Sodiaal Announces Plans to Distribute €61 Million to Members Amidst Financial Growth
Source: The DairyNews
On April 2024, the Sodiaal cooperative disclosed its financial outcomes for the year 2023, declaring an average milk price of €497 per 1,000 liters, inclusive of rebates, paid to its farmers. This figure forms part of a broader plan to allocate €61 million to its 15,295 members, reflecting the cooperative's commitment to its stakeholders despite recognizing that the results, though promising, are still not meeting expectations.
The cooperative reported a notable EBITDA surge of 58%, ending the year at €228 million, attributed to robust performances across its business segments. Additionally, Sodiaal’s total revenue ascended to €5.8 billion, marking a 6% increase from the previous year.
Among the standout contributors were Candia, Yoplait, and Entremont, which significantly bolstered the cooperative’s growth, particularly in the nutrition and ingredients sectors. These brands demonstrated resilience and competitive strength in a challenging inflationary environment.
The financial year also saw a strategic increase in the milk price paid to farmers by €50 per 1,000 liters, culminating in a rate of €497 per 1,000 liters across all segments. This initiative underscores Sodiaal's ongoing commitment to enhancing farmer earnings and reinvesting in its operations, including the transition towards more sustainable agricultural practices.
Furthermore, the forthcoming general meeting in June 2024 is set to confirm the distribution of €61 million, comprising €54 million from the 2023 earnings and an additional €7.5 million as interest on shares.
In sum, while Sodiaal’s financial achievements in 2023 are seen as a step in the right direction, the cooperative remains focused on furthering its value enhancement strategy to support the entry of new breeders, foster brand development, and advance the environmental sustainability of its farms and production facilities.
Among the standout contributors were Candia, Yoplait, and Entremont, which significantly bolstered the cooperative’s growth, particularly in the nutrition and ingredients sectors. These brands demonstrated resilience and competitive strength in a challenging inflationary environment.
The financial year also saw a strategic increase in the milk price paid to farmers by €50 per 1,000 liters, culminating in a rate of €497 per 1,000 liters across all segments. This initiative underscores Sodiaal's ongoing commitment to enhancing farmer earnings and reinvesting in its operations, including the transition towards more sustainable agricultural practices.
Furthermore, the forthcoming general meeting in June 2024 is set to confirm the distribution of €61 million, comprising €54 million from the 2023 earnings and an additional €7.5 million as interest on shares.
In sum, while Sodiaal’s financial achievements in 2023 are seen as a step in the right direction, the cooperative remains focused on furthering its value enhancement strategy to support the entry of new breeders, foster brand development, and advance the environmental sustainability of its farms and production facilities.
