The seventieth Annual General Meeting of Bovril Limited was held
on 5th July. The following are extracts from Lord Luke's state- ment.
In 1966 the operations of the Group resulted in a loss of £56.894 (1965--a profit of £365,900) largely due to a particularly difficult year in Argentina where in addition to a trading loss of £456,684 there was a loss on exchange of £219,073 due to devaluation of the peso. There are many complex factors to be evaluated before a decision as to our future operations in the Argentine can be arrived at. In the mean- while steps already taken should ensure an improvement in the Argentine between 1966 and 1967, although a further loss on operations there must be expected in the current year.
There are, however, elements which have had their effect on costs but which should play their part in future improvement. The establishing of the production of Bovril and Marmite at Burton has entailed a major re-organisation which, when completed, will show benefits and savings. Payment of rent for our Old Street premises will cease in 1968 when we move out. The modernisation of our marketing organi- sation is now much closer to producing results. Redeployment for expansion in Canada has also been expensive. Every effort is being made to reduce costs and modernise procedure. Fur- thermore, efforts to broaden the Group's current range of products are designed to provide a sound basis for long term growth and profitability.
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