Lactalis revenue surpasses US$34B, profits dip due to French tax settlement

CANADA – Lactalis, a French dairy giant, has achieved a significant milestone in 2024, with revenues exceeding US$34.1 billion for the first time, marking a 2.8% increase from the previous year’s US$33.2 billion. 

Despite this growth, the company faced challenges, as net profit fell 19% to US$384.7 million, primarily due to a tax settlement with French authorities. 

The agreement, finalized late in 2024, addressed allegations that Lactalis had used financial subsidiaries in Belgium and Luxembourg to reduce its taxable income in France.

The company, known for brands like Président and Galbani, attributed the revenue growth to its strong performance in North America, which accounts for 33% of its sales, and the ultra-fresh dairy segment, contributing 16% to its activity. 

“We maintained our growth trajectory despite an unstable geopolitical and economic climate,” a Lactalis spokesperson said, highlighting the company’s resilience. 

However, the profit decline reflects the financial impact of the tax agreement, which was not quantified in the statement.

Lactalis also invested heavily in its global operations, allocating over US$1.07 billion to enhance manufacturing facilities. 

Notable upgrades included the Larceveau creamery in France for Ossau-Iraty cheese and new production lines in Certosa, Italy; Tulare, United States; and Bendigo, Australia. 

Additionally, a report by Yahoo News on March 20, 2025, detailed Lactalis’US $55.3 million investment in Brazil to expand UHT milk and yogurt production in Paraná state. 

“These investments strengthen our capacity to meet growing demand,” said Roosevelt Junior, Lactalis’ CEO in Brazil, during a ceremony with local authorities.

Despite its global expansion, Lactalis faced setbacks, including the closure of a factory in Zambia due to market dynamics, as reported by Yahoo News on January 10, 2025. 

The company plans to serve the Zambian market from South Africa.

Meanwhile, Lactalis Canada was recognized on Forbes’ 2025 list of Canada’s Best Employers, underscoring its strong workplace culture, according to Markets Insider on January 31, 2025.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE