ROTTERDAM, NETHERLANDS —Viterra executives said the company experienced its most successful year on record in 2022 in part because of market conditions, record production in main export regions and completion of its acquisition of Gavilon.
The company posted record EBITDA of $2.65 billion for the year ended Dec. 31, 2022, a 21% increase from the previous year. Revenue increased 35% to $54 billion predominantly due to significant rallies in core commodity prices, particularly for soybeans, wheat, feed grains and vegetable oils, as well as the incorporation of Gavilon in October.
“The acquisition has been truly transformative for our business, as it gives us a material presence across the US market, and a leading position in every major exporting region of the world, paving the way for future opportunities,” said David Mattiske, chief executive officer of Viterra. “Integration of the business is progressing well, and we are realizing synergies ahead of expectations.”
With the acquisition of Gavilon, a leading grain handler with headquarters in Omaha, Nebraska, US, Viterra added 110 up-country sites in all primary growing areas across the United States.
It was Viterra’s second largest acquisition in its history at $1.1 billion plus $1.8 billion working capital.
In addition, Viterra completed the construction of a vegetable oil refinery in Fokto, Hungary, that complements its existing crush facility at the same site. It can produce feedstocks for renewable fuels as well as edible oil for human consumption from a variety of oilseeds, including sunflower seeds, rapeseeds and soybeans.
“The new refinery is now fully operational and vastly expands the products and services we can provide our customers,” Mattiske said.
The outlook for 2023 is positive, while market conditions are expected to normalize. Underlying demand for core commodities remains strong, and a record crop is expected in Australia and a top three record crop in Canada.
“Viterra is perfectly positioned to capture the increased exports from these regions in the coming year,” Mattiske said.
Maintaining financial discipline while facing a challenging macro environment is crucial, said Peter Mouthaan, chief financial officer.
“Our focus will be on optimizing Gavilon into our network whilst strengthening and expanding our core activities and services to our clients, continuing to play a valuable role in the global movement of food products,” he said.