The bottom line result of Voergroep Zuid dropped significantly last year. In addition to the fact that less was earned on compound feed, it is mainly the participation in financial service provider Rivez that is much less profitable.
Turnover was slightly higher than a year earlier at around €314 million. The group result after taxes fell from €4,2 million in 2022 to €364.000 last year. Due to a significantly higher tax burden, the result of the feed activities fell from €744.000 to €24.000. In addition, €340.000 was earned from the participation of approximately 40% in Rivez, a regional player in insurance and mortgages in the south of the Netherlands. A year earlier, that participation yielded €3,5 million, bringing the total result to €4,2 million. Incidentally, it was higher that year, due to a book profit made by the share transaction surrounding the merger of Rivez and Zuiderhuis.
Rivez suffered from economic headwinds in 2023. This was due to a disappointing mortgage market due to higher interest rates, according to the annual report. In addition, costs increased considerably. In addition, an internal reorganization was implemented, with changes in management. Voergroep Zuid expects the profitability of the subsidiary to improve in 2024 as a result.
Although the economic result was less, the core activities were still successful. In a market with shrinking animal numbers, feed sales (including raw materials and contract production) rose by around 7% to 781.000 tonnes. The number of members grew from 604 to 616. Feed group South does not use back payments, but does have a loyalty bonus for loyal members.