Vion Food Group returns to profitability in 2015
Despite challenging pork markets, company reports a net profit of US$25 million
Dutch pork and beef company Vion Food Group saw a return to profitability in 2015, reporting a net profit of EUR22 million (US$25 million) versus a net loss EUR21 million during the 2014 fiscal year.
The turnaround for Vion was achieved in spite of challenging pork markets.
Vion Food Group, which operates in both the Netherlands and in Germany, during 2015 closed its pork sites in the German towns of Bad Neustadt and Straubing, according to a press release from the company. It also closed two beef sites. However, the company also made significant investments to expand and modernize four other sites.
According to the WATTAgNet Top Pig Companies Database, Vion Food group held a 15.5 percent market share in Germany in 2014.
Outlook for 2016
In the first part of 2016, the European pork sector is expected to face continuing price pressure, although these will be partially alleviated by the EU private storage aid. However, Vion Food Group does not foresee a return to more normal price levels before the second half of the year.
In the beef industry, the managed reduction of milk production will impact the volumes of cattle being slaughtered. In the company’s Food Service division, Vion Food Group plans for continued growth and expansion of our distribution through the broadening of its frozen product range.