April 4, 2011

 

Nireus' 2010 exports leaped 30%

 

 

Mediterranean aquaculture company Nireus reported good figures for the whole previous year with a 30% increase in exports.

 

Fish sales generated EUR145.3 million (US$206.65 million), or an increase of 22.3% in value, due to better prices and higher volumes, at 32 thousand tonnes - up 15.6% in volume.

 

"In a most challenging year for the economies of Greece and Southern Europe, Nireus managed to grow exports by 30% and fish sales by 22%, to expand its market share in the Mediterranean fish farming market and to meet the challenges from the financial environment and the increase in raw material prices," said chairman and managing director Aristides Belles.

 

In the fourth quarter of last year, the firm's total sales managed to climb by 15.6% to EUR43.5 million (US$61.87 million). Also in Q4, fish sales were augmented by 26.1% in value and 18% in volume over Q4 of the year prior.

 

Outside of Greece, sales yielded EUR140 million (US$199.12 million), making up 76% of total sales compared with 66% in 2009. The boost in exports was ascribed to new and old markets that are both profiting from the well-positioned geographic division of Nireus' sales network and the resilient demand for its products.

 

Regarding the sale of the investment in associate company Marine Farms, the move had a negative contribution of EUR10 million (US$14.22 million) in net results. 

 

"The financial results were impacted by our divestment from Marine Farms and the reduction of the fair value of our biological inventories, while the Group managed to improve its overall business activity," Belles told.

 

Nireus also saw positive development in demand for its main products: seabass and seabream.  The country's ongoing situation is not expected to have a material effect on fish sales, as 90% of the firm's farmed fish is exported. 

 

Raw material prices for fish feed and transportation costs are expected to be higher this year.

 

Nireus, the chairman, added, lowered its production and operating costs, amplified its cash reserves with divestments and improved liquidity. These points as well as the benefit of the company's international production and sales network allowed the Group to meet the new endurance tests set forth by the market.

 

"These efforts will continue in 2011 through strict cost control, further reduction of the sales cost and strengthening of cash flows.  Our priority is to continue to successfully implement our business plan, which foresees a target on cost savings from the merger of units in major production centre and production automation, the opening of new markets and the strengthening of the Group in the adverse economic environment from the economic situation of the country," Belles concluded.