the integration of Milcobel and Wisconsin Whey Protein is progressing according to plan and contributing to our continued development.
Within the Asia business group, our focus on nutritious and affordable dairy products contributed to the growth of the ready-to-drink milk portfolio in Indonesia and Malaysia. Indonesia experienced a recovery in comparison to a year earlier. Furthermore, our Specialised Nutrition business group continued to make a strong contribution, with the infant nutrition brand Friso further strengthening its position in our priority markets.”
Revenue stable, result under pressure and cash flow improved
Revenue in the first half of 2026 was more than 6.8 billion euros, virtually stable compared with the first half of 2025. This was due to the growth in higher-value-added products and the contribution of Milcobel and Wisconsin Whey Protein, which partly offset the negative impact of lower commodity dairy prices, the increased share of commodity dairy in the product mix and currency translation effects.
Operating profit decreased to 269 million euros, compared with 363 million euros in the first half of 2025. The high global milk supply and lower commodity dairy prices in particular put the commodity dairy portfolio under pressure. This was partly offset by the strong development of the protein markets, the growth of higher-value-added products and cost savings through the Performance+ improvement programme, standardisation and centralisation. The net result was 138 million euros (H1 2025: 230 million euros).
In the first half of 2026, the operating cash flow was 292 million euros, compared with 43 million euros in the first half of 2025. Operating cash flow improved, partly due to better working capital management compared with year-end 2025.
Mixed picture across business groups
The performance of the business groups showed a mixed picture. Professional and Retail & Americas achieved volume growth, but saw their result decline due to price pressures, a less favourable product mix and pressure on commodity dairy categories. Asia recovered its result, supported by a recovery in Indonesia. Ingredients delivered volume growth, higher revenue and a higher operating profit, supported by the positive development of the protein markets and the contribution from Wisconsin Whey Protein. Middle East, Pakistan & Africa achieved a higher result than a year earlier.Despite geopolitical tensions in parts of the Middle East, operations in the region were largely able to continue, partly thanks to the dedication of colleagues there. The activities in Nigeria and Pakistan made an important contribution to this improvement. Europe achieved higher profits, driven by strong volume growth, an improved product mix, further streamlining of the organisation and market share gains across most of its priority brands. Specialised Nutrition continued to make a significant contribution to FrieslandCampina’s result, although the result was lower than a year earlier due to negative currency translation effects and additional investments in the Friso brand. At the same time, Friso gained market share in all its priority markets.
Strategic strengthening and network optimisation
In early January 2026, FrieslandCampina finalised its merger with Milcobel and the acquisition of Wisconsin Whey Protein. The integration of Milcobel is proceeding according to plan and contributed to economies of scale, a stronger market position, a broader product portfolio and a larger European footprint. The realisation of synergies is ahead of schedule. The integration of Wisconsin Whey Protein within FrieslandCampina Ingredients is also progressing according to plan and strengthens its position in high-quality whey proteins and in the North American ingredients market.
Within its production network, FrieslandCampina focused on further optimising capacity, efficiency and the product portfolio. The company announced an investment programme worth more than 90 million euros for technological upgrades in Bedum, Veghel and Workum (the Netherlands) focused on the growing demand for high-quality protein ingredients. In Lochem (the Netherlands), capacity was expanded with new butter production lines and in Leeuwarden (the Netherlands), production was discontinued at the north side of the site.
Progress on sustainability
In the first half-year, FrieslandCampina took further steps in the area of sustainability. In Lummen (Belgium), the company commissioned a new 10-million-euro ice-water installation, enhancing the sustainability, energy efficiency and safety of production through reduced electricity consumption, improved utilisation of residual heat and the use of CO₂ as a refrigerant instead of ammonia. The new butter production lines in Lochem (the Netherlands) are expected to deliver annual savings in electricity, gas and water. In addition, the use of electric trucks was further expanded.
FrieslandCampina published the Nutrition Impact Report 2025, which sets out the progress made in improving the nutritional composition of products, increasing access to affordable dairy and strengthening responsible communication.
Milk supply, guaranteed price and milk price
The milk supply in Northwestern Europe, which started to increase in the second half of 2025, resulted in a higher milk supply for FrieslandCampina in the first half of 2026. The member milk supply increased by 18.5 percent to 5,443 million kilograms compared with the first half of 2025 (H1 2025: 4,595 million kilograms). More than half of this increase is attributable to the merger with Milcobel. The remaining increase reflects the addition of new members as a result of member recruitment and autonomous growth. This marks a break with the trend of previous years, when the milk supply had been declining.
The guaranteed price was 40.49 euros per 100 kilograms, and the pro forma milk price was 43.09 euros per 100 kilograms of milk compared with 55.63 and 59.66, respectively, a year earlier.
Remuneration of sustainability efforts at member dairy farms
In June 2026, member dairy farmers received almost 174 million euros for their sustainability performance throughout 2025 under the Foqus planet Sustainable development remuneration methodology. This amount was virtually unchanged from the payment made in June 2025 for performance throughout 2024 (173 million euros). Together with the premium of nearly 57 million euros for special supplements, such as organic, On the way to PlanetProof and VLOG [non-GMO], member dairy farmers received a total of over 230 million euros for their sustainability efforts in 2025, compared with 228 million euros in 2024.
Outlook
FrieslandCampina expects further volume growth in the second half of 2026, particularly in higher-value-added dairy segments, supported by a favourable market for high-quality proteins. It is expected that the result in the second half of 2026 will be higher than in the second half of 2025. Although commodity dairy markets appear to be stabilising, margins and results remain sensitive to developments in supply and demand, including the potential effects of extreme weather conditions on milk production and dairy commodity markets, price volatility, geopolitical tensions, currency translation effects and regulatory developments.
FrieslandCampina remains focused on profitable growth, improved margins and a stronger cash position. Key priorities include improving the product mix, managing costs through Performance+, strengthening commercial execution, making targeted investments in growth, innovation and capacity expansion, and further integration of Milcobel and Wisconsin Whey Protein.