Royal FrieslandCampina (RFC) H2 2024 earnings summary

Executive summary

• Revenue declined 1.1% to €12.9bn, but operating profit surged to €527m (+602.7%) and net result to €321m (+315.4%) year-over-year, driven by cost reductions, improved volume mix, and higher commodity dairy prices.

• Cost savings of €315m were achieved, mainly through restructuring and supply chain optimization, including a reduction of nearly 1,400 FTEs.

• Milk price for member dairy farmers rose 10.1% to €52.95/100kg, with a supplementary cash payment of €1.21/100kg.

• Greenhouse gas emissions on member dairy farms fell 9.8%, and 92% of packaging is now recyclable.

• Announced a proposed merger with Milcobel to strengthen market position and scale.

Financial highlights

• Revenue: €12,923m (-1.1% vs. 2023); operating profit: €527m (+602.7%); net result: €321m (+315.4%).

• Net cash flow from operating activities: €900m (2023: €831m); net debt reduced to €270m (2023: €635m).

• Equity attributable to capital providers: €3.5bn (+3.5%); solvency ratio: 35.7% (2023: 37.0%).

• Return on invested capital rose to 13.5% (2023: 1.5%).

• Investments totaled €459m, with major projects in the Netherlands and Asia.

Outlook and guidance

• Additional cost reductions of €100–150m targeted for 2025, bringing total annual savings to €400–450m.

• Higher commodity dairy prices and positive stock effects in 2024 are not expected to recur in 2025.

• Investments in 2025 will be lower, focusing on optimization of existing facilities and SAP upgrade.

• Merger with Milcobel expected to complete by end of 2025, pending approvals.