February 16, 2007

 

Provimi sales increase by 15 percent

 

 

The Provimi Group, one of the world leaders in the animal nutrition business, has announced good results for 2006.

 

Sales increased by 15 percent to EUR 1,823.2 million (US$2394.04 million) compared to 2005, with strong growth in North America and the emerging markets.

 

On a like-for-like basis, sales growth was 9.5 percent, driven partly by higher selling prices resulting from increased raw material costs.

 

In France, despite a declining market, sales and volumes improved on strong exports to Asia and Latin America.

 

Poland, however, did not perform favourably as the bird flu scare had an indirect impact on the poultry sector in the first semester. Market was also impacted by the restrictions in pork exports due to closed borders with Russia and Ukraine.

 

Unfavourable weather conditions negatively impacted crops resulting in a strong increase in grain prices. In the rest of Europe, sales showed good growth and included the full year effect of the acquisitions made in 2005.

 

The most significant contribution to sales growth came from the feed businesses in the Netherlands, Romania, Bulgaria and Russia.

 

In North America, sales improved strongly as a result of new market initiatives and the acquisitions made in Canada and California in 2006.

 

In the rest of the world, an excellent growth in sales was broad based. Notably, the aqua feed business in Chile sharply increased sales benefiting from favourable market conditions and the joint venture with AquaChile. Part of the increase can also be attributed to higher prices for fishmeal and fish oil.

 

Sales further benefited from strong developments in other countries such as Vietnam, India, South Africa and Brazil.