Vion Food Group has reported a rise in annual profits despite a dip in revenues, with the Dutch food maker citing “positive growth” in its export markets.
The company booked net profit of EUR80m (US$112.8m) for 2010, up from EUR62m in 2009, even as revenue dropped 1.9% to EUR8.87bn.
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Uwe Tillman, Vion’s CEO and chairman of its executive board, said markets “were by no means easy in 2010” with consumers focusing more on low prices and promotional offers.
However, Tillman said on Thursday (19 May): “In spite of these challenging market conditions, we managed to improve our results in 2010. We achieved better positions in our markets for beef and our wider meat exports.”
Nevertheless, Vion endured “highly competitive” trading conditions in pork, Tillman said, notably in the company’s “home” markets of the Netherlands, Germany and the UK. “Where necessary, results were achieved by restructuring and efficiency measures,” the Vion chief added.
Vion’s profits were supported by the company’s moves to keep its costs “in balance”, Tillman noted, although he said the “cost pattern was influenced strongly by price increases for commodities”. He added: “Commodity prices are expected to remain high in 2011.”
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By GlobalDataLast week, Vion also announced plans to close a poultry processing site in the English town of Thorne.
A total of 255 jobs could be affected by the move, which would see processing move to two other Vion sites in Wales and Scotland.
Vion said a lack of contract growers near the Thorne site meant the facility was operating under full capacity.
The company plans to begin talks with union officials and employees over the plans.
