FDBusiness.com

Vion Builds a Strong Foundation Despite a Challenging Market

 Breaking News
  • Pernod Ricard to Acquire Super-premium Italian Gin Brand Pernod Ricard is acquiring Italian super-premium gin brand Malfy from Biggar & Leith for an undisclosed price. Malfy is a range of super-premium gins distilled by the Vergnano family in the Italian region of Moncalieri, and already present in several international markets such as the United States, United Kingdom and Germany. Each gin in the [...]...
  • Nestlé and Carrefour Give Consumers Access to Blockchain Platform Nestlé and Carrefour, the French retail group, have announced that they are giving consumers access to blockchain data for Mousline purée in France. This is the first time that Nestlé is sharing information on its products with consumers via a blockchain platform. Consumers can use their smartphone or other device to scan a QR code on [...]...
  • Plastics Action Alliance Sets Targets to Achieve Sustainable Reduction in Use of Plastic in Ireland Plastics Action Alliance, the recently formed group that comprises of 11 leading agricultural processing and food businesses in Ireland, has set out its key objectives. The industry leading group aims to significantly reducing the use of plastic packaging across its members’ operations. Formed at the end of 2018, the Plastics Action Alliance is a collaboration that [...]...
  • Carlsberg UK Gets Honest About Its Beer Carlsberg UK has launched its most ambitious and honest consumer facing campaign ever in a bid to drive reappraisal of its flagship beer brand. Expected to reach 97% of the UK, the £20 million campaign conceived in collaboration with agency partners Fold7, Clifford French and Initiative – trades on the equity of the brand’s renowned [...]...
  • Alternative Proteins Challenge Dairy Dominance The value of the sports nutrition market is set to grow by around 8% per year to reach over US$17 billion globally in 2021, according to Innova Market Insights’ forecasts. The mainstreaming of the market has led to a surge in interest in plant-based alternatives with the traditional dominance of whey and other dairy proteins [...]...

Vion Builds a Strong Foundation Despite a Challenging Market

Vion Builds a Strong Foundation Despite a Challenging Market
April 02
16:47 2019

In 2018, Vion, the international meat group, finalised its four year business plan to invest in and modernise its production footprint in its home markets of Germany and the Netherlands. This contributed to the annual results for 2018, where a strong operational cash flow reduced the net debt position and further improved the solvency rate of the company. However, the EBITDA was below that of 2017, due to low cattle-hide prices and high pig prices in an exceptionally warm and dry summer.

In 2018, revenues decreased by 7.9% to €4.670 billion, while volumes only decreased by 2.9%. This decline in revenue was mainly caused by lower sales prices, which were more than offset by lower purchase prices for raw materials and consumables, resulting in improved gross margins.

However, the improved gross margins were more than offset by the increased operating expenses, resulting in a decrease of the earnings before interest and taxes of €6.7 million.

Ronald Lotgerink.

Normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased from €64.0 million in 2017 to €60.5 million in 2018.

During 2018, Vion made significant investments of €61.2 million on improving its competitive base, for example at it beef plants in Leeuwarden and Waldkraiburg. A €35 million investment is planned for Vion’s Boxtel site.

Ronald Lotgerink, chief executive of Vion, comments: “The initiatives included in our strategic plan to modernise our production footprint will provide Vion with a strong competitive base for our future growth. On 28 February 2019, we announced the last initiative, an investment of €35 million in our production facility in Boxtel, which will enable a shorter supply chain and a sustainable way of working at a single location. The initiatives contribute to our operational profit, but they could not fully compensate for the effects of low cattle-hide prices and high pig prices during a very dry summer. However, we managed to decrease our net debt due to good working capital management and a lower number of investments and restructuring costs compared to 2017. Therefore, our balance sheet remains strong. By building on this solid foundation, Vion will initiate a new strategic plan with a focus on building balanced chains (BBC) in close co-operation with our supply chain partners, thus ensuring a sustainable future for our suppliers, our customers and ourselves.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
  • June 25, 2019BevExpo 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements