April 1, 2011
Provimi records strong financial performance in 2010
Press Release
Financial performance for Provimi Group in 2010 was strong and in place to accelerate international growth, particularly in Latin America, Russia and Asia.
The results are for the year to December 31, 2010, covering only the animal nutrition activities following the announcement on March 23, 2011 of the sale of the Pet Food division. Pet food is treated as a discontinued activity.
Total revenues increased by 10.8% to EUR1,615 million (US$2.3 billion). Total gross margin increased by 8.2% to EUR461 million (US$652 million). EBITDA was up 19.6% to EUR154.2 million (US$218 million). Over the last four years, Provimi has delivered strong EBITDA CAGR growth of 12%.
Provimi recorded very strong performance in its key growth markets Brazil, Mexico, Russia and Asia, which now contribute 43% of total EBITDA. This was driven by strong volume growth of 23% in Brazil and 27% in Russia.
With the successful acquisition of NASSA, a leading Mexican animal nutrition Business, integration is progressing well and will be finalised in the second quarter of this year.
Provimi will continue to focus on innovation through the Global Feed Solution organisation programme, which has 40 promising projects currently.
Ton van der Laan, Group Chief Executive Officer said, "This is an excellent set of results driven largely by our strong performance in high growth regions, such as Latin America, Russia and Asia, and we see considerable opportunities in these areas for the future. Our ability to offer superior nutritional solutions to our customers, strategically positioning ourselves in the centre of the value chain, is also delivering real competitive advantage to the Group."
"Provimi has a clear strategy to focus on its core animal nutrition business. There are considerable growth opportunities in the fast growing emerging markets for our animal nutrition business today, driven by the rise in protein consumption, and we remain focused on expanding our presence in those regions," he said.
"Our strong global market positions and sustained focus on innovation deliver real value to our customers and provide a good platform from which to deliver sustainable profitable growth in the coming years. Together with our improved sales force effectiveness and our efficient and reliable supply chain, these form the building blocks by which we have enhanced our capabilities. The next phase of our strategy will accelerate our growth and enforce our leadership in the market," he added.