- Revenue Q1 2012 EUR 1,128.2 million; an increase of 11.3% from Q1 2011 mainly driven by volume growth of 6.8%
- Excellent operational results in Aquaculture division driven by strong organic growth; integration of the acquisition of Shihai in China is on track
- Operational results in all segments of the Animal Nutrition division improved compared to the first quarter 2011
- Premix and feed specialities position in the growth geography of Brazil strengthened by acquiring 97% of the shares in Nutreco Fri-Ribe and the acquisition of Bellman
- Divestment of Hendrix to ForFarmers completed, strategic partnership underway
Wout Dekker, Nutreco CEO:
"After the excellent results in 2011, we entered 2012
with strong momentum. The first quarter results of all of our
business segments are higher than the performance in the same
period last year. In particular our Aquaculture division had
a strong result due to high volume growth in salmon feed. The
integration of the acquisition of the Shihai fish and shrimp
feed company in Southwest China is on track. So is our
capital investment program in Norway to support further
organic growth.The first expansion phase will be completed in
2012 and phase two will be ready before the 2013 peak
season.
The results in all segments of our Animal Nutrition division
improved compared to the first quarter of 2011. By achieving
97% of the shares in our Brazilian Fri-Ribe subsidiary we
created the platform to take further steps in one of the most
important agriculture and aquaculture growth markets in the
world. Subsequently we acquired Bellman Nutriçao Animal, a
large supplier and producer of feed specialties for ruminants
in Brazil. Its activities, geographical presence and product
proposition are fully in line with our strategy Ambition
2016. Recently we launched our Sustainability Vision 2020
which lays out the practical steps for Nutreco on our path
towards sustainability. We have announced that Kofi Annan
will be the keynote speaker at our AquaVision conference in
June in Stavanger, Norway. This conference will continue to
focus on the challenge of feeding nine billion people
sustainably by 2050. Lastly we have completed the divestment
of Hendrix to ForFarmers, where it is a core activity with a
leading market position and we are excited about our
strategic partnership which is now underway."
Based on the business developments in the first quarter we
expect to achieve a record first half year EBITA before
exceptional items of approximately EUR 100 million, a
significant improvement compared to the same period in
2011."
Q1 Revenue
(EUR x million) | Q1 2012 | Q1 2011 | D% | ||
Premix and Feed Specialties | 302.3 | 276.5 | 9.3 | ||
Fish Feed | 335.3 | 262.7 | 27.6 | ||
Animal Nutrition Canada | 119.7 | 107.7 | 11.1 | ||
Compound Feed Europe | 141.3 | 152.0 | -7.0 | ||
Meat and Other | 229.6 | 215.1 | 6.7 | ||
Total revenue Nutreco | 1,128.2 | 1,014.0 | 11.3 |
Following its sale, Hendrix is reported as discontinued operations in 2011 and 2012 and not included in the segments Compound Feed Europe and Meat and Other. Sales to discontinued operations are included in revenue.
Segment reporting of 2011 has been slightly adjusted between the quarters for comparison purposes.
Operational developments
The revenue in the first quarter amounted to EUR 1,128.2
million, an increase of 11.3% compared to Q1 2011. Volumes
accounted for 6.8%, while the price effects were 2.2%. The
contribution of acquisitions was 1.0% and related to the
acquisition of the fish and shrimp feed business in China.
The exchange rate effect was 1.3%.
Premix and Feed Specialties
The revenue in Premix and Feed Specialties increased by 9.3%
to EUR 302.3 million (Q1 2011: EUR 276.5 million). The
volumes in Premix and Feed Specialties were 2.0% higher. The
sales prices were on average 6.9% higher and the foreign
currency effect was 0.4%. The operating results in the first
quarter were higher compared to the moderate first quarter in
2011. On April 3 Nutreco announced the acquisition of Bellman
Nutriçao Animal, a Brazilian supplier and producer of feed
specialties for ruminants. Bellman operates in 18 states with
a strong market position in the midwest of Brazil. In
addition to the existing production facility in Mirassol,
northwest São Paulo state, a second plant will become
operational in 2012 in Mato Grosso. The company has excellent
brands built on a science-based market approach. Bellman
employs 165 people and in 2011 revenues amounted to EUR 37
million.
Fish Feed
The revenue in Fish Feed was 27.6% higher than in the first
quarter of 2011 at EUR 335.3 million. There was a volume
increase of 26.0% mostly due to strong demand for salmon feed
in Norway and Chile. The volume increase in feed for
salmonids was 32.6% and for non-salmonids 5.0%. The
contribution of the acquisition of the Shihai fish and shrimp
feed business in China was 3.7%. The price effect was -5.3%
and the foreign exchange impact 3.2%. The operating result in
Q1 was up from the same quarter of 2011.
Animal Nutrition Canada
The revenue in Q1 2012 of Animal Nutrition Canada was EUR
119.7 million compared to EUR 107.7 million in Q1 2011, an
increase of 11.1%. The increase was mainly caused by 9.4%
higher prices, due to higher raw material prices, and partly
offset by 1.1% lower volumes. The foreign exchange impact was
2.8%. The operational result was higher than in the same
period last year.
Compound Feed Europe
The revenue of Compound Feed Europe decreased by EUR 10.7
million to EUR 141.3 million compared to Q1 2011 (-7.0%).
Lower raw materials costs had a price effect of -3.8%.
Volumes decreased by 3.2% compared to the same period in
2011. The operational result in Q1 was higher than the same
quarter last year benefiting from the restructuring
undertaken following the acquisition of the compound feed
activities of Cargill in Spain and Portugal. The divestment
of Hendrix to ForFarmers was completed by the end of the
first quarter.
Meat and Other
Revenue from Meat and Other was 6.7% higher at EUR 229.6
million, related to 0.5% increased volumes and 6.1% higher
prices. The foreign exchange impact was 0.2%. The result in
Q1 is above that of Q1 2011 due to higher prices and lower
production costs.
Outlook first half year 2012
The following developments are expected for the first half of
2012:
- Premix and Feed Specialties: operational result of the first half year slightly above the result of first half 2011, which was EUR 34.7 million;
- Fish Feed: a significantly higher operational result for the first half of 2012 than the EUR 35.4 million recorded in the first half of 2011;
- Animal Nutrition Canada: operational result slightly above the first half of last year, which was EUR 10.9 million;
- Compound Feed Europe: operational result of the first half of 2012 above that of the first half 2011, which was EUR 6.2 million; and
- Meat and Other: operational result above last year (first half year 2011: EUR 8.0 million).
Operating result first half year 2012
Based on current trading conditions, Nutreco expects the
EBITA before exceptional items for the first half of 2012 to
be approximately EUR 100 million (2011: EUR 83.6 million).
Due to seasonality of the business, the majority of
Nutreco's result is generated in the second half of the
year.
.
Agenda 2012
Develop higher margin portfolio of nutritional solutions
Focus on Premix and Feed Specialties and Fish Feed
Continue drive for operational excellence in mature markets
Grow in geographies Brazil, Russia, China and Southeast Asia
Start implementing the actions from Sustainability Vision 2020
Calendar 2012:
11-13 June: AquaVision 2012 Stavanger,
Norway
26 July:
Publication of half year results
18 October: Trading update third quarter
Ambition 2016
Nutreco's 'Ambition 2016 - 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
margin portfolio of nutritional solutions such as premixes,
feed specialties and fish feed, and by expanding into the
growth geographies of Latin America, Russia, China and
Southeast Asia, which will see the largest increases in both
production and consumption of animal protein food products.
* * * * *
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 approximately 10,000 people in 30 countries, with
sales in 80 countries. Nutreco is listed on the NYSE Euronext
stock exchange in Amsterdam and with annual revenues of EUR
4.7 billion in 2011.
For more information:
Jurgen Pullens, Director Investor Relations and Corporate
Communications, Nutreco
Telephone: +31 (0)33 422 6134
E-mail: jurgen.pullens@nutreco.com
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.
Attachment:
Following the sale of Hendrix, Hendrix is reported as discontinued operations in 2011. The half-year results 2011 are adjusted accordingly and provided as attachment. The segment reporting has been slightly adjusted between the quarters for comparison purposes and is also enclosed.
N.B.
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