Van Loon Group saw its turnover rise above the €1 billion mark for the first time last year, but the meat group's profitability only just remained on the right side of the line. This is evident from the annual report that was filed with the Chamber of Commerce at the end of last month. Solvency has increased considerably. CEO Robert van Ballegooijen comments on a year in which good steps have been taken with a view to the long-term agenda of the family business, although the benefits were nevertheless disappointing.
CEO Robert van Ballegooijen comments on a year in which good steps have been taken with a view to the long-term agenda of the family business, although the benefits were nevertheless disappointing.
Profit further down
Turnover increased last year by €64 million to €1.061 billion. Due to the rapid expansion in recent years and high inflation, Van Loon Group had to wait until it would become a billion-dollar company. Gross profit also shows an improvement. Below the line, however, the net result amounts to a measly €387.550. In 2022, the profit was €3,33 million, wherever the company unsatisfied was along. In previous years the profit figures were much more generous.
Low margins
Van Ballegooijen points to the limited margins in the meat chains as the cause of the low profitability. "This not only concerns slaughterhouses and processors, but also retailers. Livestock farmers currently have acceptable benefits and that is well deserved." According to the CEO, increasing meat prices is not the solution for more financial breathing space in the chain. "We must ensure that meat does not become a luxury product that is no longer consumed everyday. Even despite rising wages, consumers today continue to find meat expensive."
Van Loon Group is mainly looking for margin improvement in reducing costs and further cooperation within the supply chain with customers and suppliers. In 2023, in the context of cost reduction, the former production locations of Promesse in Deventer and Van Loon in Almere were closed and the activities of the companies in Nuth were combined. Staff numbers were also cut. Various acquisitions were also made to better position the company for the future. The Belgian Q-Group, among others, was incorporated, as was meal manufacturer Maître. "The restructuring measures cost money and in acquisitions the costs often outweigh the benefits. This partly explains why our profitability in 2023 will not be at the level we are aiming for."
Hybrid meat
Another strategic step that Van Loon Group took last year was the choice to discontinue meat substitutes. This is due to lagging sales figures. The company sees much more potential in hybrid meat, where meat and vegetable come together in one product. Van Loon Group also recently acquired the butchery activities of supermarket chain Hoogvliet. Van Ballegooijen indicates that Van Loon continues to look forward to possible acquisitions in the current consolidating meat market.
He points to the robust balance sheet of the family business with a solvency of more than 50%. This key figure improved significantly last year, partly thanks to balance sheet reduction. They are also on track to comply with the Paris climate agreement. Van Loon recently announced that it would make its CO2 footprint fully transparent and commit to further reduction.