Finance
Economic turning-point year for future growth
Financially too, 2006 was a year for Proviron to prepare for the future and its inherent growth. A number of projects were consolidated and continued to be optimised. Furthermore, several new projects, both technical and financial, were studied or prepared. The particularly transparent financial communication with our financiers enables smooth projects in this field. This dynamism will become fully noticeable in 2007. The operational loss in 2006 was compensated only once.
Investments
Sales, Operating profit & Operational cash flow
Products
In the own products area, prices of raw materials have probably peaked and pressure on selling prices is likely to be easing. This does not mean the situation of a few years ago is back. Product export has reached a very considerable 90 %, 70 % of which went to European countries, predominantly France and Germany, and 16 % to the USA. The Belgian home market receives 9 % of our products. The product range in which we operate is facing - as other product ranges do - growing competition from India and China and suffers from low dollar exchange rates.
Toll manufacturing
It is a completely different story for custom manufacturing. Our partnerships are by nature more close to home, where our customers are active. This means that Belgium is responsible for 83 % of the turnover, the rest of Europe for 14 %, and the USA, Canada and Mexico for the remaining 3 %.
United States of America
We have steadily achieved success in the USA with an annual growth rate between 5 and 10 %. This was achieved with our self-established “pied-à-terre”, which has some custom manufacturing and takes care of local distribution, including packaging according to local rules and practice. It was a smart decision to take matters in our own hands in this market.
Capital investment rhythm
Average capital investment rhythm of recent years allowed for optimum maintenance of installations and for limited additional technical and commercial investments. In view of planned projects, investments will at least triple in 2007. Remediation of historic environmental contamination on some site areas, as laid down in the Bodemsaneringsproject (soil remediation project) after constructive deliberation with the Flemish government, was on schedule.