Vion sees profits fall
Dutch meat giant Vion has posted a 57% drop in net profits to €54m during 2008, down from €126m. The company blamed higher raw material costs and the inability to pass the costs on through the supply chain for the fall, which has been compounded by the poor exchange rates.
Turnover was up 21%, mainly due to acquisitions such as the purchase of the Grampian Country Food Group in the UK, which the company said has allowed it to deliver its strategic ambition to become a European food company. Vion’s EBIDTA fell 36% to £141m.
Looking ahead, the company said it remains “moderately” positive for 2009, but expects price pressure to be maintained as the recession bites.