Company update: Nutreco first half year earnings down

14-08-2013 | |
Company update: Nutreco first half year earnings down
Company update: Nutreco first half year earnings down

Animal nutrition and fish feed supplier Nutreco reported a first half year earnings of €94.1 million, a 9.2% drop from last years €103.6 million earnings mainly due to lower salmon feed demand in Norway.

Knut Nesse, CEO Nutreco: “In the first half of 2013, operating results were €94.1 million which is above our guidance of €90 million. I am pleased with the continuing margin improvement within the Premix & Feed Specialties segment which now exceeds our guidance of 7%. This is due to a better performance in Europe and a solid contribution from our portfolio of globally branded specialty products. Nutreco’s strategy is focussed on the segments Premix & Feed Specialties and Fish Feed. In line with this strategy we are currently investigating the best options to facilitate the growth and development of the compound feed and meat business in Spain and Portugal and of the people who work in it.

Our Fish Feed results were impacted by lower seawater temperatures in Europe which caused a slow start to the year. In the second half of the year growth is expected to be restored by higher demand, leading to modest organic volume growth for the full year. The acquisition of Gisis has been completed following unconditional approval from the Ecuadorian competition authorities which allows us to start integrating and building on this position in Latin America. In Egypt we moved from a minority interest to full control of our tilapia feed business. Both investments support our strategy to expand in growth geographies as well as in fish feed for non-salmonid species.

Barring unforeseen circumstances, we expect full year EBITA before exceptional items to be at least in line with 2012 (EUR 262.1 million).” On the agenda for 2013:

  • Nutreco will continue to execute the strategic roadmap towards 2016:
  • Develop higher value-added portfolio of nutritional solutions
  • Focus on Premix & Feed Specialties and Fish Feed
  • Continue drive for operational excellence in mature markets
  • Grow in geographies Latin America, Russia, Asia and Africa

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