Savencia reported higher first-half sales for 2026, but weaker underlying revenue and lower operating profit highlighted continued pressure across European dairy markets.
The French cheese and dairy group generated sales of €3.486 billion in the six months to 30 June, up 2.6% on a reported basis from €3.396 billion a year earlier. However, revenue fell 2.0% on a like-for-like basis, according to Savencia’s half-year results published on 10 September.
Current operating profit fell to €88 million from €103 million, reducing the operating margin to 2.5% from 3.0%. Net income attributable to the group was broadly stable at €38 million, compared with €39 million in the first half of 2025.
The figures matter beyond the balance sheet. Savencia said performance was affected by surplus milk supply alongside weaker demand, a combination that is putting pressure on pricing and profitability across parts of the dairy market.
European cheese consumption also remained fragile as household purchasing power continued to influence demand. For supermarket buyers and category teams, that points to a market where suppliers are balancing softer volumes with volatile dairy commodity conditions and continued pressure to protect margins.
Savencia’s reported growth was helped by acquisitions. The group integrated Savencia Gourmet’s chocolate activities from 1 April and also completed the acquisition of Quatá in Brazil. Those changes produced a 6.9% positive structural effect, masking the decline in organic sales.
The acquisitions also contributed to a sharp increase in leverage. Net financial debt excluding IFRS 16 rose to €815 million from €464 million a year earlier.
Historical markets and activities generated €1.561 billion in sales, down 3.3% organically. Developing markets and activities recorded €2.108 billion, with organic revenue down 1.8% despite a 4.8% increase on a reported basis.
Savencia is one of the major suppliers in France’s dairy sector and features in Grocery Trade News’ ranking of leading dairy suppliers in France. The group also appears among the largest FMCG companies in France, giving the half-year figures particular relevance for grocery sourcing and private-label buyers.
The next key update is scheduled for 14 October, when Savencia is due to report third-quarter activity. Buyers will be watching whether weaker underlying demand persists and how quickly the group can absorb its recent acquisitions while dairy market conditions remain unsettled.
