April 19, 2013
Nutreco presents its Q1 2013 business standing update
In the first quarter of 2013, Nutreco''s revenue amounted to a？？1,142.9 million (US$1.5 billion), an increase of 1.3% on-year while animal nutrition revenues increased by 3.1% to a？？817.6 million (US$1.1 billion).
Increase in operating results in Premix & Feed Specialties partly compensated for lower results in the other segments. Fish Feed revenues of a？？325.3 million (US$427 million) are 3.0% lower than last year. Slow start to the year mostly due to exceptionally cold water temperatures in Norway leading to 19% decline in first quarter salmonid feed volumes. Feed for non-salmonid species saw a volume increase of 5%. Overall full year volume growth is expected to be positive
The revenue in first quarter 2013 of Animal Nutrition Canada was a？？126.9 million (US$166 million) compared to a？？119.7 million (US$157 million) in first quarter 2012, an increase of 6.0%. The increase was mainly caused by 8.8% higher prices, due to higher raw material prices, partly offset by 1.2% lower volumes.
The revenue of compound feed increased by a？？5.9 million (US$7.7 million) to a？？147.2 million (US$193 million) compared to first quarter 2012, an increase of 4.2%. Higher raw materials costs had a price effect of 19.0%. Volumes decreased by 13.7% compared to the same period in 2012. The decline was mostly the result of adverse weather conditions as well as lower swine herd sizes due to the economic situation in Spain.
Revenue from meat & other was 4.6% higher at a？？240.2 million (US$315 million), due to 1.6% lower volumes and 6.3% higher prices. The operating result was lower than the very strong first quarter 2012 due to decreased Spanish domestic consumption and higher input costs.
On October 8, 2012 Nutrecoannounced the acquisition of 75% of the shares in Gisis, the shrimp and fish feed subsidiary of the Expalsa group. Closing of the transaction is subject to regulatory approval from the Ecuadorian competition authority and expected by the end of the second quarter of 2013.
For the first half of the year based on current trading conditions, Nutreco expects EBITA before exceptional items to be approximately a？？90 million (US$118 million) compared to a？？103.7 million (US$136 million) in first half of 2012.
"In Fish Feed we are having a slow start to the year, mostly due to less favourable growing conditions caused by cold water temperatures in Norway which will likely lead to a shift in feed demand to the remainder of the year," said Knut Nesse, CEO of Nutreco. "The lower supply of salmon resulted in a strong salmon price increase which is favourable for our customers."
Nutreco will continue to execute the strategic roadmap towards 2016 such as developing higher added value portfolio of nutritional solutions; focusing on premix & feed specialties and fish feed; continue drive for operational excellence in mature markets and grow in geographies of Latin America, Russia, Asia and Africa, which will see the largest increases in both production and consumption of animal protein food products.