SAVENCIA CHEESE & DAIRY: 2023 annual accounts – Erratum

Thursday March 7, 2024

1. PRESS RELEASE: 2023 annual accounts

Annual accounts 2023

The turnover of the Savencia Fromage & Dairy Group increased by +3.7% as of December 31, 2023, up 240 million euros compared to 2022.
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 Argentine peso, which accelerated in the fourth quarter, and the evolution of other currencies against the euro.

Current operating profit, at 212.9 million euros, was down -9.1%, or -21.4 million euros. This decrease is mainly explained by the increase in raw material and energy costs as well as the drop in prices of industrial products, which had a negative impact on Other Dairy Products. Cheese Products were up +46 million euros, driven by price adjustments in all markets in response to high global inflation and by operational productivity gains. As a result, the current operating margin of Cheese Products increased from 2.1% to 3.1% while, conversely, that of Other Dairy Products fell from 6.1% to 4.1%. The Group’s operating margin stood at 3.1%, compared to 3.6% last year.

The story continues

Other operating income and expenses Mainly includes asset impairments and various claims and disputes. The net financial result amounts to -18 million euros, an improvement of +6.4 million euros. Net income, Group share, amounts to
96.5 million euros, up +28.5 million euros; it represents 1.4% of sales.

Dividend

The Board of Directors will propose to the General Meeting of Shareholders on Thursday April 25 the distribution of a dividend of €1.4 per share, an increase of 7.5%.

The Group’s CSR commitments

In accordance with the Group’s commitments and its values, the year 2023 was placed under the sign of employees, their safety, their health and their well-being. For the tenth consecutive year, the Savencia Fromage & Dairy Group received the Top Employer award in 14 countries (including France, USA, Argentina, Brazil, China, Czech Republic, Spain, Japan & India), attesting to the quality of environmental work appreciated by his teams.

In 2023, the Group has also increased initiatives in favor of environmental protection, whether in terms of limiting water consumption or reducing CO emissions.₂ emissions.
In this regard, in March 2023, the decarbonization trajectory of the Savencia Fromage & Dairy Group for all scopes 1, 2 and 3 was validated by the Science Based Target (SBTi) initiative, validating the Group’s ambitions for horizon 2030. This involves supporting the Group’s partner livestock farms and farmers in their carbon diagnosis and the implementation of sustainable breeding and agricultural practices, while continuing actions in favor of animal welfare (continuation of the deployment of the Charter of good breeding practices). This is also reflected in our progress in packaging and “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.

Outlook for 2024

The outlook for 2024 remains marked by a volatile and uncertain environment:
– Consumption patterns will continue to evolve while purchasing power remains limited,
– Geopolitical and economic tensions are leading to a slowdown in the growth of global economies,
In this context, the Savencia Fromage & Dairy Group is continuing its adaptation and investment efforts, while developing the complementarity of its different businesses and relying on its relationship of trust with its partners: milk producers, distributors and consumers. The Group intends to respond to environmental uncertainties through the quality of its products and the commitment of all its teams, in line with its mission:
“Paving the way for better nutrition while serving the common good.”

Further information can be found on the website savencia-fromagedairy.com

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