Core Viewpoint - FrieslandCampina is undergoing a significant leadership change in its core business, with Roger Loo appointed as the new global president of professional nutrition, succeeding Harvey Uong, who will leave the company in April 2026 [1][3]. Group 1: Leadership Changes - Roger Loo will take over as the global president of professional nutrition, which includes key products like infant formula in China, from Harvey Uong, who is set to depart in April 2026 [1]. - The restructuring is part of a larger organizational change, including the merger with Milcobel, which will take effect on January 1, 2026 [3]. - Jan Derck van Karnebeek will continue as the global CEO, while Milcobel's CEO, Peter Grugeon, will become the president of the professional dairy products group [3]. Group 2: Business Performance - FrieslandCampina's professional nutrition business reported revenue of €718 million (approximately 6.04 billion RMB) for the first half of the year, marking an 18.1% year-on-year increase, with operating profit rising by 61.0% to €219 million (approximately 1.84 billion RMB) [3]. - The professional nutrition segment, particularly brands like Friso and Royal Friso, is crucial for FrieslandCampina's operations in China [1][2]. Group 3: Market Dynamics in China - The new leadership in professional nutrition may have limited impact on the Chinese market, where Zhang Zhanhong has been leading since November 2024 [6]. - FrieslandCampina's professional nutrition business in China continues to experience double-digit growth, with Royal Friso's three-stage product becoming the best-selling single SKU in the infant formula market, selling over 10 million cans in a year [7]. - Despite a 9.8% decline in offline sales of infant formula in China, FrieslandCampina's Friso brand has managed to grow, indicating strong brand positioning and product confidence [8].

Core Insights - Royal FrieslandCampina participated in the 10th China Special Food Conference, showcasing its commitment to high-quality development in the special food industry through innovative research and product offerings [1][2] - The conference gathered over 3,000 representatives from government, regulatory bodies, research institutions, and industry enterprises to discuss advancements in special food technology, safety regulations, and application trends [2] - FrieslandCampina's new high-end organic infant formula, "Royal Meiji Jia Er Chuan Yue," launched in April, received significant attention due to its comprehensive organic certification [1] Group 1 - FrieslandCampina highlighted its "natural nourishment" philosophy and full supply chain management from "farm to table" at the conference [1][2] - The company showcased several flagship products, including Royal Meiji Jia Er, Royal Meiji Jia Er Chuan Yue, Royal Meiji Jia Er Wang Yue, and Meiji Jia Er Yuan Yue [1][3] - FrieslandCampina's commitment to innovation in product development, supply chain breakthroughs, digital customer service, and sustainability was recognized, leading to its selection as a key participant in the conference [2] Group 2 - During the "New Infant Power: Smart Matching for the Future" conference, FrieslandCampina's nutrition head, Liu Yan, discussed the importance of digestibility in infant formula, emphasizing the need for optimized casein mineralization levels [4] - The company is implementing two key strategies to enhance infant formula: selecting optimal milk sources and employing a "raw milk cold chain direct delivery, one-time powdering" process to reduce protein glycation levels [4] - FrieslandCampina's collaboration with Jiangnan University resulted in research on the differential utilization of HMOs and GOS by bifidobacteria, contributing to a better understanding of infant gut microbiota [6] Group 3 - FrieslandCampina's senior vice president, Yang Guochao, noted the rapid and regulated development of China's special food industry over the past decade, highlighting the company's role as both a participant and contributor [8] - The company aims to continue sharing cutting-edge research findings to provide consumers with higher quality products and services, collaborating with various partners to support the high-quality development of the special food industry in China [8]

Core Viewpoint - The performance of foreign dairy companies in China, including Nestlé, Danone, FrieslandCampina, and Abbott, has shown overall positive results in the first half of the year, driven primarily by the rapid growth of high-end products like Aptamil and FrieslandCampina's Royal FrieslandCampina [1][3][4]. Financial Performance - Danone reported a sales increase of 4.2% to €13.737 billion, with volume/portfolio growth of 2.6% and pricing up by 1.7% [3]. - FrieslandCampina's revenue grew by 6.4% to €6.847 billion [3]. - Abbott's revenue for the first half reached approximately $21.5 billion, a year-on-year increase of 5.7% [3]. - Nestlé achieved sales of approximately CHF 44.2 billion, with an organic growth rate of 2.9% [3]. Regional Insights - Danone's China region (CNAO) recorded sales of approximately €2.017 billion, a year-on-year increase of 11.3%, with a notable 12.4% growth in Q2 [4]. - FrieslandCampina's professional nutrition segment saw an 18.1% revenue increase to €718 million, with operating profit rising by 61% to €219 million [5]. Market Trends - There is a strong demand for high-quality professional nutrition products among Chinese consumers, with FrieslandCampina's Royal FrieslandCampina leading the market [5]. - Danone's online business has surpassed offline sales, indicating a shift in consumer purchasing behavior [6]. - The infant formula market in China is recovering, with expectations for continued growth in the second half of the year [7]. Competitive Landscape - The competition between domestic and foreign dairy companies is intensifying, with domestic brands like Feihe gaining ground [8]. - Analysts suggest that the future of the high-end and ultra-high-end milk powder market may be dominated by foreign brands, supported by domestic brands [8][9].

Core Insights - Zhang Zhanhong, the new president of FrieslandCampina's professional nutrition division in China, emphasizes the company's successful strategy evidenced by four consecutive years of double-digit growth in the Chinese market [1] - The company is focusing on three core strategies: focus, agility, and cohesion to strengthen its core business and enhance operational efficiency [1] Company Performance - FrieslandCampina's revenue in 2024 decreased by 1.1% to €12.9 billion, while operating profit increased to €527 million and net profit rose to €321 million [3] - The professional nutrition business, including the brand "Friso," saw a revenue increase of 6% to €1.218 billion, with operating profit up by 16.4% to €227 million, driven by strong growth in the Chinese market [3] Market Trends - The overall sales of infant formula are projected to decline by 5.9% in 2024, with a smaller decline of 0.8% in the first quarter of 2025, indicating a potential market recovery [2] - There is a direct correlation between marriage rates and the infant formula market, with a 20% decrease in marriage registrations in 2024, which may impact future birth rates [2] - New consumer trends show that younger parents prioritize milk source, quality, and functionality, seeking natural, organic, and high-quality products [2]

Core Insights - The 31st Annual Conference of the China Dairy Industry Association and the 2025 China Dairy Technology Expo was held in Nanjing, focusing on "Innovation Leading Consumption, Promoting National Nutrition and Health" [1] - FrieslandCampina China actively participated in the event, sharing cutting-edge research on dairy fat and oligosaccharides, and promoting public awareness of dairy nutrition [1][4] Group 1: Event Overview - The event gathered numerous upstream and downstream dairy enterprises to showcase the latest research achievements and advanced technologies [1] - The "2025 Dairy Carnival: Dairy Consumption Season" was held concurrently to stimulate consumer enthusiasm and lead new trends in dairy consumption [1] Group 2: Research and Innovations - FrieslandCampina China's nutrition head, Liu Yan, emphasized the importance of "easy digestion" fats in infant nutrition product development, highlighting clinical trials that show benefits of natural dairy fat [2][5] - Research indicates that fortified dairy fat-based formula can effectively reduce the incidence of colds, fever, and allergic diseases in infants [2] - FrieslandCampina's research on oligosaccharides, particularly HMOs, is crucial for early life nutrition innovation, with specific types showing benefits for gut and immune health [4] Group 3: Product Development - FrieslandCampina offers differentiated product combinations for Chinese mothers and babies, including high-active lactoferrin and various natural dairy fat protective factors [6] - The newly launched premium organic product, Royal FrieslandCampina's Chunyue, has undergone four authoritative organic certifications, establishing a new benchmark for high-end organic products [6] - The company aims to accelerate innovation and develop more high-quality, functional products to meet the nutritional needs of the Chinese market [6]