Savencia Fromage & Dairy posts 9M sales fall
Savencia has reported a fall in nine month sales
Savencia Fromage & Dairy, the France-based dairy group formerly known as Bongrain, for has reported a 2.7% fall in sales for the first nine months of its financial year.
Sales stood at EUR3.26bn (US$3.6bn) from EUR3.35bn a year earlier.
Sales in both divisions, cheese and dairy declined. Savencia said the fall was due to the decline in milk prices.
For cheese products, Savencia said despite volumes being maintained "thanks to dynamic products [and] strategic brands" it saw a negative effect on prices in almost all markets due to the worldwide decline in milk prices. Revenues in other dairy products - including long shelf-life cream and butter - fell 4.6% to EUR1.45m.
"This situation is the result of constant erosion of prices for industrial products and its impact on the selling prices of dairy ingredients," the firm said in a statement.
Results were also impacted due to the slowdown in exports to China and the Russian embargo.
Nevertheless, the company insisted: "The diversity and the portfolio of its brands allows Savencia Cheese & Dairy [to] maintain its financial equilibrium."
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