Fish and animal feed company Nutreco saw an 11% year-on-year rise in turnover in the third quarter of 2010. It took third quarter sales past €1.3 billion ($1.8 billion), largely due to higher raw material costs as well as currency effects and a takeover.
Nutreco CEO Wout Dekker confirmed the company has experienced a strong Q3 2010 in line with the outlook given in its half-year report. The results in Premix and feed specialties continued to be strong with a good organic growth, he said.
“In the fish feed segment we are pleased with the higher operational results and the strong recovery in Chile. The compound feed operations in Europe are showing a good performance which is better than the same period last year. The Canadian business is performing well and in line with last year's operating result."
Fish feed revenues were 14.3% higher in Q3 this year than in the corresponding quarter of 2009, mainly due to a price effect of 7.7% and a foreign exchange influence of 9.5%.
For the year to date, the fish feed volume growth is 4.4% against last year.
Salmon feed volumes grew year to date at 3.9% in Norway and a generous 36.9% in Chile. The company shut down its plant in Ireland and moved production to the UK plants.
For the full year, Nutreco anticipates a volume growth of about 4% and an EBITA-margin slightly rising past 6%. It is maintaining its medium-term guidance to achieve a volume growth of 5% or more.
Business developments in the third quarter matched Nutreco’s expectations and, barring unforeseen events, the firm anticipates EBITA before exceptional items in H2 to be in line with the robust second half of last year at €133.6 million ($186.6 million).
The Dutch-based company said it will continue to emphasise growth in animal nutrition and fish feed through various channels:
· Focusing on geographical regions and markets with potential for structural profitable growth in Brazil, China, Russia, Vietnam and other countries;
· Partaking in consolidation in countries where it has a leading position in compound feed, such as North America, the Netherlands and Spain;
· Keep boosting its global market position in premix and feed specialties and fish feed via organic growth and acquisitions; and
· Executing its science and innovation strategy by creating new sustainable products and feed solutions, and develop its product portfolio of higher margin products.
