Turnover for first 9 months 2004: up 3.2% - 10/11
The Evialis group reported turnover of €160.9 million in third-quarter 2004, in line with the same period last year. Aggregate turnover for the nine-month period grew by 3.2% to €508.7 million, compared with the first nine months of 2003. On a like-for-like basis, turnover totalled €513 million, a 4.1% rise.
Gradually rebuilding margins in France
In third-quarter 2004, France’s animal feed market lost the knock-on effects of the 2003 summer drought which had boosted demand for ruminant feed through to first-quarter 2004. As a result, the ruminant feed market returned to more normal levels. In addition, favourable weather conditions in third-quarter 2004 kept animals in pasture, thus lowering demand for complete feed. Compared with the same period in 2003, tonnages of complete feed sold by the group in France have declined, on a generally stable market.
Raw materials confirmed their downward trend, impacted by bumper cereal and soya harvests. This drop in raw material prices has enabled the group to gradually rebuild margins, which had contracted significantly during the first half-year.
International business consolidates recovery
On a like-for-like basis, group turnover on international markets grew by 13.7% in third-quarter 2004, compared with the same period last year.
Turnover soared on several emerging markets, by 8% in South Africa, 32% in Indonesia and 45% in Vietnam, where the increase was driven primarily by the expanding aquaculture business.
Brazil and Poland, which account for 38% of Evialis’s turnover on international markets, are consolidating their recovery, following the turnaround programmes launched in 2003. Sales volumes of the two subsidiaries are expanding and turnover grew by 10% for Brazil and 17% for Poland.
A profitable 2nd half-year
The group is gradually rebuilding margins in France, pursuing recovery in its two key international markets and sustaining robust growth in emerging countries. As a result, it expects to report a profitable second half-year, as announced in its first half-year results in September 2004, although results are expected to be down on the previous year.