Annual results 2004
Annual results 2004
Economic conditions were harsh in the French animal nutrition industry in 2004, largely because of rising commodity prices.
Evialis reported turnover of €673 million for the year, level with 2003. At constant scope and exchange rates, turnover rose 0.6% to €678.5 million.
Two contrasting half-years in France
In France, events in the first and second half-years were in sharp contrast.
The first half was badly affected by an exceptional run-up in commodity prices. These increases could not be passed along in full because of intense competition, especially in the industrial pig and poultry sectors in Western France.
In the second half-year commodities eased, relaxing the price constraint and improving the earnings structure, as expected. But this positive impact was undermined by a sharp fall in cattle feed volumes, as weather conditions proved excellent for grazing, in contrast to the drought in 2003.
Against this backdrop, Evialis was able to continue cutting costs and improving operating performance in France, taking advantage of the reorganisation of its complete feed business into nine regional profit centres.
Second-half profits were sharply higher than in the first half. However, as expected, they were lower than in second-half 2003.
International Business continues to improve
Turnover from international activities was €136.4 million, up 5% on the previous year. At constant scope and exchange rates, sales rose 9.6%.
This buoyant performance is attributable firstly to the sharply improved situation in Poland and in Brazil, underscored by the positive effects of the recovery plans implemented over the past two years, and secondly to a good performance in some emerging markets.
Business also grew at a satisfactory pace in South Africa, as well as in eastern Europe, with turnover of €25 million and – in particular – a steep rise in volumes in Poland.
In Asia, despite the first-quarter impact of bird flu', Evialis made turnover of €33 million, a rise of 20%. This was largely due to the promising start made by the aquaculture business in Vietnam.
Results in positive territory but lower than in 2003
For the full year, gross profit amounted to €198.2 million, 3.8% lower than in 2003.
Operating profit came out at €9.6 million and net profit at €3 million.
Dividend
In view of these results, the Board of Directors will recommend a dividend of €0.90 per share to the annual general meeting on 26 May. Based on a share price of €32, this produces a yield of 2.8%.
Outlook
Evialis intends to continue expanding its international operations, which offer genuine growth opportunities for the group. In France, Evialis is negotiating a partnership deal with Unicopa to create a regional leader in animal nutrition in Western France. Evialis will pursue efforts to improve profitability and strengthen positions across all its business segments.
Appointment of a new Chairman
The Board of Directors accepted the resignation of Alain Meulnart from the post of Chairman and Chief Executive Officer. It appointed Pierre Lefebvre to replace him. Mr Lefebvre was previously CEO of Villemorin-Clause.
Evialis will announce its first-quarter 2005 turnover on 10 May 2005