Chicken Prices Crush Fleury Michon’s Margins in H1 2025: A Deep Dive into the Poultry Market Crisis
- Why Did Chicken Prices Tank Fleury Michon’s Profits?
- How Bad Was the Hit to Fleury Michon’s Bottom Line?
- Historical Context: When Did Chicken Become a Loss Leader?
- What’s Next for Fleury Michon? A Analyst’s Take
- FAQ: Your Poultry Market Questions, Answered
Fleury Michon, the French food giant, just got clucked over by plunging chicken prices in the first half of 2025. Margins took a nosedive as oversupply and weak demand collided—think of it as a "poultry panic" for the processed-meat sector. We’ll unpack the numbers, explore historical trends, and ask: Is this a temporary slump or a sign of deeper industry woes? Spoiler: It’s not just about eggs anymore.
Why Did Chicken Prices Tank Fleury Michon’s Profits?
Simple math: Too many chickens, not enough buyers. Data from TradingView shows poultry prices dropped 18% YoY by Q2 2025—the steepest decline since the 2020 feed-cost crisis. Fleury Michon’s EBITDA margin shriveled to 4.7%, down from 6.3% in 2024. "It’s a perfect storm," admits a BTCC analyst. "Producers ramped up supply expecting post-pandemic demand that never materialized."
--- ###How Bad Was the Hit to Fleury Michon’s Bottom Line?
Let’s talk francs and cents. The company’s H1 report revealed:
- Revenue: €623M (flat YoY)
- Operating profit: €29M (down 26%)
- Net debt: €312M (up 9%)
Worse yet, their premium "Label Rouge" chicken line saw volumes drop 12%. Turns out, even fancy free-range birds couldn’t escape the price war.
--- ###Historical Context: When Did Chicken Become a Loss Leader?
Rewind to 2021: Pandemic hoarding made poultry prices soar. Producers—including Fleury Michon—invested heavily in capacity. Fast-forward to 2025, and Europe’s chicken inventory hit a decade high (Eurostat data). Meanwhile, plant-based meat alternatives grew 14% annually, nibbling at traditional markets. Oof.
--- ###What’s Next for Fleury Michon? A Analyst’s Take
"They’ll need to pivot to value-added products," suggests the BTCC team. Think ready-to-eat meals with higher margins. The firm already plans to shutter two processing plants by 2026. But here’s the kicker: Their stock still outperforms rivals like LDC (+3% YTD vs. Fleury’s -11%). Silver lining?
--- ###FAQ: Your Poultry Market Questions, Answered
How long will cheap chicken last?
Until oversupply balances out—likely late 2026, per Rabobank forecasts.
Is Fleury Michon a buy after this drop?
This article does not constitute investment advice. But their dividend yield (4.2%) looks juicy if you believe in a rebound.
Are other proteins affected?
Pork and beef prices stabilized, but turkey’s in the same coop as chicken.
