The Provimi Group released 2009 results showing a strong recovery in the second half of 2009. Group CEO Ton van der Laan said the recovery was “fuelled by improvement initiatives and better market conditions.”
Highlights of the report include:
- Recurring operating profit for 2009 stable at €117.2 million,
- Strong second half performance compared to first half 2009,
- Strong continuing performance from most businesses in Animal Nutrition,
- Restructuring complete with full recovery delivering profitable growth in Pet Food, and
- Strong cash generation from operations.
Revenues were impacted by the volatility of raw material costs and were not the key driver of profitability. Even though operational performance was strong in 2009, revenues decreased by 21.7%. The company cited acquisitions, divestments and unfavourable exchange rates as having a further negative effect on revenue.
Animal Nutrition volumes decreased by 10% in complete feed and by 11% in premix and specialties due to market conditions in the first half of 2009, the Group’s focus on the most profitable market segments, a reduction in credit exposure and divestments, according to the release.
Volumes in the Pet Food business increased by 9% compared to 2008, due to more competitive sales offerings, geographic expansion and more effective operations. Production capacity in Hungary was increased, while Russia started production in November 2009.