Vion finalises 4-year business plan and improves solvency rate
In 2018, Vion ended its four-year business plan that was meant to secure the expansion of the company and to reduce the net debt. A strong operational cash flow helped to that even if the EBDITA was below that of 2017, due to low cattle-hide prices and an exceptionally warm and dry summer.
The normalised EBITDA was €60.5 million compared to €64.0 million in 2017. The net profit decreased with €11.6 million to €10.2 million, following higher depreciation charges from investments in recent years and lower tax benefits. The free cash flow was €28.8 million, mainly driven by a reduced operating working capital. The solvency rate increased to 45.4% (2017: 44.3%). The net debt was €35.1 million at the end of 2018, representing a decrease of €14.9 million.
Starting this year, Vion is ready to take on another development plan with investments of €61.2 million in plants in Leeuwarden and Waldkraiburg. Also, 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. 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".
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