Milcobel continues strategic course: strong financial results and focus on dairy
Reorganization, sale of Ysco and announcement of merger intent with FrieslandCampina mark transformative year
2024 was a pivotal year for Milcobel, in which the Belgian dairy cooperative continued to transform itself and take strategic steps towards a future-oriented organization. The company realized a turnover of 1.3 billion euros, similar to the 2023 result, and a pre-tax profit of 4.1 million euros (after a loss in 2023), mainly driven by an improvement in Milcobel Premium Ingredients, which was able to surf along on the boom in international dairy listings. Milcobel Consumer Products experienced the impact of a difficult SAP introduction at the end of 2023, especially in the first half of the year, but recovered in the second half. Ysco posted a strong result comparable to 2023.
Milcobel also announced the sale of subsidiary Ysco and declared its intention to merge with FrieslandCampina, an important strategic milestone to strengthen both cooperatives.
Key financial figures 2024
- Operating income: €1.312 billion (in line with €1.315 billion in 2023)
- Recurring operating profit: 21.3 million euros (up sharply from 3.6 million euros in 2023)
- Profit before tax: 4.1 million euros (vs. a loss of -10.5 million euros in 2023)
- Solvency: 26.7% (up from 25.9% in 2023)
- The total volume of milk processed fell slightly from 1.3 to 1.2 billion liters due to poor weather conditions in the spring and the impact of bluetongue in the fall.
The results of subsidiary YSCO are still fully included in Milcobel's operating result since the transaction was not completed until January 8, 2025. Consequently, proceeds from the sale of Ysco are not included in the 2024 figures.
The detailed figures will first be discussed with the Milcobel Cooperative Council. They will then be explained at the general member meetings that will take place in all member circles in May. Final approval of the annual results will follow at the General Assemblee on June 17.
Peter Grugeon, CEO of Milcobel: "In 2024, we took strategic steps to sustainably improve Milcobel in a challenging market. We worked on 4 pillars: an efficient organization, cost-consciousness, targeted investments with added value for our members, and a focus on dairy products with added value. In doing so, Milcobel restructured in 2024, which led to leaner and more agile operations. Moreover, the sale of YSCO further strengthened us and allows us to fully focus our attention on dairy processing. In addition, on December 18, we announced our intention to merge with FrieslandCampina, a deliberate move to create a strong merger cooperative that can better exploit opportunities and address challenges more effectively in the global dairy market."
Looking ahead to 2025
Milcobel remains committed to (cost) efficiency, innovation and value creation within the international dairy market in 2025. The cooperative expects to see the positive impact of the reorganization and sale of Ysco in its 2025 results. It is also actively working on preparations for the planned merger with FrieslandCampina, which is expected to be completed by the end of 2025 (subject to approval by the competition authorities).