NETHERLANDS- Viterra experienced its most successful year on record in 2022, partly due to favorable market conditions, record production in major export regions, and completing its acquisition of Gavilon.

Gavilon recently rebranded to Viterra after its acquisition by the Rotterdam-based grain handler in 2022. 

With the acquisition of Gavilon, headquarters in Omaha, Nebraska, US, Viterra added 110 up-country sites in all primary growing areas across the United States.

At US$1.1 billion, plus US$1.8 billion working capital, the Gavilon acquisition was Viterra’s second-largest acquisition in its history.

For the year ended Dec. 31, 2022, Viterra posted record earnings before interest, taxes, depreciation, and amortization. (EBITDA) of US$2.65 billion, a 21% increase from the previous year. 

Additionally, revenue increased by 35% to US$54 billion predominantly, and Viterra attributes the performance in part to the incorporation of Gavilon last year.

“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,” he added. 

The company also attributes the performance to a significant increase in core commodity prices, particularly for soybeans, wheat, feed grains, and vegetable oils.

Additionally, Viterra constructed a vegetable oil refinery in Fokto, Hungary, complementing its existing crush facility at the same site. 

This facility 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 explained.

Positive 2023 outlook 

Viterra is confident that the outlook for 2023 is positive as market conditions are expected to normalize. 

Additionally, the underlying demand for core commodities remains strong, and a record crop is likely to manifest in Australia and Canada.

Viterra is perfectly positioned to capture the increased exports from these regions in the coming year,” Mattiske said.

Moreover, the company plans to optimize the Gavilon acquisition to enhance its operations. 

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,” Peter Mouthaan, chief financial officer, said.

For all the latest food industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube channel