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VanDrie and Denkavit will come through 2023 differently
The two large veal calf integrations VanDrie Group and Denkavit International have experienced 2023 very differently from a business perspective. Both saw turnover fall by more than 11%, but the former saw net profit increase, while the latter's profit almost completely evaporated.
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This is evident from the filed annual reports of the two companies. The VanDrie Group and Denkavit International are active in the veal sector, but otherwise have a very different profile. Denkavit is a contracting party/veal company and active in young animal feed, the VanDrie Group is not only a veal company but also a meat processor and active in the dairy trade. This last activity is estimated to account for roughly a third of the turnover.
Stronger profit margin
The total turnover of the VanDrie Group amounted to more than €2023 billion in 3,1, compared to almost €3,5 billion in 2022. However, net profit increased from €113,7 million in the latter year to €134,4 million in 2023. This increased the profit margin from 3,25% to 4,33%. The group's already very solid equity increased even further in 2023 to almost 100%, if possible.
The Netherlands and world market less important
In terms of sales markets, the importance of the EU excluding the Netherlands increased even further for VanDrie. In 2022, 65% of sales went there, in 2023 a total of 71%. The importance of the Dutch market and sales outside the EU decreased accordingly.
The VanDrie Group did not make any significant acquisitions in 2023. Only a French contractor in the Vendée was fully acquired. Dairy trader F&F from Zeist, with an annual turnover of around €150 million, was acquired after the balance sheet date.
Denkavit invests by
Denkavit's turnover fell by €116 million from €994 million in 2022 to €878 million in 2023. That is a decline of 11,7%, slightly more than the 11,15% at Van Drie. However, net profit deteriorated. It fell from €15,6 million to almost €0,9 million. The margin therefore fell considerably. However, this did not prevent Denkavit from going public for a major takeover. For an amount of more than €42 million, it took over the feed activities of the British Volac in Italy, Ireland and the United Kingdom. Perhaps partly for this reason, a new short-term credit facility was concluded, which was increased from €50 to €60 million.
EU interest again greater
Denkavit's solvency decreased slightly during the 2023 financial year from 48,9% to 47,6%. The EU has become slightly more important again for the sales of young animal feed in particular. In 2022, almost 83% was sold in the EU and almost 17% outside it; in 2023, the EU share had risen to almost 87%, while 13% was sold outside the EU.