Provimi, Q3 results up

New acquisitions contributed € 50.3 million to sales, while exchange rates
had a negative effect of € 16.2 million.

On a like-for-like basis, sales
growth was 11.1% over the period. The sales increase was largely due to the
impact of higher raw material prices with a slightly negative impact on the
Group’s operating margin.

Higher market share in France
In
France, Provimi increased sales in a shrinking market, thus gaining market
share. Exports continued to develop favourably in spite of the weakening
dollar.

The pet food business acquired in December 2006 contributed to
nearly half of the sales growth.

In Poland, sales increased compared to
the same period last year as farmers purchased more complete feed than premixes
due to the low availability of grains.

In the rest of Europe, sales
showed a further healthy growth, notably in Bulgaria, Romania, Russia and the
Netherlands. Strong sales growth was also noted in pet food.

North
America going strong
In North America, sales were strong throughout the
year. The acquisition of Vita in Canada in June 2006 and the acquisitions of
Nutrius and Virtus Nutrition in California later in that year stimulated sales
growth further.

In the rest of the world, most countries reported a
strong improvement in volumes and sales. This was particularly the case in
Brazil, India and Vietnam. In China sales growth was held back due to swine
disease.

As a result of the joint venture with AquaChile in June 2006,
which led to a partial deconsolidation of fish feed, sales in Chile were
considerably lower than in 2006.

Raw materials
The prices of
major ingredients notably soy and grains continue to show an upward trend.
However, the prices of dairy ingredients and fish meal are
decreasing.

Overall operating margins for the Group continued to be
negatively affected during the third quarter, as a result of the delay in
passing on increasing raw material costs to customers particularly in pet food
were contracts tend to be longer.

Fish feed sale
On 6 November
2007 Provimi reached an agreement to sell the majority of its fish feed
activities to the Biomar Group (Denmark). Sales in the first nine months for the
divested activities amounted to € 115.5 million (2006: 129.3 million). This
transaction will allow the group to better focus on its core
business.

Outlook
Ongoing raw material price increases,
especially grains, have continued to impact market conditions in the second half
of the year. This will impact negatively the full year operating
performance.

Furthermore, the Group will incur restructuring costs in the
second half year related to its pet food activities in southern
Europe.

Related links:

Provimi

Biomar