Nireus makes first quarter profit despite low sea bream prices –

Nireus makes first quarter profit despite low sea bream prices Published:  02 June, 2009

The leading Greek aquaculture business, Nireus Aquaculture, has reported a profitable first quarter for 2009 and increased sales of fish and feed.

The sales volume of fish increased by 13% and of fish feed by 18% resulting in total sales value amounted of Euro 40.3 million compared to Euro 39.4 miillion in the first quarter of 2008. Profits were negatively impacted by low sea bream prices. Earnings before taxes were Euro 886,000 and earnings after taxes came to Euro 224,000.

Aristides Belles, chairman and managing director of Nireus, commented: ‘The serious problems of oversupply in the industry that first appeared in the summer of 2007, continued during the first quarter of this year, with the same or even greater intensity.

‘Moreover, because of the unprecedented financial crisis, banks have cut credit to many companies, leading to the worsening of the liquidity problems and the intensification of the pressures on the price of sea bream. However, in such an environment, the NIREUS group managed to increase its sales volume, to achieve profitable results and to improve cash flow.

‘The fact is that NIREUS Group remains strong and also follows a series of actions that ensure its future: reduction in cost, increase in productivity, improvements in distribution, mitigating various risks (i.e. possible increase in interest rates), etc. The other positive fact is the recently observed trend of recovery in the price of sea bream and it appears that we have already overcome the lowest point of the cycle. If this trend is confirmed, then everything points to a more positive second half for the Group, and for the industry in general.’