News last update:6 Aug 2012

Total profit of € 520 million for Nutreco

Nutreco achieved a total profit of € 520 million including book gain on sale of fish farming operations over 2006. Operating result from continuing operations amounted to € 113.3 million (+2%)

Wout Dekker, CEO of Nutreco: 'Nutreco achieved an excellent operating result on its core activities of animal nutrition and fish feed in 2006, with the recent acquisitions in Asia, Central America and Europe already contributing to profit.

"The only activity reporting a lower result compared with 2005 was the meat business in Spain, reflecting concerns about bird flu in the first half of the year. The sale of the Euribrid breeding business, which is scheduled for the first half of 2007, will complete Nutreco's repositioning, and with it the first phase of our Rebalancing for Growth strategy.

"In the space of two years, Nutreco has undergone a complete transformation and created significant shareholder value."

Further key points for the operating year 2006 were:
Divesting phase of "Rebalancing for Growth" strategy completed
· Sale of Marine Harvest in 2006; gain on sale EUR 380.2 million
· Agreement on sale of breeding activities in 2007

Full focus on core activities: animal nutrition and fish feed
· 15% growth in operating result of animal nutrition and fish feed
· Strong organic growth, particularly in fish feed
· Reorganisation in Western Europe practically complete
· Expansion in growth markets in Russia, China and India

Nutreco's expertise, market knowledge and R&D place Nutreco in an excellent position to capture opportunities in the dynamic global market for animal nutrition and fish feed
· With raw materials in short supply, boosted by the demand for biofuels and the effects of climate change, sustainable solutions are needed for the deployment of natural resources (new feed formulas, utilisation of by-products of the biofuel industry)

· Population growth and rising per capita incomes in emerging markets will mean rising meat consumption (1–3% per year). Growth in feed markets in Asia, Eastern Europe and Latin America of over 5% per year is projected

· Global fish consumption is rising 7% per year; wild fishery volume has peaked and rapid growth in aquaculture is expected

2007 agenda
· Further growth through acquisition in 2007; Nutreco in discussion with several takeover candidates; with a revenue potential of € 1.3 billion
· Nutreco Sourcing Initiative expected to save € 25 million a year by 2009
· Changes to the overhead organisation will reduce costs
· Desired capital structure to be discussed at annual general meeting on 26 April 2007 - acquisitions versus shareholder return

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