Nutreco trading update Q3 2010
(Thomson Reuters ONE) -
* Revenue Q3 2010 EUR 1,338.6 million; an increase of 11.0% from Q3 2009
* Operational results in Premix and feed specialties higher than Q3 2009.
Volumes continued to be strong with 5.5% increase in Q3 and 7.2% year-to-
date
* Higher operational results in Fish feed in Q3 due to strong recovery in
Chile, focus on profitable volume growth and operational excellence
* Operational results Compound feed Europe higher than in Q3 2009
* Operational results in Animal nutrition Canada in line with last year
* Lower operational results in Meat & other compared with excellent Q3 in 2009
· Nutreco confirms outlook for the full year 2010 expecting an
increase of approximately 25% in EBITA before exceptional items compared with
2009 (EUR 175.2 million)
Wout Dekker, CEO Nutreco: "We have experienced a strong Q3 2010 in line with the
outlook given in our half-year report. The results in Premix and feed
specialties continued to be strong with a good organic growth. 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. The
meat operations have good results but lower compared with the excellent third
quarter in 2009. We are pleased with the performance in this quarter. Based on
the business developments in the third quarter we confirm our outlook for the
full year 2010."
Q3 revenues
+-----------------------+---------+---------+------+----------+----------+-----+
|(EUR x million) |Q3 2010 |Q3 2009 |D% |Q3YTD 2010|Q3YTD 2009|D% |
+-----------------------+---------+---------+------+----------+----------+-----+
|Revenues | | | | | | |
+-----------------------+---------+---------+------+----------+----------+-----+
|Premix and feed | 275.1 | 246.6 |11.6% | 795.9 | 739.4 |7.6% |
|specialties | | | | | | |
+-----------------------+---------+---------+------+----------+----------+-----+
|Fish feed | 426.1 | 372.9 |14.3% | 947.1 | 811.3 |16.7%|
+-----------------------+---------+---------+------+----------+----------+-----+
|Compound feed Europe | 264.9 | 228.1 |16.1% | 774.4 | 697.4 |11.1%|
+-----------------------+---------+---------+------+----------+----------+-----+
|Animal Nutrition Canada| 98.8| 95.4| 3.6%| 291.2 | 285.9 |1.9% |
+-----------------------+---------+---------+------+----------+----------+-----+
|Meat & other | 273.7 | 263.3 | 3.9%| 780.5 | 800.1 |-2.4%|
+-----------------------+---------+---------+------+----------+----------+-----+
|Total revenues Nutreco |1,338.6 |1,206.3 |11.0% |3,589.1 |3,334.1 |7.7% |
+-----------------------+---------+---------+------+----------+----------+-----+
Operational developments
The revenue in the 3(rd) quarter amounted to EUR 1,338.6 million, an increase of
11.0% compared with Q3 2009. Of this increase, 2.7% was due to the price effect.
This was related to price increases as higher raw material prices could be
passed on. The volume development was relatively flat with a decline of -0.6%.
This was a mix effect of volume growth in Premixes and feed specialties and in
Meat & other and a volume decline in the other segments. The contribution from
acquisitions was 3.0% and concerned the acquisition of compound feed operations
from Cargill in Spain and Portugal and the acquisition of premix and fish feed
operations from Fri-Ribe in Brazil. The exchange rate effect was 5.8% and was
mainly caused by a positive translation effect as a result of a stronger
Canadian dollar, US dollar and Norwegian krone.
Premix and feed specialties
Revenue in Premix and feed specialties was 11.6% higher than in Q3 2009. Volumes
in Premix and feed specialties were up 5.5% primarily as a result of globally
improved market conditions in agriculture. Prices were -0.7% lower on average
due to slightly lower raw materials prices. The acquisition effect contributed
7.3% to the revenue in this segment and the exchange rate effect 6.0%. This
comparison excludes EUR 3.0 million in compound feed revenue outside Europe in
the third quarter of 2010 (third quarter of 2009: EUR 16.3 million), reported
under Premix and feed specialties. The year-to-date revenues show a volume
increase of 7.2% versus last year. The operational results in Q3 were higher
than Q3 2009.
Fish feed
The revenue in Fish feed was 14.3% higher in Q3 2010 than in Q3 2009. The
increase in the quarter was mainly due to a price effect of 7.7% and a foreign
exchange effect of 9.5%. The volume effect in Q3 was -3.0% due to a volume shift
between the second and third quarter versus 2009. The year-to-date Fish feed
volume growth versus last year is +4.4%. The salmon feed volumes increased year-
to-date with 3.9% in Norway and 36.9% in Chile. Nutreco closed its plant in
Ireland and the production has been transferred to the UK plants.
The operational results in Q3 and year-to-date were higher than in 2009 due to
the recovery in Chile, our operational excellence and an improved product-mix.
For the full year 2010 we expect a volume growth of approximately 4% and an
EBITA-margin slightly above 6%. Our medium-term guidance to achieve a volume
growth of at least 5% remains unchanged.
Compound feed Europe
The revenue of Compound feed Europe was 16.1% higher than in Q3 2009. The
largest contribution to the increase in revenue came from the acquisition of the
compound feed operations of Cargill in Spain and Portugal (13.9%). The price
effect on revenue was 3.1% and volumes were 0.9% lower than in the same period
in 2009. The market conditions in Spain have not yet recovered entirely in line
with the general economic situation.
The integration of Cargill's compound feed operations in Spain and Portugal,
acquired in 2009, is progressing according to plan. Nutreco's aim is to bring
the profitability of the acquired operations in line with existing
operations.The operational results in Q3 are higher than in the same period last
year.
Animal Nutrition Canada
Revenue in the 3(rd) quarter of 2010 for Animal Nutrition Canada was EUR 98.8
million compared with EUR 95.4 million in Q3 2009. The increase was the result
of the exchange rate effect of 16.7%. Prices (-6.6%) and volumes (-6.5%) were
lower than in the 3(rd) quarter of 2009. Volumes for chicken and cattle feed are
stable but those for pigs are still lower as a result of the weaker export
markets. The price effect of -6.6% is the result of passing on the lower raw
materials prices to the price of the feed.The operational results are in line
with last year due to cost savings and good margins on poultry feed and feed for
dairy cows.
Meat and other
Revenue for Meat and other operations increased by 3.9%, mainly as a result of
prices (2.1%). Volumes were 0.9% higher than in Q3 2009. The exchange rate
effect was 1.0% and relates to the poultry hatchery business in Canada. The
operational results in Meat and other are good but will be lower than in the
excellent 2(nd) half year in 2009.
Outlook for 2010
Business developments in the 3(rd) quarter were in line with our expectations.
Barring unforeseen circumstances, Nutreco expects EBITA before exceptional items
in the second half of the year to be in line with the very strong second half of
2009 (EUR 133.6 million). For the full year 2010 this will result in an increase
of approximately 25% in EBITA before exceptional items compared with 2009 (EUR
175.2 million).
Strategy
Nutreco will continue to focus on growth in animal nutrition and fish feed by:
* Focusing on geographical regions and markets with prospects for structural
profitable growth in countries such as Brazil, China, Russia and Vietnam;
* Participating in consolidation in countries where Nutreco has a leading
position in compound feed, such as Canada/North America, the Netherlands and
Spain;
* Further strengthen our global market position in premix and feed specialties
and fish feed through organic growth and acquisitions;
* Executing Nutreco's science and innovation strategy: develop new sustainable
products and feed solutions, and grow Nutreco's product portfolio of higher
margin products
Nutreco will publish its full year results 2010 on 10 February 2011.
* * * * *
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 almost 9,900 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 4.5 billion in 2009.
For more information:
Jurgen Pullens, Director Investor Relations and Corporate Communications,
Nutreco
Telephone: +31 33 422 6134
Mobile: +31 6 5159 9483
E-mail: jurgen.pullens(at)nutreco.com
The full press release is attached in the pdf below
[HUG#1456125]
Nutreco Trading Update Q3 2010:
http://hugin.info/133565/R/1456125/395983.pdf
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Source: Nutreco via Thomson Reuters ONE
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Datum: 28.10.2010 - 07:00 Uhr
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