FDBusiness.com

French dairy group Fromageries Bel has reported a 2.3% rise in sales to €2.78 billion for 2014 – up 3% organically against 2013. In Western Europe, despite a lackluster economic environment and a fiercely competitive market, sales advanced 4.1%, excluding the foreign exchange impact, to €1.12 billion – thanks to the sales and marketing effectiveness demonstrated by group teams throughout the year.

Sales in North-East Europe ended the year down by 4.5% at €552 million, reflecting the operating difficulties encountered in Ukraine and the tough business environment prevailing in some of the region’s markets, notably in Germany.

The Americas, Asia-Pacific region reported further organic sales growth of 2.4% in 2014 to reach €419 million, after a particularly strong fourth quarter. The region is beginning to bear the fruit of repositioning efforts undertaken in certain markets.

The Greater Africa region continued to thrive over the full year, reporting robust sales growth at constant exchange rates to €288 million. The Near and Middle East region, despite a geopolitically unstable environment, also continued to perform very robustly, with sales advancing 12.3% organically in 2014 to €402 million. This remarkable performance stems from the excellent sales and marketing strategies executed within the region, as well as from a highly responsive distribution network.

Bel was penalized during the year by high average raw material prices, despite the easing observed in the fourth quarter, and by highly volatile currency valuations resulting in an unfavorable financial environment overall. Against this backdrop, and despite operating measures undertaken to attenuate the situation, Bel confirms that it expects 2014 operating income to be lower than in 2013. Fromageries Bel will report its 2014 annual results on March 26, 2015.