Pig slaughterers in our country are seeing profits evaporate

2022 was a turbulent year for pig farming and therefore also for slaughterhouses. In the first months, pig prices were still below a meager price level of €1,20 per kilo. Shortly after the Russian invasion of Ukraine, the market went crazy. During the summer months the €2 limit was passed and subsequently held up well.

The rapid recovery in purchasing prices was particularly challenging for pig slaughterers. Especially because the pig supply was also under pressure. This resulted in a mutual rat race for the highest pig prices, with the aim of filling the slaughter hooks. With a total of 15,6 million pigs slaughtered in our country, the slaughter figure was barely 150.000 heads lower than a year earlier. 

The sharply increased (purchase) prices strongly influence the results of pig slaughterers. Although turnover also increased sharply, the bottom line often came under pressure. Based on public data, we draw up the balance in order of turnover size. The results of the companies mentioned also include other activities. 

1. Heavy loss Vion
For market leader Vion, 2022 is a year to quickly forget. Due to a one-off charge of €63,5 million, the loss increased to more than €100 million. The problems are concentrated around pig slaughter activities. Not so much in our own country, but especially in Germany, where Vion generates half of its turnover. Due to the significant loss, solvency took a serious hit and fell by 9 percentage points to 30,8%. Although considerably lower, this is not yet critical. Despite the problems, CEO Ronald Lotgerink is still optimistic. He expected he said that he will be able to write green numbers again fairly quickly, he said this summer. 

2. Van Loon reports limited profit
Van Loon Group's turnover grew by more than €100 million last year and remained just below the €1 billion mark. However, profitability is under considerable pressure and has fallen from €18 million to €3,34 million. This was bad own words well below par, given that a small plus is still being written. With a healthy solvency of 42%, the company says it can further roll out its growth agenda.

3. Van Rooi apparently performs better
Van Rooi Meat achieved significantly more profit and turnover last year. Net turnover increased by just under €100 million to €774 million, of which €27 million remained at the bottom line. Compared to 2021, the results show some recovery, but in that year the company suffered from an export boycott to China. In previous years, profits were structurally higher. Solvency can be considered extremely strong at 76%. 

4. Stable income at Westfort
Westfort expects turnover to increase by 2022% to €10 million in 688, more than two-thirds of which will be realized abroad. Net profit remained virtually the same at €10,9 million and has been added to the overall reserves. Because short-term debts also increased considerably, solvency remains virtually the same at 44%. In terms of profitability, Westfort is the most stable of the big five.

5. Compaxo reports lower profits
Compaxo achieved a turnover increase of more than 2022% to €18 million in 469. Profits did drop considerably: from €26 million to €8,4 million. This is due to sharply increased costs as a result of the war in Ukraine, the management indicates in the annual report. At 47%, solvency is at a healthy level, but considerably lower than in 2021 when it was still 62%. The sharp decline is because loans worth tens of millions were taken out from credit institutions, possibly to absorb the increased costs and manage cash flow.