February 16, 2006

Revenues remain stable at Provimi
 

Full year sales at the French-based Provimi Group, a major animal feeds supplier, remained almost the same as that the year before.

Sales reached EUR1.585 billion (US$1.885 billion) an increase of 1 percent compared to 2004. Progress in volume and sales was broad-based with increases in the variety of premixes, aqua-feed and pet food. 

Sales in complete feed decreased, especially in Poland, due to significantly lower raw material costs, particularly for grains and protein sources which made premixes and concentrates cheaper. This resulted in local sellers promoting higher margin premixes and concentrates instead of complete feed.

Revenues in France increased by 5 percent while Poland saw a 20 percent drop. The rest of Europe and North America saw increases of 8.7 percent and 10.6 percent respectively. However, the gains were dragged down by the slump in the Polish market, which constituted nearly a quarter of the company's revenues.

The increase in revenues from France was due to higher exports of premixes and specialties coupled with robust sales to the ruminant sector.

There was strong sales growth in Russia, Romania, Bulgaria and the Czech Republic. In the Netherlands, sales improved significantly thanks to higher exports. The new acquisitions added EUR 27 million (US$32 million) to sales.

In North America, sales improved with swine and poultry feed activities developing in line with expectations whilst the ruminant business remained stable. In the rest of the world, strong progress was recorded in India, South Africa, China and Latin America.

Provimi has more than 100 production centres in some 30 countries and exports to over 100 countries. It manufactures products and supplies technical support for ruminants, poultry, swine, fish and pets.