Greece's Nireus reports 15% sales rise in 2009

Nireus Aquaculture, among the leading producers of sea bream and sea bass worldwide, reports fish sales up 15% by volume and 11% by value in its annual report for 2009.

Nireus achieved a strong growth in fish sales, both in volume and value, benefiting from the well-positioned geographic distribution of its sales network. In financial year (FY) 2009, fish sales amounted to EUR118.8 million (US$161.7 million) and 27,700 tonnes. In the fourth quarter of 2009, the growth in fish sales was 17.9% in value and 13.6% in volume over the same quarter of previous year.

Overall group sales in 2009 amounted to EUR163.5 million (US$222.5 million), posting a slight decrease of 3.7% versus the same period last year and to EUR37.7 million (US$51.3 million) in the fourth quarter (down 1.8%). The decrease in overall sales is mainly due to reduced sales of feed and juveniles, a strategy the Group adopted to mitigate the credit risk from the challenging economic environment.

Nireus achieved significant cost savings by reducing costs and limiting capital expenditures. Total expenses before depreciation were reduced by EUR11.1 million (US$15.1 million) in 2009 (a decrease of 6%). Sustainable capital expenditures were reduced to EUR6.9 million (US$9.4 million) from EUR14.8 million (US$20.1 million) last year, following the implementation of strict cost control and reduced investments.

"Our operational performance in reducing costs, sustaining capex and improving working capital along with the benefit of our international sales network has enabled the Group to overcome the situation that impacted the Mediterranean fish farming sector recently," said Aristides Belles, chairman and managing director of Nireus.

"Our priority is to continue to successfully implement our business plan, with foresees a target on cost savings from the merger of units in major production centers and production automation, and an increase in sales from the opening of new markets, in addition to maintaining flexibility with respect to the market trends. The effects of our operational improvements in combination with our focus on opening new markets are strong foundations from which to benefit from the sector recovery and return to our profitability," he added.