Excellent first half year result in Nutreco's fish feed businesses compensated for slightly lower results in other businesses.
"We are pleased to report good results for Nutreco in the first half of 2011. Fish feed is delivering excellent results. The growth is clearly back in salmon farming. There is a strong recovery in Chile from the ISA virus and a continuing good performance in Norway. Skretting Chile will reopen its Pargua fish feed plant in September 2011 to meet the growing demand. We also see exciting opportunities to further diversify in feed for other fish species and in new regions such as South-East Asia and South America," Wout Dekker, CEO Nutreco said.
In February 2011 Nutreco announced the acquisition of Shihai Co Ltd., a reputable and profitable fish and shrimp feed company in China with EUR 65 million revenue in 2010. This acquisition will provide Skretting, the Nutreco aquaculture feed business, an entry to the largest aquaculture feed market. The acquisition is fully in line with Nutreco's strategy to capitalise on leading fish feed positions and diversify by expanding in new regions and into feed for other fish species and shrimp. The purchase price was EUR 40 million. The closing of the transaction is subject to approval from the authorities in China which is expected during the 3rd quarter of 2011.
In April 2011 Nutreco announced an investment of EUR 27 million to expand its fish feed plant in Averøy, Norway. The investment will enable Skretting Norway to meet future market demand for high quality feed for salmon and maintain its market leader position. The Norwegian fish feed market grew by an average of 8% a year from 2006 to 2010.
In September 2011 Skretting Chile will reopen its Pargua fish feed plant to meet the growing demand as aquaculture in Chile recovers from setbacks in 2008 and 2009. Chilean production of Atlantic salmon dropped sharply following outbreaks of the viral disease infectious salmon anaemia (ISA). Skretting has three plants in Chile. The plant in Pargua was closed in September 2008. A series of measures implemented by the Chilean authorities and Chilean salmon farmers has led to a strong recovery of aquaculture with volumes heading back to pre ISA levels.
Nutreco's strategy remains unchanged and is to achieve further growth of its animal nutrition and fish feed businesses by:
• Capitalising on leading fish feed positions and diversifying by expanding in new regions and into feed for other species and shrimp. This includes Asia and Latin America;
• Pursuing significant positions in agri focus markets China, Brazil and Russia;
• Developing sustainable businesses in agri home markets Western Europe and North America;
• Further development of feed additives activities by innovation and acquisitions.
• In the 4th quarter of 2011 we will provide more details of our mid term strategic ambitions.
Nutreco reported EBITA of EUR 86.4 million; 2.9% higher than in 2010 for the first half of 2011. Revenue wasf EUR 2,573.4 million; an increase of 14.3% compared with the first half of 2010 and total EBITA for animal nutrition and fish feed was up 9.5%. Earnings per share increase 13.3%.
"The strong first half year results give confidence for the full year result in 2011. The full year EBITA is expected to be around EUR 230 million (2010: EBITA EUR 222.5 million). In the second half year we expect excellent results in Fish feed and the total of our other activities to be in line with last year or slightly higher", Dekker said.
