24 April, 2008 - In 2007, Vion Food Group achieved net profits of Euro 126 million, from a turnover of Euro 7.1 billion. This is a 55% improvement in comparison to 2006.
Turnover fell by 3.7% as a result of lower meat prices. The operating result (EBITA) increased by 33% to € 221 million. This is the result of a strong focus on the strategic pillars of operational excellence, product leadership and sustainability, the acquisitions made, and non-recurring income.
VION Ingredients
This division develops, manufactures and markets ingredients from natural raw materials for pharmaceutical, food and technical applications for humans and animals. VION Ingredients' operating result improved, rising from € 65 million in 2006 to € 73 million in 2007. This was the result of acquisitions on the one hand, and more efficient and effective utilisation of production capacity, on the other.
VION Fresh Meat
VION Fresh Meat focuses on the efficient, hygienic and high-quality production of fresh pork, beef and lamb. Its operating result suffered from poor market conditions in 2007 which were caused by an imbalance between supply and demand which resulted in price pressure. In spite of cost reductions and business restructuring, the result decreased, from € 86 million in 2006 to € 81 million in 2007.
VION Convenience
VION Convenience concentrates on the development, production and marketing of convenience foods. In terms of volume, sales to retail developed positively, but with lower margins. Convenience's operating result nevertheless grew from € 28 million in 2006 to € 51 million in 2007. Acquisitions and improvements to market positions made a positive contribution. Furthermore, this result was also influenced by insurance compensation resulting from business interruption caused by a fire.
Outlook for 2008
In 2008, VION expects a market with increasing production costs that may not readily or wholly be tranferred to the finished market price. The supply – demand imbalance is likely to maintain pressure on the market. Operational excellence, product leadership and sustainability will remain of strategic importance to healthy continuity and development in 2008. The Convenience division has good growth potential. The majority share VION has in the English foodstuffs company J&J Tranfield which produces breakfast sausages for the English retail market, confirms this. Rousselot, part of VION Ingredients, has reinforced its product leadership position on the gelatin market by means of a majority share in Brazilian gelatin manufacturer Rebière.
VION N.V. is an internationally operating food group that produces high quality foodstuffs and ingredients for humans and animals. The group consists of three divisions: Ingredients, Fresh Meat and Convenience. VION has an annual turnover of € 7.1 billion and employs 16,200 employees. VION's head office is located in Son en Breugel, the Netherlands.