Savencia Fromage & Dairy's net sales have decreased by 2.7% essentially as a result of falling milk prices and world prices for industrial products. The positive foreign exchange impact of 2.3% reflects the strengthening of the dollar and other main world currencies against the euro. The 2.4% negative structural impact reflects the divestiture at the end of December 2014 of Schratter, a US importer and distributor.


Net sales for Cheese Products have decreased by 0.7% on a like-for-like basis, reflecting a negative price movement in almost all our markets in line with the worldwide fall in the price of milk. Our volumes kept up well thanks to the dynamism of our strategic brands, in particular in Western Europe and internationally.


Net sales for Other Dairy Products have decreased by 4.6% on a like-for-like basis, due to the constant erosion of world prices for industrial products and its impact on the selling prices of milk ingredients. However, the fall was limited by positive volume growth for higher added value products.


The second half of 2015 is marked by global imbalance of the world dairy economy, with an increase of dairy production and a weaker demand, given the slowdown in exports to China and the Russian embargo. This has resulted in a fall in world dairy prices for industrial products that has deepened the crisis confronting the dairy industry both in France and more widely in Europe.


The quality and diversity of its brand portfolio nevertheless enables Savencia Fromage & Dairy to maintain its financial equilibrium.


In the midst of this complex environment, the Group, confident in the enthusiasm of its teams and the quality of its products, is set on developing its businesses through continuing and positive dialogue with its customers and milk producers.


(2015-10-23)
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