Fleury Michon: Revenue Increases by 3.6%, but Net Income Falls by 37%

Diverse Performance Across Business Segments

The growth in consolidated revenue is based on heterogeneous performances. The mass retail segment in France, which includes deli meats, individual ready meals, and seafood products, records a volume growth of 4.4%, driven by market share gains. In terms of value, this increase stands at 2.6%, limited by pricing adjustments related to the EGALIM law. Within this segment, individual ready meals significantly outperform with a volume growth of 8.8% against a market increase of 1.1%. The International division shows the most sustained dynamic with a rise of 10.2%, now representing 13% of consolidated revenue. International airline catering primarily drives this performance, securing new major clients across several continents and surpassing the growth of international air traffic. Concurrently, the Other Sectors in France, including domestic airline catering and out-of-home dining, exhibit a growth of 10.4%, benefiting particularly from the launch of the Fleury Michon Catering offer aimed at sandwich and fast food markets. Conversely, the surimi activity records a slight volume decrease over the year, although a rebound is observed in the second half.

Operating Income Declines Amidst Growing Activity

The current operating income stands at 12.2 million euros, or 1.5% of revenue, slightly down from 2024. This contraction occurs in a context of growing activity, revealing pressure on margins. The group attributes this dynamic to the high costs of poultry raw materials, which remained elevated throughout the year. Notably, the contribution of the international airline catering sector has limited the extent of this decline in operational profitability. The net income from continuing operations amounts to 8.4 million euros compared to 13.3 million euros in 2024, a decrease of 36.8%. This contraction is explained by the discontinuation of the share of earnings from equity-accounted investees, following the divestiture of a 50% stake in Platos Tradicionales in June 2024. However, the overall net income stands at 13.6 million euros as of December 31, 2025, including a deferred tax income of 5.2 million euros related to the finalization of the meal tray business divestiture.

Aggressive Investment Strategy Continues

Fleury Michon pursues an aggressive investment strategy. Expenditures related to industrial and IT investments amount to 42.1 million euros, reflecting the acceleration of production tool transformation and ecological transition efforts. The group announces the project to open a production site in Covington, Kentucky, USA, aimed at increasing North American capacities to meet growing client demands. The cash flow generated by operations reaches 25.6 million euros, including a deliberate increase in year-end inventories to accommodate volume growth, notably in airline catering, and to secure strategic materials. Net financial debt stands at 9.4 million euros as of December 31, 2025, an increase of 20.5 million euros compared to December 31, 2024. The Board of Directors will propose to the general meeting on June 9, 2026, the payment of a dividend of 1.35 euros per share. For 2026, the group faces the year in a context marked by multiple tensions and high volatility in raw material markets. In this uncertain environment, Fleury Michon is not in a position to provide numerical guidance regarding its 2026 performance. The main challenge for investors lies in the group's ability to transform its commercial momentum into profitability gains, while managing the volatility of raw materials remains a critical variable.