Significant increase in De Heus turnover with lower profit

14-09-2023 | |
Photo: Ronald Hissink
Photo: Ronald Hissink

Feed company De Heus has seen its turnover increase from €4.4 to more than €6.9 billion in 2022. However the feed company’s profit fell from €147 to €116 million.

From the profit, the company paid out € 15.5 million (2021: (11.2 million) to a minority interest. This is evident from the filed annual accounts of De Heus Animal Nutrition.

Like other feed companies, De Heus also saw costs rise significantly last year. For example, the costs of raw materials and consumables increased by more than 60% to almost €5.9 billion. The purchase of raw materials for animal feed was significantly disrupted by the war in Ukraine. If not directly due to the availability of corn or wheat that normally comes from Ukraine, or through the enormous price increases of raw materials worldwide. The company does not communicate sales volumes.

Turnover per country

The feed company still realises the majority of its turnover, almost € 3.9 billion, in Europe. Turnover in Europe increased by almost 50%. However, it is clear from the figures that the importance of the Asian market is increasing rapidly. Turnover in Asia increased by more than 80% to € 2.3 billion. In Africa, turnover increased from €305 to €421 million. The 2022 turnover includes the figures from the acquisition of the Dutch feed company Feijen en Zonen and the Vietnamese Masan.

De Heus is committed to internationalisation

It is known that De Heus has been committed to internationalisation for decades. This strategy does the family business no harm, especially compared to the annual results of Dutch feed companies such as Agrifirm (2022 turnover € 2.8 billion, profit € 24.1 million) and ForFarmers (2022 turnover € 3.3 billion, profit € 30 million). De Heus now has dozens of branches and more than 100 factories all over the world. The number of employees, converted into full-time equivalents, increased last year from just under 9,300 to 9,770. More than 900 employees are active in the Netherlands.

Animal feed – core activity

Of the total turnover, €6.1 billion is achieved through the sale of animal feed, the core activity on which the company wants to continue to focus primarily. However, De Heus also has a livestock branch, which generated a turnover of around € 686 million last year. (2021: €654 million). For example, De Heus arranges for the delivery of ready-for-slaughter broilers to slaughterhouses.

Willem Veldman