July 29, 2011

Nutreco's revenues up 14.3% in H1

Dutch animal nutrition and fish feed firm Nutreco notched up revenues of EUR2.6 billion (US$3.8 billion) in H1 2011, a 14.3% rise on-year due to strong recovery in Chilean and Norwegian salmon farming.

The company informed that its excellent first half-year result in fish feed offset the slightly lower results in other businesses. Total EBITA for animal nutrition and fish feed went up 9.5%.

It also reported a 2.9% climb in first-half operating profit, as price rises made up for higher costs.

"Fish feed is delivering excellent results. Skretting Chile will reopen its Pargua fish feed plant in September 2011 to meet the growing demand," CEO Wout Dekker said.

He explained that Nutreco is exploring opportunities to further diversify in feed for other fish species and in new regions including South-East Asia and South America.

Last February, Nutreco announced the acquisition of Shihai Co Ltd, a profitable Chinese fish and shrimp feed company that boasted revenues of EUR65 million (US$94 million) in 2010, for EUR40 million (US$58 million). This acquisition will provide Skretting, Nutreco's aquaculture feed division, with an entry to the largest aquaculture feed market.

The move corresponds with Nutreco's strategy to capitalise on leading fish feed positions and diversify by expanding its reach into new regions and feed for other fish species and shrimp. The closing of the transaction is subject to approval from Chinese authorities and is expected to take place during the third quarter of 2011.

In April, Nutreco announced an investment of EUR27 million (US$39 million) to enlarge its fish feed plant in Averøy, Norway. This expansion will enable Skretting Norway to satisfy future market demand for high-quality salmon feed and preserve its position as a market leader, the company said.