Fish feed transportation. (Photo: Skretting)
Volume growth pushes Nutreco's revenues
Friday, April 20, 2012, 22:30 (GMT + 9)
Animal nutrition and fish feed company Nutreco has reported first-quarter revenues of EUR 1.13 billion -- up 11.3 per cent from Q1 2011 mainly due to volume growth of 6.8 per cent.
Volumes accounted for 6.8 per cent of the growth, while the price effects were 2.2 per cent. The contribution of acquisitions was 1.0 per cent and associated with the purchase of the fish and shrimp feed business in China; the exchange rate effect was 1.3 per cent.
The company’s excellent operational results in aquaculture were driven by strong organic growth and the integration of the acquisition of Shihai in China is on track.
Year-on-year, operational results in all segments of the animal nutrition division have improved.
Based on current trading conditions, Nutreco expects EBITDA before exceptional items for the first half of 2012 to be approximately EUR 100 million compared to EUR 83.6 million in the first half of 2011.
The revenue in fish feed was 27.6 per cent higher than in the first quarter of 2011 at EUR 335.3 million. There was a volume increase of 26.0 per cent mostly due to strong demand for salmon feed in Norway and Chile.
"After the excellent results in 2011, we entered 2012 with strong momentum,” Wout Dekker, Nutreco CEO, said. “In particular our Aquaculture division had a strong result due to high volume growth in salmon feed.”
He said the first expansion phase will be completed this year and phase two will be ready before the 2013 peak season.
Premix and feed specialities position in Brazil was strengthened by acquiring 97 per cent of the shares in its Nutreco Fri-Ribe subsidiary and the acquisition of Bellman, which allowed the company to create the platform to take further steps in one of the most important agriculture and aquaculture growth markets in the world.
Nutreco then acquired Bellman Nutriçao Animal, a large supplier and producer of feed specialties for ruminants in Brazil. Its activities, geographical presence and product proposition are fully in line with its strategy Ambition 2016, Dekker explained.
Nutreco's 'Ambition 2016 - driving sustainable growth' is to boost and improve profitability by providing innovative and sustainable nutritional solutions for its customers, by focusing on a higher margin portfolio of nutritional solutions such as premixes, feed specialties and fish feed, and expanding into Latin America, Russia, China and Southeast Asia, which will see the largest increases in both production and consumption of animal protein food products.
The company has also announced that Kofi Annan will be the keynote speaker at its AquaVision conference in June in Stavanger, Norway.
“This conference will continue to focus on the challenge of feeding 9 billion people sustainably by 2050. Lastly we have completed the divestment of Hendrix to ForFarmers, where it is a core activity with a leading market position and we are excited about our strategic partnership which is now underway," Dekker added.
- Nutreco boosts shareholding in Brazilian venture
By Natalia Real
Photo Courtesy of FIS Member Skretting AS - Headquarters