July 25, 2014
Nutreco reports 2.6% increase in 2014 H1 revenue
Nutreco, a leading company in animal nutrition and fish feed, posted revenue of €2.46 billion (US$3.31 billion) for the first half of 2014, an increase of 2.6% compared to the same period of last year.
The company expects full year 2014 EBITA before exceptional items from continuing operations to be at least equal to € 256.3 million (US$345.09 million), based on current trading conditions and barring any unforeseen circumstances.
CEO of Nutreco, Knut Nesse says, "We are pleased to report a satisfying first half year operating result of €108.2 million (US$145.42 million), which has been achieved due to better performances in all segments."
The operating result of the company''s Animal Nutrition unit rose higher than a year ago, mainly due to improved performances in mature markets combined with the company''s focus on higher value-added nutritional solutions that support the sustainability and profitability of customers.
The Fish Feed unit also reported higher operating result, mainly due to higher salmon feed volumes in Norway under exceptional market circumstances in the first half of the year. The company says that its key strategic aim is to maintain its global market share in salmon feed as well as diversifying into feed for other species given their growth potential.
In addition, the company saw a strong contribution in results from shrimp and tilapia feed companies in Ecuador and Egypt, which were acquired by Nutreco in 2013 as part of the strategy to grow in non-salmon species and growth geographies.
Nutreco says that it will continue to take a leading role in developing the feed industry that enables increased production of high quality sustainable fish and shrimp feed on all continents.
The company halted the divestment process for the Compound Feed & Meat Iberia unit, citing the reason that no fair valuation could be obtained at the current time
Nesse also says that the company will undertake an additional share buy-back programme of €100 million (US$134.65 million) in the second half of the year. With ample financial room to achieve its growth objectives, the company expects to make one or two strategic acquisitions a year.