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Nutreco's Profits Up In All Sectors

NETHERLANDS - In its latest trading figures for the first quarter of 2010, Nutreco reports revenue up by almost three per cent from the same period last year.

Nutreco reports its first quarter (Q1) 2010 revenue at €1.073 billion; an increase of 2.7 per cent from Q1 2009. All business segments report operating profits above Q1 last year: fish feed clearly started better than in 2009, and compound feed sales in Europe showed a strong improvement.

The integration of feed plants acquired from Cargill in Spain and Portugal is well on track, according to the report.

Nutreco expects EBITA before exceptional items in the first half-year of 2010 to exceed €70 million (2009: €41.6 million).

Wout Dekker, Nutreco CEO, commented: "I am pleased with this performance. We ended last year strongly and our results continued to be strong in the first quarter of 2010. The results in all business segments are above the same period last year. Our premix and feed specialties business continued its positive performance. The fundamentals in the fish feed business are solid, showing strong growth in Norway, the Mediterranean and Australia. Furthermore we are more confident about a step-by-step recovery of the Chilean fish farming industry.

"Our compound feed business in Europe reported an operational result in line with the trend of the last quarters of 2009. The results in the Netherlands improved substantially compared with Q1 2009. In Spain, we can see the revenue contribution coming from the acquisition of the compound feed business of Cargill. The integration and plant optimisation is well on track. Our meat business continued to report good results, which were slightly better than in Q1 2009.

These results, our strong balance sheet and the initiatives we are involved in mean that we are heading into 2010 with confidence. We will continue our growth strategy to further strengthen our global market positions in feed specialties and fish feed, by organic growth and acquisitions."

Operational developments

The revenue in Q1 2010 amounted to €1,072.6 million, an increase of 2.7 per cent compared with Q1 2009. The volume development in the Q1 was 2.3 per cent compared with the same period in 2009. Price effects were -6.7 per cent, mainly related to passing on lower raw material prices. The contribution of acquisitions was 4.6 per cent related to the acquisition of the compound feed businesses of Cargill in Spain and Portugal and the acquisition of 'Fri-Ribe' in Brazil. The foreign exchange effect was 2.5 per cent, mainly related to the US dollar.

Premix and Feed Specialties
The revenue in Premix and Feed Specialties was €254.9 million (Q1 2009: €257.9 million). The volumes were 7.0 per cent higher, mainly due to a higher demand in Mexico, Poland and the UK. Excluded in this analysis is compound feed revenue outside Western Europe of €21.3 million reported in Q1 2009 (Q1 2010: 3.0 million), which is reported under Premix and Feed Specialties revenue. The prices were on average 6.6 per cent lower due to lower raw material prices. The acquisition of 'Fri-Ribe' contributed 5.0 per cent in revenues. The foreign currency effect was 1.3 per cent. The Q1 operational results of this sector are above Q1 2009.

Fish feed
The revenue in Fish Feed of €217.1 million is 14.6 per cent higher than Q1 2009. The volume increase was 13.6 per cent, the price effect was -4.5 per cent and the foreign exchange impact 5.7 per cent. There was a strong volume growth in Norway in Q1 and to a lesser extent in other regions. The situation in Chile is starting to improve with a higher demand for fish feed. The operating results in Q1 are better than the same quarter of 2009, mainly due to a strong demand in Norway. The Q1 results are normally five to 10 per cent of the annual results as the majority of the result in Fish Feed will traditionally be made in the second half of the year due to seasonal influences.

Compound Feed Europe
The revenue of Compound Feed Europe increased with €23.2 million to €261.6 million compared to Q1 2009 (9.7 per cent). The main contributor to the increased revenues was the acquisition of the Cargill compound feed businesses in Spain and Portugal (18.5 per cent). The price-effect on revenues was -6.2 per cent and the volumes were 2.6 per cent lower than the same period in 2009. The operational results in Q1 were good and in line with the second half of 2009.

Animal Nutrition Canada
The revenue in Q1 2010 of Animal Nutrition Canada was €91.1 million compared with €92.6 million in Q1 2009 (-1.6 per cent). The decline was mainly because of 8.6 per cent lower prices and 4.0 per cent lower volumes. The foreign exchange impact was 11.0 per cent. The operational results were slightly higher than last year.

Meat and Other
The revenue from Meat and Other was 6.7 per cent lower, mainly related to 8.8 per cent lower prices. The volumes were 1.7 per cent above the ones of last year. The foreign exchange impact was 0.4 per cent. The result in Q1 was slightly above the result in Q1 2009.

Further Reading

- You can view the full report by clicking here.
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