In its newly released half-year results for 2022, dairy giant FrieslandCampina’s Food & Beverage business group performance benefitted from the recovery of the European out-of-home markets and high butter market prices. However, margins in the retail channel were under pressure from the significant rise in the cost of raw materials that necessitated price increases.
The Netherlands-based multinational dairy cooperative’s operating profit in the first half of 2022 grew substantially to EUR 328 m (first half of 2021: EUR 130 m). Meanwhile, net profit prominently rose to EUR 139 m (first half of 2021: EUR 62 m) due to higher commodity dairy prices and the recovery in infant nutrition activities. At EUR 89 m, the operating cash flow was at a lower level. The decrease was due to higher working capital, partly compensated by higher results.
CEO Hein Schumacher highlights a “dynamic” first half of 2022 for the company. Adjusted for currency translation effects, revenue rose from EUR 5.5 to 6.5 bn, primarily due to price increases, higher commodity dairy prices and the recovery of European out-of-home markets.