2007 results "excellent," says Nutreco – Fishupdate.com

INTERNATIONAL animal nutrition and fish feed company Nutreco Holding NV – which owns Skretting – today announced what it described as “excellent” 2007 financial results.

Revenue was up 33%, exceeding EUR 4 billion with strong organic growth in all businesses. Profit after tax was up by 7.6%, to EUR 113.3 million.

Commenting, Nutreco CEO Wout Dekker said: “Nutreco had an excellent 2007 in several respects. We have been able to address the second phase of the Nutreco strategy ‘Rebalancing for Growth’ in an appropriate way. The organic growth and the contribution of important strategic acquisitions in animal nutrition made it possible to reach a new milestone in the Nutreco history by exceeding EUR 4 billion revenues.

“We are proud of the results both in animal nutrition and in fish feed. In addition to the acquisitions in 2007, Nutreco further optimised its balance sheet by returning EUR 5 per share to its shareholders. Nutreco has a strong balance sheet and will use its financial capacity to support its autonomous growth and investments as well as to acquire businesses in feed specialties and fish feed.”

Describing 2007 as the year of “Agflation”, he said that raw material prices reached record highs and prices are expected to continue to rise in the coming years.

“The net production shortage in these raw materials of 3-5% of last year was a break from the past and almost certainly indicates the end of decades with declining food prices. The world has to deal with limited or even diminishing resources of land, water and soil quality to produce agricultural products. The food industry will expand and grow due to increasing wealth in emerging economies, urbanisation and a steadily rising global population.”

Mr Dekker said Nutreco is well on track to meet 2010 targets.

“We are pleased with the growth in our animal nutrition and fish feed business in 2007. The acquisitions of the BASF-premix activities and Maple Leaf Animal Nutrition, now called Nutreco Canada went well and the integrations are progressing on schedule. We are optimising production processes, connecting R&D and harmonising IT-systems. New factories or expansions are planned in order to cope with the organic growth foreseen.

“In 2007, an organisation was set up to implement the Nutreco Sourcing Initiative (NSI) which facilitates global purchasing of raw materials and services. The objective of Nutreco is that from 2009 onwards NSI will realise EUR 25 million savings on an annual basis. In the past 12 months significant progress has been made and we already expect NSI to contribute EUR 10 million in 2008. The progress we have made in 2007 confirms that Nutreco is well on track to meet the target for 2010, which is to double 2006 EBITA to EUR 230 million.”

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