Foxhol, 13 November 2007 - Starch group AVEBE has concluded the financial year 2006/2007 with a net profit of EUR 25.2 million. These results are reflected in the annual report that AVEBE is sending at the end of this month to the cooperative members.
“The 2006/2007 annual results show that despite the less favourable harvest AVEBE has created a solid foundation for renewed growth in profits,” says acting chairman of the board and CFO Ed Kraaijenzank.
According to Kraaijenzank, the continued improvement in the result can be attributed to the market conditions and the continued implementation of the chosen strategy. That strategy remains founded on three pillars: focusing on the core business potato starch in Europe, costprice leadership and growth through innovation. Optimisation of the means of production, efficiency raising programmes and strict cost control have contributed to the company's good financial result. The higher grain prices from the end of 2006 which led to higher prices for competing grain starches – made it possible to introduce price increases for potato starch.
Financial year 2006/2007 was concluded with a net profit of EUR 25.2 million (2005/2006: a loss of 4.6 million). The operational cash flow, too, was positive: EUR 25.7 million (2005/2006: 35.8 million). Net turnover decreased to EUR 615.7 million (2005/2006: 633.7 million).
The Board of Directors proposes paying out a dividend from the net profit of EUR 10.1 million to the members. This results into well over 4.5 EUR per ton, and this will be referred to AVEBE's members' council for approval.
AVEBE will also be in a position to pay a good price to the growers for the current 07/08 campaign. For 2007/2008 growers can expect to receive an average amount of 12 EUR per ton of field weight, above the fixed minimum price. This is an increase of 30% as compared to the minimum price. AVEBE trusts that as a result the growers will opt for AVEBE and for growing starch potatoes in the years to come.