SAVENCIA: 2022 Half-yearly financial statements
09 September 2022 - 3:20AM
SAVENCIA: 2022 Half-yearly financial statements
Thursday
8 September 2022
PRESS RELEASE: 2022
Half-yearly financial statements
- Sales growth was 13% in the first semester, of which 11% was
organic, thanks to the Other Dairy Products momentum, in the
context of a sharp rise in worldwide quotation for industrial
products.
- Current operating profit was down by 10% to €125.9 million due
to the violent inflationary surge.
- Olivier Delaméa takes office as Chief Executive Officer on 1
September 2022.
Key figures in €M |
June 2022 |
% ofSales |
June 2021 |
% ofSales |
Changes in % |
Total |
Structure |
Change |
Organic |
Sales |
3,023 |
|
2,676 |
|
13.0 |
0.3 |
1.4 |
11.0 |
- Cheese Products |
1,737 |
57.4 |
1,622 |
60.6 |
7.1 |
0.6 |
2.4 |
4.0 |
- Other Dairy Products |
1,380 |
45.7 |
1,136 |
42.5 |
21.5 |
0.0 |
0.3 |
21.2 |
- Unallocated (Intra-Group transactions) |
-94 |
-3.1 |
-82 |
-3.1 |
15.2 |
0.3 |
2.0 |
12.6 |
Current operating profit |
126 |
4.2 |
140 |
5.2 |
|
|
Operating profit |
129 |
4.3 |
117 |
4.4 |
|
Financial result |
-15 |
|
-11 |
|
|
Corporate taxes |
-36 |
-39 |
|
Result for the year |
81 |
2.7 |
70 |
2.6 |
|
Net income, Group share |
71 |
2.4 |
67 |
2.5 |
|
Net debt (excluding IFRS 16) |
555 |
|
442 |
|
|
|
|
|
|
|
|
|
|
|
|
The limited review procedures on the half-yearly
financial statements have been performed by the Statutory
Auditors.Their limited review report is currently being
issued.Definitions and calculation methods for aggregates such as
structural effects, exchange rates, organic growth, etc.and net
debt have not changed.They are defined in the Group’s activity
report and in note 20 of the financial statements for net debt.
Results for
the first half of
2022
As of 30 June 2022, Savencia Fromage &
Dairy’s sales increased by 13%, of which 11% was organic growth.
The 1.4% positive forex effect is a direct consequence of the
devaluation of the euro against most all currencies.
The positive organic growth of 4% in Cheese
Products was due to price adjustments, necessary in an inflationary
environment. These increases, as well as the delisting by certain
distributors, affected volumes in Europe without being compensated
by International growth.
On a like-for-like scope and exchange rate
basis, the sales of Other Dairy Products increased by 21.2%, driven
by higher industrial products prices and the recovery of the food
service market.
At €125.9 million, the current operating profit
fell by €14.2 million or -10.1%. While benefitting from the rise in
industrial product prices, it was affected by both the fall in
volumes and inflation. In this environment, the Group’s current
operating margin contracted by 100 basis points to 4.2%. Other
Dairy Products were stable at 5.4% versus 5.3% in 2021 and Cheese
Products were down 250 basis points to 3.4%.
The Group’s financial position remains strong,
with equity of € 1,889 million and net debt excluding IFRS 16 of€
555 million. It represents 29% of consolidated equity compared to
27% at 30 June 2021.
Despite Savencia's unenforceable order to pay
€26 million for 2020 and an amount yet to be determined for 2021 to
the Sunlait Association for OP, the Group continues to consider
that it is complying with the terms of its contracts and that
Sunlait's claims are therefore unjustified and that no provisions
need to be recorded. Savencia confirms its intention to appeal this
decision.
Group’s CSR
commitments: Oxygen
Plan
Savencia Fromage & Dairy continues to deploy
its Oxygen plan, which sets out the objectives of its CSR
commitments.
Sustainable milk sourcing: the deployment of the
Charter for Best Farming Practices was extended, covering 86% of
the Group’s dairy producers worldwide.
Strengthening the carbon reduction ambition: the
Group has decided to accelerate the reduction of its greenhouse gas
emissions by 2030, according to criteria defined by climate
science, by joining the Science-Based-Targets initiative.
Employee health and safety: in support of all
the action plans already implemented, a global safety week was held
to mobilize all teams.
Outlook for the second
Half of 2022
The environment in the second half shall remain
highly volatile. Inflationary trends will continue as a result of
tight energy supplies and a continuation of the decline in global
milk production. The consequences for household purchasing power
are likely to become more pronounced with a very likely impact on
demand.
In this unprecedented environment, the Group
shall continue to pursue its objective of sustainable growth. It
shall adapt its offer to new consumer demands and strengthen its
efforts in terms of competitiveness. It shall pursue its efforts to
improve the safety of all its employees and partners, and its
ongoing dialogue with its customers and milk producers.
Further information can
be found on our website savencia-fromagedairy.com
- Savencia-SA-Comptes-Semestriels-2022_ENG
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