French dairy firm Savencia Fromage & Dairy Group has reported sales growth of 16.8%, to €6.6 billion, in its financial year 2022.
The company said that sales increased €941 million in the period, driven mainly by organic growth from sales of other dairy products.
Positive Price Effect
Sales of other dairy products saw like-for-like growth of 30.9% due to a positive price effect from the price of industrial products (butter, milk powder and whey) throughout the year and to the price increases needed to cover inflation.
Sales of cheese products saw organic growth of 7.3%, mainly due to price increases in all markets to cover the impact of inflation.
Volumes contracted overall – and particularly in Europe – due to the discontinuation of certain references, penalties imposed by certain distributors and changes in consumer behaviour due to inflation, the company added.
Internationally, volumes saw an overall increase, even if certain markets experienced more contrasting trends.
During the year, Savencia Fromage & Dairy managed to adjust its sales prices while continuing to offer its dairy producer partners competitive milk prices in France.
The company, which is headquartered in Viroflay, France, also announced its commitment to the first Animal Welfare Charter for cattle, sheep, and goats worldwide.
It continued its efforts to reduce greenhouse gas emissions through energy efficiency plans, investments in renovating its facilities, and a programme to support farmers in reducing their environmental footprint.
©2023 European Supermarket Magazine – your source for the latest fresh produce news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.