Nutreco's fish feed revenues increased and the firm continues expanding. (Photo: Nutreco/FIS)
Nutreco sees growth in non-salmonid and shrimp fish feed in Q3
Thursday, October 18, 2012, 23:50 (GMT + 9)
Nutreco, whose revenue for Q3 was EUR 1.5 million -- up 13 per cent year-on-year, continues to expand in growth geographies and feed for non-salmonid fish species and shrimp while maintaining its leading position in salmon.
The company’s fish feed revenues increased by 21 per cent driven by 15 per cent total volume growth. Animal nutrition revenues jumped 7 per cent thanks to higher feed prices due to rising raw materials prices, but volumes fell 3 per cent due to tough market conditions mainly in Spain.
For full year 2012, the firm expects its fish feed operating result to be much higher than 2011’s EUR 119 million. It expects EBITA to be approximately EUR 260 million against last year’s EUR 232 million.
"Volume growth in our fish feed business occurred in both salmonid and non-salmonid fish species with significantly higher volumes from our new Shihai business in China. The recently announced acquisition of the leading Ecuadorian shrimp and fish feed business underscores our commitment to deliver on our fish feed strategy," said Knut Nesse, Nutreco CEO.
The revenue in fish feed was 20.6 per cent higher than in the third quarter of 2011 at EUR 625 million, with organic volume growth of 6.3 per cent mostly due to strong demand for salmon feed in Chile as well as non-salmonid feed. The growth from acquisitions was 9.0 per cent, related to the Shihai fish and shrimp feed business in China.
The volume share of fish feed for non-salmonid species is now 35 per cent up from 26 per cent in Q3 2011. Nutreco is focusing on the growing need for more sustainable feed for sub-tropical fish species and shrimp, and its new Chinese research facility will begin the first shrimp feed trials before the end of 2012.
On 8 October, Nutreco announced the acquisition of 75 per cent of the shares in Gisis SA, the shrimp and fish feed subsidiary of Expalsa group, for EUR 78 million. Expalsa is the market leader in fish feed production and shrimp and tilapia farming in Ecuador and has strong market positions in Honduras and Peru, and the acquisition takes Nutreco into the global top three shrimp feed suppliers.
As far as Nutreco’s Ambition 2016 programme, it is anticipated to grow and improve profitability by providing innovative and sustainable nutritional solutions, and is expected to yield an EBITA of EUR 400 million by 2016. This will be achieved by focusing on a higher margin portfolio of nutritional solutions including fish feed, and by expanding into the growth geographies of Latin America, Russia, China and Southeast Asia.
- Nutreco to take over 75pc of fish feed company
By Natalia Real