Savencia Profit Drops on Rising Milk Costs

Savencia Profit Drops on Rising Milk Costs

French dairy major Savencia Fromage & Dairy reported a sharp fall in profitability for 2025, with its net income dropping by €32.2 million to €74.7 million, representing 1.1% of revenue, mainly due to a surge in milk prices and weaker industrial commodity markets. The group’s sales reached €6.957 billion (about US$8.09 billion) during the year, recording organic growth of 1.6%, supported by strong performance in the “other dairy products” segment. However, overall revenue still declined by 2.6% compared with 2024, largely because of a negative currency impact of −4.3%, driven by the depreciation of South American currencies and the US dollar.

The company’s current operating profit fell to €210.5 million, reflecting the pressure from unprecedented increases in milk prices combined with a sharp drop in industrial commodity prices toward the end of the year. Meanwhile, other operating costs and income reached €48.5 million, rising from the previous year due to asset impairments, optimisation projects, and claims and litigation expenses. Despite the earnings decline, the board plans to propose a dividend of €1.40 per share at the Annual General Meeting scheduled for April 23, 2026.

The company also announced strategic developments, including the acquisition of Brazilian dairy firm Quatá Alimentos and a planned merger between Savencia Fromage & Dairy and Savencia Gourmet’s chocolate activities to strengthen its position in the premium foodservice segment.

Source: Dairynews7x7 11 March, 2026 Get full story here

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