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Nutreco reports excellent start for 2010

Global animal feed company Nutreco today reported excellent results for the first half of 2010 with a strong increase in operating result (EBITA) to € 84 million.

 
Revenues increased by 5.8% to €2.25 billion compared with the first half of 2009 as a result of strong increases in the volume of fish feed and premix and feed specialities.
 
All business segments reported better operating results compared with the first half of 2009.
 
For the full year 2010, Nutreco expects an increase of approximately 25% in EBITA before exceptional items compared with 2009 (€175.2 million)
 
Market recovery
Wout Dekker, CEO Nutreco: "We have had excellent first six months. The results are better than in the same period last year for all business segments. These results, the recovery of the markets and our good financial situation give us confidence for the future. We are also very pleased with the composition and quality of our results.
 
“For the second half of the year, we expect results in line with the very strong second half of 2009. For the full year this will lead to an increase of approximately 25% in EBITA before exceptional items."
 
Better operating results
"Our premix and feed specialties operations have very good results, with a growth in volume and an improved product mix.
 
“Fish feed operations show strong growth in Norway and we experience a recovery in the Chilean aquaculture sector.
 
“Our compound feed operations in Europe reported business results in line with the trend of the last quarters of 2009. The results in The Netherlands improved substantially compared with the first half of 2009.
 
“In Spain the acquisition of Cargill's compound feed operations contributed to revenues. The integration and optimisation of factories is progressing well. Our meat operations had good results, slightly better than in the first half of 2009."
 
Key figures

 
H1 2010
€ million
H1 2009
€ million
Change
Revenues from ‘continuing operations’
2,250.5
2,127.7
5.8%
Operating result before exceptional items and amortisation (EBITA)
84.0
41.6
101.9%
EBITA ‘continuing operations’
74.1
38.5
92.5%
Profit after tax from ‘continuing operations’
40.4
13.7
194.9%
Basic earnings per share (euro)
1.13
0.36
213.9%
Interim dividend per share (euro)
0.50
0.20
150%
Focus on strengthening global position
The recent acquisition of a fish and shrimp feed business in Vietnam is in line with Nutreco’s strategy to further strengthen its position in feed for amongst others shrimp, tilapia, barramundi, snapper and grouper, in countries of strategic importance.
 
“After China and India, Vietnam is the world's largest aquaculture producer. For Nutreco, the acquisition is a good entry into the Vietnamese market and a basis for further growth,” Dekker said.
 
Improving production
Next to this acquisition Nutreco is investing in renewing and expanding its production capacity. In March it was announced that €20 million will be invested in upgrading and expanding the fish feed factory in Australia.
 
“The investment will enable Skretting to meet the growing demand for high-quality fish feed for salmon, trout, barramundi and tuna in both Australia and New Zealand. Since 2001, the volume for fish feed in this region has grown by 10% annually,” Dekker said.
 
Furthermore, in April, Nutreco announced a €6 million investment in upgrading and expanding the production capacity of Selko, a producer of additives for animal nutrition.
 
This investment will enable Selko to meet the globally growing demand for alternatives to antibiotics and for products that can contribute to controlling the development of salmonella in animal nutrition, raw materials for animal nutrition and drinking water.
 
“Nutreco remains focused on growth by innovations and we continue to execute our strategy to further strengthen our global market position in premix and feed specialties and fish feed by means of organic growth and acquisitions," Dekker continued.
 
Outlook
Barring unforeseen circumstances, Nutreco expects EBITA before exceptional items in the second half of the year to be in line with the very strong second half of 2009 (€133.6 million).
 
For the full year 2010 this will result in an increase of approximately 25% in EBITA before exceptional items compared with 2009 (€175.2 million).
 
Full report of first half year of 2010 can be found HERE.
 
Related website: Nutreco

Dick Ziggers

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