Bel Group H1 profits decline despite higher sales
Bel Group has reported a fall in first-half earnings despite seeing its sales rise as costs ate into the French dairy group’s profitability.
The Boursin owner saw its share of consolidated net profit fell by 5.4% on a reported basis to €45.8m ($53m).
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Bel said its recurring operating income was €125m in the first half of the year, down 19.3% on the corresponding period of 2024.
The company behind cheese brands The Laughing Cow and Babybel said it had seen “persistent inflation in raw materials in several markets”.
Bel reported consolidated net sales of €1.86bn, marking a 3.2% organic increase, and 2% on a reported basis. The company said the growth was “driven by higher volumes and price increases”.
According to Bel Group CEO Cécile Béliot, the period was marked by an “unstable geopolitical environment”.
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By GlobalDataHowever, she added: “Our resilient sales volumes reflect the strong value our brands deliver to consumers worldwide.
“The growth we have achieved across our geographies and categories, combined with our ongoing digital transformation, is reinforcing both our agility and operational efficiency going forward.”
Bel’s volumes were impacted by geopolitical tensions in the Middle East and increased consumer sensitivity to price pressures, the group added.
The company’s “core brands” put in a “robust performance”, Bel said. Kiri saw first-half sales rise 8.2%, Mini Babybel by 6.1% and Boursin by 7.3%.
In terms of geography, Bel’s business in North America recorded an increase of nearly 6%. In Europe, the company maintained a positive trajectory with a 2.3% rise despite a “slight dip” in volumes.
The North Africa and Middle East region, affected by “macroeconomic and geopolitical uncertainties”, posted a 0.2% rise in sales.
In June, Bel Group said it would discontinue its plant-based cheese brand Nurishh due to difficulties in making the dairy alternative profitable.
As part of the move, the group announced the closure of its production site in Saint-Nazaire.
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