Netherlands-based meat processor Vion today (7 April) reported higher annual sales and earnings.
Vion posted net profit of EUR31m (US$32.9m), up from EUR22m in 2015.
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The company’s net turnover reached EUR4.75bn in 2016, compared to EUR4.57bn a year earlier.
Vion said its operating profit fell from EUR31m to EUR28m but it pointed to a rise in its “normalised EBITDA from ongoing activities”, which it said rose from EUR45m to EUR60m.
“EBITDA improved to EUR60m, which leads to a return on capital employed of 5.6%. This is still not at a satisfactory level but the investment program of EUR180m over the last three years, the rationalisation of our production footprint and several successes on the commercial front are leading to improved performance,” CEO Francis Kint said. “We now clearly perceive appreciation from all stakeholders for the hard work done and intend to continue in 2017 on this path to success.”
In September, Vion and its sole shareholder NCB Ontwikkeling announced they had decided to look into new financing arrangements to try to drive the company’s growth. Vion said today the company is to refinance its receivables based working capital facility – which expires in June – at a level of EUR200m, up an increase of EUR75m. The group said it has reached agreements on the terms and conditions for the new facility with a syndicate of four banks, including existing lenders ABN AMRO Commercial Finance and NIBC.
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By GlobalDataLast month, Vion revealed plans to close a “loss-making” slaughterhouse in Zeven, in Germany’s Lower Saxony region to focus production at a plant around 100km west, in Emstek, which the company said “provides an ideal bridge to global markets”.
This year, meanwhile, Vion said its “main investment” would be a new beef facility in the Netherlands.
