Groupe Bel sees profit drop significantly

The French dairy manufacturer Groupe Bel announced on Friday 28 July that profit in the first half of 2017 had fallen by 24%. On the other hand, the company also says that sales have increased significantly during that period. 

Groupe Bel is the producer of La Vache qui Rit, Kiri and Babybel, among others. Sales of those products rose 14,9% in the first half of the year to €1,6 billion. The dairy manufacturer explains that this increase is due to the integration of Mont Blanc Materne Group (MOM). That party represents 14,1%. 

Problems in Africa and the Middle East
Groupe Bel's net profit was approximately €85 million. However, on June 30, 2016, the company still managed to make a profit of €111 million. That is a decrease of almost 24%. Compared to the first half of 2016, the manufacturer's operating profit also decreased by 19,7%. 

"The company has been affected by supply problems in the market. In addition, a decrease in purchasing power is observed in the main parts of Africa and the Middle East. In those areas, the dairy market has declined sharply and as a result, competitive pressure has increased considerably," says Bel know. 

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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