Savencia : Activity at the end of September 2017

Thursday October 26, 2017

PRESS RELEASE: activity at the end of September 2017

Sept.		%	Sept.	%	Changes in %
Consolidated data (€m)	2017	net sales	2016	net sales	Total	Structure	Forex	Growth
NET SALES	3,547	56.8	3,193	59.0	11.1%	0.0%	-0.4%	11.5%
- Of which: Cheese Products	2,013		1,885		6.8%	0.0%	0.3%	6.5%
- Of which: Other Dairy Products	1,641	46.3	1,403	43.9	17.0%	0.0%	-1.2%	18.4%

The definitions and bases of calculation of aggregates such as changes in Group structure, foreign exchange or organic growth have not evolved in comparison with the previous year; they are defined in the Group's financial report.

At €3,547 million, Savencia Fromage & Dairy's net sales have increased by 11.1% reflecting organic growth of 11.5% and a negative foreign exchange impact of 0.4%, in turn mainly reflecting the fall in value of the Argentinian, Chinese, Egyptian and British currencies partially offset by a gain in value of the Brazilian real against the euro.

The organic growth of 11.5% is driven by a more sustained development of our international activities beyond the confines of Europe. In parallel, the relative weight of the French market within the activity of Savencia Fromage & Dairy as a whole has fallen back.

Assuming constant foreign exchange rates and Group structure, Cheese Products net sales were up by 6.5% at the end of September. Nevertheless, the Group's activity for the third quarter has been characterized by stagnant volumes in most of our European markets outside France, penalized by price increases only partly reflecting the increased price of our dairy raw materials.

Other Dairy Products have recorded strong organic growth of 18.4% as a direct result of the increase in world prices for industrial products. Pursuit of the Group's international development has compensated for the relative flatness of business in France.

Outlook for 2017

Current operating profit for 2017 should be affected by:

• The general evolution of the dairy economy;

• The difficulty of adjusting, mainly in France, the selling prices for retail products to reflect the increasing cost of raw materials; and by

• A general slowdown in organic growth at the end of the year.

Confident in its long-term strategy and in the superior quality of its products, Savencia Fromage & Dairy relies on its employees' commitment to continuing their efforts to adapt and remain competitive. The Group's international development allows it to consolidate its financial equilibrium.

Additional information may be consulted on our savencia-fromagedairy.com website

SAVENCIA SA

42 rue Rieussec, 78223 VIROFLAY Cedex - France - T [phone]

A French joint stock company in the form of a Société anonyme with share capital of €14,032,930 847 120 185 RCS Versailles - VAT: FR 46 847 120 185