April 30, 2009
Nutreco ''09 Q1 revenue down seven percent on-year
Feed company Nutreco earned EUR1,043.9 million in the first quarter of 2009, down seven percent in the same period last year.
The result was attributed to a lower demand for feed in line with market developments and lower sales prices because of grain and soy price drops.
All businesses report in line with expectations except Compound feed Europe, which reported operating loss in the quarter due to weak performance in the Netherlands.
The revenue of Compound feed Europe was down EUR78.3 million or 24.7 percent from the first quarter of 2008. Lower sales prices accounted for about 17 percent of the revenue fall. Compared with the first quarter of 2008, average grain and soy prices had dropped 20-25 percent.
Volumes decreased by 10 percent due to the lower livestock population, partly related to the economic situation. Demand for compound feed in Europe is expected to decline in 2009 between five and 10 percent on average. Feed for dairy cows will face a volume decline because of low prices for milk and a lower demand for pig feed is expected in Spain.
The Premix and feed specialities business reported a 4.2-percent on-year increase in revenue. Lower volumes were compensated for by a positive price-effect. The operational performance in the Premix and feed specialities business is in line with last year excluding the one-time benefits that were approximately EUR15 million in the first half of 2008.
In the first quarter of 2009, the compound feed business in The Netherlands (Hendrix UTD) reported an operating loss due to its view on the prices of raw materials. Measures have been taken to restore profitability and management changes will be made.
Nutreco expects Compound feed Europe to return to an operational profit in the second half of 2009, leading to a profit for the full year.
The revenue Animal Nutrition Canada was EUR92.6 million, down 2.4 percent on-year.
The revenue in Fish feed decreased by 6.6 percent on-year to EUR189.4 million. The volume decline is mainly related to continuing health challenges in the Chilean fish farming market. As a consequence of the ISA virus in Chile the industry had to downscale farming operations which impacted on the volumes. A volume growth is expected in other salmon farming areas such as Norway and Canada.
The revenue from the ''Meat and Other'' businesses was two-percent higher, mainly related to higher poultry prices in Spain compared with the first quarter of 2008.
Nutreco is a leader in animal nutrition and fish feed, employing nearly 9,300 people in 30 countries, with sales in 80 countries.
US$1 = EUR0.752832 (Apr 30)