Lactalis, the world’s largest dairy company, faced challenges last year due to pressure on volumes from private label products. Despite a 4.3% increase in turnover to €29.5bn ($31.4bn) in 2023, the consolidated net profit remained “weak” at €428m, although it saw an 11% increase from the previous year. The company attributed this to changing consumer behavior, a decrease in sales volumes, and a shift towards private labels, especially in Europe.
Chairman Emmanuel Besnier highlighted the impact of inflation and unfavorable world prices on the company’s profitability. Despite these challenges, Lactalis focused on achieving responsible growth by offering high-quality products at affordable prices. The company’s net profit margin increased to 1.45% of turnover.
Innovation and expansion efforts in buoyant markets, particularly in North America, contributed to a slight profit increase compared to 2022. Lactalis remains committed to providing consumers with quality dairy products while adapting to market changes.
The company made strategic moves in 2023, including a licensing agreement in Brazil and the acquisition of Marie Morin Canada to enter the North American desserts category. However, Lactalis faced regulatory issues in Australia and compliance challenges in Italy and France.
Despite these setbacks, Lactalis remains focused on growth and sustainability. The company’s debt has decreased to just under €6bn, and it continues to invest in new products, modernizing its facilities, and reducing its environmental impact. Lactalis operates in 51 countries with over 85,500 employees and remains a key player in the food and beverage industry.
In conclusion, Lactalis navigated a challenging year by leveraging its iconic brands and adapting to market dynamics. The company’s commitment to innovation and sustainability positions it for continued success in the competitive food and drink business landscape.
