News 544 views last update:6 Aug 2012

Company update: Nutreco Q3 2011

Netherlands based global feed company Nutreco released its Q3 figures showing consistent growth in line with expectations.

In short results can be summarised as follows:
  • Revenue Q3 2011 € 1,535 million; an increase of 14.6% from Q3 2010 
  • Revenue increase driven by volume growth of 3.5% and a price effect of 11.7% 
  • Higher operational results in Fish feed in Q3 due to 12.3% volume growth 
  • Operational results of the Animal Nutrition segments in line with Q3 2010
  • Operational results of Meat and other higher than in Q3 2010 
  • Nutreco confirms outlook for the full year 2011 expecting full year EBITA before exceptional items of around  € 230 million (2010: € 222.5 million)  
Wout Dekker, CEO Nutreco: "Our portfolio showed strong results in Q3 2011, in line with our outlook. Volume growth of our Fish feed business was driven by both salmonid and non-salmonid species. Operating margins in Fish feed were solid.
“Results in Premix and feed specialties were in line with the same period last year. Strengthened by the successful integration of the acquired Cargill activities, the Spanish compound feed business showed resilience in difficult market circumstances.
“The Canadian business has performed well and results came in slightly above Q3 2010. The meat operations had strong results that were above the third quarter in 2010.
“Based on the business developments in the third quarter we confirm our outlook of full year EBITA before exceptional items of around € 230 million. This performance demonstrates the robustness of our portfolio. With our strong balance sheet we are well positioned to continue growing our business."
Q3 revenues
(€ x million)
Q3 2011
Q3 2010
Change %
Q3YTD 2011
Q3YTD 2010
Change %
Premix and feed specialties
Fish feed
Compound feed Europe
Animal Nutrition Canada
Meat & other
Total revenues Nutreco
N.B.    Revenues of Q3 2010 have been reclassified. As a result  the compound feed revenues included in Meat and other and in Premix and feed specialties are presented in Compound feed Europe and fish feed revenues included in Premix and feed specialties are presented in Fish feed.
Operational developments
Revenue in the 3rd quarter amounted to € 1,535 million, an increase of 14.6% compared with Q3 2010. Of this increase, 11.7% was due to higher selling prices, related to higher raw materials prices which were passed through.
Volume increase of 3.5% was driven by the growth in fish feed. The contribution from acquisitions was 0.5% and concerned the acquisition of fish feed activities in Vietnam in 2010. The exchange rate effect was -1.1%, mainly caused by a weaker US dollar and Canadian dollar.
Premix and feed specialties
Revenue in Premix and feed specialties was 4.6% higher than in Q3 2010. Prices were 9.2% higher on average due to higher raw materials prices. Volumes in Premix and feed specialties were down by -1.0%, mainly due to exiting a pet food toll milling contract. The exchange rate effect amounted to -3.5%. The operational results in Q3 were in line with Q3 2010.
Fish feed
Revenue in Fish feed increased 19.0% in Q3 2011 compared to Q3 2010, mainly due to a volume growth of 12.3%. The price effect was 5.3%. The salmon feed volumes increased due to strong performance in Norway and a recovery in Chile. With the Pargua plant back into production all three plants of Skretting Chile are now being utilized.
The exchange effect was -0.2% and the acquisition effect of Skretting Vietnam was 1.7%.
Compound feed Europe
Revenue of Compound feed Europe was 20.0 % higher than in Q3 2010. The price effect on revenue was 22.4%, while volumes were -2.4% lower than in the same period in 2010.
Due to challenging market circumstances, operational results were slightly below last year.  
Animal Nutrition Canada
Revenue in the 3rd quarter of 2011 for Animal Nutrition Canada increased by 18.1% compared to Q3 2010. The price effect was 18.3% due to higher raw material prices that are passed through in feed prices.
The volume effect was 4.0% and relates to feed for dairy cows. The decline of the market for swine feed has bottomed out. The exchange rate effect was -4.2%. The operational results for Q3 were slightly above last year.
Meat and other
Revenue for Meat and other operations increased by 10.1%, mainly due to a price effect of 10.4%. The operational results in Meat and other were higher than in the same period in 2010, supported by higher market prices for poultry in Spain.
Strategic agenda 2011
With a strong balance sheet, Nutreco's strategy is to achieve further growth of its animal nutrition and fish feed businesses by:
  • Capitalising on leading fish feed positions and diversifying by expanding in new regions and into feed for shrimp and other species. This includes Asia and Latin America; 
  • Pursuing significant positions in agri focus markets China, Brazil and Russia; 
  • Developing sustainable businesses in agri home markets Western Europe and North America;  
  • Further development of feed additives activities by innovation and acquisitions.  
Nutreco will provide a strategy update on 16 November 2011 and will publish its full year results 2011 on 9 February 2012. 

Dick Ziggers

Or register to be able to comment.