Animal nutrition and fish feed supplier Nutreco reported a first half year earnings of €853.3 million; an increase of 8.4% from Q1 2013.
Knut Nesse, CEO Nutreco: "We are pleased with the higher results for the first quarter compared to last year driven by higher volumes in Fish Feed, mainly in Norway. Animal Nutrition results were slightly above last year with encouraging trends in margin development and volumes particularly in mature markets.
Our new organisational structure has been effectively implemented. The structure brings us closer to the business which will provide better execution power and deliver increased focus to regions with more integrated Animal Nutrition and Fish Feed businesses.
Our long term growth drivers are a growing world population and increased demand for protein which remain the basis of our strategy. Organic growth will be achieved by investing in new production facilities such as the recently announced investments in Asia as well as value-accretive acquisitions in line with our strategy.
Based on the developments in the first quarter, we expect EBITA before exceptional items for continuing operations for the first half of 2014 to be clearly higher than first half 2013 (€80.3 million)."
Revenue for the Animal Nutrition segment in the first quarter amounted to €438.8 million, a decrease of 4.6% compared to last year (Q1 2013: €460.0 million). The volume effect was 1.0%, with higher sales in Canada and increased volumes in value-added nutritional solutions such as young animal feeds. The price effect was -1.9% caused by lower raw material prices. The contribution of acquisitions was 1.6% and related to the animal nutrition operations of Gisis in Ecuador and Hendrix Misr in Egypt. The foreign exchange rate effect was -5.3%. The operating result was slightly higher than the same quarter last year.
The revenue in Fish Feed increased by 26.6% to €414.5 million compared to last year (Q1 2013: €327.5 million). The volume effect was 24.3%, mostly due to higher demand for salmon feed in Norway and fish feed for sea bass and sea bream in southern Europe partly offset by lower demand for non-salmonid feed especially in China. The increase in salmonid volumes was 35.9% driven by higher water temperatures in Norway compared to exceptionally cold water temperatures in the same quarter last year and increased biomass. The price effect was -1.5% due to lower raw material prices. The contribution of acquisitions was 11.1% and related to the acquisition of Gisis in Ecuador and Hendrix Misr in Egypt. The foreign exchange rate effect was -7.3%.
The volume share in revenues of fish feed for non-salmonid species is now 37% compared with 36% in the same quarter last year. The operating result in Q1 was clearly higher than the same quarter of 2013. This was mostly due to higher volumes in Norway, a better result in southern Europe and the contribution of operating companies in Ecuador and Egypt acquired in 2013.
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