Nutreco trading update Q3 2009
(Thomson Reuters ONE) - * Based on the 3rd quarter results Nutreco expects the 2nd half year EBITA to be 10% higher than the second half of 2008 * Volumes increasing in Fish feed and Premix and feed specialties in Q3 * Operational results Q3 Animal nutrition and Fish feed in line with our outlook * Meat Spain reported excellent results in 3rd quarter * Revenue Q3 2009 EUR 1,206.3 million; a decrease of 8.9% from Q3 2008 mainly due to lower raw material prices * Working capital balance will be reduced by approximately EUR 50-75 million at year-end compared with 2008 * Decision competition authorities for acquisition of animal nutrition business from Cargill in Spain and Portugal expected in 4th quarter Wout Dekker, Nutreco CEO: We are pleased with the performance in thethird quarter of this year. After a challenging start of the year wesee that the results are now in a stronger mode and we haveconfidence this will continue in the remainder of the year. Theoverall demand for feed is increasing compared with the first halfyear which is encouraging. The performance is further based on costssavings.We are optimistic that we have taken the right steps to prepareourselves for the economic upturn and future animal nutritionchallenges. Farmers everywhere in the world face the challenge ofachieving greater productivity from limited resources while improvingthe health status of animals and reducing the impact on theenvironment. It is a major opportunity for Nutreco to address thesechallenges by accelerating the organic growth of its feed additivesproduct portfolio.We are also strengthening the compound feed business in Spain andPortugal, with the acquisition in those countries of the animalnutrition business from Cargill. Furthermore we continue our growthstrategy to further strengthen our global market positions in feedspecialties and fish feed.Q3 revenues+-------------------------------------------------------------------------+|(EUR x million) |Q3 2009 |Q3 2008 |Change%|Q3YTD |Q3YTD |Change%|| | | | |2009 |2008 | ||--------------------+---------+--------+-------+--------+--------+-------||Revenues | | | | | | ||--------------------+---------+--------+-------+--------+--------+-------||Premix and feed | 246.6 | 264.1| -6.5%| 739.4| 773.2| -4.4%||specialties | | | | | | ||--------------------+---------+--------+-------+--------+--------+-------||Compound feed Europe| 228.1 | 305.7|-25.4% | 697.4| 940.8|-25.9% ||--------------------+---------+--------+-------+--------+--------+-------||Animal Nutrition | 95.4| 101.2| -5.7%| 285.9| 294.5| -2.9%||Canada | | | | | | ||--------------------+---------+--------+-------+--------+--------+-------||Fish feed | 372.9 | 372.9| 0.0%| 811.3| 826.9| -1.9%||--------------------+---------+--------+-------+--------+--------+-------||Meat & other | 263.3 | 280.4| -6.1%| 800.1| 813.1| -1.6%||--------------------+---------+--------+-------+--------+--------+-------||Total revenues |1,206.3 |1,324.3 | -8.9%|3,334.1 |3,648.5 | -8.6%||Nutreco | | | | | | |+-------------------------------------------------------------------------+Operational developmentsThe revenue in the 3rd quarter amounted to EUR 1,206.3, a decreaseof 8.9% compared with Q3 2008. This decrease was for 80% due to priceeffects (-7.4%), mostly related to lower raw material prices incompound feed. The volume development in the 3rd quarter was slightlypositive (0.1%) compared with the same period in 2008. The volumegrowth in Premix and feed specialties, Fish feed and Meat and otheroffset the lower volumes in Compound feed. The contribution ofacquisitions was 0.5% and the foreign exchange effect was -2.2%mainly related to the US dollar. In comparison with the 1st half yearwe see a recovery of the volume with 2.4%; the Q3 year-to-date volumewas -4.7% versus 2008 compared to -7.1% for the first half year in2009.Premix and feed specialtiesPremix and feed specialties reported a 6.5% decrease in revenuecompared with Q3 2008. The prices were on average 4.6% lower and theforeign exchange effect was -5.4%. This was partly offset by apositive volume development of 1.2% and the contribution ofacquisitions of 2.3% .The operational results of Premix and feedspecialties are in line with our outlook. The year-to-date revenuesshow a volume decrease of 6.9% versus last year, which was 10.5% inthe first half of 2009.Compound feed EuropeThe revenue of Compound feed Europe was EUR 77.6 million lower thanin Q3 2008 (-25.4%). Lower sales prices accounted for approximately20.5% due to lower grain and soy prices compared with Q3 2008.Volumes decreased by 4.9% due to a lower demand for feed for dairycows and pig feed mainly related to the low milk and pig prices. Inthe year we see a recovery in volumes in comparison with 2008 to-7.3% in Q3 year-to-date from -8.3% in the first half year. Theoperational results in Q3 are profitable and on track to compensatefor the first-half year loss.Animal Nutrition CanadaThe revenue in Q3 2009 of Animal Nutrition Canada was EUR 95.4million compared with EUR 101.2 million in Q3 2008 (-5.7%). Thedecline was mainly because of lower prices (-5.9%). The volumes wereslightly higher than in Q3 2008. The operational results are in linewith last year. We see some recovery of the volume development,year-to-date the volume is -3.3% versus last year. In June the volumewas -5.2% versus last year.Fish feedThe revenue in Fish feed of EUR 372.9 million equals the revenue inQ3 2008. The volume increase in the quarter was 3.5% and the priceeffect was 0.4%, this increase was offset by a -3.9% foreign exchangeeffect. A strong volume growth in Norway is compensating for thedecline in volumes in Chile, where there is a reduced demand for fishfeed as a consequence of the ISA virus. The year-to-date volumedevelopment in Q3 versus last year was -4.2% versus -9.3% for thefirst six months in 2009.Meat and otherThe revenue from 'Meat and other' was 6.1% lower, mainly related to6.6% lower prices. The volumes were slightly above the ones of lastyear. Due to lower feed cost prices and good poultry prices theresults in Q3 continued to be strong.Outlook second half year 2009:The following developments are expected for the second half year of2009: * Premix and feed specialties: operational result in line with the 2nd half 2008 (excluding EUR 5 million benefit in 2008 related to favourable raw material positions) * Compound feed Europe: return to profitability which will lead to a marginal profit over the full year 2009. Decision about acquisition of animal nutrition business from Cargill expected in 4th quarter * Animal Nutrition Canada: slight improvement of the operational result compared with the 2nd half of 2008 * Fish feed: strong growth in Norway in 3rd quarter confirms outlook for the year; EBITA slightly below last year. A higher biomass in Norway will largely compensate for the lower volumes in Chile as a result of the ISA virus * Meat and other: strong results in the 2nd half of 2009 due to good poultry prices and lower cost prices because of lower feed pricesOperating result second half year 2009:In comparison with the 2nd half year of 2008, Nutreco expects a 10%higher EBITA before exceptional items in the 2nd half year of 2009.As a result of lower raw material prices and due to the company-wideprogramme to reduce the working capital balance Nutreco expects toreduce last year's the working capital balance of EUR 254 million byEUR 50-75 million at year-end.StrategyNutreco will continue to focus on growth in animal nutrition and fishfeed and will: * Further strengthen its global market positions in feed specialties and fish feed * Focus on new geographic regions and markets with a perspective of structural profitable growth * Participate in the compound feed consolidation process in Canada, the Netherlands and Spain where Nutreco has leading local positions * Maintain a strong balance sheet and a sound capital structure to support future growthNutreco will publish its full year results 2009 on 11 February 2010. * * * * *NutrecoNutreco is a global leader in animal nutrition and fish feed. Ouradvanced feed solutions are at the origin of food for millions ofconsumers worldwide. Quality, innovation and sustainability areguiding principles, embedded in the Nutreco culture from research andraw material procurement to products and services for agriculture andaquaculture. Experience across 100 years brings Nutreco a richheritage of knowledge and experience for building its future. Nutrecoemploys almost 9,300 people in 30 countries, with sales in 80countries. Nutreco is listed on the Euronext stock exchange inAmsterdam and with annual revenues of EUR 4.9 billion in 2008.For more information:Jurgen Pullens, Director Investor Relations and CorporateCommunications, NutrecoTelephone: +31 33 422 6134Mobile: +31 6 5159 9483E-mail: jurgen.pullens(at)nutreco.comhttp://hugin.info/133565/R/1350996/326289.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 29.10.2009 - 07:00 Uhr
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