French dairy giant Lactalis is set to invest €1 billion ($1.18 billion) in “modernising” its domestic manufacturing sites.
The company has outlined a comprehensive programme extending until 2030 to “modernise and enhance the performance” of its facilities across France.
Lactalis, recognized as the world’s largest dairy company, operates 69 dairies throughout France, marketing around 6,000 SKUs domestically.
The owner of Lactel and Président brands stated that its investment will concentrate on advancing production equipment, innovation, and decarbonisation initiatives.
Moreover, the group has initiated several projects, including expanding its Petit Basque cheese production plants in Larceveau and establishing new production lines at sites in Bouvron and Bayeux.
Lactalis also noted that the French dairy market remains “in flux,” influenced by environmental “constraints” and rising international competition.
Although lacking specific figures, the company reported a 1.4% growth in sales volumes in France during the year’s first quarter, thereby “outperforming the national market in certain categories.”
Specifically, its cheese sector witnessed robust demand, particularly for products used in hot dishes.
The group added that its Lactel brand “continues to gain market share” in a declining milk category, bolstered partly by “the strong performance” of the new Vita’ Vie product.
In April, the privately owned group disclosed its financial results for 2024, revealing a 2.8% revenue increase, surpassing €30 billion for the first time.
Operating income had a 4.3% rise, though the company’s net income dropped from €428 million to €359 million.
