Skretting 2014 Results Hurt by Marine Harvest Salmon Feeds in Norway, Balanced by Performance in Other Regions
Skretting, the fish feed business of Nutreco, achieved an increased EBITA of 2.8% to € 134.3 million from € 130.6 million in 2013, mainly driven by the contribution of the operating companies in Ecuador and Egypt which were acquired in 2013. The EBITA margin decreased slightly to 6.3% (2013: 6.5%)
The year 2014 contained several important developments for Nutreco. \"We achieved higher financial results, in line with our expectations. We developed innovative products for our customers and expanded our global product portfolio. We made organisational improvements to enhance our leadership position in animal nutrition and fish feed and invested in our global people and talent management program. Finally, our shareholders received a compelling cash offer by SHV for their Nutreco shares, an offer that is in the best interests of all our stakeholders including our shareholders and therefore recommended by our Boards\", Knut Nesse, CEO Nutreco reported.
EBITA in Fish Feed was 2.8% higher at € 134.3 million compared with € 130.6 million in 2013. The higher EBITA in 2014 was mainly due to the contribution of the businesses in Ecuador and Egypt.
The increase in salmonid feed volumes in the first half year was mainly caused by favorable growing conditions especially in Norway compared to the exceptionally cold seawater temperatures in 2013. The lower EBITA in the second half year was mostly due to lower sales in Norway, caused by the entry of Marine Harvest into salmon feed. This was partly offset by good performances in Ecuador, Egypt, Vietnam and Japan. The EBITA margin was slightly down in 2014 at 6.3% (2013: 6.5%).
In June, Nutreco entered into a fish feed joint venture in Nigeria which will invest in the local production of extruded fish feed for Nigeria as well as the wider West African region.
On September 19, 2014 Nutreco received an initial, unsolicited proposal for all the shares of Nutreco from Dutch privately-owned multinational SHV. The Nutreco Boards followed a thorough process since then which led to the announcement of a recommended cash offer for Nutreco at an offer price of € 40 (cum dividend) per ordinary share on 20 October 2014. After Nutreco received a letter with an expression of interest from Cargill the offer price was increased by SHV to € 44.50 (cum dividend) per ordinary share on November 10, 2014. Cargill never made an offer and informed the markets on December 22, 2014 that it would no longer pursue an acquisition of Nutreco.
On December 5, Nutreco published its Position Statement and SHV its Offer Memorandum, while launching its recommended cash offer. The Position Statement provides shareholders with more insight into the support of the Executive Board and the Supervisory Board of Nutreco for the SHV offer, the process which has been followed, including the key events that have occurred, the financial and strategic merits and the reasoned opinion of the Boards in recommending the SHV offer.
On January 30, 2015 SHV increased the offer price to € 45.25 (cum dividend) per ordinary share. In addition, significant shareholders APG and NN have committed to tendering their shares. APG, holding approximately 9.79% of the issued ordinary Nutreco shares, and NN, holding approximately 7.52% of the issued ordinary Nutreco shares, have entered into irrevocable undertakings with SHV to tender all shares directly or indirectly held by them under the offer in the offer period under the same terms as applicable to all shareholders.
On February 9, 2015, Nutreco will discuss the SHV offer with its shareholders at the Extraordinary General Shareholder Meeting (EGM). The offer period ends on February 17, 2015.