FrieslandCampina outlines cost-savings plan
“The entire company has to reduce costs,” the Dutch dairy co-op insists.
FrieslandCampina has given an indication of its plans to cut costs across the business.
The Dutch dairy co-op, which saw its first-half profits slump more than 94%, is looking to save €400-500m ($423-528m) in costs from 2026.
Further details will be announced “in the coming months”, the company said. It intends to set out the impact of the plans by mid-December. Factories will not be closed, although jobs are set to be cut.
“The entire company has to reduce costs, with the main focus on the support functions. This will result in restructuring and job losses,” the Dutch Lady milk owner said in a statement.
Jan Derck van Karnebeek, who took the helm at the start of June after previous CEO Hein Schumacher joined Unilever, said: “Our goal is clear: produce top-quality products from our members’ milk and by doing so generate maximum value for them. Income that our members need to continue investing in the sustainable future of their farms. That is why it is so important that we structurally improve our business performance.”
FrieslandCampina saw its revenue and earnings rise in 2022 but, in the opening six months of this year, the company’s profitability curdled amid lower commodity dairy prices and a fall in volumes.
Net profit decreased 94.2% to €8m. Operating profit dropped 85.7% to €47m.
Revenue rose 4.6% to €6.9bn and by 6.9% at constant currencies.
Van Karnebeek added: “Our sharpened strategy with a focus for each business group on specific customers, products, brands and markets will significantly improve the way we work and compete.”
FrieslandCampina said part of the planned annual savings will be needed to offset inflation. It will also look to invest in “sustainable growth” and increase profits.
Related news
Unilever strengthened in both sales and price – exceeding analyst expectations
Unilever reported solid revenue growth in the second quarter of…
Read more >Unilever sells Venezuela ice-cream arm
Mack de Venezuela, the Venezuelan subsidiary of Mack de Colombia,…
Read more >Sainsbury’s To Launch Unified Retail Media Platform, Nectar360 Pollen
UK retailer Sainsbury’s has announced plans to launch Nectar360 Pollen,…
Read more >Related news
Co-op UK Launches ‘On The Go’ Micro Store Format
Co-op’s On The Go format is one-quarter the size of…
Read more >Shein fined again: Italian competition authority steps in over misleading green claims
China-based fast fashion giant Shein has been hit with another…
Read more >McDonald’s plans to ‘double down’ on AI investment by 2027, executive says
McDonald’s plans to “double down” on its artificial intelligence investments…
Read more >