Forty percent more profit thanks to better prices

Meat concern Vion from Boxtel sees profits increase by no less than 2016 percent in 40. The slaughterhouse can look back with satisfaction on the past year, given the recovery in the pig sector. With a return of 5,6 percent, on balance, 31 million euros was added to the balance sheet. According to CEO Francis Kint, that is encouraging. Although it can always be better.

With a turnover of more than 4,7 billion euros, Vion records a gross profit of 60 million euros. About half of this remains in net profit. Return on invested capital rose by 1,9 percent to 5,6 percent. This means that the result shows improvement. In 2014, a loss of millions was incurred. This is still visible on the balance sheet.

However, due to the result in 2016, the debt position has shrunk by EUR 35 million to EUR 17 million. Still, Kint is not entirely satisfied with the results. “In 2016, we continued to improve our results. While this is not yet a satisfactory level, we are well on the way," said Kint. He expects the upward trend to continue in 2017. Solvency, the ratio between debt and equity, was stable in 2016 at 44,1 percent. According to Vion, that is a robust number. 

Improvement in pig market
2016 was the year of recovery in the European pig market. Vion has also benefited from this. In China, Vion is a major European exporter of pork. In its own words, Vion has a market share of approximately 8 percent. According to Vion, the increased prices for pork have made an important contribution to the turnover growth of just under 180 million euros. The Beef division also realized volume growth.

Outlook 2017
The year 2017 will be dominated by restructuring for Vion Germany. This is how the location was opened last March Seven (Lower Saxony) closed† The restructuring is necessary, because inefficient German slaughter locations have been a problem for the meat concern for years. In the Netherlands, Vion is trying to make a mark on the market with the demand-driven approach ''Good Farming Balance† This was recently introduced in March. In addition, Vion is working on the construction of a new cattle slaughterhouse in Friesland.

Financing options 
September last year, Vion announced that it was looking for new lenders. ABN AMRO has been appointed as financial advisor for this. Or the From Three Group has ears to a foray into the pig sector is still unknown. 

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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