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Nutreco reports higher first half year results


  • Revenue of 2,460.0 million; an increase of 2.6% compared to H1 2013. Organic volume effect was 5.2%
  • First half year EBITA before exceptional items of 108.2 million, 15.0% higher than last year (H1 2013: 94.1 million)
  • Animal Nutrition EBITA increased by 4.7% to 59.6 million (H1 2013: 56.9 million) mainly as a result of a good performance in mature markets and our continued focus on higher value-added nutritional solutions
  • Fish Feed EBITA increased by 23.9% to 43.5 million (H1 2013: € 35.1 million) mainly driven by higher salmon feed volumes in Norway due to exceptional market circumstances and the contribution of the operating companies in Ecuador and Egypt which were acquired in 2013
  • Compound Feed & Meat Iberia EBITA of 18.1 million was 31.2% higher than last year (H1 2013: € 13.8 million) mainly due to lower raw material prices and good chicken and pork meat markets
  • Nutreco will initiate an additional share buy-back programme of € 100 million
  • The interim dividend is determined at € 0.30 per ordinary share (H1 2013: € 0.30)
  • Based on current trading conditions and barring any unforeseen circumstances Nutreco expects full year 2014 EBITA before exceptional items from continuing operations to be at least equal to 2013 (€ 256.3 million)

Knut Nesse, CEO Nutreco: "We are pleased to report a satisfying first half year operating result of € 108.2 million which has been achieved due to better performances in all segments.

In Animal Nutrition the operating result was higher mainly due to improved performances in mature markets. Our focus on higher value-added nutritional solutions that support the sustainability and profitability of our customers also contributed to this result. Our four key themes in animal nutrition R&D are young animal nutrition, animal health & welfare, feed efficiency and application solutions. These themes combined with our top research facilities in the Netherlands, Canada and Spain and our regional Application & Solution Centres are the key enablers which drive results and margins.

In Fish Feed the first half year operating result was clearly higher than in the same period of 2013. This was mainly due to higher salmon feed volumes in Norway as a result of exceptional market circumstances in the first six months of the year. A key strategic aim is to maintain our global market share in salmon feed as well as diversifying into feed for other species given their growth potential. The growth in feed for other species is helping to mitigate the impact of market developments in the Norwegian salmon feed market. Therefore we are pleased to see a strong contribution in results from our shrimp and tilapia feed companies in Ecuador and Egypt. We acquired these companies in 2013 as part of our strategy to grow in non-salmonid species and growth geographies.

In June we organised our 10th biennial AquaVision conference in Stavanger, Norway for stakeholders in the global aquaculture value chain with more than 400 delegates from 45 countries. I believe this event again made a convincing case that aquaculture will play a significant role to secure food availability for a growing world population. Therefore Nutreco will continue to undertake a leading role in developing the feed industry to enable increased production of high ­quality sustainable fish and shrimp feed on all continents. Currently we already produce feed for a diversified portfolio of more than 60 species of fish and shrimp in 16 countries, with sales in over 40 countries. We aim to maintain and achieve market-leading positions in fish and shrimp feed both geographically and across different species. In order to achieve this, we will continue to work on unique sustainable feed products that are driven by innovation.

We are pleased with the higher results in the Business Unit Compound Feed & Meat Iberia, the unit for which we started a process to explore a possible divestment. During the process we continuously operated with the clear intention that any valuation for the businesses should reflect their market-leading positions, solid financial results and future potential. As these discussions developed, it became clear that no fair valuation could be obtained at the current time. Accordingly, as we communicated on 11 June, the divestment process was halted in the best interests of all stakeholders; these businesses are now again reported as continued operations. The Iberian businesses are well-managed and combine market leadership with operational excellence.

Nutreco is a cash generative company and we will use our financial strength to support organic growth and make selective acquisitions. As we are continuously exploring acquisition opportunities, we continue to expect to make one or two strategic acquisitions a year. Currently we have ample financial room to achieve our growth objectives so in order to optimise the efficiency of our balance sheet and enhance future earnings per share we will undertake an additional share buy-back programme of € 100 million in the second half of the year."

Key figures

(€ x million) H1 2014 H1 2013       delta%
Revenue (third parties) 2,460.0 2,398.7 2.6
EBITDA before exceptional items 138.4 123.6 12.0
Animal Nutrition 59.6 56.9 4.7
Fish Feed 43.5 35.1 23.9
Compound Feed & Meat Iberia 18.1 13.8 31.2
Corporate -13.0 -11.7
EBITA before exceptional items 108.2 94.1 15.0
Total result for the period 57.6 53.5 7.7
Basic earnings per share from continuing operations () 0.82 0.78 5.1
Dividend per ordinary share () 0.30 0.30

Financial guidance
Due to the inclusion of the new segment Compound Feed & Meat Iberia, the following additional guidance applies:

  • EBITA operating margin Compound Feed & Meat Iberia: 2-3% (2013: 2.9%)
  • EBITA operating margin Nutreco: 5-6% (previously 5.5-6.5%) (2013: 4.9%)

All other existing financial guidance is maintained.


Note to the editor (not for publication)
This press release is also published in Dutch. In the event of differences, the English language version shall prevail as the authoritative version.

Driving sustainable growth
Nutreco's strategy 'Driving sustainable growth' is to grow and improve profitability by providing innovative and sustainable nutritional solutions for its customers. This will be realised by focusing on a higher value-added portfolio of nutritional solutions such as premixes, feed specialties and fish feed, and by expanding into the growth geographies of Latin America, Russia, Asia and Africa, which will see the largest increases in both production and consumption of animal protein food products.

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 approximately 10,000 people in 30 countries, with sales in 80 countries. Nutreco is listed on the NYSE Euronext stock exchange in Amsterdam and reported annual revenue of € 5.2 billion in 2013.

Investor and analyst enquiries
Jurgen Pullens, Director Investor Relations
T +31 (0) 33 422 6134
M +31 (0) 6 5159 9483
E [email protected]

Media enquiries
Mark Woldberg, Manager Corporate Communication
T +31 (0) 33 422 6178
M +31 (0) 6 1503 3036
E [email protected]

Cautionary note regarding forward-looking statements
This announcement contains forward-looking statements. Forward-looking statements are statements that are not based on historical fact, including statements about our beliefs and expectations. Any statement in this announcement that expresses or implies our intentions, beliefs, expectations or predictions (and the assumptions underlying them) is a forward-looking statement. Such statements are based on plans, estimates and projections as currently available to the management of Nutreco. Forward-looking statements therefore speak only as of the date they are made and we assume no obligation to publicly update any of them in the light of new information or future events.

Forward-looking statements involve inherent risks and uncertainties. A number of significant factors could therefore cause actual future results to differ materially from those expressed or implied in any forward-looking statement. Such factors include but are not limited to conditions on the markets in Europe, the United States and elsewhere from which we derive a substantial portion of our revenue, potential defaults on the part of borrowers or trading counterparties, the implementation of our restructuring programme including the envisaged reduction in headcount and the reliability of our risk management policies, procedures and methods. For more information on these and other factors, please refer to our annual report. The forward-looking statements contained in this announcement are made as of the date hereof and the companies assume no obligation to update any forward-looking statement contained in this announcement.

The full press releases in English and Dutch are attached in the pdfs below.

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Nutreco via Globenewswire


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