February 21, 2013

Nutreco reports a 10.8% increase in revenue in 2012

Nutreco reports a strong 2012 year with revenue of EUR5,229.1 million (US$6.9 billion), representing a 10.8% increase on-year, of which 1.8% is organic volume growth.

Full year EBITA continuing operations before exceptional items increased by 13.2% to EUR262.1 million (US$345.6 million) while basic earnings per share from continuing operations of EUR4.53 (US$6), an increase of 26.2%. Dividend proposal of EUR2.05 (US$2.7), an increase of EUR0.25 (US$0.33).

Knut Nesse, CEO of Nutreco said, "2012 was a record year for Nutreco. In challenging economic times, we have continued to support our customers through innovative and sustainable feed solutions that contribute to their productivity and profitability. I'm pleased that we realised the strongest operational results in our growth segments Fish Feed and Premix & Feed Specialties. We made significant progress in the first year of our strategy 'Ambition 2016 - driving sustainable growth."

In Animal Nutrition, this included the strengthening of Nutreco's presence in Brazil, a new production plant in Russia, the establishment of two Application and Solution Centres and a clear focus on global branded products in feed additives, young animal feed and animal health. In Fish Feed, an agreement was reached to acquire 75% of the leading shrimp and tilapia feed producer in Ecuador, which takes the company into a global top-three position in shrimp feed. This acquisition fully supports their strategy to expand its fish feed business in growth geographies and non-salmonid species whilst maintaining its global leading position in salmon feed.

In order to have adequate financing to execute Ambition 2016, Nutreco issued a US$250 million private placement in July, and in September it successfully amended their EUR500 million (US$659 million) revolving credit facility with extended maturity from 2014 to 2017 and improved conditions.

Growth in Fish Feed was achieved in both salmonid and non-salmonid species, with exceptional growth in salmon feed and significantly higher volumes from China. In Premix & Feed Specialties, operating margins in the last two quarters reached the guidance of 7% due to good performances in growth geographies such as China and Indonesia, and in young animal feed and feed additives. Nutreco continued to focus on growth geographies in 2012, with significant investments in Latin America, Russia and China, where demand is strong for feed specialties that require high levels of knowledge and technology.

In Brazil, the world's third largest animal nutrition market, Nutreco increased its ownership stake in Nutreco Fri-Ribe to 97%, the Premix & Feed Specialties supplier, and acquired farm mineral company Bellman. In Russia, a top ten global feed market, Nutreco completed a new production facility in Voronezh, where it will produce young animal feed, concentrates and premixes for ruminants, pigs and poultry, ending its reliance on imports from Western Europe for that market. In October, Nutreco reached an agreement to acquire 75% of Gisis in Ecuador, the local market leader in fish feed production for shrimp and tilapia, with strong positions in Honduras and Peru.

 
Nutreco opened an upgraded Swine Research Centre (in the Netherlands, which will be equipped to investigate the relationship between nutrition and production efficiency, reproduction, and health. Nutreco also launched a new shrimp feed research unit in China and extended the capabilities of rapid near-infrared reflectance (NIR) analysis to guarantee more consistent and higher quality shrimp feed. With the new Application and Solution Centres (ASCs) up and running in the Netherlands and Canada, Nutreco is now better positioned to improve product performance in line with market needs to share its knowledge and networks more effectively and embed a consistent division-wide approach to the marketing of Animal Nutrition products. In Premix & Feed Specialties, these efforts will result in a clear focus on global products in feed additives, young animal feed and animal health.

Nutreco will continue to execute the strategic roadmap towards 2016 such as: to develop higher added value portfolio of nutritional solutions; focus on Premix & Feed Specialties and Fish Feed; continue drive for operational excellence in mature markets, and grow in geographies Latin America, Russia, Asia and Africa. Nutreco's 'Ambition 2016 - driving sustainable growth' is to grow and improve profitability by providing innovative and sustainable nutritional solutions for its customers and is expected to result in an EBITA of EUR400 million (US$527 million) by 2016.