Operating profit holds steady against a difficult backdrop - 20/03
A good year against an unsettled backdrop
Against an unsettled backdrop at the start of the year, Evialis reported turnover of €747.5 million, an 11.5% increase that can be attributed primarily to the consolidation of acquisitions. This figure reflects a negative €14 million currency impact, linked mainly to Brazil. On a like-for-like basis, the increase on the previous year is 1.4 % .
Gross profit was €207 million, up 9.8%.
Operating profit was stable over the year as a whole (up 0.4%), although the first half saw a 9% fall.
Net profit excluding minorities was €9.8 million. This includes the increase in acquisition-related interest expense, as well as the restructuring charges arising from the ongoing rationalisation programme. The net also reflects an extraordinary profit of €1.8 million corresponding to capital gain on asset disposals.
The increase in gross profit reflects an improved product mix
On a like-for-like basis, gross profit rose by 1.7%. This reflects the improvement in the product mix resulting notably from a strong drop in the volume of low-margin business in France.
A year that saw a major programme focusing on high-potential acquisitions
During 2001, Evialis conducted a major programme of external growth, with seven consolidated acquisitions contributing €81 million to annual turnover. These acquisitions reflect a two-pronged objective. First, to develop value-added activities in France and other countries: Gheerbrant in France, IZA in Italy, Coprex in South Africa and a new industrial plant in South Vietnam. Moreover, three acquisitions consolidated our positions on mature markets: INVE in Spain, and Prévital Nord and Prévital Normandie in France. These acquisitions will accelerate the rationalisation programme that will tap the full potential for higher profits.
Increase in value-added activities: 16%
During the year, turnover in value-added activities grew by a substantial 16%, of which 7% from internal growth. This illustrates the group’s ability to develop the value-added segment. The animal health branch, for example, reported an organic increase in turnover of 10%.
Outlook
Evialis is accelerating its development in the value-added activities that are at the heart of its strategy, notably through faster development on international markets.
Although the backdrop at the start of 2002 looked uncertain for livestock farming in France, with strong pressures in the poultry sector in particular, Evialis expects to see an increase in turnover and income. This will be achieved by its diversified portfolio and the prospects offered by the rationalisation of its activities.
Dividend
The Board of Directors voted on 19 March 2002 to recommend a dividend of €1.3 per share, or €1.95 including the dividend tax credit (avoir fiscal), to the Annual General Meeting of Shareholders on 22 May 2002. Based on the closing price of the shares at end-December 2001, namely €54, this amounts to a gross yield of 3.6%.