October 20, 2012
Nutreco''s Q3 revenue up 13% on-year
As it continues to expand in growth geographies and feed for non-salmonid fish species and shrimp, Nutreco''s third quarter revenue was EUR1.5 million (US$2 million), up 13% on-year, while maintaining its leading position in salmon.
Animal Nutrition revenues up 7% due to higher feed prices as a result of rising raw materials prices while volumes down 3% due to tough market conditions mainly in Spain.
Fish Feed revenues increased by 21% driven by 15% total volume growth of which 6% is organic and a 9% contribution from the Shihai acquisition. Solid profits in all segments except for meat and other which declined as a result of higher feed costs.
Acquisition in Ecuador takes Nutreco to global top three shrimp feed producer
In an uncertain environment and based on current trading conditions, Nutreco confirms its outlook for the full year and expects EBITA before exceptional items to be approximately EUR260 million (US$340 million).
The revenue in fish feed was 20.6% higher than in the third quarter of 2011 at EUR625 million (US$817 million). The total volume effect was an increase of 15.3%. Organic volume growth of 6.3% was mostly due to strong demand for salmon feed in Chile as well as non-salmonid feed. The growth from acquisitions was 9.0%, related to the Shihai fish and shrimp feed business in China. The price effect was -1.1% and the exchange rate effect was 6.3%.
The volume share of fish feed for non-salmonid species is now 35% compared with 26% in the same quarter last year. The operating result in third quarter was significantly higher than the same quarter of 2011. We have substantially increased our Research & Development spend mainly to support the growing need for more sustainable feed for sub-tropical fish species and shrimp. Our new Chinese research facility will begin the first shrimp feed trials before the end of the year.
"Volume growth in our fish feed business occurred in both salmonid and non-salmonid fish species with significantly higher volumes from our new Shihai business in China. The recently announced acquisition of the leading Ecuadorian shrimp and fish feed business underscores our commitment to deliver on our fish feed strategy," said Knut Nesse, Nutreco CEO.
On October 8, Nutrecoannounced the acquisition of 75% of the shares in Gisis SA, the shrimp and fish feed subsidiary of Expalsa group, for EUR78 million (US$102 million). Expalsa is the market leader in fish feed production and shrimp and tilapia farming in Ecuador and has strong market positions in Honduras and Peru, and the acquisition takes Nutreco into the global top three shrimp feed suppliers.