(AOF) – A company in the French agri-food industry, Fleury Michon posted net income of 2.4 million euros in 2022 against 4 million euros in 2021. This result includes financial charges and income for -3.5 million euros, mainly due to the cost of debt as well as the tax charge for -1.3 million euros, directly linked to the profits of the activities in France. Its operating profit decreased, amounting to 8.9 million euros. Its current operating profit increased by just over 4% to 15 million euros, or 1.9% of sales.
The current operating margin rate remained almost stable, at 1.9% in 2022, compared to 2% in 2021. Despite an unprecedented inflationary shock from March 2022, profitability was maintained over the whole year thanks to tight management of selling prices and all expense items.
Fleury Michon posted sales growth of 12.6%, driven by market share gains, the price increases needed to compensate for the explosion in the cost of all inputs, and the significant recovery in airline catering and delivery of meal trays to companies. Internal growth was 13.3% at 794.80 million euros.
The Board of Directors will propose to the General Meeting of June 27, 2023 the payment of a dividend of €1.20 per share, stable compared to 2022.
“The year 2023 should again be marked by a volatile and very probably inflationary economic situation,” warned the agrifood group. After a strong recovery in 2022, the activities very negatively impacted by the Covid-19 crisis since 2020 should continue to grow. “Production costs should still remain very high and will continue to require tight management of selling prices as well as all expense items”, warned Fleury Michon.
In view of the multiple uncertainties, no quantified forecast can be provided to date.
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Soaring energy prices and a call for help
In the past, energy represented a fixed cost of 3% of turnover. This year, this percentage rises to 5% or even 7% for VSEs-SMEs, according to Ania (National Association of Food Industries). Professionals are very worried because until the end of 2022 they generally benefit from coverage to cushion these increases. However, they have not been renewed for 2023 and after. Consequently, 25 of the main inter-professional organizations (Intercereals, Inaporc, Semae, etc.) are calling on the State for help in the face of the erosion of their margins and their capacity to investment.
The State has proposed several devices, including an “electricity damper”, which are deemed insufficient. The organizations also deplore the failure of European negotiations to achieve a tariff shield to avoid distortions of competition. Agriculture and agri-food require a maximum ceiling price of €180/MWh, while many companies buy at prices above €500/MWh on the French market.