Savencia Fromage & Dairy has reported a 1.6% year-on-year increase in sales to €1.7 billion in the first quarter of its financial year.
Organic growth was neutral with a favourable contribution from cheese products offset by a decline in other dairy products, the company noted.
Sales in Savencia Fromage & Dairy's cheese products division increased by 2.5%, driven by positive volumes, particularly in Europe, and the effect of the price increases due to inflation and continued high milk prices in the main markets.
The sales of other dairy products declined 2.1% during the quarter after a 23.2% increase in the year-ago period.
The company attributed this decline to the reduction in worldwide prices of industrial products and the decrease in the volume of commodities.
Outlook
The French dairy group cautioned against a volatile and uncertain environment due to changing consumption patterns driven by pressure on purchasing power, and geopolitical and economic tensions leading to a slowdown in global economies.
The group will continue to pursue initiatives to adapt and invest by developing the complementarity of its businesses and leveraging the trust it has built up with its stakeholders, such as milk producers, distributors and consumers.
It is also pursuing its goals related to environmental conservation, including measures to reduce water and energy consumption and CO2 emissions, in line with its 2030 targets.
The dairy group reported a 3.7% increase in sales to €6.8 billion in its financial year 2023, boosted by organic growth of 11.6% and a structural effect of 2.1% related to the consolidation of Williner's activities from April 2023. However, a negative annual exchange rate effect of 10% impacted its overall sales.
