Strong growth in revenue for 1st quarter 2008 : + 32,2 %

1st quarter 2008 revenue

Pursuit of the raw materials prices as seen end 2007
Most of the raw materials used by the three Group businesses (compound feed, premix, health) are still at high prices, and this, on a worldwide basis. These figures follow in line with those of the 4th quarter 2007 and explain most of the increase in revenue for this period, in strong contrast to the 1st quarter 2007.

For the record, as raw materials make up on average 70% of the sales price, it follows naturally that these price increases are reflected in the increase in revenue even if the repercussion of these prices is progressive. Increased use of the futures markets and research into alternative raw materials enable us to limit and postpone the impacts of this phenomenon on revenue and margins.

Nutrition - Compound feed

An activity encouraged by a favorable species mix
Concerning « Nutrition France », revenue amounted to €151 M, an increase of 32.8 % over the same period for 2007. It reveals the price effect of course, but also a pick-up in volumes of around 5% over the period. 

The poultry sector is still growing (versus the prevailing presence of avian flu in early 2007), and adding to this the practically euphoric milk market and the energy invested by our teams on the ground, these factors constitute the driving forces of this good activity level.

Continuing good performances in growth areas
Over the 1st quarter 2008, revenue for the Nutrition International division amounts to €47.6 M, an increase of 46.4 %. Pulled upwards by Vietnam and Brazil, volumes totaled 155 Kt, representing a progression of 13 %.
Malta Cleyton, The Mexican company acquired end March will be consolidated in the Group accounts from 1 April 2008. By way of reminder, its revenue for 2007 was €130 M.

Premix Specialties

Encouraging performances
Revenue for this division comes to €25.3 M, an increase of 10.1 % and 12.5 % on a like-for-like basis.
This progression comes essentially from the repercussion of the increases in raw materials prices, notably for feed phosphates and vitamins.
The French activities have witnessed a turnaround at operating level, and the subsidiaries, in progression by 12.5%, confirm the solidity of our activities in the emerging markets.

Health

Animal health : tense conditions
This activity is still marked by the raw materials price rises of the 4th quarter, which continue to rise in some areas, such as Vitamin E. During this time which marks the end of tender bids, the collaborations of certain customers have added increased pressure on prices.
Revenue for the 1st quarter amounts to €6.7 M, a progression of 9 %.

Outlook

Volumes are holding up well, which confirms the satisfactory balance of our species portfolio (ruminants, specialties…) in mature markets and pertinent targeting in the emerging markets (Vietnam, Brazil, Russia…).
The price of raw materials remains all the same a major challenge ; their high levels  reinforce the justification of the business and the resource R&D to come up with original, pertinent and competitive solutions to our customers.
The 2nd quarter should follow the same logic and enable us, with our new acquisitions, to achieve a net increase in results over the 1st half 2008. 

Diary dates :   28 May 2008, Annual General Shareholders’ Meeting
                      25 July 2008, Half-year revenue 2008

Some information about Evialis :
EVIALIS, international animal health and nutrition specialist, is quoted on the Eurolist index of Euronext, section C at the Paris Stock Exchange. The EVIALIS Group provides livestock farmers and feed producers with a range of animal health and nutrition products, operating in three areas :
- Compound feed for livestock and pets,
- Premix and specialized products and expert advice to industrial food producers and home-mixers,
- Animal health dietary and hygiene products.
With an industrial presence in 16 countries with 64 plants over the world, EVIALIS sells its products and services in 50 different countries. 

For further information: www.evialis.com.

REACHING THE WORLD OVER…

For any further information, please contact :