February 14, 2008

Nutreco posts sharp drop in full-year profits, 33-percent increase in revenue

Animal nutrition company Nutreco Holding NV Thursday (February 14, 2008 ) posted a sharp drop in full-year net profit after booking a large gain a year earlier, but said it is on track to meet its 2010 profitability target.

Net profit in the year to end-December fell to EUR118.6 million from EUR519.5 million in 2006, when Nutreco booked EUR380 million in proceeds from the sale of its salmon farming unit Marine Harvest, a move that allowed the company to focus purely on animal nutrition.

Revenue over 2007 rose 33 percent to EUR4.02 billion from EUR3.03 billion helped by several acquisitions in 2007, including some businesses from Germany's BASF.

Nutreco, which does not provide second-half figures, said its 2007 results confirm its ability to meet its 2010 earnings before interest, tax and amortisation, or Ebita, target of EUR230 million.

It proposes a dividend of EUR1.64 per share, up from last year's EUR1.60 per share.

Nutreco shares closed at EUR44.53 Wednesday, giving it a market capitalization of about EUR1.55 billion.