Agri-food firm Fleury Michon has reported a 5.5% year-on-year decline in sales in the first half of its financial year.
The French company attributed this decline to the performance of its supermarket segment, which registered an 8.4% decline in sales after reporting growth of 11.4% in the corresponding period last year.
The division was impacted by lower consumption with consumers shifting towards entry-level products, as well as a reduction in prices due to the implementation of the EGAlim 2 law.
Under the legislation, updated in 2021, contracts between suppliers and retailers must contain an automatic price revision clause based on changes in commodity prices.
Divisional Performance
The company's international division, mainly driven by the airline catering business, reported sales growth of 18.1% following an upturn in international air traffic and the acquisition of new customers.
Fleury Michon's services division reported a 6.8% decrease in revenue, with the B2B out-of-home catering segment generating a turnover of €17.8 million, down from €19.1 million in the previous year.
First-Half Highlights
Operating margin in the first half rose to 1.8%, compared with 1.4% in the same period last year.
Operating income for the period amounted to €7.6 million, accounting for 1.9% of turnover and reflecting an increase compared to that recorded in 2023.
The sale of the group's shares in the Spanish joint venture Platos Tradicionales significantly contributed to an increase in net income.
A recent study unveiled that France and Italy together are home to a fifth (20%) of all the food and beverage companies in the EMEA region, while four countries – France, Germany, Italy and Spain – account for 58% of the total market value.
