Company update: Nutreco’s 2012 H1 revenue up 10.8%

27-07-2012 | Home | News

Nutreco has reported a strong first half year results. With a record EBITA of €103.6 million, passing €100 million for the first time and 23.9% higher than H1 2011.

All business segments performed better than in H1 2011. The fish feed sector saw a strong volume growth, especially for salmon, with shrimp feed further increasing due to the contribution of the Shihai feed business in China acquired in October 2011

Wout Detter, Nutreco’s CEO, in a press release said “As in 2008 we again see that the tight balance between supply and demand in agricultural raw materials has had a serious impact on prices. The rising prices for feed raw materials are having an impact on the production costs of livestock farmers. This explains the ongoing R&D commitment of Nutreco to explore alternative and less expensive raw material options and to increase the efficiency of feed formulations.”

Revenue of EUR 2,354.5 million; an increase of 10.8% compared with the first half of 2011, of which 4.7% is organic volume growth
EBITA Animal Nutrition increased by 22.2% and EBITA Fish Feed up by 24.6%
Expansion of operations in Brazil by increased shareholding in Fri-Ribe and acquisition of farm mineral company Bellman
Excellent performance in China both in Animal Nutrition and Fish Feed; strong growth in Shihai fish feed business (acquired in October 2011)
Earnings per share from continuing operations increased by 45.9%
Sale of Hendrix substantially completed, gain on sale of EUR 18.9 million
2012 interim dividend of EUR 0.60 (2011: EUR 0.50) in cash or shares
New Executive Board in place from August 2012
Outlook: In an uncertain environment and based on current trading conditions, Nutreco expects full year EBITA before exceptional items of approximately EUR 260 million (2011: EUR 231.6 million)

Key figures

(EUR x million)	H1 2012	H1 2011	D%
Revenue	2,354.5	2,124.5	10.8
EBITDA before exceptional items from continuing operations	131.9	109.9	20.0

EBITA:
Animal Nutrition	73.1	59.8	22.2
Fish Feed	44.0	35.3	24.6
Corporate	-13.5	-11.5	17.4
EBITA before exceptional items from continuing operations	103.6	83.6	23.9

Result after tax from continuing operations	62.6	42.7	46.6
Result after tax from discontinued operations	19.6	2.2
Total result for the period	82.2	44.9	83.1

Basic earnings per share from continuing operations (EUR)	1.78	1.22	45.9
Dividend per ordinary share (EUR)	0.60	0.50	20.0

Agenda 2012

Develop higher margin portfolio of nutritional solutions
Focus on Premix and Feed Specialties and Fish Feed
Continue drive for operational excellence in mature markets
Grow in geographies Latin America, Russia, China and Southeast Asia
Start implementing the actions from Sustainability Vision 2020

Ambition 2016

Nutreco’s ‘Ambition 2016 – driving sustainable growth’ is to grow and improve profitability by providing innovative and sustainable nutritional solutions for its customers and is expected to result in an EBITA of EUR 400 million by 2016. This will be realised by focusing on a higher margin portfolio of nutritional solutions such as premixes, feed specialties and fish feed, and by expanding into the growth geographies of Latin America, Russia, China and Southeast Asia, which will see the largest increases in both production and consumption of animal protein food products.