Savencia Fromage & Dairy has reported an 11.7% increase in sales in the first half of its financial year, to €3.4 billion, with organic growth at 14.4%%.
The sales of cheese products at Savencia Fromage & Dairy grew by 11.5%, to €1.9 billion, driven by price effects on all world markets.
The French dairy group’s local brands continued to grow, despite the pressure on the purchasing power of the consumers, the company noted.
Its other dairy products segment saw sales up 19% year-on-year to €1.6 billion, accounting for 46% of total sales, driven by favourable price and volume-mix effects.
Good momentum in the foodservice category and the restarting of Corman’s activities offset the decline in industrial products, the company added.
Operating profit for the period declined 11% to €112 million. The company benefited from price increases and industrial productivity gains but was affected by the impact of a decline in global commodity prices of dairy ingredients.
Operating profit also includes the exceptional effects of the closure of a Corman workshop and asset impairment, Savencia Fromage & Dairy added.
Outlook
The dairy firm expects economic and political uncertainties to continue in the second half of its financial year.
It will focus on adapting its offer to meet new consumer demands and pursue its efforts in terms of industrial performance and the development of its carbon footprint reduction projects.
It also announced that Régis Massuyeau joined Savencia Fromage & Dairy on 4 September and will assume the position of chief financial officer on 1 January 2024.
The dairy group reported a 14.7% increase in sales in the first quarter, to €1.67 billion, with organic growth of 17.6%, offset by a 3.0% negative exchange rate effect.
