Investment Vion presents the results from 2018
The normalised EBITDA was €60.5 milli. compared to €64.0 million in 2017. The net profit decreased with €11.6 mill. to €10.2 mill., following higher depreciation charges from investments in recent years and lower tax benefits. The free cash flow was €28.8 mill., mainly driven by a reduced operating working capital. The solvency rate increased to 45.4% (2017: 44.3%). The net debt was €35.1 mill. at the end of 2018, representing a decrease of €14.9 mill.
The company launched Good Farming Balance, a demand-driven Pork supply chain, in Germany. They were rised to Tier 2 on the global animal welfare benchmark BBFAW. The significant investments of €61.2 mill. improving their competitive base, for example in plants in Leeuwarden and Waldkraiburg. There is a €35 mill. planned investment in Boxtel, enabling a shorter supply chain and a sustainable way of working at one location.
Ronald Lotgerink, CEO of Vion, commented: “The initiatives included in our strategic plan to modernise our production footprint will provide Vion with a strong competitive base for our future growth. On 28 February 2019, we announced the last initiative, an investment of €35 mill. in our production facility in Boxtel, which will enable a shorter supply chain and a sustainable way of working at a single location. The initiatives contribute to our operational profit, but they could not fully compensate for the effects of low cattle-hide prices and high pig prices during a very dry summer. However, we managed to decrease our net debt due to good working capital management and a lower number of investments and restructuring costs compared to 2017. Therefore, our balance sheet remains strong. By building on this solid foundation, Vion will initiate a new strategic plan with a focus on building balanced chains (BBC) in close cooperation with our supply chain partners, thus ensuring a sustainable future for our suppliers, our customers and ourselves.”