March 20, 2008

 

Provimi reports 17 percent increase in 2007 sales on higher prices

 

Press Release

 

 

Provimi sales increased by 16.6 percent to EUR1,918.5 million which was largely due to higher sales prices resulting from increased raw material costs.

 

The Provimi Group, one of the world leaders in the animal nutrition business, said Wednesday that high raw material prices and restructuring charges negatively impacted results in 2007.

 

The company reported good performance in animal nutrition in the Netherlands, Spain, Poland, Romania, Brazil, Jordan, Vietnam, South Africa.

 

The fish feed operations had sales and a profit from operations of EUR155.8 million and EUR7.2 million respectively

 

Profit from operations before other income/expenses decreased by 15.3 percent to EUR91.1 million. Exchange rates had a negative effect of EUR1.5 million. On a like-for-like basis, profit from operations decreased by 10 percent over the period.

 

In France, animal nutrition results improved, but the overall profit comparison was affected by a one-off inter-company profit in 2006.

 

Poland reported a strong growth in complete feed, as a result of lack of grain at customers, more than compensated for lower premix sales, which resulted in a strong increase in sales and results.

 

In other areas in the EU, the most significant contribution to growth in sales and profit came from the animal nutrition business in the Netherlands, Spain, Portugal, Russia, Romania and Bulgaria.

 

North America's sales and results increased in local currency as a result of new market initiatives and the acquisitions made in 2006, but profit in Euro reduced due to the weaker dollar.

 

In other countries, most reported a strong increase in sales and results. Difficult market conditions due to swine disease in China, were more than offset by strong growth in India, Jordan, South Africa and in Brazil, which saw a strong sales increase in feed for ruminants.

 

Ongoing raw material price increases could continue to impact market conditions in 2008.

 

Provimi will continue its restructuring activities to improve efficiency and to adapt the organisation to the changing market conditions.

 

The Provimi Group is active worldwide in all types of animal nutrition and is a leader in all markets where it is present. It employs over 8,000 people and has annual sales of EUR1.9 billion.

 

Provimi has more than 100 production centres in some 30 countries and exports to over 100.

 

The company manufactures products and supplies technical support for various species, including ruminants, poultry, swine and pets.

 

US$1 = EUR0.64 as of March 20, 2008