2014 Annual Report44
Current operating profit for Cheese Products gained 1.8%. Current operating margin fell from 3.6% to 3.4%, mainly as a result of the difficulty of recovering the significant increase in the cost of milk via our selling prices. Current operating profit for Other Dairy Products fell by 49.8% as the business was particularly hard hit by the brutal fall in world prices for industrial products following the Russian embargo. As a result, the current operating margin rate fell from 4% to 1.8%.
Cheese Products Other Dairy Products
Other activities 18.4m
Current operating profit for 2014 and 2013-2014 change By business and in millions of euro
91.8 +1.8%
36 -49.8%
KEY FIGURES
Net sales increased by 9.6%. Organic growth had an impact of +4.7% and acquisitions, an impact of +7.6% reflecting the consolidation of Berthaut in April 2013, Söbbeke in August 2013 and Terra Lacta s operations with effect from October 1, 2013, as well as the acquisition of a controlling interest in Delaco on April 1, 2014. Foreign exchange had an impact of -2.7%. 68.1% of net sales were achieved outside France.
The Group s share of net income fell by 20%. Non-recurring expenses fell by 8.3 million whilst net borrowing costs rose by 5.6 million. The Group s share of results of associates fell by 4.3 million and its corporate income tax fell by 25.2 million.
Investment in tangible and intangible assets amounted to 164.4 million, down by 5.8%, and company acquisitions to 8.4 million compared with 74.4 million in 2013.
Net borrowings rose by 27.3 million to 470.2 million. Equity increased by 14.5 million over 2013.
Current operating profit fell by 23.7% as a result of the very unfavorable environment prevailing for milk.
Cheese Products accounted for 59.1% of consolidated net sales, with organic growth of +4.2%, a foreign exchange impact of -1.5% and acquisitions generating an impact of +6.2%. Other Dairy Products accounted for 43.3% of consolidated net sales, with organic growth of +6.4%, a foreign exchange impact of -4.5% and acquisitions generating an impact of +9.9%.
1,996.8 +11.6%
Cheese Products Other Dairy Products
Other activities 111.9m
Net sales for 2014 and 2013-2014 change By business and in millions of euro
2,722 +9.0%
Current operating profit In millions of euro and operating margin as a % of net sales
109.4 / 2.4%2014
2013
2012
143.4 / 3.4%
142.5 / 3.7%
Net debt/equity In percent
38.5%2014
2013
2012
36.8%
22.6%
Net sales for 2014 In millions of euro
4,606.92014
2013*
2012*
4,204.6
3,874.7 *restated
Group share of net income In millions of euro
39.12014
2013*
2012*
48.9 63.6
*restated