May 11, 2007

Provimi posts 14 percent in first quarter sales

Dutch animal feed maker Provimi Group said its sales for the first quarter of 2007 have amounted to 478.7 million euro, posting an increase of 14 percent as against the same period last year due to increasing raw material costs that were gradually passed to customers with no positive effect on gross margins.

The increase was also attributed to acquisitions and divestments as well as its jump in sales by 21.1 million euro notably in France and North America.

Both sales and volumes in France showed a good increase in the main product lines, especially in premixes. The new pet food activity acquired in December 2006 further contributed to sales.

In Poland, sales and volumes showed a significant jump compared to the first three months of 2006, due to increasing sales of complete feed for swine as farmers were running out of grain. However, conditions on the Polish market continue to be difficult and the continued ban of Polish meat to Russia has hampered further sales. Rising raw material prices were, with some delay, passed on to customers.

A good performance was noted in the feed businesses in Bulgaria, Russia, Romania, Netherlands and Spain and it more than offset lower sales in Hungary. Good weather conditions had the aqua feed activities made good progress compared to the same period last year.

In North America, the 2006 acquisitions made an important contribution to sales with its improved overall performance in the United States despite the US dollar's continued fall. Increased tonnage and higher ingredient prices for micronutrients both strengthened sales.

On Asian front, sales showed a more moderate increase with a good contribution from markets in India and Vietnam.