The French dairy company Savencia has reported a significant drop in profits amid price pressures and market volatility. According to Dairy Report, stability in the cheese segment has partially offset the negative trends in other categories.

In the 2025 financial year, the company’s net profit fell by 30.2%, whilst revenue declined by 2.6% to €6.96 billion. Operating profit fell by 9.4% to €210.5 million, and the operating margin decreased from 3.3% to 3.0%.

Despite this, the company posted organic growth of 1.9%, which partially offset the overall decline in performance.

Savencia’s financial results

Key figures for 2025:

  • Revenue: €6.96 billion (-2.6% year-on-year)
  • Organic growth: +1.9%
  • Operating profit: €210.5 million (-9.4% year-on-year)
  • Operating margin: 3.0% (compared with 3.3% a year earlier)
  • Net profit: €74.7 million (-30.2% year-on-year)

The decline in profitability is attributed to pressure on milk prices, currency fluctuations and general market instability.

The cheese segment is stabilising results

Cheese sales remained relatively stable: revenue fell by just 1%, and the segment itself accounted for around 70% of the company’s operating profit.

Profitability in this segment remained above the group average. Strong brand positions and a wide product range enabled the business to maintain stability even in the face of market pressures.

The company produces cheese brands such as Saint Agur, Caprice des Dieux, Bresse Bleu, RichesMonts and Le Rustique.

Other dairy products under pressure

The other dairy products segment, including ingredients, performed less well. Revenue fell by 4.3%, whilst operating profit dropped by 17%, leading to a decline in margins.

At the same time, this division recorded organic growth of 3.8%, driven by demand for specialised value-added dairy ingredients.

Ingredients and foodservice remain strategic

Savencia views the food ingredients sector as one of its key growth drivers, particularly in the premium segment. The company specialises in functional dairy ingredients, protein fractionation and solutions for healthy eating.

The Armor Protéines division has signed an agreement to establish a joint venture with the Australian company All G for the production of recombinant lactoferrin.

The company is also strengthening its position in the catering sector, particularly in the premium and gourmet segments, including the development of its chocolate business.

Forecast for 2026

The company is taking a cautious view of the outlook. Management expects that geopolitical tensions, rising costs and changes in trade policy will continue to weigh on profitability.

At the same time, Savencia plans to focus on brand development, innovation and geographical diversification in order to adapt to market conditions.

Source: Dairy Report