In an unprecedented move, Lactalis has disclosed details of its recent financial performance and revealed the French dairy giant aims to boost sales by around 8% in two years, with the majority expected to be generated from assets outside of its home market.

Group president Emmanuel Besnier addressed journalists this week and revealed the full extent of the tainted baby milk scandal on its earnings during the back half of 2017 and beyond, with net profits falling that year by almost 5% to EUR387m (US$438.5m) based on sales of EUR18.4bn.

After completing a spate of acquisitions of late, predominately in emerging markets, Lactalis is targeting EUR20bn in sales by the end of 2020, compared to EUR18.5bn last year, with around two thirds of that expected to come from overseas markets. 

As recently as January, the firm completed two corporate purchases in India and Egypt – publicly-listed Prabhat Dairy and Greenland Group for Food Industries –  building on a number of acquisitions last year, excluding an increased stake in Italian peer Parmalat.

Meanwhile, while sales have risen in each of the past three years, debt levels have climbed too, although not significantly, to stand at EUR4bn in 2017, compared to EUR3.8bn back in 2015. And Lactalis also revealed it invested EUR12m in its manufacturing plant at Craon in north-western France, the source of the salmonella outbreak that led to the recall of millions of tins of baby milk from around the world.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Still, net profits were down in 2016 too at EUR406m based on sales of EUR17.3bn. Profits reached EUR432m the previous year on sales of EUR16.7bn.

just-food analysis: Why Lactalis’ M&A spree continued in India and Egypt