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News 257 views last update:6 Aug 2012

Nutreco profits from growth in animal feed

Nutreco posted higher-than-expected first-half operating profit of €80.1 million ($124.8 million) on Thursday. The 70% profit increase is mainly the result of growth in its animal feed unit.

Nutreco expects prices of raw materials to remain high, but volatile. The following developments are expected in the Nutreco segments in the second half year of 2008:

Animal nutrition
- Compound feed Europe: Actual harvest quantities of cereals will strongly influence performance.
- Premix and speciality feed: Approximately 5% organic growth compared with the second half 2007 to be increased with the contribution of acquisitions and NSI.
- Animal nutrition Canada: Results in line with the first half year of 2008.

Fish feed
- In salmon feed we expect the total market volume in line with 2007. The Skretting market share will be close to 40% (2007: 40%). The growth that is expected in Norway will compensate for the decline in volume in Chile. In fish feed for species other than salmon we expect a growth of about 5% in the second half year.
- Historically Nutreco's fish feed result is mainly realised in the second half of the year.

Meat and other
-  An improvement of the poultry business in Spain compared to the first half of 2008 is expected.

Nutreco will continue to focus on growth in animal nutrition and fish feed in order to meet the target for 2010 to double 2006 EBITA to €230 million. In particular Nutreco will: strengthen market positions in animal nutrition and fish feed by organic growth and acquisitions; finalise the integration of the BASF premix businesses; improve sustainability and feed-to-food quality and safety and apply leverage with the Nutreco Sourcing Initiative.

Related news:
Nutreco aims for doubling profits by 2010   
Nutreco shows excellent 2007 results   
Nutreco aims for more acquisitions    

Related website:
Nutreco 

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