Fleury Michon (ALFLE) H1 2025 earnings summary

Executive summary

• Sales increased to €406.4M in H1 2025, up 3.4% year-over-year, driven by growth in main product lines, GMS, and international airline catering, but operating margin fell sharply due to poultry market crisis and soaring raw material prices.

• The group maintained its strategy of accessible, quality products and innovation, expanding its plant-based range, which now holds over 70% market share in its segment.

• The sale of the meal tray business and other non-core activities impacted segment results and cash flows, with the meal tray business sale finalized January 1, 2025.

• Despite operational challenges, industrial investment levels remained high to support long-term activity.

Financial highlights

• H1 2025 revenue: €406.4M (+3.4% year-over-year); operating income: €0.2M (0.1% margin, down from €7.2M/1.8%); net income from continuing operations: €0.3M (down from €7.7M); net consolidated income: €5.5M (vs. €46.7M prior year), mainly due to a deferred tax gain from divested activities.

• Net debt increased to €17.5M at June 30, 2025 (vs. -€11.2M at Dec 2024), with gearing at 8.9% (vs. -5.5%).

• Cash flow from operations: -€12.0M (vs. +€10.9M prior year), impacted by working capital needs and inventory build-up.

• Dividend of €8.5M paid in June 2025.

Outlook and guidance

• No quantitative guidance for 2025 or future years due to ongoing volatility in raw material prices, economic, and geopolitical instability.

• International catering expected to contribute positively, barring new US tariffs on Canadian imports.

• Long-term confidence in the business model is maintained, with continued industrial investments.