Nireus Group on Friday reported an operating EBIT (earning before interest and taxes) of EUR 886,000 (USD 1.26 million) in the first quarter of 2009, down from EUR 3.1 million (USD 4.4 million) during the same period in 2008.
However, the Greek fish-feed and farmed-fish producer posted sales of EUR 40.3 million (USD 57.2 million) in the first quarter of this year, up from EUR 39.4 million (USD 56 million) last year. The 13 percent increase in sales volume was not reflected in sales value due to low sea bream prices in the first quarter of this year.
“The serious problem of oversupply in the industry that first appeared in the summer of 2007 continued during the first quarter of this year, with the same or even greater intensity,” said Aristides Belles, chairman and managing director of Nireus. “Moreover, because of the unprecedented financial crisis banks have cut credit to many companies, leading to the worsening of liquidity problems and the intensification of the pressures in the price of sea bream.
“However, in such an environment, Nireus Group managed to increase its sales volume to achieve profitable results and to improve cash flow,” added Belles. “The fact is that Nireus Group remains strong and also follows a series of actions that ensure its future: reduction in cost, increase in profitability, improvements in distribution, mitigating various risks, etc.”
Founded on the Greek island of Chios in 1988, Nireus is the Mediterranean Sea’s largest fish farmer and the world’s largest sea bream and sea bass producer, exporting its products to more than 35 countries worldwide. The vertically integrated company operates 64 fish farms, six hatcheries, two processing facilities, 16 packaging and distribution facilities and two fish-feed manufacturing plants.
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