The Provimi Group announced its turnover for the first quarter of 2007. Sales amounted to €478.7 million, an increase of 14% compared to the same period of 2006.
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.
Rest of Europe
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.
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