February 13, 2008

Higher feed prices help Provimi's sales to hit EUR 1.9 billion, 16.6 percent growth

In a market update ahead of its full year results to be released on March 19, international feed producer Provimi Group reported revenues of EUR 1,918.5 million for 2007, up 16.6 percent from 2006.

The higher sales was driven by organic growth and higher selling prices, the update said.
 

On a like-for-like basis, sales growth was 14.5  percent. The sales increase was largely due to higher selling prices caused by increased raw material costs, which reduced operating margins. Less favourable exchange rates had a negative impact of EUR 13.3 million.

Sales rose 24.3 percent in France and 22.6 percent in the US.

The disposal of the group's fish feed activities in Spain, Denmark and Chile to Biomar (Denmark) was completed on 31 January 2008. Sales of the discontinued activities amounted to EUR 155.8 million in 2007 compared to EUR 177.6 million in 2006.

The continued sharp increase in raw material prices throughout 2007 will reduce operating margins for the full year, hitting its pet food business harder.

Head Office costs are increasing over the previous year as a result of various key initiatives being implemented across the Group. These will, together with restructuring charges and higher financial expenses, negatively impact the Group's financial performance for the year.

The Provimi Group employs over 8,000 people and has more than 100 production centres in some 30 countries. Provimi manufactures products and supplies technical support for all species, including ruminants, poultry, swine and pets.