Savencia (SAVE) H1 2024 earnings summary

Executive summary

• Net sales reached €3,380.1 million for H1 2024, stable year-over-year, with 0.8% organic growth and a 1.9% positive structural effect, offset by a 2.6% negative currency impact, mainly from the Argentine peso.

• Net income for the period increased to €64.0 million from €57.6 million, reflecting improved operational performance.

• Total comprehensive income surged to €136.1 million, up from €30.0 million in H1 2023, driven by favorable currency and hedge effects.

• Net debt reduced by €162 million to €438 million, driven by effective working capital management.

Financial highlights

• Current operating profit was €109.6 million, slightly down from €111.9 million year-over-year.

• Operating profit rose to €102.8 million from €97.9 million, while operating income reached €103 million, up from €98 million.

• Earnings per share (basic and diluted) increased to €4.33 from €3.80.

• Gross operating margin improved to €230.7 million from €206.7 million.

• Financial result at -€21 million, compared to -€15 million in H1 2023.

Segment performance

• Cheese products revenue slightly declined by 0.7% to €1,920 million, with 0.2% organic growth due to favorable pricing offsetting lower volumes in Europe.

• Other dairy products revenue increased by 1.7% to €1,578 million, with 2.4% organic growth, benefiting from strong international markets.

• International cheese volumes grew in South America, while European volumes contracted due to inflationary pressures.