2008 preliminary figures Acomo: net profit of € 8.5 million
Date:
Mar 12, 2009
Amsterdam Commodities records net profit of € 8.5 million in 2008 and maintains its dividend policy.
The preliminary consolidated results for 2008 of Amsterdam Commodities (Acomo) show a net profit of € 8.5 million (unaudited). This results nearly equals the record of 2007 (€ 8.8 million), which was the best result in the 100 years history of the Euronext Amsterdam listed trading group in spices, food ingredients and natural rubber.
Market conditions volatile and challenging
"Never before were the market conditions so volatile and challenging", says managing director St. Holvoet. All the activities of the group were profitable. Consolidated sales increased with 8% to reach € 175 million (2007: € 162 million).
Demand exceeded quantities offered
Prices of most commodities continued to rise to record highs in the first half 2008. For many products, demand exceeded quantities offered. Starting in the second half, the worldwide financial and economic crisis led to a decline in industrial production, inventories were reduced, demand for raw materials decreased significantly and prices of almost every commodity dropped at previously unseen speed. Our teams proved once again their long experience and expertise and reacted very alertly to these changing market circumstances. Thanks to our steadfast policy aimed at strengthening the group's equity, and based on the excellent results in recent years, our group was not significantly affected by the credit crisis.
Trading house Catz International performed strongly and was once again the main contributor to the group's results. TEFCO Food Ingredients (natural ingredients for the food industry), which was acquired in 2006, continued to grow and achieved improved sales and profitability. RCMA Commodities Asia (43% participation), active in the international rubber trade, improved its profitability and contribution to Acomo's results. Rubber prices reached historic records beginning of July, after which the market plummeted in the second half.
Current performance
In January 2009, Acomo announced that it had reached a principle agreement to take over the Belgian company Snick Ingredients Bvba. This transaction is consistent with our long-term strategy to grow and diversify the trade and distribution activities in ingredients for the food industry. Meanwhile, the acquisition has been completed successfully. Snick will immediately (as from 2009) contribute to the earnings per share of the group.
In the first two months of 2009, we saw very active trading and all the activities were profitable. A severe and prolonged recession is affecting the world economies, although traditionally the food industry is less cyclical. It is, in these conditions, impossible to make any forecast about the trade in 2009 and the results of the group. Management and Supervisory Board have confidence in the talent of our traders to make good use of trading opportunities and to generate profits in rising as well as in decreasing markets.
Dividend
Based on the results and the strong financial position, Acomo expects to pay an ordinary dividend in line with its stated policy and practice. The audited 2008 figures together with the dividend proposal to Shareholders will be announced mid-April. The annual accounts will be published on the company's website as from 30 April. The Annual Meeting of Shareholders will be held on 28 May in the World Trade Center in Rotterdam.
Supervisory Board and Management
Market conditions volatile and challenging
"Never before were the market conditions so volatile and challenging", says managing director St. Holvoet. All the activities of the group were profitable. Consolidated sales increased with 8% to reach € 175 million (2007: € 162 million).
Demand exceeded quantities offered
Prices of most commodities continued to rise to record highs in the first half 2008. For many products, demand exceeded quantities offered. Starting in the second half, the worldwide financial and economic crisis led to a decline in industrial production, inventories were reduced, demand for raw materials decreased significantly and prices of almost every commodity dropped at previously unseen speed. Our teams proved once again their long experience and expertise and reacted very alertly to these changing market circumstances. Thanks to our steadfast policy aimed at strengthening the group's equity, and based on the excellent results in recent years, our group was not significantly affected by the credit crisis.
Trading house Catz International performed strongly and was once again the main contributor to the group's results. TEFCO Food Ingredients (natural ingredients for the food industry), which was acquired in 2006, continued to grow and achieved improved sales and profitability. RCMA Commodities Asia (43% participation), active in the international rubber trade, improved its profitability and contribution to Acomo's results. Rubber prices reached historic records beginning of July, after which the market plummeted in the second half.
Current performance
In January 2009, Acomo announced that it had reached a principle agreement to take over the Belgian company Snick Ingredients Bvba. This transaction is consistent with our long-term strategy to grow and diversify the trade and distribution activities in ingredients for the food industry. Meanwhile, the acquisition has been completed successfully. Snick will immediately (as from 2009) contribute to the earnings per share of the group.
In the first two months of 2009, we saw very active trading and all the activities were profitable. A severe and prolonged recession is affecting the world economies, although traditionally the food industry is less cyclical. It is, in these conditions, impossible to make any forecast about the trade in 2009 and the results of the group. Management and Supervisory Board have confidence in the talent of our traders to make good use of trading opportunities and to generate profits in rising as well as in decreasing markets.
Dividend
Based on the results and the strong financial position, Acomo expects to pay an ordinary dividend in line with its stated policy and practice. The audited 2008 figures together with the dividend proposal to Shareholders will be announced mid-April. The annual accounts will be published on the company's website as from 30 April. The Annual Meeting of Shareholders will be held on 28 May in the World Trade Center in Rotterdam.
Supervisory Board and Management
