Positive first quarter sales for Provimi

The sales increase is partially a result of the
increasing raw material costs that were gradually passed on to customers with no
positive effect on gross margins. The net impact of acquisitions and divestments
increased sales by €21.1 million, which contributed to the progress made in
France and North America.

Results per country
In France, both
sales and volumes showed a good increase in the main product lines, especially
in premixes. Sales in the domestic market developed well in spite of strong
competition. The new pet food activity acquired in December 2006 further
contributed to sales.
In Poland, sales and volumes showed a significant
increase in comparison with the first three months of 2006, helped by increasing
sales of complete feed for swine as farmers were running out of grain. Market
conditions for customers however continue to be difficult and the ban on the
exports of Polish meat to Russia continued. Rising raw material prices were,
with some delay, passed on to customers.

In the Rest of Europe, a good
performance in the feed businesses in Bulgaria, Russia, Romania, Netherlands and
Spain more than offset lower sales in Hungary. The European Pet food activities
were faced with rising raw material costs. Sales growth was particularly strong
in Pet food in Central and Eastern Europe. Thanks to good weather conditions,
the aqua feed activities made good progress compared to the same period last
year.

In North America, the 2006 acquisitions made an important
contribution to sales. Overall performance in the United States was good,
despite the negative influence of the dollar. Increased tonnage and higher
ingredient prices for micronutrients both strengthened sales.

In the
Rest of the world, sales showed a more moderate increase, with a good
contribution from the Indian and Vietnamese activities.

Related
website:
Provimi

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