RESULTS: Pressure on Vion Food’s 2011 profits
Pork processor and food company Vion Food Group, headquartered in the Netherlands, achieved a 7% increase in total turnover – €9.5 billion in 2011, but there was heavy pressure on its results. The operating result dropped by 53% to €90 million. The result after tax was €14 million.
Activities in 2011
Vion Food Group responded well to the growing market demand for meat from the BRIC countries. The home markets, i.e. the Netherlands, Germany and the United Kingdom, were very challenging for Vion Food, and there was heavy pressure on results in these markets. The stagnating economy and restricted consumer expenditure clearly impacted on performance. The pork market was again highly competitive; the rise in livestock prices resulting from increased input costs, were not reflected in sales prices, due in part to an imbalance between supply and demand. The beef activities also felt the pressure. While investment in the development of innovative products will continue, improvements in operational cost efficiency will remain a key focus in order to achieve sound returns.
Added value
Vion successfully developed and introduced products with higher added value in 2011. In partnership with suppliers and customers, the company launched food and ingredients products that respond to key drivers of quality, health, sustainability and animal welfare. In this respect, the company works with several different market concepts for pork, beef, chicken and convenience products such as hamburger concepts and Hackplus, the hybrid meat product.
Vion Food
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