March 28, 2006

Vedan's 2005 lysine turnover drops 37 percent

Vedan International announced on Mar 22 that it has registered a 14.6 percent increase in turnover for 2005, reaching US$257.9 million in total.

The group revealed a net profit of US$7.9 million for the year. Vietnam and Japan remain the group's major markets, accounting for 53.8 percent and 20.5 percent of total sales respectively in 2005.

However, its lysine turnover declined sharply by 37.5 percent to US$20.3 million. This was due to a reduction in output enforced to counter higher raw material costs and low selling prices.

The group said this reduction in output and the 77 percent increase in molasses prices ate into the group's profitability. Vedan relayed that it will convert part of its lysine production lines to MSG to improve profitability in the short term.