Savencia: Net Result Plummets by 32 Million, Dragged Down by Soaring Milk Prices
French dairy products giant Savencia Fromage & Dairy saw its net result plummet by 32.2 million euros in 2025, penalized by record milk price hikes and the devaluation of South American currencies. Concurrently, the group is accelerating its external development with the acquisition of Quatá in Brazil and the merger with its subsidiary Savencia Gourmet, thus doubling its integration challenges in a deteriorated economic environment.
Financial Performance Overview
Savencia Fromage & Dairy recorded a revenue of 6.957 billion euros in 2025. On paper, organic growth remains solid at over 1.6%, driven by the strong performance of Other Dairy Products and the integration of Ugalait since July 2024. However, this performance is overshadowed by a 2.6% decline in revenue compared to 2024, directly attributable to the decrease in industrial product prices. South American currencies and the dollar have particularly depreciated, highlighting the group's vulnerability to exchange rate fluctuations on its strategic international markets.
Operational Challenges and Financial Results
The current operating result stood at 210.5 million euros, down from 2024. Savencia identifies two main culprits for this margin squeeze: the record surge in milk prices, an unavoidable cost for a dairy processing group, and the sharp decline in industrial product prices at the end of the year. Added to these shocks are Other Operating Products and Charges, which reached 48.5 million euros and include asset impairments, restructuring costs, and various provisions for disasters and litigation. Ultimately, the net result attributable to the group amounted to 74.7 million euros, down by 32.2 million euros, now representing only 1.1% of the revenue. A weakened profitability level that contrasts with the strategic ambition displayed by the group.
Strategic Initiatives Amidst Challenges
Despite this strained profitability, Savencia is launching a double strategic offensive. The group first confirms the acquisition of Quatá Alimentos, a Brazilian cheese and dairy products producer with locally entrenched brands like Glória and Quatá. Concurrently, Savencia accelerates its merger with its subsidiary Savencia Gourmet by acquiring its chocolate activities, valued at approximately 800 million euros in revenue in 2025. The valuation operation reaches 394 million euros, debt included, financed by an issuance of subordinated securities worth 175 million euros at a rate of 4.57%. These two moves aim to strengthen the complementarity of businesses and the development of Premium and international Foodservice. The group also maintains its distribution policy with a proposed dividend of 1.40 euros at the general meeting on April 23. However, the integration of these acquisitions occurs in a context that Savencia itself describes as uncertain and volatile, marked by fragile consumption in Europe, increasing geopolitical tensions, and unfavorable changes in international taxation.
