CRV ended the 2012/13 financial year with a net result of EUR 1.0 million before distribution of members' profits. This was achieved partly by taking specific steps to improve the efficiency of the company's operations, enabling costs to be reduced. As a consequence of the positive results, CRV is set to distribute approximately EUR 0.5 million in member's profits in the spring of 2014.
In 2012/13, CRV focused on the recovery of its financial results following the losses recorded in 2011/12. By making cost savings and expanding its activities in many countries, CRV saw its margins recover and was able to end the year on a positive note. CRV's net result in the past financial year amounted to EUR 1 million before distribution of members' profits: EUR 1.8 million higher than the corresponding figure for the previous financial year.
Year of recovery
Despite the recovery, the 2012/13 financial year was a difficult one. The steps taken to cut costs also had staffing repercussions. In addition, CRV had to contend with difficult market conditions in Brazil. A period of drought and an economic crisis had a serious negative impact on the Brazilian agricultural sector. CRV's activities in the country shrank as a result but, thanks to extensive cost savings, it nevertheless managed to end the year there on a profit.
CRV did succeed in achieving growth in many other countries, enabling it to absorb the shrinkage on the Brazilian market. For example, sales and market shares rose in Western Europe, including the Netherlands, Belgium and Germany, as well as in New Zealand and the United States. The combined effect of these trends resulted in a net turnover in excess of EUR 168 million, virtually on a par with the previous year's figure.
Thanks to the profitable end to its financial year, CRV is set to distribute 50 % of its net results as members' profits this spring. This means that EUR 0.5 million will be returned to the members. In the current 2013/14 financial year, CRV is aiming for further recovery of both margins and growth. Farmers can expect a very strong offer of bulls, products and services to take their herd results to the next level.