Savencia Fromage & Dairy has reported a 14.7% increase in sales in the first quarter of its financial year, to €1.67 billion, with the group reporting organic growth of 17.6%, offset by a 3.0% negative exchange rate effect.
The French dairy firm’s Cheese Products division saw sales up 13.6%, noting that it passed on some degree of cost inflation in the form of price increases.
Volumes in the division are ‘slightly contracting’, it noted, due to changes in consumer behaviour in a continued inflationary environment, however it added that this contraction was ‘limited’ by a solid Easter performance and ‘solid momentum’ in international markets.
In its Other Dairy Products arm, meanwhile, sales were up 23.2% in organic terms, with the company citing a slowdown in demand and a decline in the industrial products, however less on value-added ingredients.
Argentina Acquisition
Following the close of the period, Savencia Fromage & Dairy completed its acquisition of Argentinian firm Sucesores de Alfredo Williner (on April 5), and said that it will focus on the ‘successful integration and the development of synergies’ at the business.
It noted that its performance in the first quarter echoes that of year-end, with the group seeing ‘solid’ market shares and continued international development.
‘However, in this situation, the prevailing uncertainties (global geopolitics, inflation, energy, purchasing power, dairy economy…) do not provide visibility over 2023,’ it said.
