Starch manufacturer Avebe reports profit of EUR 3.1 million

Potato Starch manufacturer AVEBE has concluded the financial year 2008/2009 with a net profit of EUR 3.1 million. These results are reflected in the annual report that AVEBE is sending this month to the cooperative members.

"The annual results for 2008/2009 show that AVEBE has succeeded - in spite of extremely difficult market conditions – in achieving a modest profit. That gives us confidence about our prospects once the recession has passed. But first we'll have to get through the recession", said chairman of the board Bert Jansen.

The past financial year was made difficult by the fact that the recession exerted severe downward pressure on prices in all of the sectors where AVEBE sells its products. The pressure on prices was caused by low wheat prices on the global market and the fall in demand in the paper and building sectors in particular. That also led to a substantial rise in stocks. According to Jansen, the modest positive result can be attributed to the measures that have been taken. Jansen: "We have focused more closely on costs, reduced investments and procured more competitively. AVEBE was forced to reduce the bonuses paid to its growers over the EU minimum price compared to the past two years."

Financial year 2008/2009 was concluded with a net profit of EUR 3.1 million (2007/2008: 33.3 million).
Net turnover was EUR 581 million (2007/2008: 652.7 million).

The market conditions remain unchanged for the time being. Bert Jansen: "For the 2009/2010 financial year we will need to pull out all the stops, together with the members of the cooperative and the personnel, in order to get through the recession. That does not detract from the confidence of the Board of Directors and the Supervisory Board in AVEBE's long-term strategy. AVEBE's strategy remains as ever founded on the pillars: focusing on the core business potato starch in Europe, cost-price leadership and growth through innovation/joint ventures. This strategy will bear fruit once the markets recover. “