Sales growth for Provimi in 1st quarter
Animal nutrition company Provimi announced its sales today for the first quarter of 2008. Sales amounted to €532.5 million, an increase of 19.8% compared to the same period in 2007.
The sales increase was largely due to higher selling prices caused by
increased raw material costs. Sales in all parts of the world increased.
Raw materials
The first months of 2008 saw a continued
increase of raw material prices. The prices of major ingredients, notably soy
and grains, continued to show an upward trend. Many vitamins and phosphates also
increased in price during the first three months of the year.
Market
conditions in animal nutrition remain challenging, notably for swine feed.
However, favourable raw material positions and prices increases contributed to
operating margins.
Pet food performance is benefiting from the
restructuring in Western Europe at the end of 2007 and new contracts agreed for
2008, which helped to restore margins.
Fish feed disposal
The
disposal of the Group’s Fish Feed activities in Spain, Denmark and Chile to
Biomar (Denmark) was completed on 31 January 2008.
Outlook
2008
In spite of a favourable start of the year, raw material markets are
expected to remain volatile and market conditions for our customers remain
challenging.
The group will continue its restructuring activities to
improve efficiency and to adapt the organisation to the changing market
conditions.
Related website:
Provimi
Join 26,000+ subscribers
Subscribe to our newsletter to stay updated about all the need-to-know content in the feed sector, three times a week.
