Vion posts higher profits for 2009

Dutch meat processor Vion Food Group on Wednesday (May 19) posted higher sales and earnings for 2009 thanks in part to volumes gained in the UK from acquisitions in 2008.

Vion, which supplies meat products in the UK, Germany and the Netherlands, said it had seen a "cautious recovery" in 2009, increasing net profit from EUR54 million (US$67.49 million) to EUR62 million (US$77.49 million), when turnover rose 5% to EUR9 billion (US$11.08 billion).

That was despite European consumer behaviour being "adversely affected" across the entire meat production chain during the recession. "Consumers dined in more, preferred pork and chicken to lamb or beef, and had a tendency to buy lower-priced products," a statement said.

Despite the tough conditions, Vion said it grew its business through product innovation, cost reductions and more focus on its three home markets of The Netherlands, Germany and the UK. Production volumes were also increased by the companies it acquired in 2008, such as Grampian Country Foods.

According to the company, a programme to consolidate the operations is ahead of plan and significant investment has been made across the UK business.

The company was cautiously optimistic about 2010. "Although some would claim that the economic recession has passed, the effects of the worldwide economic downturn can still be felt in consumers' buying behaviour," the company said.