Cheese Producer Groupe Savencia's Full Year Performance Hit By Exchange Rates
French cheese producer Groupe Savencia Fromage & Dairy grew organically by 2.2% during 2016, however its sales were down 0.5% for the period, with a 2.7% negative exchange impact curtailing sales-growth.
The group's total 2016 sales figure stood at €4.418 billion. The currency impact is due to a reduction in value of the euro versus the Chinese Yuan, the British pound, and the currencies of South America.
Savencia’s organic growth owes to the progress it made in non-EU markets.
It said, ‘Like-for-like for foreign exchange and scope of consolidation, Cheese Product net sales gained 1.5% thanks to the Group’s international development beyond the confines of Europe. The positive trends in volume for our strategic brands far surpassed the deflationary price impact resulting from the current context of the dairy economy.'
The group added that the development of its 'international sales outran the fall observed in the French market, handicapped for the major part of the year by the weakness in world prices for industrial products'.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly. Click subscribe to sign up to ESM: The European Supermarket Magazine