Revenue at 30 June 2008 : €510,3 M€ + 45.6 %

Revenue in millions of euros

* From now on, the Group consolidates its accounts on 30 June in line with its majority shareholder InVivo. The 2008 accounting period will cover 6 months of activity.

Revenue for the second quarter of 2008 amounted to €275.0 M, an increase of 59.5% over the second quarter of 2007, mainly as a result of revenue contribution from acquisitions and in particular Malta Cleyton, which has been consolidated since 1 April 2008, and accounts for  €40.5 M. On a like-for-like basis, the increase during the second quarter is along the same lines as for the first quarter, at 34%.

For the six-month period, EVIALIS Group achieved revenue of €510.3 M at 30 June 2008, an increase of 45.6% compared with the first-half of 2007. On a like-for-like basis, revenue increased by 33% to €465.2 M.

In the worldwide context of high raw materials prices in the agricultural sector, the three divisions of the Group (Compound feed, Premix-Specialties, Animal Health) are still largely affected by the gradual repercussion of these increases to the sales prices, which has been the case since the end of 2007.

Evialis Nutrition France

The Nutrition France activity contributed €291.6 M to Group revenue, an increase of 33.2%. Whilst this mainly translates the impact of raw materials price increases, it also represents sales development, with a growth rate of over 2% compared with the second half of 2007.

The favorable milk context and the Group’s strong presence in this market (35 % of total volumes) have contributed to unprecedented growth, especially concerning the first four months.
Moreover, in spite of the strain on meat prices, volumes are healthy in the industrial poultry and pig sectors. More specialized areas such as equine and game achieved two-figure increases in volumes.

Evialis International Nutrition

International compound feed doubled its activity over the half-year. This division  benefitted from the consolidation of acquisitions, the largest one being Malta Cleyton in Mexico, and also including BernAqua in Belgium, Zoofort in Brazil (consolidated since end 2007) and Cargill’s Brazilian business (acquired in June 2008) amounting to a total contribution of €51 M. On the negative side, foreign exchange losses arising mostly from Vietnam, came to €4.8 M.
As for organic growth, the emerging markets remain buoyant, even if the growth rate is slowed down by inflationist trends and high raw materials prices.

Premix - Specialties

Revenue for the Premix-Specialties division increased by 16.2% to €52.1 M. Foreign exchange losses amounted to €1M. This change reflects both the gradual repercussions of the price increases concerning the main ingredients and healthy activity levels.  The French arm benefitted from several factors : the finalization of integrating SNPS within the existing organization, the satisfactory performance of exports despite the falling dollar and activity levels at the analytical laboratory, LAREAL.
The international subsidiaries recorded increases during the second quarter.

Health

The Animal Health division achieved revenue of €13.5 M – an increase of 7.9%. The tense environment, regarding both competition and regulations has led the division to widen its scope :  marketing to other distribution sectors, concentration on certain species, technological partnerships and increased resources for the export activity.

Outlook

This half-year will have been marked by the continuing increases in raw material prices and by the realization of two significant acquisitions in Brazil and Mexico. These two factors serve to validate the intentions laid down in CAP 2010, the Group’s strategic plan :
. Reinforce R&D to create differentiation and achieve cost efficiency for our formulae,
. Develop our businesses internationally to capitalize on rapidly growing markets,
. Optimize our costs within mature markets to remain competitive.
Finally, the announcement of the project to bring together the activities of Evialis and InVivo during 2009 offers the Group a new perspective and fresh ambitions. The new group, which will represent €1.5 billion of revenue and count 5 000 employees, will find its place among the top world players within the profession.

Dates for your diary : 2007-2008 Results : 24 September 2008.