Turnover in 2003: €674.6 million sustained level of activity in 2nd half-year - 10/02
In 2003, Evialis reported turnover of €674.6 million, compared with €737.9 million in 2002. This result reflects a €15.2 million negative currency impact, attributable mainly to the Brazilian real. At constant exchange rates, turnover contracted by 6.5% to €689.8 million.
Sales in France Pick up
In France, the level of activity reported by Evialis at year-end reflected a turnaround in the steep downturn seen during the first half of the year. In its core market, Evialis reported last-quarter sales volumes that were on a par with the previous year.
Evialis posted a better level of performance in second-half 2003 than in the first half-year. This rally confirms the recovery trend in group activity, following a first half-year marked by the combined effects of a drop in both tonnage and costs of raw materials.
The drought that affected France in the second half-year had repercussions in two areas. Firstly, demand for cattle feed grew considerably, moving more towards entry-level products. Secondly, the cost of raw materials soared, but Evialis passed on only a portion of this increase. This decision was made to show solidarity with partners and farming customers, and also to respond to mounting pressure from competitors, mainly in industrial production sectors (poultry and pigs).
Contrasting trends in international markets in 2003
The Evialis group reported strong performances in some emerging markets, such as Vietnam, Indonesia and South Africa. By contrast, in Brazil and Poland, conditions remained difficult. In Brazil, the group is moving forward with strategic, operational and technical adjustments, and adapting its offering to local demand, especially in pet food and aquaculture products. In Poland, Evialis is pursuing its redeployment programme, which is targeting the pig market and higher value-added products. These measures should start producing pay-off in 2004.
In 2003: A poor start but a better finish
Results for 2003 were hit by extremely difficult market conditions during the first half-year, especially in the pig and poultry sectors. Improved levels of performance at year-end made it possible to contain this downward trend, although this upturn had only a limited impact on results, since rises in costs had not been passed on in full to customers. Overall, net profit dropped sharply in 2003, but remained positive.