Nutreco reports half-year revenues of EUR 2.1 billion and EBITA of
EUR 41.6 million
* Revenue of EUR 2,127.7 million; a decrease of 8.5% from first half
2008 mainly due to 7.0% lower
volumes
* Performance in line with outlook in the Q1 trading update
* The agreed acquisition of twelve compound feed plants from Cargill
in Spain and Portugal will
strengthen Nutreco's leading market position
* Company wide programmes to reduce working capital and operational
costs are contributing to the
result
* Nutreco secured financing with a syndicated loan and a private
placement and maintained a strong
balance sheet
* Interim 2009 dividend EUR 0.20 at choice of shareholder in cash or
stock
Wout Dekker, Nutreco CEO: "The Nutreco performance in the first half
year is in line with our outlook given in the Q1 trading update. Our
premix and feed specialties business performed well and the
fundamentals in the fish feed business are good, although demand for
fish feed in Chile is reduced as a consequence of the ISA virus in
salmon farming. The compound feed business in the Netherlands
suffered a major loss at the beginning of the year, but measures have
been taken to restore profitability. In Spain the poultry business
returned to profitability due to lower feed prices and higher poultry
prices. We are strengthening the compound feed business in Spain and
Portugal, with the acquisition in those countries of the animal
nutrition business from Cargill. This acquisition fits in our growth
strategy of participating in the consolidation process in those
markets where we have leading positions. Due to the expansion of
Nutreco and to support further growth we extended our Executive Board
to five members by appointing three Executive-Vice Presidents."
Long-term prospects remain positive
"Animal nutrition and fish feed products are directly linked to the
basic needs of consumers for food products such as dairy products,
meat and fish. Due to the global financial downturn there is a
temporary shift in consumer spending to less expensive food
categories and a temporary decline in volumes. As a consequence the
demand for milk and meat products would decline slightly leading to
lower milk and pig prices. Farmers are used to adjusting to such
situations by measures including cost savings, which could lead to a
temporary reduction in animal feed purchases. However, demand for
food will increase again as the global economies recover and
population numbers rise. In June Nutreco organised the fifth biennial
Agri Vision multi stakeholder conference. The main question during
the conference was 'will we be able to feed and fuel 9 billion people
in 2050 in a sustainable way?' The majority of the 375 participants
was optimistic since current knowledge and technology can still
increase agricultural productivity substantially and targeted
research can boost it even further. Nutreco operates at the critical
junction between the raw materials and the producers of meat, fish,
dairy and eggs. Our slogan 'Feeding the future' reflects our ambition
to have a leading role in developing advanced feed solutions that
contribute to feeding a growing world population."
Key figures
(EUR x million)
H1 2009 H1 2008 Change
Revenue from 'continuing operations' 2,127.7 2,324.2 -8.5%
Operating result before exceptionals 41.6 82.3 -49.5%
and amortisation (EBITA)
Operating result from 'continuing 33.1 80.1 -58.7%
operations' (EBIT)
Profit after tax from 'continuing 13.7 48.8 -71.9%
operations'
Profit for the period attributable to 12.3 51.3 -76.0%
equity holders of Nutreco
Basic earnings per ordinary share for
'continuing operations' (EUR) 0.36 1.38 -73.9%
General:
In comparing the first half year results of 2009 with 2008 two major
events should be taken into consideration:
1. Nutreco had a negative one-off of approximately EUR 20 million
in compound feed in the first half of 2009.
2. The first half year results of 2008 were the best results in the
history of Nutreco. This was partly related to EUR
20 million benefits related to favourable raw material position
in a market with increasing prices.
Furthermore the majority of Nutreco's result is generated in the
second half of the year. As we indicate in the outlook of this report
the second half year results will be more in line with the second
half of 2008.
Outlook second half-year 2009:
The following developments are expected for the second half-year of
2009:
Animal Nutrition
Premix and feed specialties: operational result slightly lower than
the second half of last year.
Compound feed Europe: Nutreco expects a return to profitability in
the second half of 2009 and a marginal profit over the full year
2009.
Animal Nutrition Canada: operational result expected to be in line
with the second half of 2008.
Fish feed
Strong growth in Norway due to 12% harvest volume growth will largely
compensate for the decline in Chile as a result of the ISA virus in
the Chilean salmon farming market. Nutreco expects a slightly lower
result in the second half of 2009 than in 2008.
Meat and other
The Spanish poultry business expects a profit for the second half of
the year.
Actions
Nutreco has implemented a company-wide programme to control the
development of working capital and to achieve operational costs
savings.
Nutreco will continue to grow in animal nutrition and fish feed and
will in 2009:
* Further strengthen its global market positions in feed specialties
and fish feed by organic growth and acquisitions;
* Focus on new geographic regions and markets with a perspective of
structural profitable growth;
* Participate in the compound feed consolidation process in Canada,
the Netherlands and Spain where Nutreco has
leading local positions;
* Focus on innovation.
* * * * *
Nutreco
Nutreco is a global leader in animal nutrition and fish feed. Our
advanced feed solutions are at the origin of food for millions of
consumers worldwide. Quality, innovation and sustainability are
guiding principles, embedded in the Nutreco culture from research and
raw material procurement to products and services for agriculture and
aquaculture. Experience across 100 years brings Nutreco a rich
heritage of knowledge and experience for building its future. Nutreco
employs almost 9,300 people in 30 countries, with sales in 80
countries. Nutreco is listed on the Euronext stock exchange in
Amsterdam and with annual revenues of EUR 4.9 billion in 2008.
For more information:
Jurgen Pullens, Director Investor Relations and Corporate
Communications Nutreco
Telephone: +31 33 422 6134
Mobile: +31 6 5159 9483
E-mail: jurgen.pullens@nutreco.com
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
