Provimi reports sales increase of 15%

15-02-2007 | |

Sales for the Provimi Group increased by 15% to €1,823.2 million compared to 2005. Progress was particularly good in North America and the emerging markets.

On a like-for-like basis, sales growth was 9.5%, partly driven by higher
selling prices resulting from increased raw material costs.

Acquisitions
contributed €64.7 million to sales, while more favourable exchange rates had an
impact of €20.4 million.

In France, despite a declining market, sales and
volumes improved also due to a good contribution from strong exports growth to
Asia and Latin America.

Poland down due to Avian flu
In Poland,
operations were impacted by adverse market conditions for customers as a result
of the indirect impact on the poultry sector of the avian flu scare in the first
semester and the restriction in exports of pork meat due to closed borders with
Russia and Ukraine.

Unfavourable weather conditions negatively impacted
crops resulting in a strong increase in grain prices. In the Rest of Europe,
sales showed good growth and included the full year effect of the acquisitions
made in 2005.

Feed business growth
The most significant
contribution to sales growth came from the feed businesses in The Netherlands,
Romania, Bulgaria and Russia as well as from pet food. In North America, sales
improved strongly as a result of new market initiatives and the acquisitions
made in Canada and California in 2006.

Aqua performed well
In
the Rest of the world, the excellent growth in sales was broad based. Notably,
the Aqua feed business in Chile sharply increased sales benefiting from
favourable market conditions and the joint venture with AquaChile. Part of the
increase can also be attributed to higher prices for fish meal and fish
oil.

Sales further benefited from strong developments in other countries
such as Vietnam, India, South Africa and Brazil.

The Group is positive
about its full year results 2006. The full year results will be published on 21
March 2007 after market closing.
Additional info: Provimi

 

Correspondents



2/3 articles remaining | Register to continue reading.