Nutreco profits from growth in animal feed
Nutreco posted higher-than-expected first-half operating profit of €80.1 million ($124.8 million) on Thursday. The 70% profit increase is mainly the result of growth in its animal feed unit.
Nutreco expects prices of raw materials to remain high, but volatile. The
following developments are expected in the Nutreco segments in the second half
year of 2008:
Animal nutrition
– Compound feed
Europe: Actual harvest quantities of cereals will strongly influence
performance.
– Premix and speciality feed: Approximately 5% organic growth
compared with the second half 2007 to be increased with the contribution of
acquisitions and NSI.
– Animal nutrition Canada: Results in line with the
first half year of 2008.
Fish feed
– In salmon feed
we expect the total market volume in line with 2007. The Skretting market share
will be close to 40% (2007: 40%). The growth that is expected in Norway will
compensate for the decline in volume in Chile. In fish feed for species other
than salmon we expect a growth of about 5% in the second half year.
–
Historically Nutreco’s fish feed result is mainly realised in the second half of
the year.
Meat and other
– An improvement of
the poultry business in Spain compared to the first half of 2008 is
expected.
Nutreco will continue to focus on growth in animal nutrition
and fish feed in order to meet the target for 2010 to double 2006 EBITA to €230
million. In particular Nutreco will: strengthen market positions in animal
nutrition and fish feed by organic growth and acquisitions; finalise the
integration of the BASF premix businesses; improve sustainability and
feed-to-food quality and safety and apply leverage with the Nutreco Sourcing
Initiative.
Related news:
Nutreco aims for doubling profits by 2010
Nutreco shows excellent 2007 results
Nutreco aims for more acquisitions
Related website:
Nutreco
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