Nutreco confident for future on back of results Published: 30 July, 2010
ANIMAL nutrition and fish feed giant Nutreco has recorded excellent revenues of 2.25 billion (£1.88 billion) for the first half of 2010. Pre-tax profits were 84 million and an interim dividend of 0.50 in cash or shares was declared.
Wout Dekker, chief executive of Nutreco, said: We have had excellent first six months. The results are better than in the same period last year for all business segments. These results, the recovery of the markets and our good financial situation give us confidence for the future. We are also very pleased with the composition and quality of our results. For the second half of the year, we expect results in line with the very strong second half of 2009. For the full year this will lead to an increase of approximately 25 per cent in EBITA before exceptional items.
Our premix and feed specialties operations have very good results, with a growth in volume and an improved product mix. Fish feed operations show strong growth in Norway and we experience a recovery in the Chilean aquaculture sector. Our compound feed operations in Europe reported business results in line with the trend of the last quarters of 2009. The results in The Netherlands improved substantially compared with the first half of 2009. In Spain the acquisition of Cargills compound feed operations contributed to revenues. The integration and optimisation of factories is progressing well. Our meat operations had good results, slightly better than in the first half of 2009.
The recent acquisition of a fish and shrimp feed business in Vietnam is in line with our strategy to further strengthen our position in feed for amongst others shrimp, tilapia, barramundi, snapper and grouper, in countries of strategic importance. After China and India, Vietnam is the world’s largest aquaculture producer. For Nutreco, the acquisition is a good entry into the Vietnamese market and a basis for further growth.
Next to this acquisition Nutreco is investing in renewing and expanding its production capacity. In March we announced the investment of 20 million in upgrading and expanding the fish feed factory in Australia. The investment will enable Skretting to meet the growing demand for high-quality fish feed for salmon, trout, barramundi and tuna in both Australia and New Zealand. Since 2001, the volume for fish feed in this region has grown by 10 per cent annually.
Barring unforeseen circumstances, Nutreco says it expects EBITA before exceptional items in the second half of the year to be in line with the very strong second half of 2009 (133.6 million). For the full year 2010 this will result in an increase of approximately 25 per cent in EBITA before exceptional items compared with 2009 (175.2 million). The company will publish a trading update on the third quarter of 2010 on 28 October.