Profit growth amid shifting markets - 18/09
Turnover up 4.2%
In Europe, the markets for poultry and pig meat suffered as beef consumption returned to near-normal levels. The downtrend was exacerbated by massive imports of cheap poultry and by the fact that certain export markets for pig meat remained closed. In France, good weather encouraged dairy cow grazing, leading to a fall in demand for feed at the end of the period.
Measured on a same-structure basis and constant exchange rates, turnover was down 4.9%, of which 1.2% is attributable to a negative currency impact.
"Nutrition and health": an effective strategy
Evialis's differentiation strategy cushioned the bottom-line impact of these market shifts. The group's activities cover all animal species. Moreover, it is pursuing its development drive in value-added businesses – premix and services, health, specialities, premium feed – and expanding international markets, which are less sensitive to fluctuations in animal feed prices.
Operating profit
Operating profit rose 4.5% to €9.9 million year-on-year, and net profit was up 25.5% to €4.8 million.
Feed production restructured in france, brazil and poland
These first-half results do not reflect the impact of the sweeping reorganisation of feed production, under way for the past 18 months in France, Brazil and Poland, which have been affected by weak markets or sluggish economies.
Evialis has undertaken a thorough overhaul of organisation, production facilities and logistics with the aim of drawing closer to customers, boosting competitiveness and specialising its staff and facilities. The acquisitions made in France during the period under review are part of this rationalisation programme.
Outlook
Markets remain uncertain, but Evialis intends to remain on a profitable growth path thanks to the positive trend in value-added businesses and the smooth integration of past and future acquisitions.