May 12, 2009
Vion reports 57-percent decline in 2008 profits
Food company VION achieved a net profit of EUR54 million during 2008, down 57 percent on-year.
The decline was attributed to higher purchase price for raw materials and the inability to pass the costs through the supply chain due to the large meat supply on the global market. This was compounded by the negative influence of the low value of the British pound and US dollar on the company's competitiveness.
Turnover in 2008 increased 21 percent to EUR8.6 billion due to acquisitions and autonomous turnover growth. The EBITA decreased 36 percent to EUR141 million.
VION is moderately positive about 2009, as the company expects the market situation to be influenced by 2008's global economic recession. This will be expressed through increasing price consciousness among both clients and consumers which, in turn, will affect the entire production chain.
VION Food has taken the increasing demand for cheaper products into account. VION Ingredients expects lower prices for animal fats and proteins on the basis of decreasing energy and raw materials prices.
VION N.V. is an internationally operating food company with two core activities Food and Ingredients. The company produces high-quality foods and ingredients for humans and animals. VION's head office is located in Son en Breugel, the Netherlands.
