ABZ sees sales rise, but profits fall

ABZ Diervoeding and De Samen have been together since the beginning of this year fused, but the results for 2021 are still reported separately. Both cooperatives saw a significant drop in profit, but are satisfied with the results.

ABZ's sales rose 2% last year to 615.000 tons. For years, ABZ has been able to achieve organic growth in a shrinking market, which in itself is a great achievement. However, the income shows a significant decrease. Net profit decreased by 35% to €2,7 million profit compared to the record result in 2020.

Of the profit, €1,3 million will be used for a supplementary payment, resulting in €0,30 per 100 kilos. The rest is used for investments. ABZ says it is making solid investments to further expand its success in customized feeds.

The collaboration
The Cooperation speaks of stable sales of 114.000 tons. The stable result is due to a positive customer balance, because existing customers did purchase less compound feed. The profit shows a significant loss. Whereas in 2020 more than €800.000 could be added to the balance sheet, in 2021 this was only €90.000. This is due to higher raw material and energy prices. In the second half of the year, the cooperative stated that it applied competitive pricing. The profit is added to the reserves, which means that there is no supplementary payment. Nevertheless, there is talk of an excellent result. 

From this year on, both cooperatives will operate under the ABZ De Cooperation flag. Bosgoed Diervoeders, which was acquired at the end of January, is also part of this. The merged company speaks of an excellent start. However, the availability of raw materials (and thus the sharply increased prices) as a result of the war in Ukraine are a matter of concern.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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