Lactalis Faces Allegations of Underpaying Employee Profit Bonuses Amid Financial Dispute

Lactalis, a major player in the dairy industry, is currently embroiled in a legal dispute in France over allegations of underpaying employee profit bonuses. More than 500 current and former employees have filed a case with France's Parquet National Financier, accusing the company of misrepresenting its annual profits. These allegations suggest that the affected workforce could number around 16,000, with losses potentially amounting to hundreds of millions of euros.

The employees are calling for greater transparency in the company's financial disclosures, specifically from the Besnier family, which owns Lactalis through Belgium-based BSA International. Lactalis, a privately-owned entity headed by chairman Emmanuel Besnier, typically publishes its financial accounts annually, although it has faced criticism for its perceived lack of transparency in the past.

In its most recent financial disclosure, Lactalis reported revenues exceeding €30 billion for the first time, despite a 19% drop in net profits to €359 million due to a tax settlement with French authorities. The company has previously disclosed the tax settlement amount to be €475 million, insisting that this settlement is unrelated to the employee profit-sharing scheme.

Lactalis has rebuffed claims from a group called Justice for Our Bonuses, which alleges that profit-sharing bonuses have been unfairly reduced over an unspecified period. The company has labeled these actions as misleading and emphasized that ongoing civil and criminal proceedings are addressing these practices.

The National Financial Prosecutor’s Office (PNF) has acknowledged an investigation into Lactalis for potential tax fraud, initiated in 2018, with suspicions of reduced taxable profit. The investigation was expanded in 2022 following mandatory tax reports, suggesting potential tax evasion amounting to several hundred million euros between 2009-2020.