The Savencia Fromage & Dairy Group’s sales 2023 increased by +3.7%
Source: The DairyNews
The Savencia Fromage & Dairy Group’s sales increased by +3.7% on 31 December 2023, an increase of €240 million compared to 2022, company reported.
This results from organic growth of +11.6% and a structural effect of +2.1% linked mainly to the consolidation of Williner's activities from April 2023. These were, however, impacted by a negative annual exchange rate effect of -10%, mainly due to the devaluation of the Argentinian peso, which accelerated in the fourth quarter, and to the evolution of other currencies against the euro.
Current operating income, at €212.9 million, decreased by -9.1%, or -€21.4 million. This decrease was mainly due to higher raw materials and energies costs and lower industrial product prices, which had a negative impact on Other Dairy Products. Cheese Products were up by +€46 million, driven by price adjustments across all markets in response to high inflation worldwide, and by operational productivity gains. As a result, the current operating margin for Cheese Products rose from 2.1% to 3.1%, while, reversely, that of Other Dairy Products shrank from 6.1% to 4.1%. The Group's operating margin stood at 3.1%, compared to 3.6% last year.
Other operating income and costs Included mainly asset impairments and various claims and litigation. Net financial expense was -€18 million, an improvement of +€6.4 million. The Group’s net income share was €96.5 million, an increase of +€28.5 million; it represents 1.4% of sales.
Also, at the Annual Shareholders Meeting on Thursday 25 April, the Board of Directors shall propose the distribution of a dividend of €1.4 per share, an increase of 7.5%.
In 2023, the Group also stepped up initiatives to protect the environment, whether in terms of limiting water consumption or reducing CO2 emissions.
In this regard, in March 2023, the Savencia Fromage & Dairy Group's decarbonisation trajectory for all scopes 1, 2 and 3 was validated by the Science Based Target initiative (SBTi), validating the Group's ambitions for 2030. This entails 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 (continued deployment of the Charter of Good Livestock Rearing Practices). It is also reflected in our progress in terms of packaging and the “Clean Label”, demonstrating our commitment to offering an even healthier and more responsible range of products, without compromising on the pleasure they bring to consumers, writes Dairynews.today
Current operating income, at €212.9 million, decreased by -9.1%, or -€21.4 million. This decrease was mainly due to higher raw materials and energies costs and lower industrial product prices, which had a negative impact on Other Dairy Products. Cheese Products were up by +€46 million, driven by price adjustments across all markets in response to high inflation worldwide, and by operational productivity gains. As a result, the current operating margin for Cheese Products rose from 2.1% to 3.1%, while, reversely, that of Other Dairy Products shrank from 6.1% to 4.1%. The Group's operating margin stood at 3.1%, compared to 3.6% last year.
Other operating income and costs Included mainly asset impairments and various claims and litigation. Net financial expense was -€18 million, an improvement of +€6.4 million. The Group’s net income share was €96.5 million, an increase of +€28.5 million; it represents 1.4% of sales.
Also, at the Annual Shareholders Meeting on Thursday 25 April, the Board of Directors shall propose the distribution of a dividend of €1.4 per share, an increase of 7.5%.
In 2023, the Group also stepped up initiatives to protect the environment, whether in terms of limiting water consumption or reducing CO2 emissions.
In this regard, in March 2023, the Savencia Fromage & Dairy Group's decarbonisation trajectory for all scopes 1, 2 and 3 was validated by the Science Based Target initiative (SBTi), validating the Group's ambitions for 2030. This entails 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 (continued deployment of the Charter of Good Livestock Rearing Practices). It is also reflected in our progress in terms of packaging and the “Clean Label”, demonstrating our commitment to offering an even healthier and more responsible range of products, without compromising on the pleasure they bring to consumers, writes Dairynews.today
