Nutreco cuts 2013 profit forecast

Third quarter numbers down from 2012

Nutreco has dropped its 2013 EBITA (earnings before interest, taxes and amortization) to €255 million from €262.1 million, after third-quarter animal nutrition results for the company came in down from 2012 numbers. Nutreco saw animal nutrition revenue drop by 7.1 percent, to €794.4 million, mainly due to lower volumes in compound feed and adverse foreign currency impact.

Fish feed revenue for the third quarter was 11.4 percent higher than in 2012, at €696.1 million.

“For 2013 we expect to maintain our full year EBITA margin above 7 percent in our growth segment premix and feed specialties, and we expect to improve our results in meat and other which will compensate for lower results in our animal nutrition businesses in Canada and Spain,” said CEO Knut Nesse. “In animal nutrition we aim to be the leader in the development and supply of value-added nutritional solutions that are tailored to meet unique on-farm requirements. Over the last 12 months we made significant progress in developing and launching new products that give me a lot of confidence in the near future. We continue to invest in innovation and we are setting the scene for world class shrimp feed R&D. We expect to launch our sustainable MicroBalance concept for shrimp feed, which replaces expensive fishmeal by alternative protein raw materials, within 12 months.”

Revenue in Nutreco‘s premix and feed specialties division decreased by 3.8 percent to €303.2 million (Q3 2012: €315.3 million). Organic volumes in premix and feed specialties were 0.1 percent higher. Sales prices were on average 0.5 percent lower. The revenue in the third quarter of animal nutrition Canada was €123.5 million compared to €145.7 million in 2012, a decrease of 15.3 percent. The revenue of the compound feed division decreased 17.9 percent compared to the third quarter of 2012, to €130.4 million. Lower raw materials costs had a price effect of -5 percent. Volumes decreased by 11.5 percent compared to the same period in 2012, mostly the result of lower feed volumes to farmers in the free market (not integrated) which were affected by the economic situation in Spain.

Revenue from meat and other was 0.7 percent higher at €237.3 million, due to 3.2 percent lower volumes and 5.5 percent higher prices. Active account management has resulted in an increase in sales to new customers which partly compensated for lower sales to existing customers. There was a divestment effect of -0.9 percent which related to the sale of a small poultry activity in Canada. The exchange rate effect was -0.7 percent. The operating result was higher than the weak third quarter of 2012, driven by slightly higher prices and lower input costs.