Nutreco trading update Q1 2012: Strong momentum continues
(Thomson Reuters ONE) -
* Revenue Q1 2012 EUR 1,128.2 million; an increase of 11.3% from Q1 2011
mainly driven by volume growth of 6.8%
* Excellent operational results in Aquaculture division driven by strong
organic growth; integration of the acquisition of Shihai in China is on
track
* Operational results in all segments of the Animal Nutrition division
improved compared to the first quarter 2011
* Premix and feed specialities position in the growth geography of Brazil
strengthened by acquiring 97% of the shares in Nutreco Fri-Ribe and the
acquisition of Bellman
* Divestment of Hendrix to ForFarmers completed, strategic partnership
underway
* Outlook: Based on current trading conditions, Nutreco expects EBITA before
exceptional items for the first half of 2012 to be approximately EUR 100
million (first half 2011: EUR 83.6 million)
Wout Dekker, Nutreco CEO:
"After the excellent results in 2011, we entered 2012 with strong momentum. The
first quarter results of all of our business segments are higher than the
performance in the same period last year. In particular our Aquaculture division
had a strong result due to high volume growth in salmon feed. The integration of
the acquisition of the Shihai fish and shrimp feed company in Southwest China is
on track. So is our capital investment program in Norway to support further
organic growth.The first expansion phase will be completed in 2012 and phase two
will be ready before the 2013 peak season.
The results in all segments of our Animal Nutrition division improved compared
to the first quarter of 2011. By achieving 97% of the shares in our Brazilian
Fri-Ribe subsidiary we created the platform to take further steps in one of the
most important agriculture and aquaculture growth markets in the world.
Subsequently we acquired Bellman Nutriçao Animal, a large supplier and producer
of feed specialties for ruminants in Brazil. Its activities, geographical
presence and product proposition are fully in line with our strategy Ambition
2016. Recently we launched our Sustainability Vision 2020 which lays out the
practical steps for Nutreco on our path towards sustainability. We have
announced that Kofi Annan will be the keynote speaker at our AquaVision
conference in June in Stavanger, Norway. This conference will continue to
focus on the challenge of feeding nine billion people sustainably by 2050.
Lastly we have completed the divestment of Hendrix to ForFarmers, where it is a
core activity with a leading market position and we are excited about our
strategic partnership which is now underway."
Based on the business developments in the first quarter we expect to achieve a
record first half year EBITA before exceptional items of approximately EUR 100
million, a significant improvement compared to the same period in 2011."
Q1 Revenue
(EUR x million) Q1 2012 Q1 2011 D%
Premix and Feed Specialties 302.3 276.5 9.3
Fish Feed 335.3 262.7 27.6
Animal Nutrition Canada 119.7 107.7 11.1
Compound Feed Europe 141.3 152.0 -7.0
Meat and Other 229.6 215.1 6.7
----------- -----------
Total revenue Nutreco 1,128.2 1,014.0 11.3
1. Following its sale, Hendrix is reported as discontinued operations in 2011
and 2012 and not included in the segments Compound Feed Europe and Meat and
Other. Sales to discontinued operations are included in revenue.
2. Segment reporting of 2011 has been slightly adjusted between the quarters
for comparison purposes.
Operational developments
The revenue in the first quarter amounted to EUR 1,128.2 million, an increase of
11.3% compared to Q1 2011. Volumes accounted for 6.8%, while the price effects
were 2.2%. The contribution of acquisitions was 1.0% and related to the
acquisition of the fish and shrimp feed business in China. The exchange rate
effect was 1.3%.
Premix and Feed Specialties
The revenue in Premix and Feed Specialties increased by 9.3% to EUR 302.3
million (Q1 2011: EUR 276.5 million). The volumes in Premix and Feed Specialties
were 2.0% higher. The sales prices were on average 6.9% higher and the foreign
currency effect was 0.4%. The operating results in the first quarter were higher
compared to the moderate first quarter in 2011. On April 3 Nutreco announced the
acquisition of Bellman Nutriçao Animal, a Brazilian supplier and producer of
feed specialties for ruminants. Bellman operates in 18 states with a strong
market position in the midwest of Brazil. In addition to the existing production
facility in Mirassol, northwest São Paulo state, a second plant will become
operational in 2012 in Mato Grosso. The company has excellent brands built on a
science-based market approach. Bellman employs 165 people and in 2011 revenues
amounted to EUR 37 million.
Fish Feed
The revenue in Fish Feed was 27.6% higher than in the first quarter of 2011 at
EUR 335.3 million. There was a volume increase of 26.0% mostly due to strong
demand for salmon feed in Norway and Chile. The volume increase in feed for
salmonids was 32.6% and for non-salmonids 5.0%. The contribution of the
acquisition of the Shihai fish and shrimp feed business in China was 3.7%. The
price effect was -5.3% and the foreign exchange impact 3.2%. The operating
result in Q1 was up from the same quarter of 2011.
Animal Nutrition Canada
The revenue in Q1 2012 of Animal Nutrition Canada was EUR 119.7 million compared
to EUR 107.7 million in Q1 2011, an increase of 11.1%. The increase was mainly
caused by 9.4% higher prices, due to higher raw material prices, and partly
offset by 1.1% lower volumes. The foreign exchange impact was 2.8%. The
operational result was higher than in the same period last year.
Compound Feed Europe
The revenue of Compound Feed Europe decreased by EUR 10.7 million to EUR 141.3
million compared to Q1 2011 (-7.0%). Lower raw materials costs had a price
effect of -3.8%. Volumes decreased by 3.2% compared to the same period in 2011.
The operational result in Q1 was higher than the same quarter last year
benefiting from the restructuring undertaken following the acquisition of the
compound feed activities of Cargill in Spain and Portugal. The divestment of
Hendrix to ForFarmers was completed by the end of the first quarter.
Meat and Other
Revenue from Meat and Other was 6.7% higher at EUR 229.6 million, related to
0.5% increased volumes and 6.1% higher prices. The foreign exchange impact was
0.2%. The result in Q1 is above that of Q1 2011 due to higher prices and lower
production costs.
Outlook first half year 2012
The following developments are expected for the first half of 2012:
* Premix and Feed Specialties: operational result of the first half year
slightly above the result of first half 2011, which was EUR 34.7 million;
* Fish Feed: a significantly higher operational result for the first half of
2012 than the EUR 35.4 million recorded in the first half of 2011;
* Animal Nutrition Canada: operational result slightly above the first half of
last year, which was EUR 10.9 million;
* Compound Feed Europe: operational result of the first half of 2012 above
that of the first half 2011, which was EUR 6.2 million; and
* Meat and Other: operational result above last year (first half year 2011:
EUR 8.0 million).
Operating result first half year 2012
Based on current trading conditions, Nutreco expects the EBITA before
exceptional items for the first half of 2012 to be approximately EUR 100 million
(2011: EUR 83.6 million). Due to seasonality of the business, the majority of
Nutreco's result is generated in the second half of the year.
.
Agenda 2012
* Develop higher margin portfolio of nutritional solutions
* Focus on Premix and Feed Specialties and Fish Feed
* Continue drive for operational excellence in mature markets
* Grow in geographies Brazil, Russia, China and Southeast Asia
* Start implementing the actions from Sustainability Vision 2020
Calendar 2012:
11-13 June: AquaVision 2012 Stavanger, Norway
26 July: Publication of half year results
18 October: Trading update third quarter
Ambition 2016
Nutreco's 'Ambition 2016 - driving sustainable growth' is to grow and improve
profitability by providing innovative and sustainable nutritional solutions for
its customers. This will be realised by focusing on a higher margin portfolio of
nutritional solutions such as premixes, feed specialties and fish feed, and by
expanding into the growth geographies of Latin America, Russia, China and
Southeast Asia, which will see the largest increases in both production and
consumption of animal protein food products.
* * * * *
Nutreco
Nutreco is a global leader in animal nutrition and fish feed. Our advanced feed
solutions are at the origin of food for millions of consumers worldwide.
Quality, innovation and sustainability are guiding principles, embedded in the
Nutreco culture from research and raw material procurement to products and
services for agriculture and aquaculture. Experience across 100 years brings
Nutreco a rich heritage of knowledge and experience for building its future.
Nutreco employs approximately 10,000 people in 30 countries, with sales in 80
countries. Nutreco is listed on the NYSE Euronext stock exchange in Amsterdam
and with annual revenues of EUR 4.7 billion in 2011.
www.nutreco.com
For more information:
Jurgen Pullens, Director Investor Relations and Corporate Communications,
Nutreco
Telephone: +31 (0)33 422 6134
E-mail: jurgen.pullens(at)nutreco.com
Cautionary note regarding forward-looking statements
This announcement contains forward-looking statements. Forward-looking
statements are statements that are not based on historical fact, including
statements about our beliefs and expectations. Any statement in this
announcement that expresses or implies our intentions, beliefs, expectations or
predictions (and the assumptions underlying them) is a forward-looking
statement. Such statements are based on plans, estimates and projections as
currently available to the management of Nutreco. Forward-looking statements
therefore speak only as of the date they are made and we assume no obligation to
publicly update any of them in the light of new information or future events.
Forward-looking statements involve inherent risks and uncertainties. A number of
significant factors could therefore cause actual future results to differ
materially from those expressed or implied in any forward-looking statement.
Such factors include but are not limited to conditions on the markets in Europe,
the United States and elsewhere from which we derive a substantial portion of
our revenue, potential defaults on the part of borrowers or trading
counterparties, the implementation of our restructuring programme including the
envisaged reduction in headcount and the reliability of our risk management
policies, procedures and methods. For more information on these and other
factors, please refer to our annual report. The forward-looking statements
contained in this announcement are made as of the date hereof and the companies
assume no obligation to update any forward-looking statement contained in this
announcement.
Attachment:
Following the sale of Hendrix, Hendrix is reported as discontinued operations in
2011. The half-year results 2011 are adjusted accordingly and provided as
attachment. The segment reporting has been slightly adjusted between the
quarters for comparison purposes and is also enclosed.
N.B. The full press release is attached in the pdf below
Nutreco trading update Q1 2012: Strong momentum continues:
http://hugin.info/133565/R/1603878/507271.pdf
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other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Nutreco via Thomson Reuters ONE
[HUG#1603878]
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