Posted: Wednesday, June 3, 2009

The Provimi Group, an animal-nutrition company based in Rotterdam, Netherlands, reported in March that it experienced difficult conditions in the pet-food market for 2008. Even though sales increased in the first half of the year, particularly in Central Europe, sales and profit decreased in the second half. The company noted Western Europe as being an especially difficult market last year.

Provimi attributed the results in part to a delay in the expansion of a production plant in Hungary, and said the reorganization of pet-food operations in the Netherlands also took longer than anticipated.

A new divisional CEO has been brought in and the company expected to embark on a growth and cost-reduction initiative.

Overall, sales increased by 12.3 percent to $2.84 billion, which the company mainly attributed to a result of higher raw-material costs, as well as a positive pricing and mix effect. Net income for 2008 was $38.5 million, which included a loss of about $12 million from continuing operations and a gain of about $50.5 million from discontinuing operations.

In its outlook for 2009, the company said ongoing raw-material price volatility may constitute to impact market conditions. Provimi expected to continue its restructuring activities to improve efficiency and adapt to changing market conditions. The group is actively seeking acquisition opportunities to continue its growth in key markets, including North America, Latin America, Eastern Europe and Asia. <HOME>