Vion Food Group experienced a significant net loss last year, primarily due to impairment charges related to its withdrawal from the German market. Despite reporting a negative bottom line of €89.7 million ($97.1 million), compared to a €108 million profit in the previous year, the privately-owned firm is successfully realizing cost savings through its transformation program.
In 2023, Vion initiated a strategic shift by announcing its exit from the German market, choosing instead to concentrate on strengthening its operations in the Benelux countries. The sale of multiple processing plants in Germany has already incurred €38 million in impairment charges, adding to the €58.2 million recorded in 2022.
“The successful Change that Matters program, which began in 2023, will conclude in the coming months, with the full benefits anticipated by 2025. The costs linked to this transformation have influenced the company’s overall results,” Vion stated in its annual report.
Headquartered in Boxtel, Vion, which provides a yearly report, highlighted that its transformation initiative yielded €90 million in savings last year, as the company aims to finalize its divestitures in Germany by 2025. Furthermore, Vion indicated that this program sets a target for an “annual improvement” of €150-200 million through 2025.
In addition to restructuring efforts, Vion is also undergoing significant executive management changes. CEO Ronald Lotgerink will step down at the end of the year, and his role will be succeeded by the current CFO, Tjarda Klimp. Chief Transformation Officer Mattijn Bak will then take over the finance leadership role from Klimp.
Addressing the results, Lotgerink remarked, “With a leaner and more focused organization, we will be better positioned to channel our investments into data-driven supply chains, sustainability, and animal welfare, which remain at the core of our strategy. This will strengthen our operations and create a lasting positive impact on the entire chain.”
Vion, recognized for producing plant-based proteins under the Me-At brand, also shared insights into the global meat market challenges. The company faces “intense competition” in the pork sector from counterparts in the US, South America, and China, and contends with inflationary pressures alongside shifting consumer preferences. These factors have led to a decline in export opportunities outside the EU, reduced herd sizes in Northern Europe, and rising animal prices within the EU.
In July, China named Vion, along with Danish Crown and Litera Meat, in an anti-dumping probe focused on EU pork imports. This investigation has since been expanded to include dairy and brandy products entering China.
In 2023, Vion reported a revenue increase to €5.1 billion, reflecting a 3.5% growth year-over-year. However, the number of volumes sold fell by 6.9%, primarily attributed to the company’s limited export capabilities amid elevated pricing. On a positive note, normalized EBITDA rose to €74.7 million from €67.4 million, while normalized EBIT surged from €0.5 million to €11.9 million.
