Solid Results for Nutreco in a Challenging Market12 February 2014
GLOBAL - Nutreco have announced solid results in line with their 2013 Q3 outlook.
2013 earnings before the deduction of interest, tax and amortization expenses (EBITA) of €256 million, which were in line with Q3 outlook.
Other results include:
- Revenue from continuing operations of €3,867.1 million; an increase of 1.2 per cent
- Full year EBITA continuing operations before exceptional items decreased by 4.3 per cent to €215.7 million, mainly due to 8 per cent lower results in Fish Feed
- Animal Nutrition EBITA margin improved to 6.1 per cent (2012: 5.9 per cent) due to focus on higher value-added nutritional solutions
- Compound feed and meat businesses in Spain and Portugal classified as discontinued operations
- Basic earnings per share from continuing operations of €1.85, a decrease of 3.1 per cent
- Dividend proposal of €1.00 (2012: €1.03). Pay-out ratio 45 per cent (2012: 45 per cent)
Knut Nesse, CEO Nutreco: "This year was a respectable one for Nutreco and we delivered solid results in a challenging market. In line with the Q3 outlook we achieved a total EBITA of €256 million, which is, although slightly lower than 2012, the second best operating result in the history of the company.
"Our results in 2013 were impacted by a number of factors, including high commodity prices impacting the profitability of our customers, lower results in Fish Feed, especially in Norway and China, as well as an adverse foreign currency impact. At the same time we were able to regain our global market leadership position in salmon feed and we improved our margins in Animal Nutrition.
"Our strategy 'Driving sustainable growth' continued to provide a clear roadmap for achieving our objectives by leveraging our knowledge, global footprint and financial strength. After careful consideration of all available options it was decided that the divestment of the compound feed and meat businesses in Spain and Portugal provides the best future opportunities for these businesses and Nutreco. With the intended divestment we increase our focus on premix, feed specialties and fish feed, completely in line with our strategy. The acquisition of Gisis in Ecuador takes Nutreco to the global top three shrimp feed producers.
"The acquisition of Hendrix Misr in Egypt expands our footprint in Africa, where we intend to grow further. Both acquisitions fit in with our strategy to expand in growth geographies. Nutreco will continue to support innovation which we believe is essential to meeting the challenges ahead. All new Nutreco innovations are developed to achieve high nutritional value, sustainable production and economic performance as we seek to fulfil our mission of 'Feeding the Future'. I'm confident that the strategic actions taken in 2013 have prepared Nutreco to execute our strategy and will bring us sustainable growth in the years ahead. As usual we will give an outlook for the first half year of 2014 at our Q1 trading update on 24 April."
TheFishSite News Desk