Turnover and profit setback for Evialis

This decline is explained in particular by the fall in the French market,
which was strongly disturbed by the avian flu virus, and mild weather which
favoured outdoor grazing for ruminants over the final
quarter.

Reduction in profit
These events explain the figure
for gross profit margin at €194.4m, reduction of €16.8m from 2005, which on top
of the volumes issue relates to the difficulties encountered to pass over the
total amount of raw material price increases to sales prices over the last
quarter.
The steps taken to optimise the organisation engaged in France made
it possible to reduce operating costs, and to attenuate the decline in current
operating profit at €8.5 m, a reduction of €4m compared with 2005.
After
financial costs of €2.5m and income tax of €1.5m, group consolidated net profit
comes out at €3.9m.

Nutrea makes negative contribution
As for
Nutréa (34% owned by Evialis, and 66% owned by Unicopa), its volumes of poultry
feed were largely affected by the avian flu virus which involved a significant
drop in consumption in France and the temporary closure of many export markets.
These exceptional events explain the loss sustained over the accounting
period.
For the premix and specialties segment the French business activities
resisted overall in spite of the avian flu virus and strong competition on the
home mixers market. On the other hand, exports registered a progression of 18%
in sales.
Internationally Evialis’ subsidiaries in Brazil (ruminants,
horses), Romania (ruminants), Poland (poultry), Vietnam (pigs, aquaculture),
South Africa (premixes) and Southern Europe business suffered from disease
outbreaks, but could maintain their market positions.

Outlook for
2007
In a difficult economic situation and to face up to the erosion of
the French market, Evialis has clearly expressed in its strategic objectives
defined in its CAP 2010 plan, the need to reinforce the international side of
its business activities.
The group is working on several other external
acquisition projects, aiming to strengthen, in priority its international
development and, on occasion, when appropriate, consolidating existing
positions, whilst at the same time paying attention to retain sound equilibrium
across the Group Balance sheet.

Related website:
Evialis

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