Savencia Fromage & Dairy has reported a 3.7% increase in sales to €6.8 billion in its financial year 2023.
The French dairy group was 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 overall sales.
Operating income at Savencia Fromage & Dairy declined 9.1% during the year, to €212.9 million, due to higher raw materials and energy costs and lower industrial product prices.
The operating margin for cheese products rose from 2.1% to 3.1% in full-year 2023 as a result of price adjustments driven by high inflation worldwide and operational productivity gains.
In contrast, the other dairy products segment shrank from 6.1% to 4.1%.
The dairy group's operating margin stood at 3.1%, compared to 3.6% in the preceding year.
Environmental Initiatives
In 2023, Savencia Fromage & Dairy stepped up environmental initiatives, such as limiting water consumption and reducing CO2 emissions.
In March of last year, the dairy group's decarbonisation trajectory for all scopes 1, 2 and 3 were validated by the Science Based Targets initiative (SBTi).
It includes supporting the group's partner livestock farmers in their carbon diagnostics and the implementation of sustainable livestock rearing and agricultural practices while pursuing actions to promote animal welfare.
The company also made progress in terms of packaging and the 'Clean Label', which demonstrates its commitment to offering healthier and more responsible products.
Outlook 2024
The company expects another year marked by a volatile and uncertain environment with constrained purchasing power impacting consumption patterns.
It also expects geopolitical and economic tensions to lead to a slowdown in the growth of world economies.
Savencia Fromage & Dairy Group will continue to adapt and invest in developing the complementary nature of its various businesses and building on its relationship of trust with milk producers, distributors, and consumers.
The board of directors is to propose the distribution of a dividend of €1.4 per share, an increase of 7.5%, at the annual shareholders meeting on 25 April 2024, the company added.
