Nutreco on Thursday announced its financial results for the first half of this year.
The Dutch company reported revenues from continuing operations of EUR 2.1 billion (USD 3 billion), a decrease of 8.5 percent from the first half of 2008. The decrease is partly attributed to reduced demand for fish feed in Chile as a result of the infectious salmon anemia outbreak, which had curbed farmed salmon production significantly there. However, strong growth in Norway’s farmed salmon production in the second half of 2009 will largely compensate for the decline, said Nutreco.
Nurteco also reported EBITA (earnings before interest, taxes and amortization) of EUR 46.1 million (USD 6.5 million), down 49.5 percent from EUR 82.3 million (USD 11.5 million) in 2008. The company’s profits also dropped 58.7 percent from the same period last year, to EUR 13.7 million (USD 19.2 million).
The company remains positive about its long-term prospects, and in the second half of the year expects an operational result only slightly lower than the second half of last year and a return in profitability.
“Animal nutrition and fish feed products are directly linked to the basic needs of consumers for food products such as dairy products, meat and fish. Due to the global financial downturn there is a temporary shift in consumer spending to less expensive food categories and a temporary decline in volumes,” said Nutreco CEO Wout Dekker. “However, demand for food will increase again as the global economics recover and population numbers rise.”
On Wednesday, Nutreco announced it is acquiring Cargill’s animal nutrition division in Spain and Portugal for EUR 40 million (USD 56.4 million).
