Lactalis settles an international tax dispute with a payment of €475 million

The dairy giant Lactalis announced on Thursday, December 19, that it had paid €475 million to the French tax authorities to resolve a dispute related to international financing operations. These transactions, initiated in 2006, involved three subsidiaries based in Belgium and Luxembourg, created as part of the group’s international expansion. The French tax authorities argued that these operations should have been taxed in France.

Operations now closed, but a criminal investigation ongoing

According to Lactalis, these activities have been “closed for several years,” and the group stated it has “always fully cooperated with the French administration throughout the procedure initiated in 2019.” To address this tax dispute, the parent company of Lactalis, BSA, had already set aside €300 million by the end of 2023. However, a preliminary investigation, led by the French National Financial Prosecutor’s Office, remains ongoing regarding these same facts.

A dairy empire born from a family business

Founded in 1933 in Mayenne under the name Entreprise Besnier, Lactalis has grown from a family business into a global leader in the dairy sector thanks to a strategy of successive acquisitions. Holding key brands such as Président, Leerdammer, and Galbani, the group demonstrates remarkable economic strength, with a turnover nearing €30 billion in 2023.

With a net profit of €428 million (+11%) last year, Lactalis has established itself as the leading player in the French agri-food industry, surpassing Danone, and is now among the world’s top 10 companies in the sector.

This tax settlement marks a significant milestone for the group, which aims to continue its development while clarifying its commitments to the French administration.