Turnover for first half 2005: 307.8 M€ - 28/07
Turbulence in the French market
In terms of volume, the French market was affected during the first half of 2005 by a contraction in complete feed production – pork and poultry – which represent 70% of the market, as well as in dairy cow feed, where the group benefited in the first quarter of 2004 from the end of the effects of the heat wave of 2003. These phenomena, which were felt in particular in the first quarter, were partially corrected for by a slight rebound in May and June.
In addition, the price of raw materials, which condition retail prices to a large extent (75% of the cost price), fell sharply over this same period. This decline was largely passed on.
Against this backdrop, business volumes for Evialis in France showed resilience, especially in poultry and diversification species, but suffered, as did the market as a whole, from prevailing business conditions in dairy cow feed, which is at the heart of its product mix. In terms of value, the decline in raw material prices resulted in a 9% decrease in the average price over the period.
Conversely, premix-specialties and animal health maintained their level of contribution.
Good performance at the international level
Turnover from international business was 68.5 M€, boosted by an increase of nearly 20% in the second quarter.
This performance is primarily attributable to the complete feed business lines:
- in Vietnam, where our two subsidiaries saw their volumes progress by
80% – notably in aquaculture – and their half-year turnover rise by 70%, to 11.5 M€ for the first six months of 2005.
- in Brazil, where the turnaround that began in 2004 was pursued: both volumes and turnover rose in the first half of 2005, by 8% and 11%, respectively.
Premix-specialties showed slight improvement, with further revenue growth posted in South Africa (+11%), Italy (+22%) and Poland in particular, where this activity is undergoing full recovery and doubled.
This business development offset the impact of lower raw material prices and the decision to discontinue unprofitable sub-contracting activities in complete feed, notably in Poland.
Improvement in half-year results
The gradual rebuilding of margins in France, combined with the performance of international activities and projects aimed at optimising operating costs in France, should lead to results that show significant improvement compared with the corresponding period one year earlier.
EVIALIS will publish its half-year earnings on Wednesday, 21 September 2005